In my talk “NFTs Will Change the Future of Art,” I discuss the technology underlying NFT digitally collectible assets. I provide a technical explanation for the fundamentals of blockchains, decentralized systems, smart contracts, and non-fungible tokens. Additionally, I break down the practical applications for NFTs and analyze the potential for the technology to shift the power relationships between artists vs. art world.
alexameade.com/nft // twitter.com/alexameadeart // instagram.com/alexameadeart
0:00 - Intro
0:59 - Explanation of Blockchain
1. Distributed ledger, decentralized system
2. Publicly hosted and publicly accessible, an open book
3. Timestamped
4. Permanent
1:19 - Explanation of NFTs, technically speaking
1. On a blockchain
2. Digital token
3. Managed by a "smart contract"
4. Unique token ID address where it permanently lives on the blockchain
5. Not interchangeable (non-fungible)
1:54 - Practical uses of NFTs
1. An NFT can function as a digital certificate of the authenticity on a blockchain. (The NFT part is not the actual artwork itself)
2. Can be used for anything physical or digital
3. Allows the item to be own-able, collectible, and tradable in a marketplace
4. Can hold value and be used as an investment asset
5. Digital autograph creates digital scarcity - very valuable for art collectors who want to own an "original."
5:17 - Power dynamics between artists vs. art world.
NFTs are providing artists with a way to opt out of the traditional gallery model.
6:07 - Benefits of NFTs
1. Better monetization for alternative mediums of art
2. No longer giving up 50% of your paycheck to a gallery
3. Fewer gatekeepers
4. Royalties on re-sale
5. Artists can see who is collecting their work
6. Transparency in accounting, immediacy of payments
17:26 - NFT issues
1. Not environmentally friendly
2. "Gas" fees can add up on an artist's budget
3. Novelty factor obscures bigger picture
18:42 - A reality check for the techno-optimism surrounding blockchain.
"New" doesn't necessarily mean "different." There's a lot of Kool-aid being passed around.
21:09 - Familiar problems are already emerging in the decentralized blockchain ecosystem.
1. Middlemen and intermediaries are rushing in for a cash grab, innovating new ways to take an ever higher percentage of the artist's profit
2. Hierarchies are already forming in a multi-tiered NFT market place. Incumbents still have the advantage.
3. Winner-take-all distribution of outcomes. A handful of artists make headline grabbing money, and the rest make peanuts. Very difficult for unknown artists to breakthrough.
4. High barrier to entry. Non-user friendly tech can be intimidating for non-crypto native artists. It becomes a system that puts mastery of tech ahead of mastery of art.
5. Lack of diversity and representation at all levels. NFT artists, NFT art collectors, and NFT tech developers are overwhelmingly white and male. Crypto holders are 71% white and 74% male.
6. Meet the new boss, same as the old boss. In the long run, will the new NFT art world be much different than the same old art world?
32:58 - What will have to change
NFTs aren't perfect, but it beats our next best alternative. The traditional art world does not work for artists. Up until now, there hasn't been incentive in the art world to fix what's broken. NFTs are coming along and providing artists with novel solutions to systemic problems.
