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I prefer to think of this as a trillion dollar capital allocation problem being solved. There's $1T+ of cryptocurrency held doing mostly nothing, and investors
by avaer 6y ago
I prefer to think of this as a trillion dollar capital allocation problem being solved.
There's $1T+ of cryptocurrency held doing mostly nothing, and investors rightly want to put it to work. That is what spawned NFTs, crypto art, DeFi, and basically revitalized the crypto economy.
NFTs specifically are interesting: it's a new class of asset that allows digital work be allocated significant crypto capital essentially out of thin air, where it otherwise would have none.
As an artist, entrepreneur, or entertainer, you have a new way to make money that is not paid for by users or advertisers, which is the way it usually goes. Instead it is paid for by crypto investors and newly minted millionaires who have capital to allocate and will allocate it to your work.
Combine this with social signaling, FOMO, and a general lack of regulation and the result is innovation.
Seeing NFTs through the lens of DRM is completely missing the point.
- johnwyles 6y agoCould this be used to, say, collect a "royalty" on a work of art or good sold in perpetuity? In other words I create a painting that sells at a garage sale for $5. Then it is picked up by a local art collective and sells for $5,000. Later it is sold at Christies for $5,000,000. All the while my portfolio has benefited from this work but if I can collect forthcoming royalty of the sale of my work it too would be a nuanced stream of income. Likewise some other thoughts: - Embedding an NFT in music so other platforms outside of Spotify can grow and each time your song is played you receive a small token? - A generator I bought from The Home Depot and sold to someone, who then sells it do someone, who then sells it as scrap metal? (incorporating diminishing returns as well?)
- pilingual 6y ago> I can collect forthcoming royalty of the sale of my work it too would be a nuanced stream of income Physical artwork is supposed to work this way. And yes, there are smart contracts that operate this way today.
- evanmays 6y agoYes, I've seen this on Zora Protocol. They have a creator share X%. Every time the work is sold to a new party, the creator gets X%
- alanfalcon 6y agoThe amount of fiat money spent on NBA Top Shot should help indicate there's more to the story than allocation of crypto. But yeah, that crypto can help get a heck of a flywheel spinning.