Kepeng.io, DENPASAR – In 2021, the Non-Fungible Token (NFT) market achieved significant growth and attention, associated with various high-profile NFT sales and the launch of many new projects. One of the NFT products that were sold at a bombastic value in 2021 was a work by Beeple, entitled The First 50,000 Days, which sold for USD 69 million. Besides NFT by Beeple, for example, the first tweet ever sold for USD 2.9 million. This is what finally attracted the attention of Kepeng.io to create a platform related to NFT.
Kepeng.io created an NFT-based website known as Baliola.com, the first NFT art marketplace in Bali, with its main focus being the protection of NFT-based art products. Then, through the socialization conducted by Kepeng.io through its representative, I Wayan “Agus” Pratama Putra, to HIMA Sastra Bali Udayana University and Enyo Studio, at the Dharma Negara Alaya (DNA) Building Denpasar, Tuesday (24/8), Agus explained that NFT has clearly become a relevant phenomenon that has resulted in a very innovative approach.
NFTs can provide digital equivalents for unique or rare assets in the analog world. NS programmability NFT allows its properties to be customized. For example, this could mean that the creator automatically receives royalties from the retailer. With the implementation of smart contracts, standards have been developed to offer ready-to-use NFT. The first NFT project on the Ethereum blockchain was Etheria, which was demonstrated at the Ethereum conference in 2015. The project initially received little attention but was “rediscovered” in 2021 as part of the rapid growth of the NFT market. In 2017, projects such as CryptoPunks and CryptoKitties were launched.
Agus explained, artists create a single NFT token that reflects the rights to digital art assets. Just as physical art can be viewed in a museum without owning it, internet users can also view the artwork. However, there is only one owner. Somewhat more complex examples include concert tickets, trading cards, or the allocation of liquidity on the Uniswap decentralized exchange. “Just like a trading card there can be multiple times, but not the ‘exact same’. NFT for concert tickets is differentiated based on characteristics such as seats or simple ID barcodes,” said Agus.
The use of NFT will of course provide convenience, especially for artists in maintaining the legality of their artworks. Then, this NFT can also be sold. Because NFT deals with property rights and no copyrights. The difference is, copyright represents the creator, it is officially owned by the artist. Meanwhile, property rights are related to the distribution of works. So when the work is sold, the property rights no longer belong to the creator, but to the buyer. However, the copyright of the copyrighted work is forever the property of the creator.
For the first time, artists can monetize digital content, users or gamers can become owners of the digital world, and rare collections can be (re)produced digitally. Various NFT ecosystems have been developed on the Ethereum blockchain, which at present still has strong dependencies and links to the cryptocurrency market. NFTs represent unique and irreplaceable digital assets, which are coded and stored on blockchains in the same basic way as cryptocurrencies like Bitcoin. Some individual NFTs are already selling for millions of dollars.
Given that the NFT market is highly dependent on the cryptocurrency market, the question naturally arises as to the extent to which large NFT trading volumes in early 2021 have just matured against the rise in cryptocurrency prices. Therefore, it would be useful to investigate the price of NFT in relation to the price of cryptocurrencies and the extent to which market cryptocurrencies are driving the price of tokens in the much smaller NFT market, which in turn is driving the sale of NFT itself.
Based on this, Kepeng.io created a cryptocurrency known as Kepeng (KPG), which was later used as a utility token as a basis for transactions and investments. The value is equivalent to USD 1 during the private sell period, and after the grand launching of Kepeng.io and Baliola in December 2021, the value will change to USD 5 per 1 KPG. So, every sale of NFT artwork in the Baliola marketplace will be applied to the Kepeng cryptocurrency.
Another thing, NFT is also related to copyright. Since copyright is relevant to the sale of tangible objects such as works of art, NFTs can be traded like bitcoins among a community of collectors. However, it cannot be traded like a fungible token. For example, USD 1 currency can be exchanged for another USD 1 currency. However, the KTP cannot be exchanged for another KTP, because it relates to the representation of the citizenship status of each individual. This is the uniqueness of NFT in terms of works of art because it can only represent one work of art. However, every 1 artwork can also be made more than 1 NFT, with a different code.
Furthermore, Agus said, NFT is also closely related to blockchain technology. The use of blockchain technology means that NFT cannot be easily faked. Anyone who chooses to buy than every transaction that takes place can be tracked subsequent ownership, and permanently recorded. “This is the uniqueness of blockchain, with its decentralized system, every NFT sale will be recorded permanently, and cannot be edited and deleted. So the authenticity of the data can be guaranteed,” said Agus.
Non-Fungible Token (NFT) is a new technology prevailing in the blockchain market. In the blockchain-based Baliola marketplace, we explore advanced NFT solutions that might reshape the digital/virtual asset market going forward. We first analyze the technical components and provide design and property models. Then, we evaluate the security of current NFT systems and further discuss the opportunities and potential applications of adopting the NFT concept. “We hope that Baliola will provide timely analysis and summary of solutions for each artist’s work to be marketed, making it easier for artists to follow current developments,” concluded Agus.