NFT’s (non-fungible tokens) have taken the art world by storm and many experts believe they have the power to transform the industry. NFT’s are not a new concept, they have been around for many years, but their popularity has soared in recent months.

In this article, we will discuss everything you need to know about NFT’s, with expert commentary from art collector and gallery owner Olyvia Kwok Decani.

What are NFT’s?
NFT’s can be described as digital certificates of ownership. They are typically purchased and sold using cryptocurrency, to which any digital file can be attached. The sale is recorded on a secure digital ledger (called a blockchain) that gives the buyer proof of authenticity and ownership. Each NFT is unique and only the owner has the right to sell it.

In March, a JPG file called Everydays: The First 5000 Days by the artist known as Beeple, sold for $69.3m at Christie’s New York. The was the highest price that a digital artwork has ever sold for, and the price beat auction records for physical paintings by famous artists like Georges Seurat and Francisco Goya.

A digital copy of the Banksy print called “Morons” also recently sold for roughly $382,000 on the online platform OpenSea. This is more than three times the price that any of the original “Morons” prints have been sold for at auction.

According to Olyvia Kwok Decani: “NFT’s are really a watershed moment in art history.” The prices that NFT’s are selling for has shocked the art world.

What are the benefits of NFT’s?
NFT technology offers a revolutionary new way of selling art. Olyvia Kwok Decani explains how: “The digital art market is a major changer for individual artists who make a living selling NFT’s. Artists can make more money without losing less money to the middlemen. It can be a complete reclaim of control over their work.”

NFT’s essentially eliminate the need for art dealers by allowing artists to sell their art to consumers directly online. This usually takes place via a specialist auction site that specialised in NFT’s.

Another benefit to art collectors is that there is no vetting process. In the contemporary art world, it is common practice for galleries to prevent buyers from flipping artworks and making a quick profit. In comparison, anyone can buy an NFT and its creator will continue to make a profit every time it is resold via an inbuilt royalty system.

NFT’s could also promote inclusion and diversity in the art world. According to Olyvia Kwok Decani: “Right now the art world's viewpoint is western-centric. Crypto art could signify a shift here.” She adds: “There are huge benefits from the revolution of NFT’s - it has the potential to be an equalising moment for those artists who are sustaining it, such as within the African art market.”

NFT’s in South Africa
In March, the first NFT was sold in South Africa by an art gallery called Worldart based in Cape Town. The piece was created by local artist Norman O’Flynn and was listed on OpenSea. It sold for roughly $35,000.

Charl Bezuidenhout, the owner of Worldart, has plans to create an online market platform in South Africa similar to OpenSea. This will allow local artists, galleries, and collectors to list and advertise their NFTs”. The website is due to launch within the next few weeks and will be the first platform of its kind in South Africa.

Are NFT’s here to stay?
There has been speculation about whether NFT’s are simply a craze that will slowly phase out, but many art professionals believe that NFT’s are a turning point in the art world that will continue to revolutionise the market.

According to Olyvia Kwok Decani: “There’s no doubt NFT’s are here to stay. Full ownership is common, but fractional ownership will be much easier to obtain so this will help with the initial teething period in the art world.”

Statistics reveal that sales of NFTs in the first half of 2021 rose by more than $2bn (£1.47bn). This trend prompted Christie’s and Sotheby’s to organise and host their own NFT auctions. This is said to have contributed to contemporary art sales being at an all-time high.

Summary
NFT’s have the power to transform the art world and create a more efficient model built on the principles of financial transparency, royalties, and easy access. Digital art offers several benefits to both artists and collectors and it's likely to continue growing in popularity in coming years.