4 changes in the NFT area that will inform the future of art and Web3
NFTs have come a long way since their idea ten years ago.
The concept was first proposed in 2012 as “colored coins”, or traceable bitcoins that had non-fungible built-in token utility. The first NFTQuantumby Kevin McCoy – debuted in May 2014, but NFTs really took off when they found a home on the Ethereum blockchain, which allowed for tokenization, contracts, and other tools that NFTs inherently needed.
Since then, NFTs have blossomed in popularity and presented a new way for artists to create and sell work, connect directly with audiences and provide proof of ownership.
Four recent developments in the Web3 space illustrate the way NFTs are not only changing the art world, but becoming the future of assets and exchange for the Web3.
1. INCREASED INVESTMENTS
Recent innovations related to NFTs have resolved many of the questions surrounding ownership of digital assets, and as such there has been an increase in investment in the NFT space.
In May, Andreessen Horowitz announced that it had created a $4.5 billion fund to focus on backing crypto and blockchain companies. Overall, investments in blockchain startups rose to $25.2 billion by 2021, with many investment firms focused on building Web3. Sotheby’s made its first investment in the space by backing an NFT startup during its $20 million seed round, and Ebay acquired early stage NFT platform KnownOrigin in June.
At this year’s NFT.NYC, the message and energy was clear: it’s time to build.
2. IMPLEMENTED BUSINESS FRAMEWORKS
Web3’s growing reputation continues to capture the attention of entrepreneurs from all industries who recognize the opportunities offered by NFTs, digital ownership, DAOs (decentralized autonomous organizations) and other Web3 innovations. For example, the TryYourBest community is a consumer-facing product market research initiative that allows participants to co-create with their favorite brands and earn rewards.
Another example is CaféDAO, a “DAO-powered pop-up coffee stand” that has adopted the decentralized, bottom-up governance structure of DAOs. While DAOs are new and largely still learning the best ways to organize and operate, they are incredibly exciting models for the future of ownership, participation, and employment in this new digital economy.
3. ACCESS, INCLUSIVENESS AND EXCLUSIVENESS
NFTs have completely changed the way the world—including students and spectators, artists and collectors—is able to consume art. The Internet has made it possible for anyone with an Internet connection to create and connect with an audience. With smart contracts, creators can now monetize these connections, collectors can be verifiable owners of digital assets, and these artworks and transactions live on the internet and blockchain, available for all to see.
With so much access, it’s not surprising that we’re seeing members-only clubs popping up in the Web3 world. These clubs use membership tokens to give holders exclusive access to drops and other alpha.
However, there are still those of us pushing for further inclusion and democratization of opportunity. One such example is the Foundation – a major art platform in the NFTs – which announced that it was moving away from its community curator model and opening up doors to all creators. Foundation’s open protocol, os.foundation.app, also presents composable building blocks and an ecosystem of applications that allow anyone to create their own Web3 apps and experiences. As the slogan aptly declares: “A new world is possible!”
4. MORE IRL EXPERIENCES
NFTs live in the digital realm, but can also be linked to objects from the real world. Likewise, while the NFT community exists vibrantly online, it also finds ways to connect in real life—especially among art lovers.
SuperRare has launched a gallery space in NYC’s SoHo, while Bright Moments continues to host exhibitions and experiences in physical spaces internationally. In addition, DAOs and organizations such as FWB and BoysClub (the name is tongue-in-cheek – it’s actually for women!) hosting dinners, panels, talks and gatherings, all in the name of culture, education and real, personal connection.
For artists and collectors new to the area, joining a DAO can be a great way to learn about Web3, meet other artists and collectors, and build a foundation for yourself in the community.
THE FUTURE OF NFTs
Despite the recent downturn in the crypto market, the underlying technology of NFTs and smart contracts point to a solid future for NFTs as they provide new ways for individuals to connect, create and earn. If you’re an art lover, I think it’s a great time to invest in artists you love. Participating in this economy can not only help support an emerging artist, but will also define the future of the art world and Web3.
Empower artists and collectors to embrace digital art as curator for The Other Avatars and Saatchi Art Manager for Art Advisory and Curation.
