A Complete Review Of An NFT Art Marketplace

Introduction

The world of cryptos has been beholden to the frenzied and bullish run of NFTs in 2021. It's 2022, and the total market cap of NFTs is around 23 billion dollars. The NFT headlines are roaring millions. When an NFT is purchased, you might not necessarily own the piece of art because NFT does not convey copyright or any other utilizing rights until and unless any exploitation of rights is mentioned in it. You are conferred with a digital right when you buy an NFT. All the media eyeballs are in the arena of NFT sales.

Every transaction computed on the blockchain network is recorded and is immutable. It offers its users to gain ownership of digital assets like memes, media, tweets, arts, articles, etc., in the form of tokens. All the computed transactions are permanent, verified multiple times, and can not be altered, as it is backed up by blockchain technology. Each non-fungible token is unique, ergo never two digital assets can be minted as the same token. Intrinsically, an NFT offers a certificate of authenticity or a digital autograph that is associated with a digital asset.  

An NFT Art Marketplace Platform

It bridges the gap between collectors and creators. It offers the collectors not just to own the piece of art but also to grab ownership of it through NFTs. And in the case of creators, it allows them to earn through royalties when the NFT is resold in different marketplaces across different geographical boundaries. 

Problems That Exist In A Traditional Marketplace 

•  Presence of  Multiple layers of intermediaries 

Society is full of challenges when an artist desires to turn to the avenues leading to profits. Mingling with a gallery or an e-commerce website might seem to be a lucrative possibility. But the pitfall is that artists need to share a significant portion of their profile with these intermediaries. You might be a painter, a fashion designer, a singer, or anything, whatever might be your creation, but your creativity always suffers due to the presence of multiple layers of intermediaries. It not only affects your professional growth but also affects you personally, emotionally, on a broader scale. 

• Hold-up payments 

We not only adopt technology but also embraced it in every possible way. There were times when technology impressed us with its mechanism. Every major industry has adopted the latest high-tech technology and is flourishing, indistinguishable from the music industry as well. But, the payments are still made through the traditional methods, i.e., through cheques- no modernization or reconstruction in the field of payments. Even though digital payments are omnipresent, still time-consuming processes are undertaken. And, in this entire process no one, but the artists are the one who suffers from every aspect. 

• Absence Of Transparency and Ownership

The most tricky challenge and issue that every industry is currently facing is transparency and ownership. When the aspect of distribution, the problem of transparency rises at its peak. Artists wait to lead a path that leads to commercial success. It is always noticed that, at certain points, the original content creators lose track of distribution when a digital medium is used. Thus, ownership and transparency are still in the dark for the artistic population. Thus, Lack of Transparency and Ownership results in making a profit for Digital service providers, and the actual artist holds a minimal share.

• No traceability about the resale of their art

Every artist does not directly benefit from downstream payments when the hand of work is being changed in the international market. Even when they are pretty famous, and their art is being sold at a substantial demand, they do not receive anything. They do not even have an idea about the resale of their art in the global market. They are clueless about it, which turns out to be a massive loss for them. 

• Domination in the industry 

The luxury industry, more specifically art and collectibles, has long been defined by numerous factors, including artist clout, scarcity, provenance, authenticity, condition,  technique, and market dynamics. These principles in the art and collectibles space have created a market of extreme wealth and desirability. Historically, items such as fine art and antiques have dominated the art and collectibles space.

Solutions Offered By An NFT Art Marketplace Platform 

• A lack of transparency has made this industry ripe for bad actors and fraudulent activity. With the leverage of blockchain technology,  it creates immutable records of authenticity and provenance, mitigating risk with fraud and counterfeits in a legally compliant manner. 

• Marketplaces democratize these seemingly enigmatic worlds by using technology to eliminate the gatekeepers. 

• The commission taken out of an artist’s proceeds by a traditional dealer or e-commerce site can run upwards. 

• The aim is to give creators (artists, brands, retailers) direct access to collectors without excessive fees and intermediaries. 

• NFT art marketplace enables these creators to sell creations directly to collectors with a minimal fee.  

• Accessibility across the world

• Ownership 

• Transparency

• Traceability

• Royalty

• Instant Payments 

• Eradication of any intermediaries

Bottom Line: 

Getting the business done is what every creator/curator strives for. But, to flourish in the market one needs the power of a Non-Fungible Token. The time has come for NFTs, and if you want to get started, now is the time!