The Difference Between Digital Art And NFTs
Digital art can always be an NFT, but an NFT can’t always be digital art. Bit of a brain teaser, we know! Let’s jump in and explain the difference between the two.
What is an NFT?
NFT stands for Non-Fungible Token. NFTs are issued on a blockchain; the ‘non-fungible’ part means that they’re completely unique, and there’s no other collection of data like it. Cryptocurrency itself is fungible, meaning that they’re interchangeable with each other.
NFTs became popular as pieces of digital art, the idea being that because they’re unique, they can provide a receipt of authenticity stored on the blockchain. Even in the real world, having the original piece of art is a huge deal, but it’s a lot harder to verify.
If you have digital artwork, this can easily be verified and passed on to the next owner once sold, securing authenticity via the blockchain record.
An NFT can be a bunch of things including:
- Metaverse Items
What is Digital Art?
Digital art, once called computer art or new media art, refers to art made using software, computers, or other electronic devices.
Anything produced or made on digital media, such as animations, photographs, illustrations, videos, digital paintings, and such can be classified as digital art.
The only thing that limits digital art from becoming an NFT is the underlying blockchain technology that brings it to life. The technology itself is what brings most of the utility that investors desperately seek, the technology also brings the hype and in turn, valuations skyrocket.
The rocketing prices of NFTs are what brought many digital artists to produce their own NFT collections.
Fractional Art NFTs
Because of this huge influx of talented artists now entering the NFT space, valuable collections started to spring up. Prices went through the roof and many people were just priced out of owning any collections they genuinely appreciated for the artistic value and not monetary value. Which is where The Piece comes in, we allow owners of NFTs to fractionalise their NFTs, in order for other people to own smaller chunks (Fractions) of the same NFT, they can then benefit in proportion to however much they invest.
What is Fractional Ownership?
Fractional ownership is when an asset is divided into smaller shares so that a group of investors can own an asset together, rather than just one single investor. This joint venture can bring about many benefits but also some pitfalls. This fractional ownership provides investors with usage rights, priority access, reduced rates. Any usage benefits would be similar to that of a timeshare investment.
The more modern version of fractional ownership is known as tokenized ownership, which replaces the usage of shares with tokens or cryptocurrency, this is a popular method of equity release and has recently been adopted in fractionalizing ownership of bluechip NFTs.
If you’d like to learn more about what fractional ownership, it’s pro’s and con’s, then click the links below:
The Benefits of Fractional Ownership
The Downsides of Fractional Ownership