About

The rise of NFT

The ever-advancing of technology has significantly impacted the art industry, in the form of digital art and NFTS. NFTs have significant industry prospects, as they hold the key to bridging the gap between virtual and physical presence.

What is an NFT?

An NFT is a non-fungible token which are unique digital files managed on blockchain and purchased using cryptocurrencies. NFT transformed how things are owned, from having physical certificates of authenticity for physical objects, to smart contracts for digital assets. This allows for easier verification and protection of ownership (VISA 3).

NFTs as Collectible

What is a Collectible? A collectible is an item worth far more than it was originally sold for because of its rarity and popularity, as well as its condition. Collectibles can include, trading cards, figurines and comic books etc.

Physical vs Digital Collectibles
  • Physical collectibles are displayed in a store
  • Physical certificate of authenticity
  • Longevity is based on environmental conditions
  • However, the physical nature of an physical collectible pieces can make it more desirable
  • Digital collectibles are viewed on smart devices
  • Smart contracts allow easy verification of ownership & authenticity
  • Preserved in blockchain
  • However, NFTs are risky due to the volatility and uncertainty of the value

Why people want to collect digital assets?

  • The reputation of the artist and their recognition, is a contributing factor in an NFT’s success.
  • A strong community being built behind NFT
  • Status symbol that the NFT brings along, even various celebrities have endorsed and bragged about their ownership (BeInCrypto).
  • Many NFTs already include elements of pop culture, symbols, and imagery with which the general public is highly familiar.
  • Technology used is public’s growing interest in blockchain technology and cryptocurrency.
  • Ease of access to their art piece anywhere in the world at any time.

How NFTs are used as collectibles

NFT technology enables users to possess digital collectibles. Even if identical copies of the same work may be found online for no cost, there is only one "original”, which establishes scarcity and value. This has ushered in a completely new age of collecting (Lee et al.). Some collectors purchase NFTs just for their own enjoyment, many do so with the expectation that their value would rise over time. NFTs will be crucial in the formation of metaverse property, and both industries are seeing tremendous expansion now (Dwivedi et al.).

NFTs in the Metaverse

A Metaverse is a virtual world network focused on social interaction. Using the Metaverse, one may give assets in the form of NFT to a friend online or exchange them for digital currency (Lee et al.). In the future, one will also be able to move information, goods, and self from one physical location to another, and from one virtual platform to another. The metaverse will serve as a connecting point between the physical and virtual worlds we frequent (Dwivedi et al.).

Case studies 0.1

Case study of Digital collectible design:

Tom sachs: Rocket factory
The project allows buyer to create their own NFT which will tie to toy-sized physical version. The designer, Sachs, will launch the rocket and record a video of it. He will then send the physical product to the buyer. Sachs shows one of the ways to blend physical and digital collectibles together. Hence the nature of design has shifted, which reshapes the way collectibles are being produced and distributed. In the past, collectibles only exist in physical form. However, by digitizing it, collectors can have both the physical and digital objects. The digital assets can also be utilised in different ways and are not restricted to its physical form.

Case study of a preference for Digital collectibles:

Damien Hirst: The Currency
Damien Hirst’s NFT project, “The Currency” challenges the preference of digital and physical collectibles. It consists of 10,000 works of paper tied to corresponding NFTs with the same design. Buyers can decide after one year to either keep the NFT or the physical version. Depending on their decision, only one medium will survive.

Insight:
After 1 year, the result is 5,149 physicals and 4,851 NFTs. This shows that the preference for physical and digital collectibles is about the same. This prove that neither of the medium is obsolete.

Case study of Physical collectibles

Funko Pop
Funko is a company that makes all kinds of pop culture collectibles, like bobbleheads.

  • Pop are easy to collect & widely available.They are resold as a side business to earn money.
  • Collectors of Funko Pop items know that this trend will not fade anytime soon.
  • They are collected as a hobby. Collectors' homes are made more exciting with them.
  • However Funko Pops are known to degrade overtime if not properly kept.

Case studies 0.2

Case study of an online marketplace for collectibles:

StockX marketplace
The StockX marketplace offers buyers and sellers the opportunity to make anonymous offers on popular items such as sneakers, streetwear, electronics, and collectibles, based both on the value of the item on the site and on the price that sellers are willing to sell it for.

  • Stock X’s has a good authentication process where shoes are shipped directly to StockX for confirmation before being verified.
  • Anonymity is maintained between buyers and sellers on StockX
  • However Stock X is a free market where buyers can place bids lower than the average market which may devalue the products
  • StockX also charged a large fee of 9.5%

Case study of Collectible Grading Company:

Professional Sports Authenticator (PSA)
Professional Sports Authenticator (PSA) is the largest and most trusted third-party trading card authentication and grading company in the world.
PSA graders review your cards for authenticity. PSA looks for signs of doctoring, such as recoloring or trimming. The cards are graded on a scale of 1-10 if they pass the authentication stage.

  • Grading that is industry-wide accepted and supported since 1991
  • The PSA capsules contain tamper-evident, sonically sealed, high-security collectibles.
  • Specialized Tag with unique barcode
  • In march 2020, PSA temporarily stopped services due to overload of customer demand.

Case study of NFTs in the Metaverse

Nike: Nikeland
Nikeland, a virtual world in Roblox, that allows players to engage in sports and express their own style. The physical version and digital version of an Nike products can both be purchased by users after deciding what they prefer. Nike acquired RTFKT Studios, a business that creates one-of-a-kind sneakers and digital artifacts that allow NFT owners to request their virtual goods be turned into physical items. By using 3D printing, it is possible to create hybrid experiences and bridge this gap between the digital and physical space.

Research Objective

The main objective of this research paper is to investigate on how to bridge the gap between physical and digital objects through the use of NFTs and the Metaverse. It is vital to carry out this investigation because it will help the intended audience to understand how NFTs and Metaverse are used in the art industry to fill the gap between traditional and digital art. This research intends to critically analyse how NFTs and Metaverse are used in bridging the gap between physical and digital objects. In order to achieve this purpose, the research will investigate on how blockchain is used in bridging the gap between traditional and digital art. The research will investigate on how people are able to show off/ trade/buy or sell their assets in the NFT form through the use of metaverse social networks. Finally, the research will also investigate the future of NFT in solving traditional art issues through the use of digital forms. To realize the above articulated purpose, this study offers some novel answers to the following research questions: How can the gap between physical and digital objects be bridged through the use of NFTs and the Metaverse? What is the future of NFT in solving traditional art restrictions through digital form? How can NFT, 3D scanner bridges the gap between traditional and digital art using blockchain? How can people show off their assets in NFT form or trade/buy/sell their assets in NFT form using a metaverse social network?

Methodologies

Critical Journal

Critical Journal is a persona account of selected experiments on particular topic. I will critically engage with relevant readings/experiments and also provide their personal reflections.

Case Studies

By using case studies to understand the existing projects of how artists create NFT asset and how they blend tradition and digital art together.

Additional Methods

I will use additional methods to understand my topic deeper such as using, persona, journey map, paper prototyping and user observations.