NFTs through the lenses of the author’s rights: a view of challenges and opportunities in the art world.

Abstract

NFTs have already been defined as a disruptive technology, an innovation capable of reinventing existing industries, or even creating new ones. The years 2020 and 2021 revealed themselves as crucial for the true characteristics and the tremendous potentials of this technology bringing to the attention of a global audience. At the fons et origo of this revolution there are blockchain and smart contracts: both are conceptualized as alternative systems by introducing firstly the principles of decentralization and automatization of processes. They constitute, as well, the pillars above which is added the non-fungibility, the idiosyncratic quality of NFTs, presenting the groundbreaking notion of scarcity in the digital sphere. Looking at the creative world of artists, and more in particular digital arts, it is evident the reason why this innovation aroused wide interest and curiosity, since it can be interpreted as an important solution to many inefficiencies or difficulties in the current author’s rights system. Namely, particularly fascinating is the possible ease of application of the resale right, which allows creators to get an automatic and predetermined compensation every time a future sale of the work is made. This prospect opens to a profound and radical change in the way artists can approach the market, by not relying anymore only on the first purchase, but rather on the subsequent ones, allowing therefore a more affordable initial proposition to buyers. Indeed, new critical circumstances are rising too, straining copyright laws by forcing them to face unprecedented and unseen situations. Throughout an overview of the underlying technology, this dissertation has the aim to present the challenges and opportunities that NFTs offer in the context of the author’s rights while glancing at the art market.