How the digital art market works

Now digital art is not only an opportunity to earn a lot of money, but also a new direction in the development of art. Now digital art from v-art.digital is one of major markets for NFT, hundreds of artworks are changing hands in minutes.

Let's start from afar. Until some time, to a person who did not understand cryptocurrency, words like "blockchain" or "token" seemed familiar but little understood. With the advent of NFT technology, everything changed: now they are of interest to artists and art collectors.

What is a non-convertible token?

For example, Bitcoin is an exchangeable token. The world's main digital currency has even been recognized as fiat: it happened in France, where bitcoin was equated with ordinary money. The district court found that he was subject to the general lending rules. Interchangeability is a sign of so-called "good" money. However, this does not mean that NFT trades automatically turn "bad".

How does Bitcoin convertibility work?

Under all circumstances, 1 BTC = 1 BTC. However, as blockchain developed, it became clear that not all tokens are interchangeable. Does this mean they can't be used for digital asset transactions? On the contrary: NFTs are valuable for their uniqueness, as are paintings of musical compositions. And this is the main thing that connects NFT tokens and art objects.

The technology works like this: all tokens are different from each other and none of them can be forged, split or silently replaced. This is necessary so that their owners can secure their rights to any unique item - from an item in a favorite computer game to a masterpiece that exists in a single copy.

Thanks to history in blockchain: traceable and verifiable

Why is the art market digitizing now?

Non-exchangeable tokens are used to sell celebrity live broadcasts, music albums, but are of particular importance to the art community. First, transactions with them are as simple as possible, which cannot be said for transactions with physical objects. Second, the main advantage of NFT is its programmability. You can save the royalties in a token, and they will be charged from each new owner of the work you have converted into a digital asset. And you don't have to search for them and inform them about it: information about the commission is stored in a smart contract, and the declared amount is automatically transferred to your "wallet".

How does cryptographic art create a new era in contemporary art?

Today, NFT technology is radically changing contemporary art. And the coronavirus pandemic has made its own changes to its development. While there used to be live auctions where you could sell a tangible image, now all sales have gone digital, where it's much easier to include an NFT token in your work.

This does not mean, however, that the art of NFT will remain online. Today, many galleries are thinking about organizing a digital art exhibition.