Beyond the hype of the NFT: Developing long-term business strategies for artists
NFTs, or non-fungible tokens, are all set to be the future of cultural preservation and art. However, the business model of the platform is not clearly understood by all. Many see it as a craze or a bubble that will burst in a short time. But they do not realize that the business model of NFTs has a very valuable source of long-term planning for artists.
To put it in simpler terms, NFTs allow creators to directly associate with buyers rather than going through a middle route. While it has been the case for alternative art for a long time now, never has it been brought to such a large number of people for fetched such huge amounts. Another aspect of NFTs that is not yet well-understood is its system of royalties. If the present model lasts, artists have a great opportunity of earning royalty from their works. However, a disruption in the present NFT business model will change the way we think of royalties. Perhaps the idea of a lasting revenue from intellectual properties would no longer exist.
No matter what direction the future of NFTs takes, they hold immense potential to make artists more financially independent. They won’t be bound under labels and contracts and can find an audience without going through a medium. In this way, it might become the norm of future creative endeavors. However, there are technological challenges as well that need a lot of improvement. Without drastic technological improvements, NFTs won’t pervade the entirety of art and creativity.