NFTs and Digital Photography

NFTs and Photography. Is it worth it?

From blockchain and cryptocurrency to Ethereum and bitcoin... how do NFTs fit into this relatively new world of digital transactions & Photography?

To understand how NFTs (non-fungible tokens) are impacting the world of digital photography and other forms of art, we first need to understand exactly what an NFT is within a wider context. 

An NFT is a non-fungible token. Already, things might be getting a little confusing, since ‘fungible’ is likely not part of your standard daily lexicon. Essentially, ‘non-fungible’ means that it cannot be swapped for anything else. Each of these tokens is completely unique, so NFTs do not work in the same way that regular cash works.

You would easily be able to swap a one-dollar bill for another dollar bill, and have exactly the same item at the end of the transaction. Its value and appearance will remain constant.

So, NFTs are digital tokens that comprise unique pieces of information. This could be anything from artwork to photos or a piece of music you have created.

How do NFTs work?

A non-fungible token usually belongs to the Ethereum blockchain. Again, if you are unfamiliar with this topic, you may need to take a few hefty steps back in order to understand what this means.

A blockchain, at its core, is a digital database that stores records of transactions in chronological order. It is a verified record book of digital transactions that is permanently viewable to anyone, and not centrally owned by any organization.

Blockchain is an extremely secure way of storing digital information and transactions. Since each ‘block’ of information is ‘locked away’ when it is full, it will usually not need to be touched again. If a hacker were to try and steal data from a blockchain, they would need to make noticeable changes to a past ‘block’ of information. Others would be alerted to these changes.

Cryptocurrencies such as bitcoin make use of a blockchain to record all transactions and store the currency securely - away from a central bank or other organization.

So, as stated before, many NFTs belong to a blockchain called Ethereum. As well as being a cryptocurrency, Ethereum is a blockchain that supports NFT transactions.

Almost anything can be turned into an NFT and sold, one example of something you wouldn't expect that has been made into an NFT would be Twitter founder Jack Dorsey’s first-ever tweet. The tweet has fetched over $2.5 million after being sold on a platform called ‘Valuables’.

Although this tweet will remain publicly viewable on Twitter, there was a bidding war that resulted in this NFT going to Sina Estavi - a blockchain founder from Malaysia. He received a signed digital certificate and all metadata related to the tweet.

Interestingly, Estavi compared the tweet to classic pieces of art: “I think years later people will realize the true value of this tweet, like the Mona Lisa painting”.

Dorsey’s first tweet is certainly a landmark moment in the history of the human digital age, and could even be considered a work of art in its own right.

But, how can NFTs integrate with other artwork, including digital photography?

Can digital photography benefit from the rise of NFTs?

As a digital photographer, the increasing use of NFTs to trade artwork could certainly be arousing your interest. There are definitely some benefits to consider when it comes to selling your photos in NFT form:

• Royalty agreements can be written into the blockchain! Gone are the days of selling your photography for the first price you can find. If you would like 15% of every sale that happens to your NFT after it leaves your possession, feel free to include that into your contract on the blockchain.
  

 

• It allows art collectors a great experience. Despite the NFTs digital form, they can often be sent alongside physical documentation that verifies the photo. Collectors can feel confident in the authentic and secure nature of NFTs, so might be willing to pay a higher price for digital photography.
  

 

• Photographers are selling a single photo for thousands of dollars. Some photographers have earned over $25,000 from selling a single NFT photograph. Take Kate Woodman for example. Kate is a the Portland based conceptual photographer and NFT artist. Her cinematic style is centered around narrative storytelling, nostalgia, vernacular architecture, and a strong use of emotive color. She is also the creator of thebackdropstudio providing immersive backdrops for Photographers. Kate sold a NFT for one of her photos for 11.888 ETH...... That equals $27,854.30!!!
  

Even better, you get to maintain your copyrights over the image. This changed the way artists and creators make money from their work. There’s no longer the need for agencies, intermediaries, or other parties. 

NFTs are designed to give the buyer ownership of the work, but the photographer retains copyright and reproduction rights. So, even if someone else owns the original art piece (NFT), you still maintain copyrights to the image. It’s a win-win. 

Also, NFTs have an interesting feature for photographers. Just like trading sports cards you can trade NFTs for more bitcoin in the future. This means someone can buy an NFT of your work for let's say $200 and then sell it later for more if it becomes more valuable in the future. This isn't necessarily a bad thing because you can add a royalty fee to your selling price. This way you get paid a percentage every time the NFT of your photo is sold or changes hands. This means, if your NFT goes “viral” and balloons in value, you’ll still see some of that value and benefit from it.

Another great example is Bryan Minear, a landscape photographer based in Michigan, who did an NFT drop with Bitski featuring five photographs ranging from $200 to $2,500. Within 10 minutes, he sold out of nearly everything! Bryan has also sold a photo for 3 ETH...... That's $7,033.89!!
 

• Others can still enjoy your photography. Although there will only be one verified owner of your work, your photos will still be widely available on the internet to be shared and you will still own all the rights.
  

There are some drawbacks to consider when it comes to selling digital photography in the form of NFTs, however:

• Usually, you will need to pay a ‘minting fee’ and a ‘gas fee’ in order for Ethereum miners to add your NFT to the blockchain. A certain amount of computer power is required to verify your NFT, so photographers wanting to sell their work in this way will need to bear this in mind. Unfortunately, the carbon emissions created by Ethereum miners is a big factor that holds back the development of NFTs. It's not exactly great for the environment.

 

• There are unresolved legal questions. When it comes to cryptocurrency, there are gray areas that the law is yet to cover. The world of NFTs is not exempt - if somebody creates an NFT using photography they did not create, this throws up legal issues that are as yet without a concrete solution.

 

• Cryptocurrency and blockchain are not 100% free from theft. To try and reduce the risk of having your artwork stolen, deal on verified NFT platforms such as Open Sea, Rarible and Super Rare.