Kepeng.io, DENPASAR – There is a category of blockchain-based virtual assets known as non-fungible tokens (NFT) that have garnered tremendous investor interest in a very recent and short period of time. NFT is described by some as the future of digital art.
Non-Fungible Token (NFT) is a type of cryptocurrency derived from the Ethereum smart contract. NFT was first proposed in Ethereum Improvement Proposals (EIP)-721 and further developed in EIP-1155. NFT differs from classic cryptocurrencies like Bitcoin in its built-in features. Bitcoin is a standard coin, where all coins are equal and indistinguishable.
In contrast, NFTs are unique and cannot be arbitrarily exchanged (equivalent, non-fungible), making them suitable for identifying something or someone in a unique way. To be more specific, by using NFT on smart contracts (in Ethereum), creators can easily prove the existence and ownership of digital assets in the form of videos, images, art, event tickets, etc.
The representative of the Kepeng.io Community Manager Team, AA “Ary” Anila Kusuma Wardani, gave an introduction to NFT and its use in the art field based on blockchain technology to illustrator artists and designers from the University of New Media College Bali. The briefing, which was attended by university representatives, was held in the Dharma Negara Alaya (DNA) Discussion Room in Denpasar.
During the socialization, Ary said that NFT has great potential, one of which is in the game industry. “There are already several crypto games, namely CrytpoKitties, Cryptocats, CryptoPunks, Meebits, Axie Infinity, Gods Unchanged, and TradeStars. An interesting feature of such games is the “breeding” mechanism. Users can privately raise pets and spend a lot of time breeding new breeds.”
In particular, game developers who are publishers of NFT features (for example, weapons and skins) can earn royalties whenever their items are (re)sold on the open market. Players can obtain personal exclusivity game items. This will create a mutually beneficial business model where players and developers profit from the secondhand NFT market. After that, the blockchain community expanded NFT widely to cover various types of digital assets.
NFT greatly expands the scope of blockchain applications with the help of its additional properties (uniqueness, ownership, liquidity). This allows each individual to link to specific events such as patterns in our real lives. Ary gave an example, for example in the ticketing process. “When buying tickets at the traditional event ticket market, consumers must trust a third party. Therefore, there is a risk of buying fake or invalid tickets, so that someone who brings a fake ticket may be canceled to join the event,” he said. “NFT-based tickets” represent tickets issued by blockchain to show access rights to any event such as cultural exhibitions and other arts activities”, he added.
Based on this example, NFT-based tickets are unique and rare, meaning that ticket holders cannot resell tickets after they are sold. Blockchain-based smart contracts provide a transparent ticket trading platform for stakeholders such as event organizers and customers. Consumers can buy and sell crypto tickets from smart contracts instead of relying on third parties in an efficient and reliable way.
Then, talking about works of art, NFT can also be used as a solution in maintaining the legality of a work. Artworks range from conventional to digital collections consisting of various types, ranging from trading cards, digital images, videos, virtual real estate, domain names, crypto stamps and other real/intellectual property. Ary took the field of art as an example. First, traditional artists have few channels to display their work.
Prices cannot reflect the true value of their work due to lack of attention. Even their works published on social networks have been subject to intermediary fees by platforms and advertisements. NFT transforms their work into a digital format with an integrated identity. Artists do not need to transfer ownership and content to agents. This gives them a boost with many advantages.
Blockchain provides an ideal decentralized environment for the virtual online world. “This blockchain-based NFT can have many types of interesting use cases such as enjoying games, displaying homemade art, trading assets and virtual properties (art, plots, names, video recordings, wearables), etc.”, concluded Ary.