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NFTs became the most searched term in 2021. Creatives felt more empowered than ever to bypass the traditional system of talent recognition and began minting their digital work as NFTs.
The results were incredible: artists like Mike “Beeple” Winkelmann made multi-millions from NFTs auctioned at Christie’s.
Let’s take a look at how NFTs are revitalizing the creative industry:
NFTs give creators their power back.
It’s great to be alive in a time where creators can seize ownership and revenue back from big corporations, thanks to NFTs and decentralized finance.
NFTs let creators get their power back from the creative industry. It opens up the possibility for a more intimate connection with their art and their fans.
Bands have released albums using NFTs and providing fans who purchase them with extra perks, digital art, and exclusive experiences.
The self-publishing industry had many hoops in place for budding artists. The traditional publishing industry wasn’t any better.
These decentralized NFT platforms make it possible for authors to publish books on the Blockchain, and Blockchain technology ensures that NFTs are traceable and are highly resilient to forging. That’s not to say that NFT scams are nonexistent, but it does make them resilient to counterfeiting, saving creators the hassle of protecting their content.
NFTs provide artists with more revenue.
What provides NFT with their value is that traders purchase an original art piece by one of their favorite artists. There’s only one digital certificate of ownership in existence, which provides artists with the feeling of importance, and traders with the possibility of increased profits.
When an author publishes a book on Amazon, they earn income from readers purchasing their books, minus the fees subtracted by Amazon’s marketplace. In other industries, artists are deprived of their full income or royalties by the companies that provide them with the exposure they need to make their sales in the first place.
NFTs cut out the middleman, thus providing NFT artists with more possibilities for revenue. They still have to deal with gas fees and the NFT marketplace fees, but these are much more manageable than the higher fees charged by managers, art platforms, and publishers.
The resale market for NFTs is thriving and provides artists with a solid opportunity to derive income from their assets.
NFTs give creatives their royalties.
If configured correctly, the royalty feature offered by many NFT marketplaces offers the creator a permanent cut for every secondary resale.
This means that the NFT artist benefits from the increasing value of their NFT, not just the trader who purchased their piece to make a profit.
NFTs provide both artists and traders with a sense of ownership. As the owner of an NFT can be proven, its value tends to increase with time. Every time these NFTs change hands, the creator receives a cut from the sale.
Most NFT marketplaces, like OpenSea, allow creators to set their rates for royalties. Others, like Foundation, have a fixed rate.
Artists can truly own the digital assets they mint as NFTs, and buyers can genuinely hold the digital certificates that prove they purchased the NFT permanently.
The reason why NFTs are revitalizing the creative industry is that they serve as the cornerstone of the creator economy.
What is the creator economy?
The creator economy refers to a new business model comprised chiefly of independent creators. These independent creators could be digital artists, influencers, content creators, or producers.
The creator economy provides artists with a different way of generating income. Instead of relying on companies, media houses, and agencies, they can directly create content for their audience.
The pandemic served as the backbone of the creator economy. With 2021 being the year NFTs reach mainstream popularity, people are more interested in finding other ways to make money than ever.
NFTs are the future for independent creators.
Final words about how NFTs are revitalizing the creative industry
In the last five years, NFTs have become more than just a way to mint digital assets in the Blockchain, ensuring it’s permanence.
Indeed, NFTs have shaped pop culture in ways only a cultural phenomenon does. And more importantly, they are responsible for revitalizing the creative industry.
They provide creatives with a new incentive to make money from their work by minting it on the Blockchain, opening the door for higher exposure, more income through royalties, and a closer connection with their audience.
With big corporations such as Visa, Walmart, and Nike implementing NFTs as part of their marketing strategies, it’s safe to say they will stay with us for a while.
If you’re a creator, better embrace NFTs now that they are thriving.