Will NFT tokens change the future of the creative industry?

In 2008, when the rock band Kings of Leon dominated the air with Sex on Fire and Use Somebody, a mysterious person named Satoshi Nakamoto appeared online with a strange idea to create the first truly digital form of money: bitcoin. And now Southern Rock is trying to use cryptocurrency technology for something that technology proponents say could revolutionize the way artists sell their work.

The technology is called NFT, which stands for non-fungible token. It is a cryptocurrency, which is basically a certificate of authenticity. Tokens can be attached to almost anything, such as digital artwork, videos, or other exclusive products for the fan base. For example, Kings of Leon combine their albums with an exclusive NFT, which will provide the buyer with four front seats and a bunch of promotional items and other benefits.

It is no coincidence that this technology appeared during the pandemic. During this period, artists were unable to sell their works in galleries, and musicians who relied on tour income had to settle for modest streaming fees. Behind the NFT is a blockchain that captures sales and ownership records and can do without intermediaries such as agents who usually manage distribution and promotion.

What exactly are NFTs and what do they mean for the future of the creative industry? What is important here is the word fungible. Paper money is substitutable. If you lend a friend $ 20, he can refund you $ 20, but not exactly the same $ 20 bill. On the other hand, NFTs are actually limited-edition digital works that attach to another work of art, whether it’s painting or music. If the consumer buys the NFT directly from the artist, he will essentially gain the reassurance and the right to brag that what he owns is literally an original work.

This picture Hashmask 15753 (1 of 16,384) by Suum Cuique Labs GmbH was sold with NFT on etherere blockchaine, source: Wikipedia

However, around this particular cryptocurrency has exploded in the last few weeks. For example, Twitter CEO Jack Dorsey sold his first tweet with the NFT for $ 2.5 million in a charity auction. Buying and selling an NFT is not just about having access to something, but also about owning something that no one else has, something original. What is new is that these assets are not physical. The buyer obtains satisfaction from the ownership of the NFT – not the exclusive right to use the item.

However, NFTs can be sold to someone else, potentially at a huge profit. For example, the NBA joined the game through Top Shots, tokens associated with collector’s videos that capture “moments,” e.g. from LeBron James’ play. After just a few months, these videos sell for a thousand times more.

NFTs are a mirror of how we think about art in the age of digital reproduction. Valuable is not the art that can be copied and manipulated indefinitely, but the “container” with which it is supplied. It’s as if someone bought a picture of Picasso to get a frame or bought a music album, because the vinyl itself is worth the money. The idea of ​​the NFT is to recognize that an increasing amount of what is of value to us is often only entirely digital and has never really “existed” in the real world.

” SOURCE: au.rollingstone.com

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Source: Nextech by www.nextech.sk.

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