What Is NFT Art? (How Does It Work)

Key takeaways

Non-fungible token (NFT) art refers to digital assets stored on a blockchain that represent content or even physical items. 

• The total median salary for digital artists averages $67,000 [1].

• NFT art can be in various digital forms, including paintings, drawings, film, music, and books.

• You can reach your audience as an NFT artist using the internet, expanding your reach to a broader range of buyers compared to traditional art in galleries and auction houses.

Explore NFT art and how you can get involved in the NFT market. Then, consider enrolling in Duke University's Decentralized Finance (DeFi): The Future of Finance Specialization. This four-course series can help you gain a better understanding of decentralized finance, including blockchain, while developing skills in entrepreneurial finance, FinTech, and cyber risk. 

What is NFT art?

NFT art is a digital asset that the buyer owns and can sell or trade on a blockchain platform. Art mediums that NFTs can represent include digital drawings, paintings, music, film, poetry, or books. NFT art allows artists to sell or rent their artwork beyond the physical world. 

The sale of NFTs is a means of selling digital art without building an extensive social network. Blockchain transactions take place on NFT marketplaces, reducing the obstacles of self-promotion.

To buy or sell NFT art, you’ll need a digital wallet to purchase cryptocurrency from blockchain platforms like Ethereum or Bitcoin. Take a look at common terms you need to know for entering the NFT art world:

What does NFT stand for? 

NFT stands for non-fungible token. Fungible is another way of saying replaceable, in the sense that you can replace a fungible object with another object that is fundamentally the same as the first. NFT is non-fungible, which means it's a unique item that can’t be replicated.

What’s the difference between NFT digital art and traditional art? 

NFT art and traditional art vary in many ways. In some cases, NFT art can be more profitable because the artist can set the commission percentage. Unlike traditional art, it can be resold with the artist earning a royalty each time. Some of the other notable differences include:

• Storage: Traditional physical art requires storage space. NFT art requires a digital file that’s stored with blockchain technology.

• Selling venues: Traditional art can be sold online, in art galleries, and through auction houses. NFT art is sold online at NFT marketplaces.

• Audience: NFT art can reach many potential buyers via the internet. Traditional art has a limited audience if it’s in a gallery or auction house.

• Market volatility: NFT value is not purely economic. The market for NFTs can depend on things like social climate and relevancy.

Advantages of NFT art

Digital art often costs less to produce than traditional art. Traditional art requires materials that can be expensive, such as paints, brushes, and canvases. Digital art requires a minimal investment to get started. Programs such as Adobe Photoshop and Illustrator provide the tools to create digital art, and drawing tablets and apps are also available. 

Traditional art requires replacing materials as you use them, which isn’t required of digital platforms. Digital art offers more freedom to manipulate color without damaging the paper or canvas. Other advantages include: 

• A new way to generate income

• Opportunities to receive royalties on future sales

• Less risk of digital art getting damaged

• Upfront cost to join an NFT marketplace are lower than traditionally selling art

Read more: How to Sell NFTs Professionally: A Basic Guide for Beginners

Disadvantages of NFT art

One of the most glaring disadvantages of the NFT marketplace is its stability. Since the value of NFT art can be influenced by factors like public opinion and social media trends, it can take time to gauge the profitability of your investments. Consider a few more potential drawbacks:

• Energy usage: The amount of energy it takes to handle blockchain transactions can be cause for concern.

• Legal rights: Purchasing an NFT that represents another asset does not necessarily give you ownership of that intellectual property (IP). For example, you can own an NFT of a video clip from a sports game. However, people can still download and share the original clip without infringing on your rights.

• Ethical dilemmas: Plagiarism and art theft have led to artist complaints surrounding the NFT market. For example, after digital artist Qing Han passed away in 2020, her art was stolen and sold as NFTs against the wishes of her family [2].

How to make NFT art: How to create NFT art from traditional art

If you’re a traditional artist interested in displaying your work in the NFT marketplace, you can do so by converting your artwork into a digital format. Some ways to convert traditional art into NFT art include: 

• Take photos with a smartphone or digital camera and ensure the colors remain true. 

• Reproduce prints with 2D scanners to get better color quality for digital conversion. If your colors need correcting, you can use a program such as Adobe Photoshop or a free online program.

Once you’ve converted your art, you can list it on an NFT marketplace. You can sell copies, such as limited editions, but each is a digital asset the purchaser owns.

When your digital artwork is ready, you will need to select a blockchain and market and set your selling rules. 

How to sell NFT art

To embark on a career in the NFT digital art marketplace, first, understand the digital art market and the digital economy. It may be beneficial to have the following skills: 

• Social media skills to showcase your artwork 

• Ability to create digital art

• Knowledge of software like Adobe Photoshop, Illustrator, or InDesign

Job outlook for NFT artists

According to the US Bureau of Labor Statistics (BLS), the job outlook for craft and fine artists, in general, is projected to remain relatively stable, with 4,400 openings per year from 2024 to 2034 [3]. The NFT artist's career outlook depends on the amount of artwork sold and the price it sells for. You can earn royalties on subsequent sales if the buyer resells the digital art.

As of May 2024, the median annual wage for craft and fine artists is $56,260, according to the US Bureau of Labor Statistics (BLS) [3]. Glassdoor's data for digital artists in the US reveals a median total pay of $67,000, including base salary plus bonuses, commissions, and other forms of additional compensation, with an average base salary range of $41,000 to $76,000 [1].

Explore our free resources to learn more about emerging tech 

Discover fresh insights into emerging technologies, your career, and industry trends with a subscription to our LinkedIn newsletter, Career Chat. Then, check out some of our other resources to see how AI and technology are shaping art and other areas: 

• Hear from an expert: AI Creativity Unleashed: Expert Insights from Vanderbilt’s Dr. Jules White

• Watch on YouTube: The Future of Learning and Work: How GenAI is Creating More Equal Opportunity

• See what fellow learners think: Meet the Video Game Designer Who’s Leveling Up with AI

You can also learn more about creating NFT art, using AI, and building in-demand skills to advance your abilities and keep growing with a Coursera Plus subscription. You’ll get access to over 10,000 flexible courses. 

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