In the context of Deloitte’s first-ever Metaverse Month, Silicon Luxembourg caught up with Adriano Picinati di Torcello, Director at Deloitte Luxembourg and Global Art & Finance Coordinator. He shares his views on NFTs and their benefits for artists and collectors alike.
How are NFTs changing the art and collectibles market?
The sky might be the limit for the use of non-fungible tokens (NFTs). But briefly, NFTs are creating a new global “digital art and collectibles” category in the art market. Previously, something like this was almost non-existent or only accessible to a select few. NFTs allow digital creators and artists to monetize their work and talent in a new and different way and potentially redefine the concept of ownership. NFTs create a predefined scarcity for digital content by creating ownership and usage rights for each specific piece of digital content through the assignment of a specific, non-duplicable identifier that is recorded on a distributed database or blockchain.
Is NFT art just a current craze or is it here to stay? Why?
I personally believe that NFT art is here to stay. There are so many exciting applications for digital creators and cultural institutions, but the NFT stakeholders will have to address related issues to support the broad adoption of NFTs. In the first quarter of 2022, we have seen a consolidation of the NFTs market and are probably entering a new phase of NFTs’ young life. It helps to remember that NFTs first appeared less than a decade ago with the first known art NFT, “Quantum,” in 2014.
What were some of the key takeaways from your NFT roundtable discussion?
Firstly, NFTs are real and not only just hype subject to price speculation. Real and concrete projects are taking place with various benefits such as financials, engagement tools, brand activation and community creation but obstacles exist and it is necessary to build a safe, easy and sustainable environment for the users. Secondly, it is probably better to get a foot in the NFT door now to get familiar with this new environment, instead of waiting for when standards and regulations are in place.
“What NFTs create is “scarcity” for digital art and a market for digital art for the benefit of artists and other creators.”
Adriano Picinati di Torcello, Director at Deloitte Luxembourg and Global Art & Finance Coordinator
Beyond offering a financial opportunity, will NFT art ever be able to get the same recognition as “real art”?
Only time will tell, but it continues to be important to make a difference between generative art (i.e. art that in whole or in part has been created with the use of an autonomous system such as Artificial intelligence), collectible NFTs, digital twins of physical artworks, digital art created by an artist, etc.
Digital art existed before the creation of NFTs. What NFTs create is “scarcity” for digital art and a market for digital art for the benefit of artists and other creators.
NFTs are bringing the world of art and finance closer and closer. What does this mean for the commercialisation of art?
Provided that the most pressing issues that face NFTs and blockchain are solved (such as challenges linked to intellectual property, security, and storage), NFTs can increase trust and transparency in the art market and support future commercial growth for the benefit of all stakeholders – and especially artists.
In what ways can NFTs be a catalyst for the creative industries?
For creators of movies, music, fashion, art, etc., the emergence of NFTs as a new way to package, value, and sell content opens new opportunities to design an alternative business model for the arts. NFTs can potentially provide creators with access to a global audience, where they can develop a more meaningful, intimate connection with their community and fans while developing a worldwide brand. Freelancers and creators are better able to control their original and creative products and make a living from their artistic passions. Welcome to a new era of creative ownership. We’ve arrived.
More on this topic here with What Can NFT’s Do For Me?