Everything in the real world is being recreated in the virtual world. The metaverse. The metaverse, a persistent digital universe that mirrors our world, but is becoming as diverse and awe-inspiring as the natural world. And you'll be able to do everything you do in the real world in the virtual world, and more.
In the real world, you can walk into a gallery, buy a one-of-a-kind artwork that is signed and authenticated as original, take it home, put it on the wall, enjoy it, show it to your friends; it might even be an investment. The artwork becomes part of your story and adds meaning to your life. It marks a time and a feeling for you. Now, we can have the exact same experience in virtual galleries, with digital art.
While this might seem like an obscure niche on the internet, let's take a look at a recent auction sale that you might have heard of. In March of 2021, the major auction house Christie's sold a purely digital artwork by an artist named Beeple for 69 million dollars in cryptocurrency. The auction, the artwork and the currency was virtual, but the transaction was very real. But who can afford a Beeple? Don't worry, there are lots of artists creating digital art and conceptualizing brand new art forms that you can afford. I direct Media Entrepreneurship and Innovation at the Creative Media Industries Institute at Georgia State University, and our students are building the metaverse as I speak. We imagine a future where the students and all digital artists are able to continue building new visions and new worlds -- basically, a better internet -- and can make a living while doing so. The revolutionary instrument that allowed for a digital file to be sold as a unique artwork for 69 million dollars is the same tool that will allow our students to make livings as freelance creators.
There is a paradigm shift happening that is turning the world of content creation and its financial rewards on its head. Gone are the days of the internet being a giant copying machine, of intermediaries taking a larger cut than the creators, and of artists not receiving royalties. This new automated tool that allows for guaranteed proof of origination and ownership of music, videos, images and even text is called an NFT: non-fungible token. The NFT is allowing everyone to own their own data, starting with art, and there is a hope that it will revolutionize how value is created online and how digital labor is monetized.
So the eternal question: What is an NFT? Simply put, it is a permanent tracking device that proves ownership of a digital file, somewhat similar to the way that you can chip a pet to identify it as yours if it runs away, an NFT is a cryptographic token connected to a digital asset to preserve ownership rights in the metaverse. Non-fungible means "not exchangeable." Most things in the real world are non-fungible, because most physical objects are unique and can't be traded one for one. There is no painting, pet or person that is exactly equivalent to another. Money, on the other hand, is one of the few items that is fungible, meaning one dollar is equivalent to another dollar and one Bitcoin is equivalent to another Bitcoin. The underlying decentralized technology that enabled digital currencies such as Bitcoin is blockchain. Blockchain prevents digital money from being duplicated or hacked, and it removes the need for a centralized authority, such as a bank, to validate transactions. And like Bitcoin, the record of ownership of an NFT is kept in a public database on the internet that is maintained by millions of computers that keep track, via consensus, of all content origination and transactions.
At the Blockchain Lab at Georgia State University, we study how to monetize creative labor using blockchains and other decentralized ledger technologies. I believe that this technology in the form of NFTs has the potential to humanize the internet and to create an equitable foundation for its next phase: the metaverse. This decentralized business model gives financial power back to the creators and reduces the power of the broker, the middleman and even social media platforms.
Amy Rader is a fine artist in Atlanta who shows in traditional galleries. She created her first NFT so that she could expand to an online audience and to add a new revenue stream to increase her income.
Here's a Greg Mike mural. If you're from Atlanta, you have probably seen some of his work on walls and buildings. Street art is not permanent, so how will an important cultural icon like Greg Mike utilize this new creative economy? He is using the unique qualities of NFTs to innovate and to collaborate with other artists and musicians and connect with fans on the internet. This way, his work will live on, and he can take the proceeds from the sales and resales and continue creating his art.
Musicians can also capture their true value using NFTs. Atlanta music producer Dallas Austin is allowing fans to collect memorabilia of his great moments in music history, similar to the way that NBA Top Shot is allowing basketball fans to collect historical replays as NFTs.
In the metaverse, humans are represented as avatars. An eight-year-old probably knows, but did you know that you can buy clothes for your avatar? This is Kadine James. She is leading the way in digital fashion that can only be worn in the virtual world. Today, Gucci sells sneakers that only exist in the virtual world, and you can never wear them, but your avatar can. Alternatively, you can use augmented reality to overlay virtual sneakers onto your in-real-life feet.
And because of NFTs, anyone, not just well-known companies like Gucci, can create digital fashion to be bought, sold and worn in games, online platforms and even in avatar fashion shows. Take the pioneer 18-year-old FEWOCiOUS, who was way ahead of Gucci, with his crypto art and digital sneakers. The use of augmented and virtual-reality fashion is becoming mainstream, but because NFTs as art and collectibles are so new, the predictions are too volatile for anyone to make. But it is a sign that heavy hitters like Mark Cuban and Snoop Dogg are investing heavily. This is the new frontier for artists and their fans. And just like in the real world, and artist can sell a one-of-a-kind piece, make limited editions to control for scarcity, show in art galleries and market places. But with NFTs, you can also sell directly to your buyer without an intermediary, collect royalties on all future resales, expand your audience to the entire internet, show in virtual galleries and virtual worlds and sell 3D objects and clothes to virtual humans.
OK, so how does this work, and how do you get involved as an artist? Your artwork is a digital file. To protect this file and capture the value of your labor in perpetuity, you go to a digital goods marketplace and "mint" it, meaning you register your work as a token, for a fee, on the blockchain. It will contain a signature, time stamp, and any rules around its resale. Once you’ve minted your work and you want to sell it, you connect with your community and let them know that your NFT has "dropped," meaning it is for sale. It is important to note that all the same rules that make for good art and business apply in the virtual world: a strong connection to your followers, an authentic or compelling story and consistent output and work ethic.
So who will buy your art, or how do you get involved as a collector? Buyers go to the same marketplaces that artists use. There, you look for art that you appreciate and artists you want a direct connection with. Some people invest because the artwork resonates with them, or they recognize great talent, or they see a potential for that artist to play a significant part in history. Once purchased directly from the artist, you store your NFTs in your digital wallet. From there, you can show on screens and online marketplaces, or in galleries, such as RareRooms, a blockchain innovation by Atlanta's GigLabs. And with NFTs, a buyer knows their art is fair trade, transactions are transparent, and the ecosystem is equitable.
The metaverse is a place where we will spend more and more of our lives. Who builds it, who owns it and how it is built will determine what this world becomes. But just like the real world, the metaverse is very complex, and there are many problems yet to be solved. And that is where you come in. You are the future, a digital citizen whose responsibility it is to be a good steward to the metaverse, making sure that it is diverse, equitable, accessible and sustainable.
This is just the beginning of the decentralized movement. NFTs will revolutionize most online industries, but it is starting with the creative economy. While nothing in this talk is financial advice, it is definitely educational encouragement. And why not start learning through art? Jump in. We need you.
I would like to thank the artists who provided the art for this talk, all of which are embedded in the blockchain as NFTs, non-fungible tokens.
