[HN Gopher] What is an NFT from an artist's perspective?
       ___________________________________________________________________
        
       What is an NFT from an artist's perspective?
        
       Author : jds375
       Score  : 61 points
       Date   : 2021-02-27 03:54 UTC (19 hours ago)
        
 (HTM) web link (alex-pardee.medium.com)
 (TXT) w3m dump (alex-pardee.medium.com)
        
       | almost wrote:
       | It's amazing the absolute bullshit people will force themselves
       | to believe when their might be some money in it for them.
       | 
       | All these articles gloss over the technical side (which is really
       | not complicated, because there's very little THERE). And gloss
       | over the demand side (sure, people want to "own" the art even
       | when "own" means absoluely nothing in that context). I can only
       | assume that on the demand side there's a mixture of stupid money
       | ("I don't know what this is but it seems like it might be the
       | next big thing so I'm buying") and people working one of various
       | angles.
       | 
       | At least some artists are getting paid stupid amounts of money,
       | if someone's got to get a windfall it might as well be them. But
       | let's not pretend thing actually makes sense as an overall thing.
        
       | woleium wrote:
       | Aren't NFTs just digital authenticity certificates, complete with
       | blockchain protected provenance?
       | 
       | In some artworks the certificate is the only non transitory asset
       | (e.g. banana taped to wall, or the famous lawyers dot painting)
        
       | eyaltoledano wrote:
       | Smells like a bottomless pit and quacks like a bottomless pit
        
         | Igelau wrote:
         | There is also bottomless pit poo on my windshield.
        
       | jarofgreen wrote:
       | Q: What's to stop me taking sometime else's art I find online,
       | claiming it's mine, turning it into a NFT and making money from
       | it?
       | 
       | A: Absolutely nothing ... I think?
        
         | [deleted]
        
         | dorkwood wrote:
         | This guy made a few hundred thousand by doing just that.
         | 
         | https://mobile.twitter.com/muratpak/status/13585748601721569...
        
           | Igelau wrote:
           | Oh man, it's even structured like a penny auction where the
           | majority tile holder 'owns' the "final creation".
           | 
           | I'm willing to grant that it's slightly _slightly_
           | interesting to consider what some works would look like if
           | they were chopped to pieces and reconstituted from only the
           | pieces people would individually bid on. There 's an artistic
           | statement in there somewhere.
           | 
           | But the pomp and slime that this is presented with completely
           | obscure that.
        
           | grenoire wrote:
           | Jesus Christ...
        
           | tomgp wrote:
           | Every generation gets the million dollar homepage it deserves
           | https://en.wikipedia.org/wiki/The_Million_Dollar_Homepage
        
           | TigeriusKirk wrote:
           | But is that substantially different from this?
           | 
           | https://www.christies.com/lot/lot-andy-warhol-colored-
           | mona-l...
        
             | jarofgreen wrote:
             | Or artists like Richard Prince. Prince has been sued
             | several times and made several settlements.
             | 
             | But - his court victories depended on the argument that he
             | actually transformed the works he copied. If someone just
             | claims ownership of a art work on a blockchain, I'm not
             | sure that's the same thing.
        
         | eigenvalue wrote:
         | In my project, we use robust near-duplicate image detection
         | based on image fingerprints that are generated from deep
         | learning models. So if an image has already been registered on
         | our system, no one else can register it.
        
           | egypturnash wrote:
           | Do you have a system in place for an artist to say "hey some
           | asshole registered my art before I even heard of your
           | project, no seriously, here is a screen grab of it in the
           | editor/a closeup of the canvas/some other snippet of the
           | Original File"?
        
             | dorkwood wrote:
             | If a "behind the scenes" screenshot outweighs an NFT in
             | terms of proving authenticity, then why are we making NFTs
             | in the first place?
        
             | eigenvalue wrote:
             | Yes there will be a decentralized mechanism for posting
             | essentially a "petition for relief" where they can lay out
             | their case, but it will be optional and at the discretion
             | of the operators of the "masternodes" in the system whether
             | to grant relief. If the petitioner can attract enough votes
             | then it would nullify the original registration. Anyone can
             | operate a masternode but it requires locking up a lot of
             | the coin to prevent Sybil attacks.
        
               | jarofgreen wrote:
               | And is there many cases of that happening yet? "There
               | will be" worries me.
        
               | meheleventyone wrote:
               | That doesn't seem to be a very confidence inspiring
               | answer to deal with fraud.
        
       | arduinomancer wrote:
       | I think the reason it doesn't make sense is that when you buy art
       | IRL you actually own the original which can't be duplicated.
       | 
       | This is not true of a JPEG. I can perfectly duplicate it.
       | 
       | Now where it might make sense is if everyone views the asset
       | through an authoritative "viewer".
       | 
       | For example cryptokitties website.
       | 
       | In that case it somewhat makes sense.
       | 
       | As an analogy if I create a private World of Warcraft server and
       | give my character a billion gold, no one cares.
       | 
       | But if they see my character on the official server (the official
       | "viewer") has a billion gold then its impressive.
        
         | sneak wrote:
         | At that point if you have a single authoritative site, you can
         | just use postgres to store the who-owns-what and skip the added
         | complexity and risk of a blockchain.
        
         | dbspin wrote:
         | Except that there's a huge market for 'official' numbered
         | prints. Often the sales of print editions by an artist can
         | rival or exceed the value of an original painted piece. These
         | prints are more more authentic than any other print of the same
         | piece. Their value derived from scarcity, provenance and
         | association with the original creator. All of these are present
         | in an NFT.
        
           | crazygringo wrote:
           | Can you provide an example of a print being valued more than
           | the original painted piece?
           | 
           | That defies all logic unless the print isn't just a print --
           | e.g. it's in a million dollar gold frame or was previously
           | owned by the Pope or something.
        
       | __s wrote:
       | Does anyone know where to find resources on how taxation works
       | with NFTs? I'm in Canada. My understanding is the seller is
       | supposed to pay 13% HST. Do they also have to consider it income,
       | or does that only happen when transferring back to fiat?
       | 
       | Reading https://www.canada.ca/en/revenue-agency/programs/about-
       | canad... it says "trade or exchange cryptocurrency, including
       | disposing of one cryptocurrency to get another cryptocurrency"
       | but are NFTs considered an asset rather than a security?
       | (cryptocurrency isn't considered currency)
       | 
       | Not sure how taxes work out fair market value of art
        
       | lasagnaphil wrote:
       | Proof of authenticity, whether being digital or not, doesn't mean
       | anything until
       | 
       | 1) the culture of the general people around you support it, or
       | 
       | 2) there is an entity with political power (such as the state)
       | that forcefully protects that authenticity through law/police/the
       | military/etc (for example, intellectual property supported by law
       | enforcement).
       | 
       | But firstly I think NFTs are totally antitheical to the current
       | culture of the Internet era, where it is given without question
       | that data can be freely copied and shared (regardless of the
       | countless efforts by DRM technologies), and virality and mass
       | transmission is regarded as an important communal cultural value.
       | Who cares if someone "owns" the Nyan Cat meme, when you can
       | freely Google it and view it on your smartphone, and can also
       | save it to your hard drive if you want to preserve it? And I
       | really don't think state power is really supportive of general
       | crypto right now, so number two is off from the start. The
       | problem I have with NFTs (and cryptocurrenties in general) isn't
       | about the technology, it's more about the culture surrounding it.
       | 
       | (Also, think the blockchain is permanent, because it's supported
       | by "math"? If the infrastructure surrounding Ethereum vanishes,
       | your piece of NFT is essentially gone. And Ethereum's consuming a
       | hell of a lot of energy and infrastructure to maintain, and you
       | might start to think backing it up in a few hard drives is the
       | easier and saner option...)
        
         | woleium wrote:
         | Who cares who owns the Mona Lisa, when I can see it online
         | better than I can in real life (infrared imagery, x-ray scan)
         | 
         | As soon as "real" art collectors start buying them (already
         | hapenening) then they will mutually invest in protecting their
         | investment, no need for government when civil courts can
         | preside.
        
           | a1369209993 wrote:
           | > Who cares who owns the Mona Lisa, when I can see it online
           | better than I can in real life (infrared imagery, x-ray scan)
           | 
           | Exactly. The only things canonical-physical artworks are good
           | for are conspicuous consumption/bragging rights and money
           | laundering(/other money-laundering-adjactent activities).
        
             | cam0 wrote:
             | And the bragging typically manifests by hanging the
             | physical work on the walls of your home(s) so your guests
             | can view it and be impressed as if they're at a museum or
             | gallery. I'm wondering how the bragging rights for NFTs
             | will manifest... 25 OLED screens decorating my walls with
             | jpegs?
        
           | lasagnaphil wrote:
           | First of all, civil courts are supported by the civil law,
           | and that law is supported by the government. One example of a
           | civil law is copyright enforcement, which is often enforced
           | by the Supreme Court.
           | 
           | And also, when actual powerful entities (whether that be
           | governments/corporations/etc) start to involve in protecting
           | NFT investments using the law, is there any benefit of
           | "crypto" being used to protect the value of the asset
           | anymore? Isn't it just private property with extra steps?
           | 
           | I really don't think the Mona Lisa comparison doesn't fit
           | with the current conversation with NFTs, since NFTs deal with
           | digital assets, and trying to convert an analog artwork like
           | Mona Lisa to fit into NFTs would already demolish its
           | authentic value as an amalgamation of detailed, non-
           | reproducible paint strokes (which I think is the authentic
           | value you're emphasizing about).
        
       | edent wrote:
       | It has all the hallmarks of an MLM or Ponzi scheme. Lots of
       | people hyping it up, hoping to sell on their "asset" to a bigger
       | fool.
       | 
       | You can't restrict ownership of digital goods. Decades of DRM
       | have shown us that.
        
         | [deleted]
        
         | porcc wrote:
         | It's not about not allowing access to people--it's about
         | provably being the person named "owner" of a given good.
        
           | tablespoon wrote:
           | > It's not about not allowing access to people--it's about
           | provably being the person named "owner" of a given good.
           | 
           | Like this? https://lunarland.com/
        
           | lasagnaphil wrote:
           | The fatal problem is literally: "who cares". Real
           | "authenticity" doesn't comes from math and comes instead from
           | culture. Using the "if a tree falls in a forest" philosophy
           | meme: if the blockchain claims that you have the Nyan Cat
           | image but nobody cares about it, then do you really "own" the
           | image?
           | 
           | More about the history of authenticity: Religion supplied
           | this culture of "authenticity" for some time, but after the
           | Industrial revolution the widespread duplicate production of
           | commodities, along with the invention of photos and videos,
           | has been eroding away the value of the authentic "the one and
           | only" irrelevant for some time. Walter Benjamin has a nice
           | essay about this change of culture in his famous essay - "
           | The Work of Art in the Age of Mechanical Reproduction". And
           | the Internet seems to further accelerate the notion of
           | communal art, where memes only have value if they are shared
           | freely and not when someone hangs it in a museum. My gripe
           | with NFTs has nothing to do with the technicalities of crypto
           | and everything to do with everything else (primarily,
           | politics and culture in relation to technology).
        
         | dageshi wrote:
         | You can't restrict ownership of physical goods or art really,
         | it's just that there's "authentic" goods and "fake" goods.
         | 
         | So you're right you can't restrict possession of digital goods
         | but you _can_ restrict the right to sell a digital good because
         | any potential buyers will want to know what they 're buying is
         | "authentic".
         | 
         | CSGO skins go for thousands with the rarest going for tens of
         | thousands, you can download them and possess them right now but
         | valve says you don't "own" them and can't sell them.
        
           | stevewodil wrote:
           | CSGO skins are a slightly different case because of their use
           | in-game. You can't play in an actual competitive game of CSGO
           | with a knife/skin that you don't own.
           | 
           | Yes, there are servers that will let you try out custom skins
           | and knives but you can't play an official game with them. The
           | knives also offer different animations which look cooler than
           | the default one. It's slightly different to me in that
           | there's no inherent usefulness of the NFT's (at least
           | currently - maybe in some metaverse future they have a use).
           | 
           | It doesn't seem like people really want to "own" the NFTs,
           | they are viewing them only as investments which means
           | eventually someone will be left holding the bag. In contrast,
           | people DO want to own the CSGO skins and knives.
        
         | Igelau wrote:
         | The DRM comparison is one I was dying to see. This NFT stuff
         | feels like the returning nemesis of open culture from previous
         | web sub-eras. I hardly want to own a work. Take it, build on
         | it, sing it somewhere with someone else who likes it.
        
         | disposekinetics wrote:
         | Best case this is trying to find a chump to hold the bag when
         | the music stops, and worst case is a Ponzi scheme.
         | 
         | Either way I don't think there is value in 'DRM but on a
         | blockchain'.
        
           | a1369209993 wrote:
           | Well, no; the _best_ case is they 're trying to sell bragging
           | rights in the style of "I'm so rich I can buy original
           | Picasso paintings for no reason beyond showing off how rich I
           | am!". Which is stupid and says depressing thing about human
           | civilization, but isn't really any worse than trying to sell
           | any other kind of artwork in physical form.
        
       | asymptotically3 wrote:
       | Bitcoin is my favourite non-fungible token.
        
       | nr2x wrote:
       | I was the first person to allow bitcoin donations for music and
       | netted roughly $10 at the time, which today would be worth nearly
       | half a million dollars. I happened to be lucky my interests in
       | emerging tech and music lined up when I had an album finished. So
       | I'm definitely an artist who has benefited from cypto. That said,
       | I've read a few NFT FAQs and this seems wholly pointless and
       | idiotic.
        
       | lvass wrote:
       | >For example, I had a friend who worked in fiber-optics and phone
       | lines. He once tried to explain to me how a phone call worked and
       | I almost threw up. Instead, I just accepted that it DOES exist
       | 
       | This explanation of "the" blockchain almost made me throw up.
       | It's absolutely fine if you are too lazy to understand certain
       | things, just don't assume everyone is and please do not try to
       | explain things you do not understand, unless you're honest about
       | it or it is simply exercise.
        
       | KirillPanov wrote:
       | No really, officer, I wasn't laundering those drug proceeds, I
       | was just buying a non-fungible token from Pablo Escobar in order
       | to resell it to El Chapo. NFTs are just like artwork, officer.
       | You know, the kind of artwork that billionaires use to launder
       | money? We're just doing the same thing they do, but on the
       | blockchain!
        
       | geraldbauer wrote:
       | FYI: I curate some awesome pages on non-fungible token (NTF)
       | pages, that is, the Awesome CryptoKitties & Copycats [1] and the
       | Awesome CryptoPunks & Copypastas [2]
       | 
       | [1]: https://github.com/cryptocopycats/awesome-cryptokitties-
       | bubb... [2]: https://github.com/cryptopunksnotdead/awesome-
       | cryptopunks-bu...
        
       | mikeiz404 wrote:
       | So when I first heard about NFTs for art it seemed pretty silly.
       | As it is now there is nothing stopping some one from copying the
       | digital asset and still deriving as much enjoyment strictly from
       | that digital asset. The other added benefit strictly from the
       | token might be as a status symbol and the ability to profit by
       | selling that status symbol to some one else. So if you are buying
       | the art for solely personal enjoyment then there isn't much of a
       | value add it seems (maybe you can acquire the digital asset again
       | if you lose it by proving ownership of the token to some
       | service?)
       | 
       | However if a DRM ecosystem pops up supporting this which adds
       | enough friction to showing digital assets without tokens (ex a
       | high end DRM only digital photo frame, DRM only music and video
       | players, DRM enforced public hosting services, ...) then I could
       | start to see how this might gain some traction. Legal enforcement
       | would help as well.
       | 
       | As other comments have stated this does seem pretty antithetical
       | to the culture of the original internet. Though that seems to be
       | less relevant as the years march on.
        
       | XVII wrote:
       | I see it mainly as a way of supporting the work of an artist
        
         | minitoar wrote:
         | You could just send them money.
        
         | sneak wrote:
         | For most NFTs the artist sees no part of the profit whatsoever
         | beyond the first sale.
        
         | suyash wrote:
         | Yes, and ownership with authenticity proof.
        
         | jarofgreen wrote:
         | But there seems to be no guarantee that the person who
         | registers the work as a NFT actually is the artist?
        
       | PragmaticPulp wrote:
       | NFT sellers are dodging the elephant in the room: Buying an NFT
       | is more like buying a _print_ of an artwork than buying the
       | artwork itself. Or more accurately, a link to a print of the
       | artwork.
       | 
       | Yes, using crypto and blockchain you can prove that this was the
       | first NFT print of the artwork, but that's it. It's an expensive
       | way to proclaim that you have the keys controlling the NFT that
       | links to the print of the artwork, and that it was associated
       | with a crypto-denominated transaction of a certain value, but
       | that's it.
       | 
       | These NFTs are also a goldmine for wash trading scams. NFT
       | holders can "sell" the NFT to themselves over and over again at
       | increasingly higher prices, creating an illusion of a very
       | valuable and high-demand NFT.
       | 
       | Want to own an expensive NFT? Buy a cheap NFT, then use a second
       | wallet to "buy" it from yourself. The last trade price gets
       | recorded in the blockchain and you can now brag about having an
       | NFT worth as much money as you were willing to scrounge up for
       | the transaction.
        
         | hanniabu wrote:
         | NFT art is worthless imo, but NFT for digital goods as a whole
         | is very valuable.
        
           | enko123 wrote:
           | NFT is a glorified receipt. Some people collect receipts:
           | like ticket-stubs for world series games or concerts, but
           | first you have to convince the MLB or Ticketmaster to sell
           | tickets on Ethereum, which is a big ask.
        
         | woleium wrote:
         | This is the traditional way to launder money with art, only now
         | much easier!
        
           | dleslie wrote:
           | Bingo.
           | 
           | Folks aren't buying a verified unique token for obscene
           | amounts just to brag about it. They might brag, but many have
           | other reasons to hold an object of such "value" .
           | 
           | Anyone thinking that NFT is anything other than a vanity
           | token for the wealthy and a money laundering mechanism for
           | the same is fooling themselves.
        
           | jVinc wrote:
           | And to me the interesting question here is, if we both buy
           | cheap 10$ tokens, and agree to buy these from each other at
           | 1000$ and "lose our keys" will we be able to collect
           | insurance on the lost asset? Will we be able to deduct the
           | loss in taxes? Or if we donate the "artworks" to each others
           | charities will we be able to deduct them in taxes?
        
             | woleium wrote:
             | the tax scam will be: 1. make shitty meme with alt dirty
             | account 2. buy meme with real account for $1mm 3. gift meme
             | to charity auction, write off 1mm in taxes 4. launder 1mm
             | from dirty account by buying shitty meme from main account.
        
             | 6nf wrote:
             | Good luck finding an insurer that will insure these for you
        
         | chpmrc wrote:
         | Not sure about the first point, after all with digital art what
         | matters _is_ the NFT since anyone can copy the artifact 1:1 at
         | virtually no cost and no risk. I agree with many that NFTs are
         | best suited for digital worlds but that begs the question: what
         | happens if the game is centralized? They can still prevent you
         | from actually having or using that item, regardless of any
         | proof of ownership.
         | 
         | Re: wash trading, that also happens in the art world with shell
         | companies.
        
           | lxdesk wrote:
           | Use value is easy to assign to an NFT post-facto. That hasn't
           | been really _done_ in the current market(which is, of course,
           | in the midst of a bubble), but:
           | 
           | * Tokens can become tickets to events
           | 
           | * Tokens can become options on commissioned work
           | 
           | * Tokens can become signs of membership
           | 
           | Because the token is guaranteed to be unique, and you can
           | track ownership, there's a fluidity to this that lets you do
           | away with contractual mechanisms. You can reuse the same
           | tokens many times or announce that it will expire(for your
           | use case).
           | 
           | Edit: And platforms can't really own it if it's on a public
           | chain, too. You just copy the chain(see: BinancePunks copying
           | CryptoPunks). So there's that.
        
           | meheleventyone wrote:
           | What prevents people registering a new NFT for the same work?
           | Provenance might not be easily justifiable purely by date it
           | was created.
        
         | abalaji wrote:
         | How is this different from having someone you know help drive
         | up an artwork's sale price so you get a higher last auction
         | value?
        
           | whatshisface wrote:
           | Not that different. The art world is also kind of scammy.
           | Most people wouldn't want to put money in to it.
        
         | RhodoGSA wrote:
         | Well, kinda. Art is a quirky way to use an NFT for sure. But
         | being able to verify scarcity, ownership and interoperability
         | of a 'digital asset' is pretty useful in many applications.
         | Afterall, everyones been saying everything is going online but
         | i don't believe we truly understand what that means yet.
        
       | Igelau wrote:
       | I really hate and distrust Medium. You get garbage like this
       | gussied up like it's coming from a trustworthy and informed
       | source. I'm not sure why it seems that way in a way that, say,
       | LiveJournal didn't, but it does.
       | 
       | The "you don't have to understand it, just accept that it exists
       | and believe in it" line of nonthinking is a memetic neurotoxin.
       | It sucks whether it's applied to blockchain, NFTs, gods,
       | homeopathy, or an MLM, and a healthy mind should expel it on
       | exposure.
        
       | remram wrote:
       | In what way is an NFT token like a stock? A stock is bound to a
       | company via dividends and voting power. An NFT only bears a name.
        
       | kobasa wrote:
       | Once again the HN community completely missing the point on
       | crypto and this time on NFTs. Bunch of unimaginative people who
       | think they're smarter than everyone else but have missed out on
       | the biggest technological investment opportunity of the past
       | decade and continue to remain petty and close minded on something
       | they somehow still don't even understand.
       | 
       | I'll throw you guys a little bone. Imagine sports card
       | collecting, in the real world the hassle of keeping it in good
       | condition, sending it to get it graded, then finding a buyer
       | online, sending it again, and then hoping to get paid...all of
       | that is full of friction and generally a terrible experience.
       | NFTs like NBA Top Shot allow you to bypass all of that and the
       | process of opening a pack, finding the price of it, and selling
       | it can be done all in seconds. It is legitimately a 10x
       | improvement from a logistical standpoint. And that's just
       | scratching the surface, it's not only 10x more convenient and
       | easier to find liquidity but it's actually programmable so
       | there's pretty much infinite stuff that can be built on top of it
       | like analytical tools, games that it integrates with and tracking
       | ownership and getting athletes involved and displaying in virtual
       | spaces and attaching digital custom signatures etc etc.
       | 
       | Even if you personally don't like it or think "its stupid", the
       | popularity of some of these products is undeniable. It is legit
       | blowing up and has disrupted previous industries that people who
       | get it refuse to go back to old ways. Sorry the market has spoken
       | and your take is wrong.
        
         | gge wrote:
         | Whenever crypto comes up on HN all the comments are either
         | copium, Tether, or people saying "I'm not wrong its the market
         | thats wrong".
         | 
         | Amazing to see how the tech/SV mainstream completely missed out
         | on Defi, and are now missing out on NFTs.
         | 
         | This comment explains HNs relationship with crypto perfectly:
         | https://news.ycombinator.com/item?id=24310174. Good quote from
         | @balajis: "Crypto is what comes after Silicon Valley"
        
         | grzm wrote:
         | > Once again the HN community completely missing the point
         | 
         | > I'll throw you guys a little bone.
         | 
         | Just leave this out. You're part of the the community you're
         | lumping here.
        
       | jds375 wrote:
       | I'm extremely skeptical of all cryptocurrencies and most usages
       | of blockchain. However this seems like the first interesting and
       | potentially practical application I've heard.
       | 
       | It deals with art - something that's value is inherently
       | subjective. Plus it gives makers of digital art a
       | better/additional way to fund themselves. Further, transactions
       | would likely be limited reducing environmental impact. Finally,
       | it could provide some competition to company's like Sotheby's.
       | 
       | Obviously there a lot of open questions (couldn't someone else
       | just duplicate a work and make their own coin, why not just pay
       | an artist directly, money laundering, etc). But I think this at
       | least warrants further discussion. It's an interesting way to
       | make digital art collectible/tradable
        
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