Will the development of NFT stop here?

Source: coindesk

If you randomly interview passers-by on the street and ask them "What is NFT?", what answer will you get?

Is it the boring ape with strange price? Is it the new personal portrait function of Twitter? Is it a puzzle about cryptocurrency? Some famous people's names? Or the word "bubble"?

In a word, NFT is a technological product defined as frivolous, luxurious and irrational development.

With the rapid decline of NFT's market value and popularity, many people question its persistence as a technology and a cultural trend. Are they just speculative assets destined to disappear with the bursting of the NFT market bubble? After all, the public does not know what the NFT can do.

butIf you go deep into it, you will find that NFT will have more room for development, and all this is happening.

Value of NFT

Practicality is not the real meaning of today's artistry or NFT. After all, it is not the standard for us to measure the importance of works, such as Rembrandt's or Damien Hurst's physical works of art, Mozart's or Beatles' music works, Faberge's eggs or Birkin bags and other luxury goods.

Indeed, most NFT artists will not become Rembrandt (Rembrandt Harmanson Van Lein is one of the greatest painters in Europe in the 17th century and the greatest painter in Dutch history), but they may be the next Damien Hurst (the most expensive contemporary artist in Britain).

An important way to explore NFT is to regard it as a new medium for the creation of works of art and collections. Over the centuries, technological innovation - from oil painting to electric guitar to photography - has irreversibly changed the way art works are produced and displayed. NFT is part of this long history.

Of course, NFT will become more and more practical. For example, NFT can help solve key challenges in the traditional art market, such as traceability and royalty payment.

Traceability

Thomas Hoving, former curator of the Metropolitan Museum of New York, estimated that about 40% of the collections he examined (including many of the museum's own collections) were fakes, forgeries or wrongly identified. Although many people question this number - even the definition of forgery - it is clear that there are many problems in the traditional art market.

Many of these problems are related to traceability, that is, the production process and previous owners of an artwork. Traceability helps to determine the authenticity and value of a work of art.

If the source is unknown, there will be unpleasant accidents. For example, Steven Spielberg bought a Norman Rockwell painting from a legitimate seller in 1989, and later learned that it was stolen; An ancient Greek statue bought by Paul Getty Museum at a cost of US $10 million was later judged by the Italian High Court as an artwork illegally smuggled out of the country.

With NFT, the source information will be recorded on the blockchain and cannot be tampered with. Ownership - at least determined by the blockchain address - is publicly visible and can prevent forgery.

By making bidding and the identity of bidders transparent, powerful source information can also help solve some other serious problems in the art market, such as money laundering.

Royalty

There are countless stories in the world about artists who were poor and unappreciated before their lives and became famous after their deaths, such as Vincent van Gogh. These stories remind people that artists often suffer losses in the art market.

In the United States, the sales of artists' works in the secondary market are generally free of royalties.

Here we have to mention a famous example. The artist Robert Lausenberg's painting Thawing was sold by a collector at Sotheby's auction for $85000, while the latter bought it from Lausenberg for $900. Lausenberg shouted to the collector, "I worked hard so that you could earn this money."

NFT can automatically perform royalty payment. But perhaps more importantly, artists can, in principle, stipulate a series of terms for the future sale of their works.

For example, the artist can decide that her NFT price should not exceed 1000 dollars; Or she can exercise the copyright ownership like that in France - that is, allow the artist to still have a certain degree of continuous control after the work is sold. In some cases, they even have the right to destroy the work.

Although some buyers may object to this degree of control by NFT creators, the transparency of the blockchain system can ensure that all participants can make choices in an informed manner.

Problems in NFT market

The current NFT market is full of various problems. Unauthorized copying is rampant, as is the case with bogus transactions - artificially generated transactions to stimulate sales.

In addition, the file integrity of the NFT ecosystem may become a time bomb because many NFT content is stored in the paid cloud service. If the payment fails, these content will disappear.

Another big problem is the intrusion of robots. NFT is often sold by air drop, that is, thousands of NFTs are sold at a time. When a very popular air drop activity is going on, some schemers often use robots to snap up NFT and resell them for profit.

Facts have proved that it is difficult to set the user purchase limit to achieve fairness.

However, it is gratifying that the blockchain system is constantly developing, enabling people to prove their identity and show their unique image while protecting privacy. Blockchain is committed to implementing a broad concept called "decentralized identity", which is essentially a privacy protection system for user control credentials.

Imagine that you have a digital driver's license and can selectively show relevant information online - for example, you can prove that you are a resident of California, but hide information such as birth date.

In addition, the decentralized identity system will allow the NFT market to enforce purchase restrictions. A strong identity system can also ensure that people buy NFT from legitimate creators rather than impostors.

Finally, the NFT market can also contain a "policy engine" to enable creators to shape the life cycle of their works in a rich way. The creator may set conditions for sale and resale; Make their NFT energetic; Offer discounts and rewards to fans; Cultivate amateur groups in the NFT world, just as galleries do in the traditional art market. In addition, the policy engine may also solve problems such as "speculative pricing and investment mentality".

Other values of NFT

Human beings are migrating to the Internet, and more and more people are immersed in the digital content and visual experience known as the meta universe. Young people are abandoning real property.

Many technical experts believe that NFT will represent commodities in the virtual world, from land to equipment. No matter what form they are finally presented in, they will shape our experience in the meta universe.

NFT also has many other applications, such as representing real world goods. In the future real estate market, an apartment may be sold as NFT. Major companies such as Nike (NKE), Time magazine and Tiffany (TIF) are also using or releasing NFT, which also provides a richer ticketing experience system.

But don't be mistaken, it doesn't mean that everything in NFT is good. It is undeniable that there are fraudulent sales and artist identity theft in the market. Because of this, the technical tools mentioned above and community-based consumer protection tools will be very important.

In any case, NFT will continue to develop in a powerful and exciting way. Whether you like it or not, they -- or similar things -- will be a cultural force that will always exist.

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