How NFT and Art will benefit from each other

Due to the past Irreplaceable tokens (NFT) Prosperous, the cryptocurrency and art communities have been working closely together-this may be the first time in history. In both industries, there are many doubts and misunderstandings. As we get out of the NFT bubble, what will happen next? This in-depth discussion describes the long-term vision for the development of NFT and the art market, and may be attractive to both worlds.

In the stereotype, cryptocurrency people discuss transactions on Twitter and Discord, communicate through memes or abbreviations, and challenge old-school models with adversarial aversion (well, baby boomers!). In contrast, so-called “artists” are sometimes conservative, stick to their roots and history, meet for lunch in Ladurée, and discuss deals in the VIP lounge of Art Basel during the private pre-sale. The respective cultures of these communities are at the other end of the spectrum. This is why some narratives about the art of supporting blockchains (you can call them NFTs) are completely wrong.

related: NFT Art Gallery: The future of digital art or another crypto fashion?

The “elimination of intermediary” paradigm does not apply to art

The cryptocurrency narrative has always emphasized the goal of eliminating all intermediaries and establishing more transparent, direct and optimized communication between buyers and sellers. However, in the art industry, these intermediaries play an important role-exploring space, presenting artists, and further establishing their image and value.

This is an inevitable and vital part of the art world, and when large traditional auction houses like Christie’s and Sotheby’s give their brands the power to blow up the sale of encrypted art, they have already proven themselves in the field of encryption.in spite of $69 million in sales Between Beeple and the collector “MetaKovan”, remind Regarding our ICO skyrocketing plan, it is undeniable that the participation of respected auction houses has established a priority. This auction will still be a turning point in the art market that supports blockchain because it has attracted the attention of traditional artists and gallerists who are now willing to enter this field. Sotheby’s quickly followed its competitors And entered the NFT game.

Art intermediaries are engaged in creative work that cannot be automated and cannot be replaced by smart contracts. Famous art connoisseurs, dealers and gallery owners have brought profound knowledge and established the taste and value of art. Their curation is indeed what the current chaotic crypto art world lacks. These are intermediaries that NFT art should not aim to eliminate.

related: The art of reimagining: NFT is changing the collectibles market

“NFT is a collective delusion based on air”-an art industry leader who ignores the main ideas

The goal of the art industry has always been to adopt a deliberate approach, provide deep knowledge and deep criticism, in order to show excellent visual experience, ideas or feelings when interacting with works of art. When analyzing encrypted art, critics pay attention to the meaning of the work and react to the superficial and sometimes vulgar nature of encrypted art. Therefore, they missed the blockchain technology value proposition, which has been proven in many other industries. They ignored the main ideas and misjudged some cryptographic art projects that are vital to the community. (Let’s face it: some of us once thought CryptoPunks is overrated Before jumping down the rabbit hole. )

Education and mutual respect will lead to new relationships and use cases. Below, I will outline the trends that have begun to take shape and show how NFTs are changing the art industry.

Modern multimedia and generative art

In the 19th century, when artists began to use the latest metal plate printing technology to monetize their works, the printmaking industry developed. Since the development of photography, video, and digital art formats, the use of technology has accelerated. The dialogue between art and technology has always existed, and NFT is just another proof of a continuing trend.

Blockchain technology provides artists with a medium and a new creative environment-especially through direct communication with the audience. Generative art is another example: projects like Eulerbeats and ArtBlocks provide a new format for modern multimedia art.

The museum in the meta universe

Should new digital art be hung on the wall of the museum? What is a suitable representative? Perhaps, the virtual world and meta-universe are the best places to express multimedia art. Digital museums are developing-anyone can visit from anywhere and display digital art in its original form.

Some critics argue that digital art cannot provide the feeling of objects, but how many times do they smile at the emoji received in the message every day? NFT provides a way to form verifiable relationships—a unique experience for both artists and collectors. The virtual experience is different from the real world experience, but still undisputedly powerful.

related: Digital becomes physical: Top NFT galleries will be visited in person in 2021

NFT of origin

After creating a piece of art, it will go through a verification level. Who is talking about it? Who will collect? Where is it exhibited? Provenance is an important aspect of the art industry. Complex storytelling defines the value of works of art.

Blockchain allows this history to be tracked in a reliable way by implementing certificates of authenticity and ownership (smart contracts created when NFTs are issued, sold, or resold). This is possible due to the basic quality of the blockchain network-the immutability of transactions.

Art industry consensus

Furthermore, the crypto ecosystem has developed a new community model that allows players to interact online and collectively verify decisions and ideas. This is called “consensus.” All blockchain technologies are built on it, and the community uses this logic and rule system to build itself. These models are expressed in governance tokens and decentralized autonomous organizations or DAOs. These models allow validators to be rewarded for important inputs recognized by other community members.

Once the art community gains the knowledge of the DAO, the trend-setting power will return to the curators to provide value to the art system by sharing their experience and vision.

“Physics” Art: Bridging the Gap

Encryption gave birth to a new financial system, which is currently being adopted by leading financial institutions. The reason is simple: it just works more efficiently. Traditional financial systems will also begin to adopt NFT-based assets in their portfolio management. This will urge the government to issue regulations that clarify how to register and use NFT assets. The legal framework will establish a link between physical art and digital NFT, creating a “physical” asset.

Physical art bridges the gap between physical art and digital art, integrates the essence of the two worlds, and realizes a new ownership and funding model in the art world.

related: Hybrid smart contracts will replace the legal system

Ownership reimagining and democratization

The direct advantage that asset holders will gain from the blockchain ecosystem is transparency and the ability to track their investments on the blockchain and transfer them quickly. However, another impressive development of Decentralized Finance (DeFi) is the subdivision of NFT, which can democratize art investment and completely change the financial model of private museums and galleries.

Some modern art museums cannot afford permanent collections, while other traditional galleries are forced to sell art to make ends meet. In emerging countries where art is sold in galleries, despite the heritage protection laws, art is often taken out of the country. Distributed ownership allows museums to attract capital globally, allowing more retail investors to acquire this asset class. Leave a small portion of the ownership to itself, and the museum will be able to preserve the item while obtaining some funds from the sale.

Some artworks are too expensive to be obtained even by institutions, and distributed ownership can ease this type of sales.

Alternative funding models for museums and artists

Art is a capital-hungry industry that has suffered significant losses during the COVID-19 pandemic. It needs the support of the government and large institutions-but in some countries this support is not always provided, which creates unequal conditions for participants in the art industry. However, NFT has shown the ability to redirect capital based on community values ​​and highlight new philanthropic opportunities. Vitalik Butrin He recently made a big one, emphasizing the charity aspect of NFT, Personal donation to India COVID-19 Relief Fund (Perhaps the largest in history). Although these institutions are late in investing due to their complex structure, NFTs provide the community with opportunities for self-funding.

Although on the surface, the crypto community is driven by economic incentives (like all of us), the core of the community lives in a new moral paradigm, and people are willing to invest in sustainability and culture. Foundations and charity programs that support the arts and artists will emerge, because it is natural for the crypto industry to support community-driven programs. With the knowledge and investment in the crypto industry, the art world will become more and more global and effective. With the support of crypto investors, art market participants will gain some freedom to make rapid investments in capital-intensive directions that they consider important.

NFT E-commerce Museum

An exciting example of attracting additional revenue for museums is the recent NFT Sell Uffizi Gallery. The gallery produced a one-to-one digital copy of Michelangelo’s “Doni Tondo” signed by museum curator Eike Schmidt for $170,000, and plans to release other prints in the series.

Looking at the current trend of how brands treat NFTs as a tool, we can predict the emergence of a certain museum e-commerce industry in the future. Rare digital collections produced by the museum as NFT limited editions can also be traded or exchanged for actual physical prints.

Work together to create the future art industry

The merger of the art and blockchain communities is a win-win situation. Art curators, museums and creators will do their best: bring beauty into the blockchain world, enrich content and narrative, and bring high-quality art into space.

The blockchain community is looking for NFT art beyond hype in order to be able to bring new models of effectiveness, transparency and ownership, funding and grants. Therefore, individuals who actively focus on using the benefits of the two ecosystems rather than criticizing each other for differences will shape the future of NFT and the art industry.

This article does not contain investment advice or recommendations. Every investment and trading action involves risks, and readers should research on their own when making a decision.

The views, thoughts, and opinions expressed here are only those of the author, and do not necessarily reflect or represent the views and opinions of Cointelegraph.