Art Blocks: The Craze for Non-Fungible Tokens

by baaaawz

As the craze for non-fungible tokens (NFT) continues unabated, NFTs are becoming more popular. Taking this world to the next level is what Art Blocks is all about.

Art Blocks: The New Flagship in the Craze for Non-Fungible Tokens

Art Blocks, launched in November 2020, is an NFT platform that uses algorithms to generate artistic content. Specifically, artists publish an algorithm on the platform that they can use to create their own work.

The data is stored on the Ethereum blockchain in unchanged form. Until the actual artwork is created, the finished product is unknown at this time.

Whenever a collector decides to purchase one of these works, a random key will be generated as a seed which will determine the attribute of the work. By its very nature, this seed controls both the design of the work as well as the colors that make it up.

As a result, neither the buyer nor the creator knows what the works will look like before they buy. The system is therefore immune to manipulation, and every buyer can undermine a rare work.

On the other hand, the artist has the ability to determine the number of works that can be created on the platform by using the algorithm that they publish, as well as the starting price for each of those works.

The artist will also receive a 5% royalty on each sale of his or her artwork on the secondary market. To get its share of the sale, the platform receives 10% of the first sale, then 2.5% of the secondary market sale.

Last but not least, Art Blocks platforms teams retain the right to determine the algorithms used. Their website explains:

Artists/creators are selected for projects at the sole discretion of the Art Blocks team. We reserve the right to select content for the platform without explanation. Material that might be deemed even remotely offensive to anyone will not be considered.

The Craze for Non-Fungible Tokens increases Prices

It is the first time in the history of NFT that the price of these works has increased by an unbelievable amount. It is a fact that new artwork is being snapped up each and every week regardless of whether they are newly created or old

As an example, the work “Fidenza #313,” which was originally sold for 0.58 ETH by Tyler Hobbs, has just been resold for the nominal sum of 1,000 ETH, which at the time of the sale amounts to approximately $3.3 million. The user who bought it has gained 172.413% in ETH.

In this case, the work is part of the 999 works in the series that all use the same algorithm but are based on different seeds. Among all the works in this series, work 313 is by far the most highly rated. Nevertheless, other works in the series, such as 723 and 529, have achieved prices of 650 and 500 ETH, which corresponds to $2.1 million and $1.6 million, respectively.

Among Art Blocks’ many series, the Fidenza series is not the only one that is generating interest among collectors. During a recent auction, artist Zoomc purchased the #3784 artwork from the Chromie Squiggle series on August 14 for ETH 750, despite it originally being offered for free.

The NFT has also taken on a number of projects that are not as spectacular on paper but have nonetheless attracted the attention of collectors. I am referring to an NFT series called EtherRocks, which consists of simple stones that sell for up to several hundred thousand dollars per piece.

Conclusion

Don’t want to get caught up in the craze for non-fungible tokens? You can also take it easy and immerse yourself in the world of cryptocurrency by trading your first Ethereum on the Binance platform.

 

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