What are NFTs?
NFTs Revolutionize the Marketplace for Artists
NFTs, or non-fungible tokens, have come a long way since first hitting the digital world in 2015. And, just like crypto, they seem to be shifting the trajectory of the cyber universe. Earlier this year, Reuters reported that the sale value of NFTs for the first half of 2021 reached almost $2.5 billion, a huge increase from $13.7 million in the first half of 2020. According to Cryptonomis, interest in NFTs grew by 426 percent in August 2021 alone.
With the NFT craze sweeping the world, a group of tech geeks and artists have joined forces to mastermind enter. Launched in June 2021, the Norwegian company aims to empower a new generation of artists. Enter’s digital platforms enter.art and enter.audio have been engineered to help artists reach global audiences in a way that bypasses galleries and record labels. The platforms also assist artists to secure royalties while guaranteeing the authenticity and ownership of each NFT.
There is little doubt that NFTs are reshaping the creative landscape by flipping the traditional way of selling art on its head. Ready to find out more about this exciting new technology and the future of artistic expression? Keep reading.
What are NFTs?
NFTs, or non-fungible tokens, are digital certificates of ownership. In more technical terms, they are unique chunks of data stored on a blockchain, or a digital ledger, that represent digital collectibles, such as artworks or audio. The blockchain records NFT transactions on a huge number of computers to ensure security (any transactions recorded on a blockchain can’t be changed). While the collectibles can be copied and shared, the ownership of the original piece remains with the owner of the NFT art and can be verified with blockchain technology.
Unlike Bitcoin or cash for that matter, which are fungible because they can be easily interchanged, NFTs are non-fungible since they lack interchangeability. Nevertheless, NFTs can be bought and sold, just like any other type of asset.
NFT art can also contain smart contracts that stipulate certain conditions that accompany the transaction — for example, securing a percentage of any future resales of the NFT for the creator. This means that the artists benefit as their art gains in value. In the world of digital music, smart contracts can include added utilities such as concert tickets or merchandise.
Since their inception, NFTs have been used to track the ownership of a huge variety of digital assets, most common art, music, photography, graphics and videos.
Whether it’s in the field of music or art, NFTs give artists and collectors much-needed control over their digital assets. This is because minting an NFT ensures a verifiable record of ownership on the blockchain, preventing the file from being digitally replicated. Even if two copies of the same digital work are published, they will be distinguishable by their metadata. And, best of all, even when sold, any digital work that has been minted will lead back to its creator.
Since their launch earlier this year, enter.art and enter.audio have played host to thousands of incredible artists. And the platforms’ featured works have run the gamut of high-end art, murals, hip hop and jazz. To facilitate even better functionality, enter has recently upgraded its ERC-721 smart contract to ERC-1155, opening the doors to a huge range of new features for both the creators and collectors of NFT art.
Following the upgrade, artists can opt to mint up to 20.000 NFTs in one transaction. Artists can also create NFTs with different rarity levels and price ranges to satisfy different collector needs. It is important to remember here that the scarcity of single editions keeps NFTs more exclusive and is preferable for artists planning to put their work up for auction (more about this later).
In addition, artists can now select a royalty of up to 20% on all future resales of their art. This ensures that they collect money every time their NFT trades hands. Both enter.art and enter.audio also offer the option of splitting royalties with multiple collaborators, or even charities or other beneficiaries.
Creating NFT art on enter.art or enter.audio is a piece of cake. Simply upload your artwork or music and enter a few details for collectors including the number of editions of the NFT, and information about royalties and collaborators. Neither platform charges any minting fees.
To ensure the high quality and authenticity of NFTs, only artists that have been featured on enter.art and enter.audio can create auctions. Artists are able to select a minimum sale price for their NFT or leave things up to the market. Meanwhile, collectors can use their $NFTART tokens (keep reading to find out more) — which are converted into bidding tokens — to place a bid on a specific NFT. They can make as many bids as they like and monitor the progress of each auction via the active auctions tab.
NFTs are usually held on the Ethereum blockchain and purchased with cryptocurrency. This is not ideal, however, as Ethereum is known for its sizable transaction fees and hefty environmental footprint.
NFTs on enter.art and enter.audio are purchased with the $NFTART token, BNB or BUSD. Since they all run on the Binance Smart Chain, collectors need to hold a BSC-compatible wallet and a little bit of BNB to pay the small transaction fee. If collectors are interested in an NFT that isn’t listed for sale, they can chat directly with the artist or musician and even make them an offer. This is revolutionary since it eliminates the so-called middle man that has traditionally connected artists and buyers.
In the future, enter is planning to simplify the transaction process even further by enabling collectors to purchase NFT art with their bank cards. The NFTs will be held in a custodial wallet until the collector is ready to set up a crypto wallet.
So What is the $NFTART Token
The enter.art and enter.audio ecosystem is fuelled by the $NFTART governance token — the in house currency that can be used to buy and sell NFTs. $NFTART utilizes the Binance Smart Chain, which is known for its low transaction fees and relatively low environmental footprint. All $NFTART transactions are exempt any additional fees.
The $NFTART token is deflationary, which means that it comes with a transaction tax. When a transaction is made, 5% of the token is redistributed to its holders, increasing their funds. Another 5% of the token is burnt to lower the number of tokens in circulation. This, in turn, reduces the supply of the token, making it more scarce and in effect more valuable. As of 27. November 2021, 69.8% of the tokens has been burnt, leaving 30.2% percent in circulation.
Looking to learn more about NFTs? In this section you can learn more about how NFTs are revolutionizing the world.
PUBLISHED 9TH MARCH 2023
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