How NFTs and the arts will benefit in the future

Due to the past explosion of non-scatterable tokens (NFTs), the crypto and art communities have worked closely together – possibly for the first time in history. There is a lot of skepticism and misunderstanding in both industries. What happens next when we exit the NFT bubble? This in-depth section outlines the long-term vision of NFT and art market developments that could address both worlds.

Stereotypically, crypto folks discuss transactions on Twitter and Discord, communicate via memes or abbreviations, and challenge old-fashioned patterns with pre-existing dislikes (Okay, Boomers.!). In contrast, the so-called “artists” are sometimes conservative, stick to their roots and their history, meet for late lunch in the Ladurée and discuss offers in a kind of VIP lounge. The respective cultures of these communities are at the other end of the spectrum. This is why some stories about blockchain-based art (you could call it NFT) are just wrong.

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The “removal of the center” model does not work for art

Crypto stories have always emphasized the purpose of eliminating all middlemen and building more transparent, simpler and optimized communication between buyers and sellers. In the art industry, however, these intermediaries play an important role – they explore space, reveal artists, and continue to build their profiles and values.

It’s an inevitable and important part of the art world that has already proven itself in crypto as large traditional auction houses like Christie’s and Sotheby’s have given the power of their brand names to boost sales of crypto art. While the $ 69 million sale between Beeple and collector “MetaKovan” reminds us of plans to pump and sell ICOs, it cannot be denied that the venerable auction house’s engagement is already a priority. This purchase will remain a turning point for the blockchain-based art market as it has already caught the attention of traditional artists and galleries – all of whom are ready to step into the room. Sotheby’s quickly followed in his opponent’s footsteps and got into the NFT game.

Mediators in the art of creative work cannot be automated and are being replaced by a smart contract. Well-known art connoisseurs, dealers and gallery owners bring extensive knowledge with them and establish taste and value in art. Their curation is indeed something that the chaotic world of crypto-art is currently lacking. These are the intermediaries that NFT art shouldn’t eliminate.

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“NFTs are a collective illusion based on air” – leading figures in the art industry ignore the main idea

The goal of the art industry has always been to take a thoughtful approach that provides insight and critical criticism in order to demonstrate great visual experiences, ideas, or sensations when interacting with a work of art. When analyzing crypto art, critics focus on the importance of the work and respond to the superficial and sometimes vulgar nature of crypto art. As a result, they miss the value proposition of blockchain technology that has been proven in many other industries. They are ignoring the main idea and misjudging some crypto art projects that are fundamental to the community. (Let’s face it: some of us also thought CryptoPunks was overrated before jumping down the rabbit hole.)

Education and mutual respect will lead to new relationships and use cases. Below, I’ll provide an overview of the emerging trends and show how NFT can transform the art industry.

Modern multimedia and composite art

In the 19th century, the print production industry grew as artists began using the latest in printing technology on metal plates to monetize their work. The use of technology has not stopped accelerating since the development of photography, video, and digital art formats. Conversations between art and technology have always been around, and the NFT is just further evidence of the ongoing trend.

Blockchain technology offers artists a medium that opens up a new creative landscape for them – namely through direct communication with their audience. The Art of Creation is another example: projects like Eulerbeats and ArtBlocks offer a whole new format for modern multimedia art.

Museum in the Metaverse

Should new digital art hang on the walls of museums? What is a suitable representation for this? Perhaps virtual worlds and metaverses are exactly the right place to display multimedia art. Digital museums are developing – anyone can access and present digital art in its original form anywhere, anywhere.

Some critics argue that digital art doesn’t make the feel of an object, but how many times a day do they smile at an emoji they get in their message? NFT offers a demonstrable way to build relationships – a unique experience for artists and collectors alike. Virtual experiences are different from real experiences, but they still have undeniable power.

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NFT for origin

After a work of art is created, it goes through stages of validation. Who talked about it? Who collects it? Where is it exhibited? Origin is an important aspect of the arts; It’s the intricate storytelling that determines the value of the artwork.

Blockchain enables this history to be reliably tracked through the implementation of certificates of authenticity and ownership – smart contracts that are created when NFTs are issued, sold, or resold. This is made possible by the fundamental quality of the blockchain network – the immutability of transactions.

Art Industry Consensus

The crypto ecosystem goes one step further and has developed new community models that allow players to interact online and jointly confirm decisions and ideas. This is known as “consensus”. All blockchain technology has been built on it, and communities have applied this system of logic and rules to self-structuring. These models find their expression in governance tokens and in decentralized autonomous organizations or DAOs that allow validators to receive a reward for significant contributions from other community members.

Once the art community gains knowledge of the DAO, the power of trending returns to the curators, who add value to the art system by sharing experiences and visions.

The art of “Phygital”: bridging the distance

Crypto has spawned a new financial system that is currently being adopted by leading financial institutions. There is a simple reason for this: it just works more efficiently. Traditional financial systems will also start adding NFT-based assets to their portfolio management. This will push governments to enact regulations clarifying how NFT assets are registered and used. The regulatory framework will create a link between physical art and digital NFT, creating a “vegetable” asset.

Phygital art bridges the gap between physical and digital art, brings the best of both worlds together and enables new ownership and financing models in the art world.

Connected: Combined smart contracts will replace the legal system

Property rights rethought and democratized

The immediate benefits that asset owners derive from the blockchain ecosystem are transparency and the ability to track and quickly move their investments on the blockchain. Another impressive development in decentralized funding (DeFi) is the segmentation of NFTs, which could democratize art investments and revolutionize the financial model of museums and galleries.

Some modern art museums cannot afford to hold permanent collections while other traditional galleries are forced to sell art in order to sustain themselves. In emerging countries where works of art are sold in galleries, works are often taken out of the country in disregard of monument protection laws. Distributed ownership enables museums to attract funds around the world and give more retail investors access to this asset class. Museums can keep the portion of the property while they get some cash from the sale.

Some works of art are too expensive even for an organization, and distribution property is easy to buy and sell.

Alternative funding model for museums and artists

The arts is an underfunded industry that has suffered significant damage during the COVID-19 pandemic. It requires support from governments and large organizations – but this support is not always provided in certain countries, creating unequal conditions for companies in the arts. However, NFTs have demonstrated the ability to divert capital based on community values ​​and identify new philanthropic opportunities. Vitalik Buterin …