Digital Artistry - Setting the scene for bluechip masterworks
Category News
On the 11th of March 2021 a piece of artwork was sold at Christie's in New York, NY for over R1 billion. With such an extravagant price tag, one would expect to be buying an original Bellini. Yet in fact, this monumental amount was for an original digital signature stamp on a GIF file with no physical copies utilising blockchain cryptocurrency as payment.
This seemingly bizarre amalgam of words is the result of the parallel growth of new forms of digital content creation with the rise of investment in crypto currency.
The contributing artist, Mike Winklemann, has demolished previous digital records with this astounding transaction which is the third highest-selling piece in the gallery's history.
The Digital Artwork Marketplace
The online marketplace for original artwork has become trends as a profitable venture with almost 5.5 million pieces sold as NFTs (Non-Fungible Tokens) since 2015. This massive uptick in the consumption of digital content is almost exclusively thanks to the advent of cryptocurrency.
NFTs encompass a broad range of digital content from images to videos and soundbites to computer games. Including Winklemann's R1 Billion "Everdays: The first 5000 days", the average NFT sells for R25,000 per piece.
Although a R1 Million NFT inspires ideas of grandeur, it's very uncommon that this sort of artwork could regularly sell for such an iconic price. Organisers of these sort of galleries stress that artists need to keep their expectations realistic since there are thousands of online pieces out there and many of them don't sell.
Non-Fungible Tokens
Simply put, an NFT is a digital signature linked to an original piece of content that is sold online. This simple marker denotes the unique and irreplaceable nature of that content. Value is based on the artist's and buyer's interpretation.
This may seem counterintuitive since anyone can download an almost replicable file as a copy for free. But it's fairly simple because you can print an A4 image of a Raphael painting as opposed to purchasing the original. NFTs act in the exact same way with the seller's digital signature being exchanged for the buyer's cryptocurrency.
South Africa's NFT contribution
Following the staggering New York sale, South Africa's first NFT gallery was unveiled in March of this year. The gallery, launched by Worldart, featured the works of local artist Norman O'Flynn. His works have been compiled into GIF files with moving elements added to his paintings utilising digital tools. His artwork reached over 551 sales bringing him R60,000 - R100,000 from the auction.
Digital artists have a wide array of channels, besides events and galleries, to list and sell their work online. Auction sites and NFT marketplaces are becoming extremely popular outlets for digital blue chips. Sites like Niftygateway.com and Opensea.io are premier options for both buyers and sellers that feature a constant influx of pieces.
The growth rate for this sort of artistry is astounding, with not only an interest in a new form of ownership but also in terms of currency and payments options.
Blockchains and Cryptocurrency
No longer a new concept, cryptocurrency can be defined as a form of an online payment made in exchange for goods and services. Cryptocurrencies by design use secure online ledgers that utilise advanced encryptions to ensure safe transactions or sales. The major appeal to this form of currency is how unregulated it is. Not tied to tangible standards like gold, oil, or country stability, crypto primarily, although not entirely, derives its value from the scale of user involvement and investment worldwide.
Crypto is thus operated by utilising blockchain technology. This is the secure process by which sales take place. Blockchain technology is decentralised, which means that all records of investments, files, or secure transactions are stored over a loosely established network of thousands of computers as opposed to a central node or server. In a sense, this is one of the most secure methods of data storage online yet can spiral down a rabbithole of buying and selling that exists outside the realms of legality.
A purely profit-driven venture, crypto's high risk/high reward appeal continues to attract a growing influx of interested parties and from every walk of life. With its selection of over 2000 different currencies and a tipping-point beyond an uncertain horizon, investment still grows at a steady pace.
Read our previous article here: https://www.hamiltons.co.za/news/2021-winter-fashion-trends-contrasting-styles-for-men-and-women/
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Author: Lisa