Abstract
Non-fungible tokens (NFTs) make it technically possible for digital assets to be owned and traded, introducing the concept of scarcity in the digital realm for the first time. Resulting from this technical development, this paper asks the question, do they provide an opportunity for fundraising for galleries, libraries, archives and museums (GLAM), by selling ownership of digital copies of their collections? Although NFTs in their current format were first invented in 2017 as a means for game players to trade virtual goods, they reached the mainstream in 2021, when the auction house Christie’s held their first-ever sale exclusively for an NFT of a digital image, that was eventually sold for a record 69 million USD. The potential of NFTs to generate significant revenue for artists and museums by selling effectively a cryptographically signed copy of a digital image (similar to real-world limited editions, which are signed and numbered copies of a given artwork), has sparked the interest of the financially deprived museum and heritage sector with world-renowned institutions such as the Uffizi Gallery and the Hermitage Museum, having already employed NFTs in order to raise funds. Concerns surrounding the environmental impact of blockchain technology and the rise of malicious projects, exploiting previously digitised heritage content made available through OpenGLAM licensing, have attracted criticism over the speculative use of the technology. In this paper, we present the current state of affairs in relation to NFTs and the cultural heritage sector, identifying challenges, whilst highlighting opportunities that they create for revenue generation, in order to help address the ever-increasing financial challenges of galleries and museums.
Highlights
How might such an initiative sit alongside the OpenGLAM movement, where galleries, libraries, archives and museums have been openly licensing images of items in their collections for others to use as they will? In this paper, we problematise beyond the hype of digital collectibles, exploring the opportunities, risks and challenges they present to the GLAM sector, concluding with recommendations for the sector, as well as for the academic community and researchers interested in exploring Non-fungible tokens (NFTs) in relation to museum funding and openly licenced content
NFTs, which can be described as cryptographically signed copies of digital or physical assets that are publicly registered on a blockchain, have made the ownership and trading of digital assets technologically possible
Buyers do not expect to receive copyright when purchasing an NFT, they do expect a copy of the asset; for that reason, OpenGLAM institutions, which have already taken the decision to openly share their images for unrestricted reuse, have one barrier less for experimenting with digital collectibles
Summary
Recent advancements in technology have introduced new ways for revenue generation from museum images and digitised collections. Non-fungible tokens (NFTs), which can be described as a new medium that enables the ownership and trading of digital assets of any kind, have been gaining an increasing amount of attention in recent months. This paper asks if it is appropriate for the heritage sector to embrace non-fungible tokens (NFTs), selling ownership of digitised images of collections items, to raise much needed revenue. How might such an initiative sit alongside the OpenGLAM movement, where galleries, libraries, archives and museums have been openly licensing images of items in their collections for others to use as they will? How might such an initiative sit alongside the OpenGLAM movement, where galleries, libraries, archives and museums have been openly licensing images of items in their collections for others to use as they will? In this paper, we problematise beyond the hype of digital collectibles, exploring the opportunities, risks and challenges they present to the GLAM sector, concluding with recommendations for the sector, as well as for the academic community and researchers interested in exploring NFTs in relation to museum funding and openly licenced content
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