The rise of the NFT marketplace
The NFT market has exploded in the last couple of years. While few naysayers call the trend a bubble, NFTs hardly show signs of abating. Rather, NFTs are gaining popularity among several megastars of the Indian film industry. Amitabh Bachchan has sold his voice recordings of ‘Madhushala’, Harivansh Rai Bachchan’s poetry collection. Salman Khan is also known to have collaborated with Bollywood’s NFT marketplace and will jump the bandwagon soon.
What is NFT? And why is it so popular?
NFT or Non-fungible Token is a blockchain-based collectable digital asset such as artwork, messages, audio, etc. Simply put, if you have an artwork that you want to auction. You can digitise and create an original e-copy which you can then sell in the NFT marketplace.
Each NFT item will be considered unique, and cannot be disassembled or morphed.
What can one sell in the NFT marketplace?
Anything from music to videos, video game skins, virtual avatars, art, jpg, to designer products, can be sold.
Key features of non-fungible-token:
1. NFTs are written in blockchain-based code that is time-stamped. The use of blockchain ensures that each transaction is recorded, which is why NFT ownership can only be transferred and not duplicated or modified.
2. NFTs cannot be divided or changed into little tokens. They remain indivisible.
3. Linking NFT with blockchain technology offers an encryption feature that keeps the artwork secure.
4. The ownership of a digital asset is verified, which means a second copy of the original work can be easily distinguished. The copyrights of the artwork remain with the owner of the unique NFT.
5. Digital assets can be accessed by more people as compared to physical copies, which also increases the possibility of uptake.
6. It’s quick and easy to share digital work, which increases its liquidity factor.
7. Transactions are made instantly followed by an automatic update of the digital art owner.
Is there a need for an NFT marketplace?
NFT marketplaces have existed for over a decade in the form of platforms like SnapDeal, Amazon, Flipkart etc. However, the sudden popularity of NFTs to sell artwork is attributed to the closure of auction houses and galleries during the pandemic and the dramatic shift to the digital space.
These platforms provide a common ground for artists, connoisseurs and buyers. Artists and creators can reach multiple buyers online and garner more interest in their work. Buyers and collectors have a readily available array of assets. It is easy to authenticate artwork and verify ownership. All these factors make NFTs convenient and attractive for all parties.