NFTs A New Freedom or Another Tool for the Elite?

NFTs. Non-fungible tokens. Even just the words themselves read like a sci-fi futuristic novel. We hear that they’re transforming the business of art, empowering artists, and democratizing the economy. Are they really? Are we seeing a repeat of a new and exciting technology being co-opted? This might play out to increase the divide between the haves and have-nots.

Let's be clear: the idea behind NFTs is powerful. An artist in Kumasi, Ghana, can now easily sell their work directly to a global audience. They are liberating themselves from the old gatekeepers who dictate taste and skim a percentage of the profits. The news whispers of this potential. It’s a lovely vision, one that fits like a glove with the early crypto ideal of decentralization. This is the awe-inspiring potential.

The truth, as ever, is more nuanced. So how many artists in Ghana, or anywhere else in the developing world, do you think have the ability to mint an NFT? Their cost … the dreaded “gas fees” … are often enough to be prohibitive. When we have that discussion, we’re risking pricing out the very people this technology promises to empower. It’s a bit like inviting someone to buy your golden life raft – conceptually great, but practically impossible.

This isn't just about upfront costs. High-quality broadband internet is a basic necessity. Beyond that, you’ll need some high-level digital literacy to help you navigate the uncharted waters of blockchain and the entrepreneurial marketing prowess to break through a noisy marketplace. Digital equity isn’t just about having a computer connected to the internet. It’s about more than just access; it’s about having the skills and resources to truly thrive in a digital economy.

So-called NFTs promise us assets with provable digital scarcity. They serve as digital certificates of authenticity, preventing the problem of easily replicated digital art. Let’s consider this from another perspective. What does “owning” something even mean in the digital world? Sure, you may have the “token,” but you don’t actually own the image. Anyone can right-click and save it. Anyone can display it. Instead, you own a digital token of that ownership, recorded on a public blockchain.

That felt a lot like the art world before digital. Back then, ownership was often concerned with prestige and speculation rather than any real love of the art. Are we just reproducing the same get-on-the-bus dynamics, but in a virtual space? Do these NFTs just represent a new medium for the ultra affluent to acquire and display status symbols, now in digital form?

It's impossible to ignore the environmental elephant in the room: the energy consumption associated with some NFT platforms. Though newer, more energy-efficient blockchains are starting to take root, the legacy of early NFT projects still casts a long shadow. This is most egregious when we remember that developing countries are more often the most impacted by the effects of climate change. In doing so, this advocate might be promoting a technology that could worsen the very problems it touts as solving.

More than environmental questions, ethical questions abound. As we mentioned before, the NFT space is a haven for scams, rug pulls, and other intellectual property violations. How do we ensure artists thrive and aren’t exploited in this new Wild West of digital ownership? How do we ensure that NFTs encourage new imagination and invention? We can’t allow them to continue benefiting only a privileged few. Not on the end user, this is where the anger and outrage should be directed.

The tale of NFTs is far from over. On one hand, they have the potential to be a huge positive force, empowering artists and democratizing access to art. But only if we’re aware of the risks and dangers inherent in this new frontier and, crucially, intentionally move to remedy them. We need to:

NFTs can and should be used to do much more than serve as digital collectibles or speculative assets. They hold tremendous power to help connect artists and audiences, fostering vibrant communities and coalitions around the globe. By establishing this connection, we create a more equitable and vibrant art scene. That is only true if we embrace accessibility, sustainability, and ethical practices. Otherwise, they run the risk of becoming just another aristocrat’s digital fancy tool that dooms us to recreate existing power structures but in a shinier format. Don’t let the fear of missing out, or FOMO, lead you astray.

Beyond environmental concerns, there are ethical questions to consider. The NFT space is rife with scams, rug pulls, and concerns about intellectual property. How do we protect artists from exploitation in this Wild West of digital ownership? How do we ensure that NFTs are used to promote creativity and innovation, rather than simply enriching a select few? This is where the anger and outrage should be directed.

A Call for Conscious Innovation

The story of NFTs is still being written. They could be a force for good, empowering artists and democratizing access to art. But only if we're conscious of the potential pitfalls and actively work to address them. We need to:

• Invest in education and digital literacy programs in developing countries.
• Support the development of more energy-efficient blockchains.
• Establish clear ethical guidelines and regulations for the NFT space.

Here is a table with possible options:

NFTs have the potential to be more than just digital collectibles or speculative assets. They can be a bridge, connecting artists and audiences across the globe and fostering a more equitable and vibrant art world. But only if we prioritize accessibility, sustainability, and ethical practices. Otherwise, they risk becoming just another tool for the elite, further solidifying existing power structures in a digital guise. Don't let the anxiety of missing out cloud your judgement.