You can do this exercise: draw an image of a society where Pure NFT is widely used in different areas of life, evaluate the pros and cons, and look at some opportunities more seriously!
The first thing that comes to mind when you hear about NFT is the storage of digital art objects. Any object, from memes to whole music albums.
And here Pure NFT turns out to be very useful. Storing data directly on the blockchain means that it cannot be deleted, changed or corrupted. And digital art is finally independent of third-party cloud services, approaching the standard of long-term storage.
This is all clear at first glance. But what if we look a little deeper?
Something that exists in a single instance and is available only to them. But how can you be sure of the exclusivity of the content, if the data itself is stored on a server that can show the 404 page at any time, and the author can change the nickname and create another hundred thousand copies?
The first point is already clear, the data is immutable and stored directly on the blockchain. An important addition: the NFT content can be encrypted, and then, for example, an exclusive art object released in a single copy becomes available only to its owner. At the same time, the encrypted content may contain completely unique materials, sketches, drafts, even videos of the creation of an art object!
What causes a sparkle in the eyes of collectors? Exclusives!
The provenance (NFT ownership history) is publicly available and also located on the blockchain, which allows a potential buyer to immediately understand whether the content offered is really exclusive, or it has already gone through many hands.
“It is clear about the uniqueness, so then we turn to the copying possibility, including an unscrupulous author.”
A digital ID and proof of identity enter the scene. I am almost sure that after passing the identification, the author of the art object will rather engage in further creativity than use the above schemes (not the most honest, in relation to users). Because it will no longer be about losing confidence in a well-known, but depersonalized account, but in him as a person. I believe that it will help to be a little more careful and think twice before trying something dishonest.
What will protect the collector in this case?
Here is the first released NFT, with the first, cute, but still slightly clumsy drawing.
Here is the first auction for the pop art style drawings released in a small batch of ten NFT.
And here is the status of "honest author" out of respect for collectors and the absence of claims.
If we add here the status system capabilities, we will get a very beautiful picture, when the author’s reputation can be tracked live, directly in the blockchain.
We immediately see a good, developing NFT art author and understand that, having bought the NFT they exhibited, it is unlikely that in a month we will find a market filled with copies of it. In addition, the author can set a separate commission for secondary sales of the NFTs issued by him.
The author may sometimes sadly notice how their first NFT ends up at an auction, where it is already bought for a price many times higher than the original one.
Yes, it's the market, but is it fair? I think that in this case a small commission from every transaction will be very useful to the author.
I will also raise a question that is closer to the crypto market than to NFT art objects. This is the ICO (Initial Coin Offering).
Why is this important?
You may ask, why is this here? Very simple. Often the authors don’t have enough resources to seriously do what they love and continue pleasing fans with new high-quality works.
And it seems that services like Patreon and Boosty are trying to solve this problem. But why not make it even more transparent?
As I imagine it. An author with an existing portfolio and a well-established reputation invites investors to participate in their new work creation. In return, investors will get unique NFTs, which may arouse interest among the author's fans. At the same time, unique NFTs can contain very rare drafts, sources, and sketches. This is generally a very interesting point, and only feasible on a platform that supports data storage directly on the blockchain.
Because such unique additions to the main digital art objects can be very much in demand after a long time period, when conventional data storage services may no longer exist, and distributed ones will not give any guarantee that the data is not copied.
It would probably be possible to write many more things, for example, about the placement of music albums on the blockchain or the possible creation of art performances based on NFT… But these are only special cases of what has already been described. Then, I think it's time to put an end to it.
Next time, we will try to evaluate the Pure NFT possibilities in the field of digital distribution.