Wednesday, May 18

Tribune | NFT: the three letters that are revolutionizing the cultural industry

The revolution in art and the audiovisual sector can well be explained with three letters: NFT. It is the acronym for “Non Fungible Token”, a special type of digital property that is characterized by being unique, non-exchangeable and linked to technology blockchain which guarantees its originality.

One of the most notorious examples was that of Jack Dorsey, now the former CEO of Twitter, who sold the first tweet in history for $2.9 million in NFT format, the payment for which was made in Ethereum, one of the most famous cryptocurrencies along with to Bitcoin.

Beyond the still unfamiliar words, its significance is easy to decipher: the possibility of selling unique and unrepeatable digital objects is an inexhaustible source of creativity, which is already opening up new (and lucrative) business models all over the world and whose impact on the entertainment industry is still unknown.

Because the NFTs will apply to the creation of all kinds of works, over which part of the rights may be owned, not only of the new digital artistic content but also of the existing ones. Any work of art will be susceptible to being “tokenized” to own part of it.

His irruption is unstoppable: on December 2, the actor Álvaro Morte (known as the professor in the successful series The Money Heist) and Koldo Serra (director and screenwriter of the same series) launched the first “Non Fungible Story” in history, an innovative project in which Santiago Mediano Abogados has been able to participate as advisers to Álvaro Morte.

It consists of the launch of a significant number of NFTs, whose owners will be able to actively participate in the creation of that Non Fungible Story, as if they were scriptwriters.

In other words: the paradigm of artistic creation radically changes by allowing NFT buyers to participate in the scripts of a series, in the creation of characters or even being a character in itself.

The potential of this type of asset is unimaginable. They will revolutionize the recording, audiovisual or any other industry with content tokenizable, bringing new revenue to creators. We are not talking about the future, but about the present, because there are multiple examples in the cultural sector.

Auction companies like Christie’s have already made a partnership with NFT trading platforms to auction art, with prices that are close to that of other iconic bids such as paintings by Picasso or Van Gogh.

Giant production companies such as FOX, Universal Pictures or MGM have also tried their luck in this digital universe with, for example, tokens exclusive to Return to the future, the logo of Ghostbusters o James Bond.

And the definitive explosion may come from the hand of the Metaverse, which has already seduced figures such as Mark Zuckerberg or Jeff Bezos, in which a new economy will be created based on digital properties that will be managed through NFTs.

This new universe of digital assets will unite culture with technology, crossing any limits. It will make it possible to create shared stories or retrieve works on physical media so that they are always available in the digital world.

It is the collectivization of art at its best. And it has only just begun.

Santiago Ilundain, partner of Santiago Mediano Lawyers.