How NFTs conquered art and luxury

NFTs are reinventing digital art, but also luxury.

NFTs keep attracting thousands of investors and collectors every day. In particular, they have growing fast in the art and luxury spaces. The famous tokens on the rise have indeed many appealing benefits for artists and brands: the are unique, indivisible, and provably scarce digital assets. NFTs are therefore authentic and identifiable via the Blockchain.

In luxury, on of the keys is digital scarcity. What's rare is expensive, this is the very principle of luxury, but also the hallmark of collectors who sometimes pay outrageous amounts to acquire the piece they lack. Verifying the authenticity of digital art was quite challenging before reaping the potential of NFTs, making the industry hard to monetize. Today, the Blockchain technology have enabled tracking unique digital art in the form of NFTs as well as verifying its source, authenticity, and scarcity.

Another problem faced by Luxury firms is counterfeiting. Customers usually want to know that the exclusive purse, watch, or rare jewels they have purchased are authentic. When linked to such real world objects, NFTs and the Blockchain offer ways to track the supply chain and lifecycle of any item and verify its authenticity. For example, the luxury brand Louis Vuitton have recently started experimenting with NFTs to deal with such a problem, along with other brands within the LVMH group.