The world of NFTs is becoming increasingly popular and exciting, but still remains something of a mystery for many people. Without the understanding of what it is that gives an NFT value, it can make it hard to make a decision on whether you should buy one. With this in mind, we have put together some information which may help you to better understand this innovative and exciting artform. This is a basic overview however, so for more information we recommend you visit the links at the end of this page.
Non-fungible tokens (NFTs) are digital tokens that represent a unique digital asset, such as a digital artwork.
The prospects for reselling and trading digital art are higher and more encouraged than physical art. Like any other speculative asset, there is a possibility that the value of an NFT will increase over time, making it a potentially desirable investment. Also, the condition and vibrancy of digital art remains over time, as it is not susceptible to issues such as sunlight and moisture, like physical art can be. Furthermore, the artist is always recognised as the creator of the piece, creating a positive and dynamic marketplace for both artists and collectors.
No, it is important to note that you do not have any rights in the physical object related to the NFT.
Some of Paul’s NFTs will be completely one of a kind NFTs, whereas others will be available as one of an edition. An edition is a limited set of identical NFTs, but each with unique digital signatures.
Paul retains the copyright to the NFTs he creates. You are considered the owner/collector of the purchased NFT, and have no right to copy, reproduce or make derivatives of it.
NFTs should be stored in a safe and secure digital wallet. For further advice, please read this guide.
No, all NFT sales are final.
There are many methods for displaying an NFT, such as on screens, tablets and televisions. Some companies now already create bespoke digital ‘frames’ for NFTs, with accompanying apps designed to make it easy to curate and manage your NFT collections in your home/gallery. A selection of Paul’s NFTs may include a physical print of the digital artwork. Please check the auction listing description for this information.
The majority of Paul’s NFTs are available on two of the leading NFT platforms, KnownOrigin and Foundation, both of which are invite-only artist communities, featuring artwork of a higher standard than the ‘open to all’ platforms. More information on purchasing on Foundation can be found here and this link gives more information on purchasing on KnownOrigin. All the artwork listed in Paul’s Digital Collection feature links to any active listings for artwork available to purchase, but you can visit Paul’s Foundation collection here and visit Paul’s KnownOrigin collection here.
To get started, you will need to have a digital wallet to which you have added some cryptocurrency. Both Foundation and KnownOrigin using the cryptocurrency Ethereum (ETH), so this is the currency you would need to have balance of enough to cover any purchase. Digital wallets do allow you to exchange between currencies although you need to take into account any possible transaction fees.
You then need to connect this wallet to the NFT platform where you wish to browse & purchase. This will require an extension to be added to your web browser, which makes the connection. KnownOrigin and Foundation both support MetaMask which is a browser extension that also serves as a digital wallet. Although we recommend you do your own research when choosing a digital wallet, MetaMask is widely used and works with most browsers, devices & NFT platforms. You may instead choose to find a dedicated digital wallet, then sync that wallet to MetaMask, so that MetaMask is purely used to connect you to the NFT sites, with your funds managed elsewhere.
Once you have connected your wallet to the NFT platform, you are free to browse & purchase! Unlike traditional websites where you need to set up a user account & password to use the site, in most cases on NFT platforms your connected wallet IS your account. As long as your wallet is connected, you are then set up to use that site, although you are then able to edit things such as your profile name or display details.
The methods for listing an NFT for sale can vary, with ‘Buy It Now’ options, ‘Reserve Price’ auctions, ‘Make an Offer’ sales, or even ’24 Hour Reserve Auctions’. The latter of these is an exciting way of approaching auctions, whereby when the first bid is received that meets the reserve price, a 24 hour countdown starts until the auction ends. If any bids are received in the last 15 minutes, another 15 minutes is added. This allows auctions to be resolved organically and fairly, rather than the ‘race to bid in the last 5 minutes’ approach on something like eBay, which often ends in disappointment or over-enthusiastic last second bidding!
Once you have purchased an NFT, it will be transferred and connected to your digital wallet, where it will always remain as an asset in the same way your money does, unless you choose to sell the NFT on in the future.
At any point, you can use the same account on the platform where you purchased the NFT, to re-list it for sale on the secondary market. Alternatively, you can choose to transfer the NFT to another platform to resell there. There are some limitations to these transfers however, such as the blockchain/currency on which the NFT was created. You cannot move NFTs between different blockchains, for example.
All of the above is a very simplified outline of what can be quite a complex subject to the uninitiated. There are additional areas we recommend you make yourself aware of, such as ‘Gas Fees’. These are the micro transactions which are charged to make any changes on the blockchain. All NFT sites will be able to advise you on what Gas Fees may be encountered when buying & selling on their platform.
For more information on the whole subject of Art and NFTs, we recommend visiting these sites for further reading: