What Is NFT Art? (How Does It Work)

Non-fungible token (NFT) art refers to digital assets stored on a blockchain representing content or even physical items. Art mediums that NFTs can represent include digital drawings, paintings, music, film, poetry, or books. NFT art allows artists to sell or rent artwork beyond the physical world, although it’s notable that India’s Income Tax Act mandates a 30 per cent tax rate on all NFT-related income. Still, NFT art has transformed the country’s art scene, offering lucrative opportunities and increased access for young artists to have their work appreciated. 

Explore NFT art and how you can get involved in the NFT market.

What is NFT art?

NFT art is a digital asset that the buyer owns and can sell or trade on a blockchain platform. Selling NFTs is a means of selling digital art without building an extensive social network. Blockchain transactions take place on NFT marketplaces, reducing the obstacles to self-promotion.

You’ll need a digital wallet to purchase cryptocurrency from blockchain platforms like Ethereum or Bitcoin to buy or sell NFT art. Take a look at some standard terms you need to know to enter the NFT art world:

What’s the difference between NFTs and traditional art? 

NFT art and traditional art vary in many ways. In some cases, NFT art can be more profitable because the artist can set the commission percentage. Unlike conventional art, anyone holding NFT art can resell it, with the artist earning a royalty each time. Some of the other notable differences include:

• Storage: Traditional physical art requires storage space. NFT art requires storing a digital file with blockchain technology.

• Selling venues: Traditional art can be sold online, in art galleries, and through auction houses. NFT art is sold online at NFT marketplaces.

• Audience: NFT art can reach many potential buyers via the internet. Traditional art has a limited audience if it’s in a gallery or auction house. 

• Market volatility: NFT value is not purely economic. The market for NFTs can depend on things like social climate and relevancy.

Advantages of NFT art

Digital art often costs less to produce than traditional art. Traditional art requires expensive materials such as paints, brushes, and canvases, whilst digital art requires a minimal investment to start. Programs such as Adobe Photoshop and Illustrator provide the tools to create digital art, and tablets and apps for drawing are also available. 

Traditional art requires replacing materials as you use them, which isn’t required of digital platforms. Digital art offers more freedom to manipulate colour without damaging the paper or canvas. Other advantages include: 

• A new way to generate income

• Opportunities to receive royalties on future sales

• Less risk of digital art getting damaged

• The upfront cost to join an NFT marketplace is lower than that of traditional art sellers.

Disadvantages of NFT art

One glaring disadvantage of the NFT marketplace is its stability. Since NFT art’s value varies according to the influence of factors like public opinion and social media trends, it can take time to gauge the profitability of your investments. The following are a few more potential drawbacks to consider:

• Energy usage: The amount of energy it takes to handle blockchain transactions can be cause for concern.

• Legal rights: Purchasing an NFT representing another asset does not necessarily give you ownership of that intellectual property (IP). For example, you can own an NFT of a video clip from a sports game. However, people can still download and share the original clip without infringing on your rights.

• Ethical dilemmas: Plagiarism and art theft have led to artist complaints surrounding the NFT market. For example, after digital artist Qing Han passed away in 2020, someone stole her at and sold it as NFTs against the wishes of her family.

How to create NFT art from traditional art

If you’re a traditional artist interested in displaying your work in the NFT marketplace, you can do so by converting your artwork into a digital format. The following describes ways to convert traditional art into NFT art:

• Take photos with a smartphone or digital camera and ensure the colours remain true. 

• Reproduce prints with 2D scanners to get better colour quality for digital conversion. If your colours need correcting, you can use a program such as Adobe Photoshop or a free online program.

Once you’ve converted your art, you can list it on an NFT marketplace. You can sell copies, such as limited editions, but each is a digital asset the purchaser owns.

When your digital artwork is ready, you will need to select a blockchain and market and set your selling rules. 

How to sell NFT art

To embark on a career in the NFT digital art marketplace, first understand the digital art market and the digital economy. It may be beneficial to have the following skills: 

• Social media skills to showcase your artwork 

• Ability to create digital art

• Knowledge of software like Adobe Photoshop, Illustrator, or InDesign

Job outlook for digital artists

The NFT artist's career outlook depends on the amount of artwork sold and the price it sells for. You can earn royalties on subsequent sales. Many NFT artists are self-employed and freelance, with the ability to control the price of their art using NFT sales platforms.

According to Glassdoor India’s July 2024 data, digital artists earn an average annual base salary of ₹2,82,000, with an average range of ₹2,28,000 to ₹3,84,000 [1].

Learn more about NFTs

NFT art refers to digital assets representing content or physical items stored on a blockchain. To get your start in the NFT art space, consider learning more about non-fungible tokens and the marketplaces. Decentralized Finance (DeFi) Primitives from Duke University is a course that can help you learn about non-fungible tokens. 

If you’re just starting in digital design, try the Graphic Design Specialisation offered by the California Institute of the Arts.