Beeple sells entirely digital painting. What is a NFT? How does it work?
An artist named Beeple just sold a digital painting for $ 69.3 million at a Christie’s auction house, according to The Washington Post.
- The amount “is the third highest ever for a work by a living artist after pieces sold by the giants of the art world Jeff Koons and David Hockney,” according to The Washington Post.
- The painting was sold through a non-fungible token or NFT.
What is an NFT?
NFTs – non-fungible tokens – are digital certificates of ownership for digital items. This will certify the digital item as a unique item. It’s similar to baseball or basketball cards that are certified before they are sold.
Digital Spy has a better explanation: “Basically, it’s a smart contract, made up of pieces of open source code that anyone can find on platforms like GitHub, and that is used to secure this digital element. Once the code is written, it is minted or permanently published in a token (most commonly referred to as ERC 721) on a blockchain such as Ethereum. “
Here’s how you can create NFTs for JPEGs, gifs, videos and of course, tweets. However, according to Digital Spy, you could create articles and event tickets NFTs.
- “After purchasing the NFT, the owner has the digital rights to resell, distribute, or license the digital asset as they see fit,” said Digital Spy. However, the creator can add restrictions on the use of NFTs.
Why it matters
Todd Levin, a New York art consultant, said he felt “mixed” about the Beeple sale for testifying about the current arts industry, according to the New York Times.
- “On the one hand, it’s super exciting to see an historic turning point,” said Levin. “On the flip side, the amount of money could skew and damage an emerging emerging market.”