The team at Digital Assets Firm octopus notes that people “have always loved making and showing art”.
The US-based crypto-exchange provider reveals that deep in a cave in Spain there is a Neanderthal hand stencil that scientists “dated 64,000 years with radiocarbon – it is the oldest known example of art in the world.”
Over the past 60,000 years, human creative expression has “expanded into a variety of media, styles, techniques, and skills,” adds the Kraken team, noting that one of the newer media is digital art: “Creative content which is saved as a computer file and can be easily shared on the internet. ”
Over the past year, digital art continued to make headlines over the staggering amounts of money secured at various auctions. “Amounts that could only be raised with non-fungible tokens (NFTs),” claims Kraken.
The company pointed out that the Beeple piece recently sold at Christie’s for nearly $ 70 million using an NFT. Then there was Square and Twitter CEO Jack Dorsey who managed to raise $ 2.9 million for charity by auctioning off his first tweet with a non-fungible token, of course.
Kraken wrote in a blog post:
“CryptoPunks, 24 × 24-pixel digital images, and one of the first examples of an NFT are now regularly selling for $ 30,000 to $ 100,000 – and more than $ 1 million recently. Established artists are now moving into the game. The American DJ 3LAU collected over 11 million US dollars in sales rights for his new album and, by the way, played at Krakens virtual Christmas party in Decentraland – an NFT-based virtual reality platform. ”
However, general market activity may have “calmed down slightly since the hustle and bustle in late February, but it was still worth more than $ 33 million in the last week of March,” confirmed Kraken, while noting that Damien Hirst, one of the most famous artists in Die Welt has revealed its plans for an NFT initiative that “was still mysterious at the time of writing”.
As mentioned in a blog post by the Kraken Learn Center, NFTs are a type of virtual or digital token that resides on a blockchain or DLT-enabled network (Distributed Ledger Tech). It is basically just a computer file “for digital trading cards, in-game items, audio clips or works of art”. Kraken went on to explain that just like Bitcoin, these so-called NFTS can be traded online or kept in a refrigerator compartment. In contrast to Bitcoin, each NFT token is “a unique good and digital”. Kraken also mentioned that all of these tokens “represent and confer ownership rights to a particular piece of digital creative content”.
Kraken also noted that if you “get to the heart of what an NFT really is”, it is just one form of licensing technology that allows owners of digital works of art, for example, to exercise their property rights online. However, it is “still a very significant innovation”.
That’s because artists and content creators can use the Internet to freely distribute their work “on a scale unimaginable thirty years ago,” Kraken claims, adding that “a lot of digital artists have been able to create galleries or record labels to visit instead of being obliged to freely share their work directly with the public. “
Kraken’s blog post goes on to say:
“Long before cryptocurrencies, the internet was the original ‘middleman-cutter’. It reworked the very way in which human creative expression was spread. A particular piece of art can be shared on social media thousands of times long before it is ever heard by an art critic. Likewise, a piece of music can be played on the radio long after it first went viral on YouTube or SoundCloud. Content creators can use the power of the internet to speak directly to people, not only in their own cities or countries, but also to disparate global communities. “
However, the Internet has “proven to be a double-edged sword,” according to Krakens blog post, which also mentioned that until recently a work of art or music sample was “effectively made publicly available online, if not legally.” Kraken added that basically anyone with internet access “can easily copy and download computer files of a picture they like or a song they want to hear again.”
Kraken further stated:
“Ownership has been difficult to enforce, so content creators, even very successful ones, have struggled to properly monetize their work. What has made the internet very effective as a sharing tool has also made it miserable as a means for artists to make a living. The only solution so far has been to bring middlemen back into the picture, who get exclusive and profitable access with paywalls and subscriptions. Some of these platforms are shortened more than the content creator. “
But non-fungible tokens allow artists to “assert ownership rights to their digital work for the first time,” Kraken noted, adding that “the beauty of an NFT is that it doesn’t prevent anyone from viewing or enjoying online content – They can download their favorite digital artwork to use as a screensaver as many times as they want – but they don’t own them. “
Kraken also mentioned that it’s a bit like owning a famous painting. Everyone knows what it looks like and they can view it online, but the only one with ownership is the person with the right documentation – the right licensing. “
According to Kraken:
“NFTs are an extremely lucrative proposition for content creators. The internet was the trigger for a Cambrian explosion in shapes and styles. The last thirty years have been a long revolution in the creative arts. The only thing that hampered further innovation and advancement was the lack of revenue. NFTs address this directly. They enable individuals to earn the rewards they deserve from the content they create and share online. How the NFT story ends is still too difficult to say, but it’s probably the next exciting chapter in a story that began in a Spanish cave thousands of years ago. NFTs will undoubtedly be a part of the digital asset space that we should be watching closely for the months and years to come. “