NFT Art | Christie's 3.0

FREQUENTLY ASKED QUESTIONS

Some key facts about NFTs and how to buy them through Christie’s 3.0.

What is Christie's 3.0?

Christie’s 3.0 is an on-chain auction platform dedicated to exceptional NFT art. Whether you’re new to NFTs or already a committed member of the community, discover and bid on exclusive drops, curated by Christie’s.

How do I place a bid?

1. You'll need a digital wallet to bid. If you haven't got one already, MetaMask is one of web3's most popular and user-friendly wallets.

2. While mobile is possible, for the best experience we recommend connecting via a desktop browser using your chosen wallet's browser extension (such as Metamask or Coinbase).

3. Click 'Connect Wallet' at the top right of the page and follow the instructions.

4. If you haven't set up a Christie's 3.0 account yet, you'll be prompted to do so at this point by entering your details. Christie's 3.0 will then verify your account, which may take up to 24 hours. If you’re already a Christie’s client, you’ll be able to bid without further identity verification. If not, we'll email you to request some additional documents to verify your identity.

5. Once verified, you can connect your wallet and start bidding.

6. Make sure your digital wallet has Ether (ETH) — the accepted currency on Christie's 3.0. You can buy ETH in MetaMask, or deposit it from elsewhere.

7. On the lot page, click the 'Place bid' button and enter your bid amount in ETH. Please note, the exact amount that you enter will be bid immediately and cannot be cancelled once submitted.

8. Press 'Submit bid' and confirm the transaction in your wallet. This may take up to one minute, depending on blockchain traffic.

9. A confirmation message will show that you're the highest bidder. We will notify you if you're outbid, or if you win the lot. If a bid is placed within 10 minutes of the closing time of a lot, the time remaining will extend to 10 minutes.

What wallets can I use on Christie's 3.0?

We support all major digital wallets. If you're not sure where to start, MetaMask is one of web3's most popular and user-friendly wallets.

What currencies can I use on Christie's 3.0?

Christie’s 3.0 accepts Ethereum (ETH).

What do these terms on the lot page mean?

Smart contract address: The blockchain address for the smart contract code that governs the execution of the NFT.‍

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TokenID: The unique identifier number of the NFT. Smart contract code used to mint NFTs will assign a number to each unique NFT created by that code.

Digital wallet address: A unique alphanumeric string of characters that is associated with and represents the on-chain address for a digital wallet.

What is a digital wallet?

A digital wallet, which can be software-based or a hardware device, allows you to transact on a blockchain and see any balances associated with that wallet. An NFT is not actually ‘stored’ in a digital wallet. Rather, the wallet holds certain ‘keys’ that allow the wallet owner to interact with a blockchain and with any NFTs it owns.

I’m the winning bidder! What happens next?

1. Congratulations! If you’re a winning bidder on Christie’s 3.0, you’ll receive an email notifying you of this once the auction closes. This email will include the hammer price, which is automatically paid from the digital wallet you bid with.

2. Christie’s will then calculate whether any sales tax is also due. This may take up to 48 hours.

3. If sales tax is due, you’ll receive another email from us asking you to checkout. Click the link in the email to go to the checkout page on Christie’s 3.0, where you can connect your wallet, pay the tax amount due and take ownership of your NFT.

4. If no sales tax is due, the NFT will be transferred to your wallet with no further action required. We will notify you of this by email.

What sales tax will I need to pay?

Christie’s is required by law to collect sales tax where applicable. If you're a successful bidder, you will be notified by email of the tax amount you owe (in Ethereum) as soon as possible following the sale. Tax is based on an individual’s geographical jurisdiction and is subject to change with changing regulations. Click the link in the email to go to the checkout page on Christie’s 3.0, where you can connect your wallet, pay the tax amount due (if applicable) and take ownership of your NFT.

What are gas fees and when do I need to pay them?

A gas fee is the amount of Ether (ETH) required to perform any function or transaction on the Ethereum blockchain. You will need to pay a gas fee when you place a bid and, if applicable, when you pay sales tax and collect your NFT. Gas fees are not included in the final purchase price.

Do I pay Buyer’s Premium on Christie’s 3.0?

No, Christie’s 3.0 does not add Buyer’s Premium to the hammer price.

Does Christie's 3.0 provide a certificate of authenticity?

Christie’s 3.0 does not provide any certificate of authenticity for NFT sales. Buyers can view the NFT, the blockchain address that minted the NFT and the bidding history of the NFT on Etherscan. Identifying information about the work associated with the NFT and the digital asset itself are displayed on nft.christies.com.

What security measures does Christie’s 3.0 take against fraud?

We take data security seriously. We require all bidders to register with Christie’s and go through ‘Know Your Client’ checks. We additionally screen all wallet addresses for fraudulent activity before approving clients to bid with us.

What blockchain is Christie’s 3.0 built on?

Christie’s 3.0 is built on the Ethereum blockchain.

Does Christie’s 3.0 offer lots minted on other blockchains?

At the moment, Christie’s 3.0 only offers lots minted on Ethereum or Ethereum-compatible blockchains.

What is an NFT?

An NFT, or ‘non-fungible token’, is a unique, digital certificate that is stored on a blockchain and provides certain ownership rights in an asset, typically a digital one, such as a digital work of art. NFTs provide a powerful tool to establish and demonstrate ownership rights in the digital asset space where it is often hard to demonstrate such rights given how quickly and easily digital works can be replicated. NFTs are described as ‘non-fungible’ because each one is unique and of different value. This is in contrast to ‘fungible’ assets such as dollars or Bitcoin, which are identical and interchangeable.

An NFT is generated (or ‘minted’) using a ‘smart contract’,which is computer code stored on a blockchain. The NFT includes a few different fields such as the NFT’s unique identifier (typically referred to as a‘TokenID’); the blockchain wallet address of the current owner; and an identifier of where the digital work of art associated with the NFT may be found. Since blockchain transactions are fully transparent, anyone can view anNFT and its underlying information, including the blockchain address of the current owner and the blockchain address of each owner since the creation, or ‘minting’ of the NFT.

When a buyer purchases an NFT, they must have a digital wallet to receive, access and transfer an NFT. An NFT can be bought and sold like other pieces of property. These purchases and sales are effectuated by transferring the NFT through a blockchain transaction from the seller to the purchaser.

What is a blockchain?

In general, a blockchain is a distributed ledger (or database) of transactions that is not controlled by a central authority. A blockchain relies upon a distributed peer-to-peer computer network to cryptographically validate and record transactions. This ledger, which includes the current holdings of each blockchain address as well as all transactions since the blockchain first launched, is viewable to anyone. Once transactions are added to a ledger, they are immutable, meaning they cannot be modified or erased.

Unlike the internet, there are many different blockchains that exist today and likely many more to exist in the future. Blockchains are not necessarily interoperable with one another. That means an NFT minted on a certain blockchain might not be transferable to a different blockchain.

Blockchain technology underpins cryptocurrencies, such as Bitcoin and Ether.

What are some of the benefits of an NFT?

Scarcity: Since NFTs are non-fungible and stored on a blockchain, the owner of an NFT associated with an asset, typically a digital one, such as a digital work of art, knows that they alone hold that specific NFT.

In some cases, an artist or rights holder may elect to have a smart contract generate a limited number of NFTs for the same work, similar to the manner in which an artist might release a limited edition of a physical work. A buyer of an NFT, looking at the NFT code, would be able to see the number of NFTs that could be generated as part of a limited edition.

Authenticity: Once an NFT is minted on the blockchain it is a unique token that anyone can view and access to confirm the metadata, ownership history, TokenID, blockchain address and other underlying information. In addition, since transactions on a blockchain are publicly viewable, buyers can see the address from which the NFT was first minted.

History of ownership: As noted, every transfer or purchase of an NFT is recorded on a blockchain, along with the blockchain address of every digital wallet that has held that NFT. As a result, there is a publicly accessible record documenting the ownership history for each NFT that cannot be altered or erased. Provenance is therefore automated, accurate and verifiable.

What does it mean to ’mint’ an NFT?

‘Minting’ an NFT refers to the creation of an NFT and its recordation on a blockchain for the first time. The minter may be the creator of the work associated with the NFT, such as the artist, or someone with the appropriate rights to mint an NFT of a digital asset.

Where are NFTs stored?

Each NFT is stored on a blockchain, which in most cases will be the blockchain on which it is first minted. Blockchains are not necessarily interoperable with one another. That means an NFT minted on a certain blockchain might not be transferable to a different blockchain.

Where is the digital artwork stored?

The digital work associated with an NFT is generally not stored on a blockchain. Data in the NFT code includes a reference that ‘points’ to where the file is stored. For example, the digital work may be stored on a server controlled by a single party or on IPFS (interplanetary file system), a decentralised file storage network.

How is Christie’s addressing the environmental impact of NFTs?

Christie’s understands the significant environmental impact of blockchain, and as such we have included a dedicated section on them within our latest Environmental Impact Report. Understanding the emissions relating to blockchain activity and transparently reporting them is essential to managing our sustainability goals. Christie’s 3.0 is built on the Ethereum blockchain, which moved from a ‘proof of work’ to a ‘proof of stake’ model in September 2022. This is reported to have reduced carbon emissions linked to Ethereum by more than 99%.

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