Non-fungible token (NFT) in the visual art industry : systemic innovation and case study approach | |
| Author | Singhanart Nakpongphun |
| Call Number | AIT RSPR no.SM-22-01 |
| Subject(s) | Blockchains (Databases) NFTs (Tokens) Art and industry |
| Note | A research submitted in partial fulfillment of the requirements for the degree of Master of Science in Business Analytics and Digital Transformation |
| Publisher | Asian Institute of Technology |
| Abstract | The Non-Fungible Token (NFT) is an emerging technology that recently gain popularity in the visual art industry. This study attempts to fill the research gap regarding the technological nature of NFT in the visual art industry context, from the systemic characteristics point of view. The findings of this research showed the NFT reflected two systemic characteristics, which are the necessary need the investment in assets specific to the system and comprised of extensive software (protocols, procedures) and hardware, discovered the opportunities gap of cross-chain interoperability, and provided suggestions to help the professionals in the industry to pursue their business strategy in the realm of NFT. The case study approach and systemic innovation model have been applied to gain an understanding of NFT in the aspect of systemic characteristics, business, and technological application. The unit of analysis of this research is the public NFT marketplaces whereby this research explores the top three public NFT marketplaces: OpenSea, Magic Eden, and LooksRare. The samples of NFT marketplaces accounted for more than 90 % of the total NFT market share at the moment. The analyses of findings demonstrated that NFT is a high systemic innovation in the visual art industry context. Additionally, the NFT has provided new opportunity for art professionals, and also required an understanding of the technical details to work with. The study also found that the artists have used NFT as a new tool to create a new type of artwork which is the on-chain artwork. Moreover, the NFT currently lacks the cross-chain interoperability which is required to achieve more value of the innovation and gain more market acceptance. Also, the insights of this research can help to plan for a new NFT product or service creation because this research has evidenced the systemic characteristics of the different visual art marketplaces, including primary sale, merchant secondary sale, auction house, online auction site, E-commerce website, online social media, and NFT marketplace. The methodology of this research can be applied to analyse NFT applications in other industries such as music, gaming, sport, etc. The professionals in different industries can plan their business strategy and discover the gap of opportunities clearer when the NFT’s systemic characteristics in the selected context is elucidated. Finally, this will help strengthen the research in the field of the NFT in the future. |
| Year | 2022 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Science in Business Analytics and Digital Transformation (M/Msc BADT) |
| Chairperson(s) | Jarunee Wonglimpiyarat; |
| Examination Committee(s) | Endress, Tobias;Ransom, Lakeesha; |
| Scholarship Donor(s) | Royal Thai Government Fellowship; |
| Degree | Research Studies Project Report (M. Sc.) - Asian Institute of Technology, 2022 |