Digital collection platforms are intensively launched to expand cultural boundaries, and it is necessary to guard against the risk of hype

The digital collection market is continuing to be hot. Following the early deployment of Internet companies such as Alibaba and Tencent, many Internet digital content platforms and literary and art companies have recently launched research and planning on digital platforms. A number of digital collection platforms will be launched intensively. The industry generally believes that digital collections have opened up a new mode of cultural consumption that can be confirmed and traced, which is of great significance for activating the development of traditional culture. But at the same time, behind the market heat, there are still many problems that need to be solved urgently. Such as the determination of compliance, the determination of the fair value of collections, and how to avoid hype during transfer transactions.

The fiery rush of digital collections

Digital collections refer to the use of blockchain technology to generate unique digital certificates corresponding to specific works and artworks, and on the basis of protecting their digital copyrights, to achieve authentic and credible digital distribution, purchase, collection and use. As the underlying technology of digital collections, blockchain can mark digital original works on-chain to generate unique digital certificates, which cannot be tampered, copied, or split, so that they will leave traces in any changes to form traceability. Effectively protect publishers’ copyrights and consumer rights.

At present, more and more traditional cultural IPs have been digitized, and many cultural IP institutions are also testing the new trend of digitalization, which has also made the new carrier of digital collections the focus of attention. Take Ant Whale Scout, which focuses on Chinese culture as an example, since it launched the Treasure Project, focusing on launching related content from museums, intangible cultural heritage, opera, national style, calligraphy art, etc. In addition to Ant, Tencent, Baidu, ByteDance, and other major manufacturers have launched related platform products without exception.

In addition, a number of digital collection platforms have been launched recently. For example, Weibo launched the TopHolder digital collection platform. China Banknote Financing Blockchain Lab launched a digital collection platform.Xunlei Chain launched an enterprise digital collection service platform. The “Shizang” digital copyright collection platform created by China Search was launched on March 17 for public testing. Mango TV has recently completed the deployment of its self-built blockchain. The name of the blockchain was initially named Light Chain. It adopts the TBFT consensus algorithm and will launch a digital collection platform based on Light Chain in mid-March. In addition, Zhiyuan Art Collection Platform, a digital collection mall platform jointly launched by the China Software Industry Association Blockchain Branch under the Ministry of Civil Affairs and the Digital Economy Development Association, and jointly launched by the Central Academy of Fine Arts and Beijing 798 Art Center, will be launched in early April. The Zhiyuan art collection platform is backed by the Central Academy of Fine Arts, which is also the first time that an art university has deeply involved in the digital collection platform business. This means that there will be one more player in the digital collection track.

In this regard, Zhao Wei, a senior researcher at Ouyi OKX Research Institute, pointed out that at present, after the explosive growth of NFT last year, both the scenarios and the fields that can be combined are more diversified, and it has become the brand building and development of many leading companies in the industry. A new way to generate income is a must-have track that has to be deployed under the trend. Moreover, digital collections are obviously more in line with trends, as well as the needs and satisfaction of young collectors. The relatively larger market space and demand gap have contributed to the intensive launch of a number of digital collection platforms.

The real needs of digitization

The popularity of digital collections stems from the emergence of the Metaverse and NFTs. Since last year, NFT digital collections have attracted the investment of major brands and enterprises, and the categories of digital collections have also diversified, including but not limited to digital pictures, music, videos, 3D models, electronic tickets, digital souvenirs and other forms .

In the era of digital economy, digital artwork does not exist in the form of physical objects. How can we reflect its exclusive possession? Anyone can copy and use it without distinction. How can we ensure that our right to dispose of and benefit from digital art is not violated? NFTs provide a reliable option as a new type of digital certificate for carrying the value of items. NFT provides a unique copyright certificate for the works of the majority of creators. Although it is still presented in electronic form, it is different from other copies. Owning NFT also has exclusive ownership rights, which effectively protects the creator’s copyright. ; NFT is convenient and quick to circulate and transfer on the blockchain network, and it is easy to operate, so that these works can be sold at the most suitable price, which stimulates the enthusiasm for creation.

In addition, for traditional cultural IP, the popularity of digital collections has given vitality to cultural innovation, opening up a new mode of cultural consumption that can be confirmed and traced, enabling traditional culture to use digital technology to push the boundaries of the possibilities of the cultural industry outshift.

Zhao Wei, a senior researcher at the OKX Research Institute, pointed out that the current proportion of young people’s digital behavior in their lives is increasing, and they are also pursuing technological trends, circle satisfaction, and belonging. Digital collections are more in line with the digital development trend, and are more in line with the curiosity and social needs of young people. At the same time, the current consumers have the characteristics of fast pace of life and relatively limited living space, and have been troubled by overloaded space occupied by a large number of consumer goods. Digital collections, on the other hand, require no physical space and require no effort to maintain. This is an advantage that physical collectibles do not have. However, with the gradual development of digital collections, the deepening of integration with various fields, the diversification of IP, and the improvement of relevant regulatory regulations, manufacturers of physical collections will be affected to a certain extent. Of course, how to combine digital collections to carry out self-innovation and upgrade in the trend is also a major opportunity for physical manufacturers to transform and make breakthroughs.

Risk prevention

With the development of NFT at home and abroad, there are also many irregular operations in this market. The continued popularity has also attracted the influx of some speculative teams. They seized the Fomo psychology of users and used various packaging and hype techniques to attract users to enter the market. This will undoubtedly magnify market risks and is not conducive to the healthy development of NFTs. At the same time, the NFT market still has the problem that the fair value cannot be determined, and it is easy to fall into the hype trap.

Therefore, the determination of compliance, the determination of the fair value of collections, and how to avoid hype and chaos during transfer transactions are the real issues facing NFT digital collections. For the current digital collection platform that is constantly online, it weakens the transaction attributes of NFT to a certain extent and is more in line with regulatory requirements.

Many digital collection platforms have stated that one of the purposes of launching digital collections is to help creators maintain their due rights and interests. Therefore, China’s digital collections do not have the link of secondary trading, and only support functions such as personal collection and use or free transfer. Therefore, it is more in line with regulatory requirements. At the same time, more and more brands of digital collections choose to cooperate with traditional culture and traditional IP to create digital collections to ensure that the digital art collections launched have fair artistry and make digital performance more attractive.

However, Zhao Wei, a senior researcher at Ouyi OKX Research Institute, also reminded that at present, it is difficult to determine the fair value of digital collections. First of all, digital collections have obvious circle attributes, and their meanings to different audiences are completely different. The purchase motivation of participants also has a greater impact on the price. Similar to a thousand readers, there are a thousand Hamlets, a non-homogeneous digital collection has different meanings and value propositions for different people, which is also its charm. Apart from malicious speculation and drive-up, it is also a normal market behavior for collectors to obtain their favorite digital collections at unconventional prices under the premise of rational consumption. As for how to avoid being a hype tool. First of all, it is necessary to ensure that the rules of the initial issuance are transparent and the mechanism is reasonable, and the rules are used to shield the rush buyers with impure purposes as much as possible. On the basis of fairness, in the short term, it can intervene in the form of forced cooling by setting a circulation restriction period. In the long run, the market needs to establish standards and regulations and a regulatory system in the development of the market, so that circulation and transactions are all under a perfect framework.

In addition, lawyer Zhu Jieping, the founding partner of Taikun Law and a specially invited researcher of the China Society for Policy Science, pointed out in an interview that at present, Chinese laws do not clearly stipulate the legal attributes and legal application of “digital collections”. The “Civil Code” and other laws stipulate virtual property, but because it does not give a clear explanation of legal attributes, there is still controversy over how to identify and define virtual property. If digital collections are circulated in the market in the form of virtual property, the relevant provisions of the Civil Code shall apply. Due to the characteristics of scarcity and difficulty in pricing digital collections, if they are not monitored in a timely and effective manner, they may become tools for illegal and criminal activities such as money laundering and tax evasion. Legislative and regulatory system to clarify the essential attributes of its related business activities, prevent the risk of speculation in digital collection transactions, and realize the risk prediction of speculation in digital collection transactions.

At present, digital collections are in a period of boom, and there are many platforms. But at the same time, the digital collection platform will not expand infinitely. In the future, it will be screened by factors such as industry competition and user selection, and the retention situation remains to be seen.

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