Digital art is represented as an NFT on the public ledger using a process called Minting. To Mint an NFT, “gas” fees are charged which covers the cost of interacting with the Ethereum blockchain.
It is important to note that the actual digital artwork being sold is not saved on the Ethereum blockchain, it is usually kept on a separate storage facility called IPFS. The location where the artwork is saved on IPFS is permanently recorded in the NFT. How this can impact the durability, future access to and therefore resale value of art is something we advise our clients on.
Although marketplaces are very important for the promotion of artists’ NFTs, they are not necessary. It is possible to mint and sell an NFT without the help of a marketplace.
