What Are NFTs and How Are They Changing the Art World? – NBC Boston

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NFT, an irreplaceable token, has received a lot of attention among artists. But what exactly are they and what are the ups and downs for artists and buyers?

NFTs are basically digital assets that can or cannot be duplicated. They exist on the blockchain system-the space people usually associate with cryptocurrencies. However, artists are now working on the concept of creating the physical work that accompanies these assets, creating investments that are also artwork.

Professor Marco DiMarzio of Harvard Business School has developed the first FinTech class at Business School. He proposes to think of NFTs as a collection for the digital generation.

“I’m very excited because there are so many artists who want to publish NFTs,” he said.

Among them is the famous British artist Damien Hirst, who dropped “The Currency”, an NFT collection of 10,000 unique works. Buyers can choose between digital NFTs and physical components for 6 months. The other will get burned.

“That is, the NFT records who owns what, so every time you sell it, the NFT records it on the blockchain,” DiMaggio explained.

Think of blockchain as a digital database ledger that records transactions in a verifiable and persistent way.

You’ve probably heard about blockchain in the context of cryptocurrencies like Bitcoin. But did you know that collectors are currently spending hundreds of thousands of dollars on what’s called crypto art on the blockchain? Eric Rodriguez, a storyteller at NBCLX, delves into the world of NFTs, blockchains and crypto art.

“For every additional transaction in the secondary market for this particular artwork, you might say that you need to give some of it to the artist,” he added. “It’s really collecting information, and you know, the history of the work of art. And you certainly know that you haven’t bought a counterfeit or someone who stole the work of art. “

Its ability to track sales over time is appealing to new artists who want to increase their sales.

“This is a psychedelic bloom blossom ….. it’s like a trippy-type animated video,” explained artist Frosday.

On Sunday, he said selling an NFT version of his art would give customers direct access without paying gallery fees. If he becomes famous someday, he can continue to earn royalties at resale value.

“It has given artists some more benefits so that they can prefer to set their conditions.”

However, buying NFTs in cryptocurrencies is not without risk.

“In the primary market, when art matters, the price of NFTs is very high, but in the secondary market there isn’t much liquidity, so if you want to sell and make a profit, it’s very difficult,” he said. ..

Still, real estate brokers like Jorge Saliego and Noah Coller are interested in selling NFTs at work. At Boston Realty Group, you can buy physical works of art and their unique digital versions.

“The long-term goal is basically generational wealth,” said Saliego.

DiMaggio said we should expect more regulations to be seen.

“Because bystanders are looking into this space, it needs to be regulated, but they feel like they’re in a gray area, fearing what’s allowed, what’s not, or scammers. It’s not clear if it’s there. By setting regulations, you can also get a sign of approval. “

DiMaggio has provided several websites to learn more about crypto, blockchain, and NFT basics: coinbase.com/learn and academy.binance.com/en/start-here.

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