Benefits of NFTs — IV
We continue to look that various ways that an NFT would add value to an object with two important issues: IP rights and ease of transfer.
In our mini series first we looked at the concept of value and what constitutes ‘value’ in a typical art object. In the following post, we continue with exploring how NFT would add value to such an object. In our last post, we dived into traceability and fragmentation, two important attributes that NFT has brought to table. 👇
Benefits of NFTs — III
We continue to look that various ways that an NFT would add value to an object.
In following post, we continue with exploring how NFT would add value to such an object. This time we will look at IP rights and ease of transfer. Let’s get into the subject. 👉
In a physical art piece, the creator brings the piece to life and then sell it to a collector and that’s it. Once it gets out of her hands, the creator has no further rights or extracts further profits from that asset.
NFT is a piece of code, so it is programmable. This means you can create many scenarios that would benefit the creator. For example, an artist may program the NFT such that it may give the creator a certain percentage from the proceeds of any future sales.
The best part is, an artist does not have to make any effort to collect such loyalties. Due to the programmable nature of NFTs, and sale that is written on blockchain will automatically set aside a part of the sale price and send it to the artist’s account. Neat, right?
Ease of transfer
One of the main hassles of owning a physical art piece is to transfer it from the creator to any place that you potentially display it (be it your house or a museum/gallery). This requires significant resources (in terms of transportation costs) as well as a potential risk of damage etc. It also limits the potential market for that piece. The costs would be enormous and in same cases prohibitive if you try to transport it overseas.
Now with digital art, we mostly eliminate such barriers and significantly expand the potential market for any digital piece. Rather than the closer proximity of the city where the artist lives, now the whole world becomes your potential buyer. So this is a benefit that comes not with NFT but rather the digital art itself.
What NFT would bring is the ease of transfer from one person to the other. You can easily scan through marketplaces, find a piece that you like, make an offer, if accepted can own the piece in seconds and then list it afterwards. Such ease brings enormous NFT transaction volume.
To be continued…
We will continue to explore the benefits of NFT in our future posts…