With record-breaking sales and prominent endorsements from celebrities and artists, Non-Fungible Tokens (NFTs) have swept the globe. But what precisely are NFTs, and how are they altering the conventional notion of the art world?

An NFT is essentially a distinct digital asset that is confirmed on the blockchain, a decentralised digital ledger that safely and openly records transactions. NFTs are non-fungible, which means that each one is unique and cannot be copied or exchanged for another NFT, in contrast to conventional cryptocurrencies like Bitcoin, which are fungible and interchangeable with one another.

NFTs have been widely used in the art sector, where they have made it possible for artists to sell digital artworks as unique, authenticated works of art. Without having to rely on conventional galleries or auction houses, this has provided artists with new opportunities to sell their work and reach larger audiences.

The sale of "Everydays: The First 5000 Days," a digital piece by artist Beeple, for a record-breaking $69 million at a Christie's auction in March 2021 is maybe the most well-known instance of this. This signalled a significant turning point in the history of art since it showed that NFTs could be a practical means for both collectors and artists to market their work.

The impact of NFTs on the art world, however, has also been a topic of discussion since their rise. NFTs, according to some critics, are causing art to become a purely financial asset that can be bought and sold like any other commodity, further commodifying it. They also mention how it can be challenging for up-and-coming artists to get into the industry due to the expensive rates at which NFTs are sometimes sold.

NFT advocates contend, however, that by removing the need for middlemen like galleries or auction houses and enabling artists to sell their work directly to collectors, NFTs are democratising the art world. Additionally, they note that NFTs are allowing artists to experiment with new types of creation, like digital  art.

In the end, it is unclear how NFTs will affect the realm of art. While they have undoubtedly created a stir and given artists and collectors alike new opportunities, they also raise significant concerns about the function of art in society and the value we place on it. It will take time to properly comprehend the ramifications of NFTs and to ascertain whether they will be a beneficial or detrimental influence in the art world, as with any new technology.