NFTs have many financial benefits for users, sellers and collectors. But what implications does this new technology bring? How does it change society?
Blockchain and NFT technologies bring more trust and security
NFTs are based on blockchain technology similar to crypto. Blockchain has many advantages, that give solutions to existing problems around trust:
- It reduces transaction costs, as there is no need to pay a middleman
- As it is immutable it prevents fraud
- Transactions work faster with a blockchain
- Data is saved in a decentralized manner so there is no centralized third party that accumulates power
- Blockchain is accessible anywhere and can be used by anyone
All the advantages and benefits of a blockchain also apply to NFTs. That’s why NFTs are so valued by collectors and users: the technology allows transactions in a transparent way with anyone in the world without being dependent on a third party.
NFTs have the power to make the cultural industry more democratic
For any game enthusiast, the breakthrough of NFTs was a blessing. Why so? Before NFTs players spent a significant amount of money for game items and characters, bought with game currency. If one day they decided not to play anymore, they would never get their money back. However, game items bought with NFTs can be traded for real-world value, for example for Ethereum. They can even be sold for profit some time after the purchase! It is only possible because gamers own a game asset as an NFT, that is verified by the blockchain.
Also for artists, NFTs have created a valuable infrastructure that allows them space in traditional systems of valuation like galleries or music companies. It is therefore very likely that NFTs will be dominating the future of gaming and artistic cultures.
The intersection of NFTs and social activism
NFTs not only have financial benefits but also appear to be a tool to unleash social impact. The activist for women’s and LGBTQ rights, artist, and co-founder of the Russian band Pussy Riot, Nadya Tolokonnikova, is using NFTs to express the ideas of Pussy Riot and at the same time to build a devoted community that supports their philosophy. She was jailed in 2012 after criticism of Putin, which increased her public profile.
She tokenized the documents of her sentence and released them as NFTs. With the revenue generated by the sales, the musician supports marginalized groups and victims of domestic violence. In this way she turned her sentence into something positive.
“I believe that NFTs can be a great instrument for change,” she says. “It changes the lives of people who live outside of big metropoles. It gives artists tools to raise money for their causes.” In March 2022, an NFT sponsored by Pussy Riot raised $6.7 million for Ukraine.
Operating outside the governmental banking system for critical minds can be crucial, as their bank accounts are often frozen. That’s why some human rights organizations switch to crypto, because it is safer and not trackable by the government.
Conclusion
NFTs, cryptocurrencies and blockchains offer new powerful ways to change political and social structures. However, this tool has to be used mindfully to not reproduce racial and gender inequalities in the digital space. Another point that is still not clear is how decentral infrastructure will influence national borders. What is certain, however, is that art, music and games that are traded with NFTs turn their industries into more transparent and democratic entities.
NFT+ creation has never been easier and safer.
About the author:
Alina Archelrod
Superpower: telling exciting stories.
She always loved painting and drawing. In high school, she often made pencil portraits of her classmates. “Unsurprisingly, I studied art history and art education.” Today she works from Berlin and now goes to the beach only to sunbathe.????️
“See life as a game” is the best advice anyone has given her.
