Cannes Lions is a celebration of art in all it’s forms. This definition may seem simple enough, but over recent years we have witnessed unsurpassed ingenuity largely due to the formation of Non Fungible Tokens on the blockchain. These are inimitable digital assets that are stored on a decentralized ledger of transactions. Sounds complex? Think of an NFT as a verification of ownership pertaining to the digital world of just about anything: digital art, music, films, games etc. I can go to Google and print off a picture of Andy Warhol’s Campbell’s Soup, but it’s worthless because it’s not the original. In a similar vain, I can copy and paste a picture of the meme famous Shiba Inu Doge Dog, but it is worthless because it is not the original. An NFT defines the original in the same way an experienced art curator would define Andy Warhol’s original work. In doing so, an artist of digital work can now demonstrate ownership over their masterpiece, which means they can also make profit from it, amongst other things.
Mike Winkelmann, the digital artist known as Beeple, generate global headlines when an NFT of his work sold for $69,000,000 at Christie’s, a 255-year-old auction house which has sold some of the most famous paintings in history. From that day, the light shone brightly on NFT’s and what they could mean for the industry.
Neda Whitney - SVP, Head of Marketing at Christie’s, hosted a number of conversations on the topic during the Cannes Lions event to gather more information regarding this new functionality within the art world.
The core takeaway is that NFT’s are creating new marketplaces: from fashion to art to music and entertainment, and they are here to stay. Powered by a tool simply known as Smart Contracts, digital art can be aligned with the original creator, who can then not only sell the piece, but also get creative with the contract and insert royalty percentages for any future sale, making it a very lucrative marketplace.
In the fashion vertical, NFT based visual assets and collectables are transforming the way digital and physical items can enter the digital-verse. Imagine your children wanting their avatar in Minecraft or Fortnite to wear the latest custom outfit? It has to be created by someone and where there is demand, there is a sale.
In the music vertical, NFT’s truly bring ownership and authenticity back to the artist. However, music as a form of art has generally been available for just a few dollars. Comparably, the cost of creating an NFT is high which unfortunately may price the music out of the fans’ hands. Conversely, new platforms are already being built to lower the cost of NFT creation and even subsidize certain costs in an attempt to lower the barrier to entry to zero.
On a similar note, as we discuss barrier to entry, from an energy consumption perspective, it can take 2 entire days of avg. household power usage to establish a single NFT. This topic continues to be widely discussed and countless innovative companies and platforms are already working on solutions.
As you can see, NFT’s are here to stay. With increased sovereignty, lower costs, lower barriers to entry, and increased energy sustainability, this art focused technology is only going to develop further and flourish within the industry.
We are merely at the tip of the NFT iceberg.
