This article examines the application of blockchain technology for creating and circulating new investment assets in the creative industry. The study analyzes the impact of decentralized technologies, particularly blockchain, on the formation of new types of investment assets in the creative sector of the economy and assesses their potential for industry development. The research employs a systematic approach, methods of analysis and synthesis, comparative and statistical analysis, and generalization of expert assessments. The current state and trends in the use of blockchain technologies in the creative industry have been investigated, with a focus on NFTs, intellectual property tokenization, and decentralized autonomous organizations (DAOs). The study concludes that blockchain technologies create fundamentally new opportunities for monetization and investment in creative assets, while also highlighting challenges such as regulatory uncertainty and technological limitations. Recommendations for maximizing the positive impact of blockchain on the creative economy are provided, along with suggestions for further research.
The rapid expansion of the non-fungible token (NFT) market, which grew over 200% in 2023 to reach $22 billion, has opened new avenues for fashion brands to engage consumers through digital fashion products under blockchain technology. This study investigated the effects of NFT promotional bundles that combine physical and NFT fashion items as a pair on consumer perceptions. By investigating the interaction effect between the brand type (luxury vs. non-luxury) and promotional bundle types (PHY+free NFT vs. NFT+free PHY), the research demonstrated how these bundles influenced consumers’ perceived value, risk, and authenticity according to the brand type. The findings showed that while a freebie physical item can enhance consumers’ perceived value of NFT products for non-luxury brands, it led to value-discounting inferences, particularly for luxury brands. This study contributes to the literature on NFT fashion by exploring consumer perceptions and providing insights for fashion retailers on effectively framing promotional bundles to maximize consumer engagement for NFT fashion products.
Open access
Art History and Market Analysis
Consumer Behavior in Brand Consumption and Identification
This paper explores the evolution of digital art, tracing its development from the early experiments of the 1960s to the diverse contemporary practices of the 21st century. It examines key technological advancements, such as the transition from 2D to 3D art, the rise of the internet, and the integration of artificial intelligence, which have redefined artistic creation and audience interaction. The role of Non-Fungible Tokens (NFTs) and blockchain technology in the commercialization and authentication of digital art is discussed, as well as the impact of Augmented Reality (AR) and Virtual Reality (VR) in creating immersive art experiences. Additionally, the paper addresses ethical and philosophical questions regarding authorship, ownership, and the environmental impact of digital art. Ultimately, this study highlights the profound influence of digital technologies on art and offers insights into the future trajectory of the field.
Purpose Advancements in Internet technologies greatly influence digital humanities, yet research investigating web3 (i.e. the blockchain-based, decentralised web) within that domain remains limited. The purpose of this paper is to address that gap, presenting a state-of-the-art synthesis of web3-related technologies for digital humanities infrastructures and exploring associated risks and challenges. Design/methodology/approach Following a review of the literature, the authors scope out ways blockchain technology, peer-to-peer decentralised storage and other web3 technologies could support digital humanities infrastructures, especially in the context of digital cultural heritage. In this discussion, particular cognisance is given to the needs and aims of the UK’s Arts and Humanities Research Council funded Towards a National Collection programme, which seeks to break down the barriers that exist between the UK’s cultural heritage collections. Findings Web3 introduces novel tools and processes that could benefit digital humanities infrastructures, enabling decentralisation and facilitating open access data storage. Yet, significant barriers to adoption remain, such as the requirement for highly specialised technical expertise. Risks and challenges must also be considered prior to any use, including legal, ethical and technical safeguards. Research limitations/implications This study explores opportunities and risks of web3 for digital humanities, through the lens of digital cultural heritage infrastructures and their requirements, including decentralised storage and persistent identification. It does not provide a holistic overview of all web3 technologies. Practical implications The authors identify practical uses of web3 technologies for digital humanities projects, outlining potential applications concerning decentralised storage and persistent identification. Originality/value The authors push forward current knowledge and literature on the intersection of web3 and digital humanities, outlining also practical recommendations for scholars, practitioners and funding organisations.
R. Saranya, C Sangavi, K J Sarni, D Dehavi · 5 authors
The blockchain with its decentralization, security, and transparency has disrupted the contemporary society. Another donor-based technique, crowdfunding, started as a way to fund projects with limited donations over the Internet and has also changed. Present scenario is that, currently people can put their money to work in startup ventures through brokers or digital wallets. Current crowdfunding sites have little control over where the money goes, and donors often do not have guarantees. In this paper, we present a potential solution as a blockchain and decentralized crowdfunding system.
This study explored the role of NFTs (Non-Fungible Tokens) in digital marketing and content monetization within Iringa Municipal, Tanzania. It assessed the level of awareness and understanding of NFTs among local businesses and individuals, explored the potential applications of NFTs in digital marketing, and evaluated the benefits and challenges associated with their use. Using a sample size of 100 participants, the study revealed moderate familiarity with NFTs but highlighted significant interest in their application across industries like digital art, music, and brand marketing. Although NFTs offer promising opportunities for revenue generation, enhanced ownership, and transparency, challenges related to scalability, volatility, and regulatory uncertainties were significant. The findings suggest that while NFTs hold transformative potential in digital marketing, a focused approach on education, technological infrastructure, and regulatory clarity is needed to fully harness their benefits.
This chapter examines the relationship between Bitcoin and the Marxian theory of value, building upon recent papers that argue for Bitcoin’s association with Socialism. Drawing parallels between the two, both Bitcoin and Marxian theory seem to consider labour, or work, as the basis of value. A similar perspective can be found in Platonov’s novel, The Foundation Pit , written during the peak of productivity propaganda in the USSR in the 1920s. Is “mining” for Bitcoins akin to ceaselessly excavating a pit, generating something devoid of use value, but ascribed economic value through an idealization of labour? Ultimately, this chapter claims that Bitcoin is more akin to attempting to sell bottles filled with exhaust fumes. If seen through the lens of the Marxian theory of labour, the value of the Bitcoin should be grounded on the concept of labour of nature.
Highlighting the complex interplay of economic, cultural, and social factors in shaping art’s value and accessibility, this chapter provides the background for discussing the art markets in a global perspective. Focusing on history, technology, finances, and ongoing geoeconomic reconfigurations, it discusses the rational of current art markets’ phenomena, such as the multimillionaire sales of Da Vinci’s Salvator Mundi and Beeple’s non-fungible token (NFT) The First 5000 Days . The topics discussed include the democratization of art access, the rise of speculative investments like NFTs, the role of art museums as democratic institutions, and the low regulatory environment that favours emotional and speculative investments in art.
This chapter explores Sotheby’s and Christie’s role in leading the global market for non-fungible tokens (NFTs), focusing on how they are creating and establishing NFTs as a new market category. The chapter will examine the meanings attached to the category NFTs, and how they shape collective perceptions of value in art. In particular, it develops a chronology of sales held by Sotheby’s and Christie’s between 2020 and 2021, and it demonstrates the range of strategies each auction house deployed to make themselves competitive against each other, as well as to establish themselves as the arbiter of value for NFTs. This is an early study conducted on the role of global auction houses in the making of a market for NFTs.
In the last few years, art market participants have been forced to adapt to a new environment that many considered as hostile. Their technological backwardness became a major threat during the COVID crisis and its lockdowns. Since 2020, global art market players are finally trying to seize opportunities offered by new technologies.
Fueled in part by the wealth created from digital currencies, major art dealers such as Christie’s and Sotheby’s have embraced the sale of non-fungible tokens (NFTs) attached to unique digital works of art. NFTs, how they are related to the blockchain, and the evolution of the market for digital art is the subject of this chapter. Despite recent decreases in value, it appears that digital art can be added to the growing list of uses for blockchain technology, which is now becoming a part of modern life. This chapter proceeds in five sections. First, the overview of the evolutionary progression of blockchain technology in the form of NFTs. Second, a description of the emergence of the market for digital art. Third, an explanation and historical account of digital art and related recent issues. Fourth, a coverage of the abrupt decline in the market price for many NFTs. And last, a conclusion, which focuses on how the dramatic extension of blockchain and other digital technology to the world of art represents a new and exciting platform for creative expression. This chapter offers a valuable addition to the literature by providing a readable introduction and overview of what is now known about the likely impact of blockchain technology and NFTs to art. Additionally, this important development should have a significant impact on the future of innovation and property law.
Ethereum, as a representative of Web3, adopts a novel framework called Proposer Builder Separation (PBS) to prevent the centralization of block profits in the hands of institutional Ethereum stakers. Introducing builders to generate blocks based on public transactions, PBS aims to ensure that block profits are distributed among all stakers. Through the auction among builders, only one will win the block in each slot. Ideally, the equilibrium strategy of builders under public information would lead them to bid all block profits. However, builders are now capable of extracting profits from private order flows. In this paper, we explore the effect of PBS with private order flows. Specifically, we propose the asymmetry auction model of MEV-Boost auction. Moreover, we conduct empirical study on Ethereum blocks from January 2023 to May 2024. Our analysis indicates that private order flows contribute to 54.59% of the block value, indicating that different builders will build blocks with different valuations. Interestingly, we find that builders with more private order flows (i.e., higher block valuations) are more likely to win the block, while retain larger proportion of profits. In return, such builders will further attract more private order flows, resulting in a monopolistic market gradually. Our findings reveal that PBS in current stage is unable to balance the profit distribution, which just transits the centralization of block profits from institutional stakers to the monopolistic builder.
Mohammad Aaris Amirza, Ahmad Luqman Ahmad Kamal Ariffin, Mohamed Razeef Abdul Razak
Non-fungible tokens (NFTs) have made a significant impact on the Malaysian art industry. This blockchain advancement have provided artists with a new way to monetize their digital artworks and have also opened avenues for art enthusiasts to collect and trade digital art in a secure and transparent manner. Many Malaysian artists have embraced NFTs as a means of showcasing and selling their digital creations to a global audience. However, the pricing factors of NFTs have posed obstacles for traditional artists and collectors who wish to enter this technology. This research paper aims to study the elements that influence the pricing of NFTs created by Malaysian artists. The study conducted interviews with prominent Malaysian NFT creator that has successfully created and monetized their NFTs on both local and international platforms which was analyzed using thematic analysis. This analysis reveals that market dynamics, creator reputation, and the concept of scarcity and utility influence the pricing factors of NFTs in Malaysia. These insights provide a comprehensive understanding of the multifaceted factors that shape the NFT pricing in Malaysia. The findings underscore the necessity for educational initiatives to enhance understanding of NFT market among artists and collectors. This study also proposes for future research to explore the long-term evolution of the NFT market and to compare it with other regional and global markets to gain comprehensive insights into its dynamics.
The development of digital art has been marked by numerous transformative phases, with the rise of NFTs (non-fungible tokens) representing a pivotal moment in its evolution. This paper posits that the ascent of NFT art is closely linked to the COVID-19 pandemic, which catalyzed a shift towards digital mediums and redefined the relationship between art and technology. NFTs not only revolutionized the creation, distribution, and monetization of digital art by embedding databases and data archives into the artwork itself, but they also challenged traditional notions of ownership and value in the art world. This study examines how NFTs altered the perception of digital art, particularly during the pandemic, and investigates the factors contributing to the subsequent decline in their prominence after the initial surge of interest.
Sanat eserlerinin yegâne özelliği biricik olmasıdır. Dijital sanat, sınırsız kopyalama ve dağıtma anlamında bu temel özelliği bir anlamda yapıbozumuna uğratmıştır ve tartışmalı bir süreci getirmiştir. Değiştirilemez jeton anlamına gelen NFT (non-fungible token), tescillenebilme özelliği ile klasik sanata özgü nitelikler olan ve dijital sanatta tartışma konusu olan biriciklik ve özgünlüğü bir anlamda yeniden teslim etmiştir. NFT, özellikle son yıllarda birçok alanda gündemi meşgul etmiştir ve sanat ortamında da oldukça ön plana çıkmıştır. Zaman içerisinde NFT sanatı üretenlerin yanı sıra sanatı domine eden yapıların da bu konuya yaklaştıkları ve bir takım projeler ürettikleri, etkinlikler düzenledikleri görülmektedir. Ancak piyasada herhangi bir konuda yaratılan ilginin manipülatif olma ihitimali vardır. Sanat piyasasının da manipülasyon yönünün güçlü olduğu göz önünde bulundurulmalıdır. Dünya çapında çeşitli analiz şirketlerinin anket sonuçlarına ve bulgularına bakmak, daha gerçekçi bir tablo çizmek anlamında yol gösterici olabilir. Bu nedenle bu çalışmada çeşitli analiz şirketlerinin son üç yılda (2021-2023) NFT teknolojisi üzerine yaptığı istatistiklerden ortaya çıkan veriler incelenmiştir. NFT pazaryerleri ile fiziksel, sanal ve hibrit ortamlardaki NFT sergileri araştırılmış, örnekler serimlenmiştir. NFT sanatı özelindeki atılımlar ile daha somut sonuçlar veren istatistikler arasındaki ilişkiye bakılarak aradaki korelasyon değerlendirilmiştir.
This paper examines the global evolution of resale royalties within the art market, with an emphasis on the transformative role of blockchain technology in enforcing artists’ droit de suite. It delves into the evolution of resale royalties and their enforcement through blockchain technology globally, analyzing diverse approaches in the European Union, the United States of America, Australia, and China, and the universal adaptation of blockchain in this context. Drawing on diverse practices, the paper reveals diverse practices and the complex interplay between economic, legal, and cultural factors in each context. The research underscores blockchain’s potential to offer transparency, security, and efficiency in managing and enforcing resale royalties, as demonstrated by the rise of non-fungible token platforms like OpenSea. The paper also delves into China’s distinctive approach to blockchain, which avoids speculative digital currency markets while fostering digital collectibles within a controlled regulatory framework. The paper concludes by offering strategic recommendations aimed at harmonizing legal frameworks, spurring technological innovation, and preparing markets for these advancements. It calls for a balanced ecosystem that fosters artistic innovation and ensures regulatory compliance, showcasing the enduring influence of early concepts in the current digital era of the art market.
Gilbert Fridgen, Roman Kräussl, Orestis Papageorgiou, Alessandro Tugnetti
Abstract This paper analyzes the sales of 875,389 art nonfungible tokens (NFTs) on the Ethereum blockchain to identify the key determinants influencing NFT pricing and market dynamics. We find that market liquidity and trade volume are strong predictors of NFT prices. Contrarily, social media activity negatively correlates with prices. Introducing an artist ranking system, our study reveals a “superstar effect”, with a few artists dominating sales, and herding behaviour within the NFT market.
Abstract This paper describes a way to use blockchain-based non-fungible tokens (NFTs) to address some fundamental failures of the art world introduced when the early-twentieth-century evolution of financial markets expanded to include objets d’art as commodities. It proposes the creation of a distributed autonomous organization (DAO) that uses domain experts’ Delphic consensus methods embedded in smart contracts to provide NFTs with meaningful nonfinancial assessments of intrinsic artistic qualities and merit. Full details of the blockchain implementation and organizational development are online, registered at https://doi.org/10.17605/OSF.IO/3DF4W with the Open Science Foundation as a large-scale participant/observer social science experiment.
Samuel de Oliveira Ribeiro, Dayan Ramos Gomes, Nara Raquel D. Andrade, Emanuel Aurélio F. de Miranda · 5 authors
Non-fungible Tokens (NFTs) are digital objects with unique identities and ownership verified via blockchain networks. The digital arts and media industry has embraced NFTs for their secure features, such as defining authorship, transfer, and royalties, which can be programmed into smart contracts. The classification of NFTs is crucial for their commercialization but often relies on the author’s definition, which may be prone to errors, or on expert evaluation. In this work, we analyze NFT collection classes based on metadata extracted from OpenSea, the largest NFT platform. We assess the efficiency of supervised machine learning to identify the most relevant attributes of these collections and classify them into the nine most popular categories on the platform. Our results demonstrate the challenges of automating classification to assist users and platform curators, achieving a promising accuracy of 67% and an F1 score of 72% in the best cases.
Open access
Blockchain Technology Applications and Security
Advanced Steganography and Watermarking Techniques
The symbiosis of blockchain technology with human creativity has given rise to what we now call crypto art, marking a new frontier in digital artistic expression. This development has profoundly altered our understanding of digital artifacts and ownership in this domain. Once easily accessible to all, digital art poses a unique challenge in the realm of collecting: how does one collect something that can be effortlessly replicated and shared? This paper explores the role of non-fungible tokens (NFTs) as authentication mechanisms and proof of authorship for digital artworks. Initially designed for decentralized financial transactions, blockchain technology has become instrumental in validating authorship and enabling the monetization of digital artworks through NFTs. Although digital artists now benefit from the validation of their work as legitimate investment assets through NFT technology, challenges persist due to the absence of copyright verification during token creation. For example, many artists have discovered their creations being used by third parties to mint tokens without their consent. The study demonstrates the transformative impact of NFTs on the digital art landscape while addressing the ongoing challenges and the imperative for enhanced copyright protection mechanisms.
A non-fungible token (NFT) refers to a unique unit of data registered on a blockchain. As a form of digital ledger, it is proof of ownership of collective digital property. In the past two years, many leading art institutions worldwide have engaged with NFTs in various ways. This chapter attempts to review and discuss the burgeoning conversations of the new trend of NFT, focusing on its implications on the financial governance of museum management. By examining scholarly studies and gray literature, this chapter situates the emerging dialogs on NFTs at the intersection of existing research on funding strategies, digital transformation, technology adoption, and financial governance of art museums.