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To change the art industry, NFTs must be more secure By Cointelegraph

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To change the art industry, NFTs must be more secure By Cointelegraph
To change the art industry, NFTs must be more secure

2021 has already seen a number of striking milestones reached for beginners non-fungible token (NFT), which has experienced a increase at a value of 2,100% from the fourth quarter of 2020, and consumers spent more than $ 2 billion. While the headlines have been dominated by record sales, what is often overlooked is the growing demand from new investors. According To NonFungible, which tracks NFT transactions, there were 73,000 NFT buyers and 33,000 NFT sellers in the first quarter. Although these figures may seem impressive, they are in fact relatively small compared to the world art market, which was valued at $ 64.7 billion in 2018, with the United States, China, and the United Kingdom accounting for 84% of the global market.

The traditional infrastructure for the art market, dominated by dealerships and auction houses, already seemed outdated in an increasingly online and globalized world, where demand in emerging markets for this asset was only going to grow. People will likely remember the COVID-19 pandemic as a catalyst to disrupt the existing infrastructure of the art market. Meanwhile, the NFT market offers insight into how smart contract technology can be applied to ensure third parties and intermediaries who would normally demand their share are eliminated. However, as it stands, today’s infrastructure has too many flaws and too much potential for user error to act realistically as an alternative to current methods of property verification, distribution, auction, and certification.

Luke stokes is the managing director of the Foundation for Interwallet Operability. He is passionate about voluntary governance systems and has been involved with them since early 2013. He has been a consensus witness for the Hive (formerly Steem) blockchain since early 2018 and custodian of eosDAC, a proprietary Eosio block producer. community and DAC enabler, since its inception. He has a degree in computer science from the University of Pennsylvania.