22 June 2021

NFTs in a Nutshell

The best way to describe Non-Fungible Tokens (NFTs) is as the digital equivalent of signed editions (i.e. when artists sell signed and numbered editions of their work), albeit with cryptographic signatures instead.

Up until recently NFTs were only known within the crypto community. However, Beeple's 69-Million-dollar sale of a single NFT featuring a digital image that was auctioned by Christie’s in March, took the artworld and the mainstream media by storm. More importantly, they made everyone realise that NFTs had managed to do the unthinkable: make scarcity for digital assets possible.

The greatest thing about NFTs is that they enable digital artists and creators of immaterial art to be able to “sell the original” for the first time ever. On the downside, NFTs have been severely criticised for their carbon footprint. However one could make a strong case that, firstly, it is only a matter of time (with Ethereum 2.0 being in the final stages and Cardano launching in the summer), before the majority of NFTs will be traded on energy efficient blockchains. Secondly, nobody could really argue that, if these transactions were fulfilled via the banking system (as they would be otherwise, since artists continuously explore new ways to raise funds) their carbon footprint would be any lower, especially given the fact that the world's largest banks are actively investing trillions in fossil fuels.

At USEUM we are fascinated by NFTs and their ability to bring scarcity to the digital world. We believe that they present a medium that is here to stay for the long-term, well beyond the novelty bubble and the current crypto market "bull run". Therefore we believe that the sooner we understand and learn to work with this arguably complex new medium, the better it will be; both for artists, since it is a medium that opens up entirely new revenue streams, as well as for art enthusiats, who have the opportunity to become amongst the very first collectors of the new crypto artworld.

For that reason we have decided to embrace the complex world of blockchain and provide a platform for creators as well as for aspiring NFT collectors to navigate through the new artworld of NFTs that is only now starting to emerge, i.e. USEUM Collectibles.

Visit USEUM Collectibles

If you need any further information, on USEUM Collectibles, or on NFTs in general, please get in touch.