Should creative professionals be excited or worried about NFTs?

by James · January 1, 2023

As to whether NFTs are beneficial or harmful, internet users are divided. Some people believe the hype, reasoning that it gives them a unique chance to contribute to (or benefit from) the growth of the digital economy. Others are not convinced and often call them scams. Several additional issues make NFTs contentious.

This begs the question, are NFTs beneficial or detrimental to creative professionals? In this post I will go into more detail on this topic. But before we answer that, a little priming is in order.

Table of Contents

The benefits of NFTs for creative types

Those working in the creative industries, such as 3D artists, compositors, and 3D modelers, can use NFTs to “stamp” their work with corresponding real-world goods and services.

The following is a list of non-traditional forms of expression that can be used by creative professionals:

Avatars created by a computer have been based on a predefined template.
Original digital art, including commissioned works, was created by the artist.
Costumes for use in video games.
Memes.
Videos that are fun to watch.
Tweets.
Destructive non-ferrous samples.
Images, videos and 3D model project files are included.

If you’re a musician looking for some non-traditional practice options, here are a few:

Artwork for musical albums.
Typical songs on an album.
Automated musical compositions, analogous to artist-created avatars using templates.
the words to a melody.
Animated music videos.
Tokens for use as a member of a group.
Seats for the performance.
The same digital asset types specified for musicians also represent images and videos. The MP3, WAV and FLAC file formats are the most commonly used for storing musical collections.

Why are NFTs so beneficial?

Unlike other digital objects, audio and visual media cannot be held on a blockchain. Blockchains are not optimal for archiving such data. The data is kept on a separate web server that is linked to the blockchain database.

This means that NFTs determine how you and the content’s original author interact. NFTs allow you to show your appreciation for your favorite band or musician in the form of a digital transaction that takes place on a decentralized network.

You cannot buy this painting with dollars, but you can use Bitcoin or Ethereum, or any other cryptocurrency that can be used on the blockchain. Many choose to use stock exchanges as a crypto boom. Moreover, you belong to a select group of people. Although NFTs lack the physical characteristics that would normally determine their value, their ownership and value are strongly influenced by intangible psychological factors.

NFT holders are free to buy and sell them as they see fit on a secondary market due to their scarcity and credibility.

Benefits of NFTs for Creative Professionals

Never leaves

The form of NFTs online does not change over time. If the blockchain network is operational, everything is OK. Since the network is decentralized, this will take some time.

Artists get to decide their prices

The beauty of NFTs is that the artists can release them on their terms, which may be contrary to what the audience expects. Instead of producing commercial objects to “fish” for engagement metrics, artists will instead be able to build communities of devoted followers.

Use that matters

Tickets purchased with NFTs can be used to gain access to a variety of VIP areas, such as the backstage area of a performance or a private Discord server.

New ways to make money

The cryptocurrency artists earn via NFTs can be invested or exchanged for fiat cash. Additionally, when an artist or musician sells their NFT to a new owner, certain NFT platforms will cut them a share.

Synthetic interactions

NFTs are more than just a collection of virtual items to collect. Artists can leave a lasting digital impression on their followers by designing new methods of minting and acquiring NFTs. The lessons learned from these meetings can be used to form lasting alliances in the local community.

Expression in the Web3 dimension

The use of NFTs in digital marketing is becoming common. They can be used by artists to establish a foothold in Web3 cyberspace, which is characterized by decentralized networks resistant to Internet censorship.

Disadvantages of NFTs for creative professions

Not immediately valuable NFTs

Everyone in the creative industry has the same goal: to be known for their work. However, NFTs are not the best option for doing this. Creating a piece of digital art and then attaching a rare crypto token to it will not attract buyers. The problem for many creators is not scarcity, but rather anonymity. A more accurate way of saying it is that they are a lost chance to create a real neighborhood.

Building NFT projects can be time-consuming and labor-intensive.

It can be challenging to win over the necessary technical or financial sponsors for an NFT project. You have to put in more effort and that will do nothing but increase your workload.

Unfortunately, your supporters may not be able to participate.

Some individuals find it difficult to understand cryptocurrencies. Unfortunately, many individuals are banned from blockchains because they cannot afford to buy cryptocurrency. Although they can acquire cryptocurrency, some may not understand how to sell it. Therefore, your supporters may want extensive guidance to learn how to join your NFT initiative.

Risk and reward characterize cryptocurrency trading.

The stories of bitcoin markets collapsing are common knowledge. Your NFT holdings may suffer if the cryptocurrency market experiences a sudden and severe downturn since their value is inherently related to the cryptocurrency’s value.

There are several problems with Web3.

Digital assets such as cryptocurrencies and NFTs can easily be stolen by criminals. People use cryptocurrencies for shady business too. This, combined with widespread crypto illiteracy, contributes significantly to NFT’s unfavorable image. To protect yourself, your property, and your community from the harm that can be caused by rogue users, learn the best practices in use.

Concerns about the environment

Several computers are needed to run a decentralized network. It cannot be avoided. In general, the average power consumption and carbon footprint of a network with more computers is greater. An increasing number of people are concerned about global warming, and you should think about how this can damage your brand’s reputation.

Final ideas

NFTs have a wide variety of applications for the artistic community. NFTs can be used to drive the digital expression of artists and musicians or to enable the development of exciting digital experiences for audiences. The merits of NFTs are debatable, and convincing the public to support one requires careful consideration.