With digital assets growing in popularity, more and more technologies and mediums are coming into the fray to both rival and support cryptocurrencies. Right now, the tokenization of assets is taking the spotlight as a way for investors to buy, hold, sell and trade in a new and innovative way.
Let’s take a look at art tokenization
Tokenization is where an asset is represented via distributed ledger technologies (like the Ethereum blockchain, or similar). This can come in the form of a tangible or intangible asset and can be owned either in full or in part as a fraction of an asset. In essence, a token is created to denote ownership (or part ownership) of anything from artwork, to bonds and even race horses.
In the case of art, these assets are tangible in the real world and are represented as non-fungible tokens. NFTs are unique and cannot be duplicated on the blockchain, making them extremely safe in terms of proof of ownership and trackability for many investors. It may be worth it to note that with art-based tokens, part-ownership is typically not utilised.
Why choose art tokenization or NFTs?
One of the biggest draws to cryptocurrencies and relating technologies like NFTs is the liquidity of these types of assets. The fact that they can rise exponentially in value at any given time means that the ROI can be more than worth the risk when investing (but don’t forget that costs can fall just as easily). As long as an asset generates interest in the market, it’s likely to hold at least some value – and may be able to bring those holding them a significant profit. With art tokenization, investors can own a whole host of digital artworks, and artists will be able to both reach a wider audience and even create a royalty system for the tokens/art that they produce, so everyone is able to benefit.
Right now there are plenty of places out there that facilitate NFTs and digital artworks, so the great news is that you can choose any tokenization platform that you may be interested in (be sure to do some research on their reputability and protocol for investing before you make any investments, though).
Is it worth my time to get involved?
If you are unsure whether to get in on the action, it’s no secret that there is a lot of interest in the overall niche, and it is certainly increasing as the months and years go by. There is real money to be made for both investors and artists at the moment.
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Source: https://coindoo.com/everything-you-need-to-know-about-art-tokenization/