The future of digital art or another encryption fashion?

With the continuous development of non-fungible token (NFT) art as an industry, a new trend is rapidly emerging: physical NFT galleries feature digital, irreplaceable unique artworks. Recently, the largest Bitcoin (Bitcoin) Historical events — Bitcoin 2021 Conference — Featured A peer-to-peer pop-up NFT art gallery with artworks from more than 30 different encrypted artists.

Teodora Atanasova, the VIP relationship manager and founding team member of Nexo, who supports the Bitcoin Art Museum, told Cointelegraph that more than 100 artworks were sold during the two-day conference: “This shows that physical NFT galleries may have an impact on the traditional art world and cryptocurrency. Industry.” She added: “We need to bring encryption technology to people’s eyes and touch.”

Popular crypto-friendly cities such as Miami Not the only place where NFT art galleries appear. Earlier this month, the NFT Art Gallery was held in Dallas, Texas for the first time. The event was hosted by Artist Uprising, a creative talent agency based in Dallas, and exhibited a number of breakthrough NFT artists’ personal art works. The total online digital art sales of these artists exceeded $1 million in the last month alone.

Merrick Porchéddu, CEO of Artist Uprising, told Cointelegraph that the event attracted more than 200 attendees and that NFT sales are still in public auctions:

“A lot of prints were sold, as well as two fine art canvases. A documentary on’Making NFT Gallery IRL’ was also filmed (this is expected to explain the full meaning of NFT art and why it will stay). In addition, we now have three regions that want to bring us Brought the NFT gallery to their space.”

NFT artwork “So Happy We Met” by Magdiel Lopez.Source: Artist Uprising

Understand the demand for physical NFT art galleries

However, although the physical NFT art gallery is an important step in the encryption industry, some art lovers or traditionalists may question the importance or even the necessity of the NFT art gallery in the real world.

For example, an article in “Art Daily” quotation marks Saskia Draxler, co-owner of the German art gallery Galerie Nagel Draxler, pointed out that the digital artist Beeple Auctioned an NFT artwork It was auctioned at Christie’s for more than $69 million-probably without affecting art history. She added: “NFT will not replace physical art, just like NFT from Nike sneakers will replace real sneakers.”

related: NFT “Art Revolution”: Beeple in his 5,040 days of love labor

Although this is just a point of view, some people believe that the confusion surrounding NFTs and the need for physical galleries may stem from a lack of understanding. Carrie Eldridge, founder and CEO of ATO Platform, an asset management service that provides royalties to artists, galleries and non-profit organizations, told Cointelegraph that there are many pragmatists and conservatives who are not ready to accept NFT as a legal medium. “They also don’t believe that NFT can solve the challenges that have plagued generations of artists, such as value tracking, royalty collection, collector analysis, value appreciation of collectors and insurance companies, and many more complex issues,” she said.

Although this may be the case, Eldridge pointed out that when talking about NFT art, it is important to consider the views of traditional collectors and the crypto community: “At ATO, we are passionate about innovation, and we are also passionate about the art industry and those who have worked hard for decades. Make it the people it is today.”

Although Eldridge made a valid argument, it is important to point out why the physical NFT gallery appeared in the first place. Although some people may think that the opening of these venues is only because of the lifting of COVID-19 restrictions, industry experts hold different opinions.

For example, Marc Billings, founder of Blackdove, the company that launched Miami’s first NFT art gallery in early June, told Cointelegraph that NFT art galleries are no different from traditional galleries in form and function. However, he pointed out that traditional art galleries failed to meet the needs of NFT artists in terms of technology and collector interests, thus opening the door to specialized NFT galleries. Billings said:

“Compared with traditional video works, NFT art works are more like a moving painting, but the conservative art world ignores this. Artists and curators desire wall space to display their works and the unique positioning of the NFT gallery Sound processing.”

In addition to displaying digital NFT artworks in real-world spaces, NFT artists have also begun to create physical works related to their digital creations. Physical NFT art galleries can not only display these works, but also help attract mainstream interest.

For example, NFT artist Taylor Good-also known as “Warhodl”-told Cointelegraph that by creating a physical soup pot associated with digital NFT, his pop-up on Bitcoin 2021 attracted new collectors in the NFT space.

Warhodl’s original Bitcoin NFT artwork. Source: Warhodl

Echoing Good, encryption artist Sergey Gordienko-also known as “be the artist you like”-told Cointelegraph that he is providing physical works of NFT art and their digital versions to traditional collectors. “I think this brings additional value to physical artwork,” he said.

Bitcoin artwork by Do What You Love Artist.Source: Sergey Gordienko

The importance of NFT art and blockchain

Although it is important to recognize the need for physical NFT galleries, Billings also pointed out that blockchain technology Plays an important role in the entire ecosystem: “The blockchain allows the hard work of all members of the community to be recognized and compensated accordingly.”

In fact, blockchain is one of the most important features behind NFT, because it creates a brand new financial model for these assets. This allows creatives to obtain a greater percentage of profits, because value is exchanged through the blockchain network. In addition, since all transactions are conducted and recorded on the blockchain, proof of ownership is implemented for collectors.

Good explained that NFT art allows him to make real-time profits instead of waiting for the gallery to accept, set a price, and then sell the project:

“As an artist, an old question is to understand your value, demand it, and actually get your value. Although NFT is just a practical tool for blockchain, the creative world is fortunate to be one of the first tools or use cases. One, because NFT is essentially a direct exchange of value.”

In addition, the Decentralized Finance (DeFi) protocol Aave is currently developing a platform that uses NFT as collateral. Jordan Lazaro Gustave, chief operating officer of Aave, told Cointelegraph that the company sees NFTs as a store of value, usually in the form of works of art. He pointed out that Aave plans to use NFT artworks as collateral, similar to the way banks provide credit lines to people who want to buy a piece of art.

related: Digital becomes physical: Top NFT galleries will be visited in person in 2021

Although Lazaro Gustave could not disclose all the details of the platform under development, he pointed out that traditionally in the DeFi field, alternative assets such as stablecoins have been used as collateral. However, he pointed out that NFT is irreplaceable, and Aave has developed a method to use NFT as collateral on a large scale.

Will NFT art galleries become a continuing trend?

Although the benefits provided by physical NFT galleries are obvious, it is not clear whether these dedicated spaces will continue to appear worldwide-or will disappear as the NFT art hype fades.

Porchéddu explained that although he initially believed that NFT art was a bubble that would burst soon, he now believes that it is a trend that will change and continue, adding: “People are working in a unique way Innovate and re-provide solutions to problems in a unique way.”

Billings further stated that no traditional gallery can keep up with the technological innovation from NFT Art Space. Eldridge responded to Billings by commenting that NFT art is not a revolution, but an ancient art form: the evolution of digital art. He says:

“The reason why digital art did not become popular earlier in the past few decades is because it cannot be tracked. NFT is just a’pointer’ to the storage/storage location of the artwork, and its purpose is to confirm that the added value is limited or Scarce. NFT is essential for exploration, and many enthusiasts are embracing this innovation.”