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A World of NFTs

Tiana Bailey

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OVERVIEW

This presentation will cover NFTs and the advantages and disadvantages it has placed in both digital and physical realm which will then reveal the future of NFTs

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AREAS OF FOCUS

The big issue with NFTs is your certificate of authenticity and fraud

Although other industries are investing in NFTs, the art industry was the first to take it head on, artist feel as though NFTs aren’t protecting their art.

NFT Framed

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What are NFTs?

  • Normally within currencies whether it being crypto or fiat, they are interchangeable/ fungible meaning they can be exchanged for that said currency.
  • NFTs do not follow that route as it is a unique token that cannot be interchanged hence the name Non Fungible Token.
  • Authenticity is claimed through the blockchain using smart contracts to confirm its uniqueness, which then the artist is able to monetize their work,
  • This can range from a number of things like photography, music, art, and even tweets.

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Ownership Issues

  • the uniqueness of NFTs shifts when art pieces are stolen. NFTs limit the factor of theft because of the unique coding added to any piece, yet artist have experienced theft numerous times.
  • Late artist Qing Han a.k.a.Qinni known for her art on DevianArt passed away in February of 2020 from cancer at the age of 29
  • It was later revealed in an article by Wired, that after her death her art work was found on OpenSea, where people were making money off an art piece she made one month before her death, Bird Cage shown in the figure to the side,

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TIMELINE

NFTs Timeline

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Concept was developed in 2012 by Meni Rosenfield

Kevin McCoy creates the first NFT: Quantum

2012-2016 Early NFTs

NFTs are now on Ethereum

Token Standards are introduced

NFT- Gaming Industry and Metaverse

2017-2020 NFTs Gets Hyped

First NFT, Kevin McCoy’s Quantum sells for 1.47million - June

Beebles NFT sold for 69 million

2021- The Prime of NFT

NFTs foster an immense amount of energy which is needed to mint

The hype of NFTs slowly die down as complications arises

2022- The year of Realization

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ARTISTS ARENT MAKING MONEY

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  • -According to ArtNet, artists are making $200 or less which is the average sale, on the right shows a graph of the primary sales at a given price
  • More than 50% of all recorded sales were under 200
  • Creates a misleading market to newcomers expecting to make thousands/millions
  • Creates a swarm of cryptogrifters whom essentially feed off newcomers.

Number of primary sales at a given price, Kimberly Parker 2021

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ENVIRONMENTAL IMPACT

NFTs require a large amount of electricity in order to mint using Proof of Work (PoW) procedure

  • There's a fee associated with the transactions made on Ethereum called gas
  • To keep all records secure PoW pushes out puzzles that must be solved which uses an immense amount of energy
  • -Uses the same amount of energy as Libya
  • equates to 22,448 hours of watching YouTube

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WHO IS INVESTING

REAL ESTATE

  • NFTS ALLOW TRANSACTION PROCESS OF OWNERSHIP TO BE DONE IN MINUTES
  • CONNECTS BUYERS AND SELLERS
  • ALLOWS BUYERS TO CLAIM WHEN CONTRACT CONDITIONS ARE MET

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GAMING INDUSTRY

  • PLAY TO EARN
  • SKIN/IN GAME ITEMS
  • METAVERSE

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ARTISTS AREN’T THE ONLY INVESTORS IN NFTS HERE ARE TWO INDUSTRIES THAT ARE CURRENTLY INVESTIN:

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FUTURE OF NFTS

  • NFTs could have a bright future and could be enjoyable for all users if regulations are made.
  • There are currently regulations being encouraged because of its popularity
  • DeviantArt has now began flagging stolen NFT art

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FUTURE OF NFTS�(CONTINUED.)

ENVIRONMENTALLY FRIENDLY OPTIONS

  • THE BEST WAY TO DEDUCE THE CARBON FOOTPRINT OF NFTS OR CRYPTO IN GENERAL IS TO USE OTHER BLOCKCHAINS OTHER THAN ETHEREUM THIS INCLUDES THE FOLLOWING:
  • TEZOS, VOICE, AND CARDANO

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REGULATIONS

  • KYC AND AML MEASURES NEED TO BE IMPLEMENTED
  • KYC: KNOW YOUR CUSTOMER
  • AML: ANTI MONEY LAUNDERING

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FAD OR NOT

According to Yael Bizouati-Kennedy, The rave for NFTs will continue to rise in comparison to the crypto market at large.

-More than $17 billion in sales of NFTs were

-Started off the year of 2022 by reaching a record high within sales at $6.13 billion as of Jan 29

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SUMMARY

NFTs have came a long way and may continue to push boundaries within industries and our personal life only if it becomes a regulated entity. This is a form of revolutionary technology, its going to adapt and its going to become bigger and better in the near future.

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Bored Ape NFT, A collection of 1000 unique Bored apes

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THANK YOU

Tiana Bailey

Tiana.Bailey@lc.cuny.edu