Digital Business (Dec 2024)
A new business model in the fine arts realm based on NFT certificates and pearl codes
Abstract
The potential of Non-Fungible Tokens (NFTs) is highly anticipated, particularly in the realm of visual arts. However, current applications within fine arts often involve trivial processes, such as creating digital versions of artworks or replicas of masterpieces as NFT images, and selling only these NFTs. To unlock the full potential of NFTs, more innovative models are needed. This paper introduces a novel model that establishes a permanent link between an NFT and a physical craft object. This linkage is utilized to orchestrate the trade workflow, ensuring a sustained connection between real and digital artifacts. A distinguishing feature is that they can be sold together or seperately and later reunited with a buyer. The NFT serves as a multifunctional certificate, tracing, and communication token.Through a comprehensive analysis, this paper explores diverse scenarios that may arise in the relationship between the physical object and its digital twin. It presents a systematic and formal description of the proposed model and its various cases, marking a pioneering effort in the field. Noteworthy advantages include the ability to detect plagiarism and fraud. By strategically incorporating stakeholder roles, the model preserves the anonymity of art collectors while extracting valuable information about the ownership of physical artworks. The primary objective is to enhance security in the art trade and foster new business opportunities for stakeholders. As a proof-of-concept, the model was implemented in a real-world scenario on a leading NFT marketplace platform.
