Blog Insight

GLG Trend Report Excerpt:
Priceless Cryptokitties

In the previous excerpt from the GLG Trend Report: The Impact of Cryptocurrency, the future of browsing and opt-in advertising took center stage. Indeed, the evolution of both will touch us all. In this next excerpt from the report, I’ll take an in-depth look at the world of non-fungible tokens (NFTs) and its potential game-changing impact on intellectual property management, not to mention digital artwork.

Read the excerpt below, or download the full report here.

What It Is

The world of non-fungible tokens (NFTs) may feel a little gimmicky right this second, unless you paid millions for one of Jack Dorsey’s Tweets, or are sitting, fingers crossed, hoping that the original digital kitty photo you bought as an NFT will explode in value based on sudden recognition of the artist as a true genius.

NFTs are making a lot of noise now, but the initial wave of priceless kitties and very original Tweets is probably ready for a plateau in volatility and activity. That is not to say that the cryptoart market is over; probably it’s just beginning and is ready to introduce new concepts and new formats that will be the next wave.

But what of business value? The non-fungibleness of non-fungible tokens means that they can prove the ownership and authenticity of anything digital. With provenance being such a difficult concept to navigate in the art world, you can see why the explosion in digital artwork is happening as provenance is ensured. If that same concept of provenance can be leveraged to enhance or streamline business transactions, the potential is limitless.

Why It Matters

We can apply the principles of provenance to a business asset with direct monetary value, such as a contract, or indirect value, such as video content, rights-managed photography, and perhaps even music. We are speculating here on business value thus far, but the patterns of how cryptocurrency and blockchain are evolving show no reason that the technology can’t or won’t be leveraged to establish trust via the cryptowallet that stores NFTs.

If you doubt this, just check in with Christie’s or Top Shot on business value in more obvious applications. If there is a business value, a business will be built around it. Being able to discover provenance directly will greatly simplify intellectual property management and allow partnerships and transactions to proceed with trust. Check out innovators like Eluvio (Eluv.io) for more on how they are building a “fabric” for content distributors that will allow them to monetize and enable rights management that protects them and allows them to capture appropriate value for their content.

Still confused about how NFTs work?

The Verge published a great breakdown here:

https://www.theverge.com/22310188/nft-explainer-what-is-blockchain-crypto-art-faq

And CryptoSlate provides a handy guide to NFT use cases here:

https://cryptoslate.com/the-big-five-nft-use-cases/

 

In the upcoming fifth and final excerpt from the GLG Trend Report, I’ll explore the distributed web.