• BBCA

How blockchain is changing the future of art

A non-fungible token, better known by the abbreviation NFT, is a unique and non-interchangeable unit of data stored on a digital ledger. When we speak about digital ledgers, we are implying the concept of blockchain, a distributed database that is shared among the nodes of a computer network that stores information electronically in digital format. NFTs on blockchains have recently emerged as a means of certifying the originality of digital properties.

NFTs can be used to represent easily reproducible items such as photos, videos, audio, artworks and other types of digital files as unique items. Exploiting the analogous process to a certificate of authenticity, NFTs use blockchain technology to establish a verified and public proof of ownership. Copies of the original file are not restricted to the owner of the NFT and can be copied and shared like any file. The lack of interchangeability, the so-called fungibility, distinguishes NFTs from blockchain cryptocurrencies, such as Bitcoin. NFTs are "minted," then sold, just like Bitcoin. The difference, though, is that Bitcoin is "fungible." If you swap Bitcoin with someone, you both still have the same asset: some amount of Bitcoin.

Although NFTs represent little more than code, the codes to a buyer have ascribed value when considering its comparative scarcity as a digital object. It well secures selling prices of these IP-related products that may have seemed unthinkable for non-fungible virtual assets. Full-history tradability, deep liquidity, and convenient interoperability enable NFT to become a promising intellectual property IP-protection solution.

This dynamic creates a simple, but powerful, change in how digital artworks: it makes digital art exclusive, or better, the ownership of digital art pieces exclusive. Once minted on the Ethereum blockchain, the NFT is represented on a public ledger that can't be changed. By owning the token, you are proven the owner of the art piece. There is nothing stopping someone online from viewing, copying, and sharing a digital art file, but thanks to NFTs, they cannot fake possession of the art. NFTs make it possible to have exclusive ownership of digital art, something that was previously impossible. In some cases, artists may structure the NFTs tied to their work in unique ways. They may retain rights to reproduce the image. Furthermore, the creator can also earn royalties each time of a successful trade on any NFT market or by peer-to-peer exchanging.

Think of an NFT like the documents that come with owning an original Van Gogh. Art experts verify your painting is original: they verify your ownership and provide documentation. As a result, the world accepts that you own an original Van Gogh. The only big difference here is that NFTs make it possible to verify ownership of digital assets. There exist plenty of fraudulent Van Gogh, but given the limited supply of his works, and the multitude of experts evaluating paintings, it is possible to prove that an individual owns a legitimate painting. It used to be impossible to do this for digital art. You could create digital art, and everyone would know you made it, but anyone could reproduce it and share it with the entire world. In a scenario in which you can duplicate art with perfect fidelity indefinitely, the art