The NFT industry is faced with several pressing issues, including centralization in artist selection and excessive decentralization in minting availability.
In centralized NFT platforms, artist selection is often determined by a small group of individuals or organizations, which leads to a homogeneous and narrow representation of the art world. This stifles opportunities for new and emerging artists and restricts diversity within the NFT ecosystem.
On the other hand, excessive decentralization in minting availability results in an overabundance of low-quality NFTs, which dilutes the value of the entire ecosystem. This makes it challenging for artists and collectors to discover high-quality NFTs, hindering the overall growth and potential of the NFT industry.
Hence, there is a need for a more inclusive and transparent NFT platform that can serve the needs of both artists and collectors.
Provenance and Authenticity
One of the biggest issues in the art world is determining the provenance and authenticity of artworks.
Forgeries and counterfeits are common, leading to disputes and mistrust among artists, collectors, and galleries.
NFT curation platforms can help address this issue by utilizing blockchain technology to create an immutable, tamper-proof record of an artwork's history, ensuring that the provenance and authenticity of the piece are easily verifiable.
Copyright and Ownership
In the digital art space, artists often struggle to protect their intellectual property rights and maintain control over their work.
Digital artworks can be easily replicated and distributed without the artist's consent, resulting in lost revenue and diminished control over their creations.
NFTs provide a solution by tokenizing digital art, allowing artists to establish clear ownership rights and protect their intellectual property.
Limited Access and Centralization
The traditional art market is often characterized by exclusivity, with only a select group of artists, collectors, and galleries participating in high-value transactions.
This centralization can limit opportunities for emerging artists and make it challenging for new collectors to enter the market.
NFT curation platforms can democratize the art world by providing a more accessible and inclusive marketplace, where artists can showcase their work and collectors can discover and invest in a diverse range of creative pieces.
Illiquidity and Valuation
Artworks are typically considered illiquid assets, as they can be challenging to sell and have their value accurately assessed.
This illiquidity can create barriers for both artists and collectors, who may struggle to monetize their assets or determine a fair market value.
NFT curation platforms can introduce greater liquidity to the art market by facilitating a more efficient and transparent marketplace for buying, selling, and trading tokenized artworks.
Lack of Royalities and Resale Rights
Artists often do not receive any royalties or financial benefits when their works are resold on the secondary market.
This can be particularly frustrating for artists whose works appreciate in value over time, as they do not share in the financial rewards of their creations.
NFT curation platforms can help address this issue by enabling smart contracts that automatically distribute royalties to artists whenever their works are resold.