Shorter Reads

The NFT revolution in the covid-era

‘Cryptoart’, digital art sold with a certificate of authenticity known as a non-fungible token (NFT), has become increasingly popular amongst consumers during the pandemic. Jean-Martin Louw comments on what the rise of NFTs means for the art world.

1 minute read

Published 17 March 2021

Authors

Share

Key information

  • Sectors
  • Media arts and culture

Non-fungible tokens (NFTs) have been around for a while, but in the Covid-era as more cultural experiences are migrating online, we are now seeing a far greater take-up amongst ordinary consumers. In simple terms, an NFT represents provable ownership rights in a unique digital asset, such as a piece of art. Those rights can then be traded in 24-hour online marketplaces, which are far more liquid than traditional art markets. As with any art, counterfeiting is always a worry. However, because the NFT holder’s ownership is recorded on a tamper-proof blockchain, they can always prove that they hold the original work.

One of the most exciting aspects of the NFT revolution is that it promises new ways for artists, musicians and other digital content creators to generate value from their works. Some marketplaces allow creators to earn future royalties each time their works are resold in the secondary market. Those royalties are paid out automatically and in perpetuity under digital smart contracts linked to the asset.

Message us with any questions

Related latest updates
PREV NEXT

Related content

Arrow Back to Insights

Shorter Reads

The NFT revolution in the covid-era

‘Cryptoart’, digital art sold with a certificate of authenticity known as a non-fungible token (NFT), has become increasingly popular amongst consumers during the pandemic. Jean-Martin Louw comments on what the rise of NFTs means for the art world.

Published 17 March 2021

Associated sectors / services

Authors

Non-fungible tokens (NFTs) have been around for a while, but in the Covid-era as more cultural experiences are migrating online, we are now seeing a far greater take-up amongst ordinary consumers. In simple terms, an NFT represents provable ownership rights in a unique digital asset, such as a piece of art. Those rights can then be traded in 24-hour online marketplaces, which are far more liquid than traditional art markets. As with any art, counterfeiting is always a worry. However, because the NFT holder’s ownership is recorded on a tamper-proof blockchain, they can always prove that they hold the original work.

One of the most exciting aspects of the NFT revolution is that it promises new ways for artists, musicians and other digital content creators to generate value from their works. Some marketplaces allow creators to earn future royalties each time their works are resold in the secondary market. Those royalties are paid out automatically and in perpetuity under digital smart contracts linked to the asset.

Associated sectors / services

Authors

Need some more information? Make an enquiry below.

    Subscribe

    Please add your details and your areas of interest below

    Specialist sectors:

    Legal services:

    Other information:

    Jurisdictions of interest to you (other than UK):

    Article contributor

    Enjoy reading our articles? why not subscribe to notifications so you’ll never miss one?

    Subscribe to our articles

    Message us on WhatsApp (calling not available)

    Please note that Collyer Bristow provides this service during office hours for general information and enquiries only and that no legal or other professional advice will be provided over the WhatsApp platform. Please also note that if you choose to use this platform your personal data is likely to be processed outside the UK and EEA, including in the US. Appropriate legal or other professional opinion should be taken before taking or omitting to take any action in respect of any specific problem. Collyer Bristow LLP accepts no liability for any loss or damage which may arise from reliance on information provided. All information will be deleted immediately upon completion of a conversation.

    I accept Close

    Close
    Scroll up
    ExpandNeed some help?Toggle

    Get in touch

    Get in touch using our form below.