In the era of the technological world, there are unlimited opportunities for career growth and success. With the advancement of technology, it has become more convenient and accessible to learn and practice new skills.
So one of the greatest sources to earn capital is to create and sell digital assets. It is usually done on the blockchain. However, when referring to the animation industry, it is also known as “selling NFTs.”
What Do You Know About NFTs?
An NFT is an abbreviation for “Non-Fungible Token.” It is one of the most famous and unique digital assets, which are representations of real objects. It includes digital artworks, music, videos, tweets, and pictures.
So a non-fungible token is more like a cryptocurrency. And the interesting fact is that it is also made with the same programming code that has been used in the building of Bitcoin or Ethereum. But the only difference between them is that NFTs are not made for exchange.
What Do You Know About Crypto Art?
Crypto art is a form of digital art. This digital art was owned by Non-Fungible Tokens. So, all the cryptoart transactions are carried through these NFTs. The ownership of NFTs has been verified and authenticated.
Most importantly, non-fungible tokens give a unique ID number to your piece of art, music, or animated video to validate its originality. You can use this ID number to sell or buy any artwork. It is basically a road to securing transactions.
As NFTs have changed the mode of transaction in the digital industry. So, now let’s discuss what positive and negative impacts it has imposed on the industry.
Benefits of Animated NFTs
1) Preserve Your Animated Videos’ Authenticity
As previously stated, NFTs provide your cryptoart with a unique digital ID number. So this feature has a special advantage. With this special code, it not only verifies your artwork but also gives it a value that makes it distinct and unique, despite the fact that there can be more similar artwork with a difference in pricing or materials.
However, it does not necessarily mean that your digital artwork can’t be replicated. Digital artworks are very convenient to replicate. But don’t despair; until and unless you have the unique ID number, no one can steal the same value of the original artwork produced, no matter how talented they are.
Every unique ID number you have for your crypto art makes it valuable, special, and original. And you can use the same unique code for the transaction.
2) Royalties for animated videos
Have you ever heard of royalties? It is a standard practice among different groups of animated video owners, buyers, and those who want these services. Royalties have unlimited benefits that cover both parties. These advantages are, first of all, that it grants buyers access to the animated video. And for the original owner, it allows a fair share in future sales.
However, unfortunately, a large number of individual animators and studios cannot reinforce such practices. It is because of the hassle of tracking future sales.
But if you are experienced, it might not take you long enough to understand the game. As more smart contracts come online, you can easily establish royalties. Moreover, royalties always take place whenever a transaction is executed. Both parties’ rights and privileges are automatically granted.
If you are an agency that offers NFT animation services, make sure your rights to those services are protected.
3) Use new online markets to share your animated videos
There is a decentralized marketplace for all in the world of cryptocurrency. In other words, there is a higher possibility for everyone out there to avail themselves of opportunities they have never seen or known before.
It is a new form of earning capital by creating and selling your animated artwork within a competitive market. And the best part is that it is safe and convenient.
Drawbacks of NFTs
On the one hand, NFTs foster success and convenience for individual artists as well as small to large-scale animation studios.On the other hand, it also has a few negative impacts, which are probably the downside. These are:
- High Gas Fees
The first disadvantage is the high cost of gas. In real-time, on every transaction, you would likely be paying a certain gas fee.
So, no matter what you are up to, if you are involved in anything on the Ethereum block chain, you must be required to pay a gas fee for the execution of transactions. For example, if you are interacting with a contract or transacting with tokens, you would not carry out any transaction until you paid for it.
It becomes daunting as it is a real weight on your crypto wallet. The high gas price makes the supply and demand chain very difficult.
2) High Carbon Consumption
The second downside is certainly the heaviest on the environment, which is the increase in carbon consumption.
The Ethereum blockchain is unable to adapt precautionary measures to reduce the increasing demand for carbon footprints and higher energy consumption. The calculations say that it requires an estimate of 44.94 terawatt-hours of electrical energy to form 21.35 metric tonnes of carbon dioxide per year to mine the ether.
Need An Animation Done?
If you are looking for an NFT Animation Services provider, Glowza Digital is right there to help. Get ready to bring your NFT business to a higher level with our talented team of artists. We are best at creating artwork that will sell for dollars! Call us now.