The Debrief | What Happened With Fashion and NFTs?
BoF technology correspondent Marc Bain unpacks the latest problem plaguing Web3 creatives and hopefuls — and what it means for fashion’s future use of the technology.
Background:
For fashion, one of the most alluring prospects for NFTs is how they could help brands collect royalties — forever — on secondary sales of physical goods. Though the mechanics of doing so are not ironed out yet, brands could ideally code NFTs tied to physical products with smart contracts triggered by certain conditions and benefit every time an item is sold, not just at the initial sale. But, technical loopholes used to circumvent loyalties and finicky marketplaces leave brands and creators without ways to enforce rules.
“One of the big principles of Web3 is these royalties are the idea that it's a creator led economy, it wouldn’t necessarily be controlled by a big centralised organisation … Except that’s not really playing out,” said BoF technology correspondent Marc Bain.
Key Insights:
- Marketplaces are responding to controversy over enforcing royalties. Opensea, one of the biggest Web3 marketplaces, wants to attract creators, so it has an incentive to honour creator royalties. Newer marketplaces just looking for sales are willing to cut fees for buyers.
- This has led to an existential crisis for the NFT community, showcasing that creators are not entirely in charge in a space that was touted as having enormous potential to empower them.
- Marketplaces and infrastructure for fashion brands that would want to get royalties for secondary sales don’t exist right now. It also remains to be seen how brands would scale such a system.
- A number of start-ups including EON and Aurora Blockchain Consortium are working on linking digital identities to physical goods, but doing so is complicated.
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ABOUT THE BUSINESS OF FASHION: The Business of Fashion is a next-generation fashion media company conceived for today’s global and hyper-connected world. Founded in 2007 by Imran Amed, BoF is known for its authoritative, agenda-setting point of view on the global fashion industry, and is an indispensable resource for fashion executives, creatives, students, and entrepreneurs in over 200 countries. It has been described as “The Economist of Fashion,” “A Daily Destination for Fashion’s Power Players”, and “The Industry Bible”, www.businessoffashion.com
Видео The Debrief | What Happened With Fashion and NFTs? канала The Business of Fashion
Background:
For fashion, one of the most alluring prospects for NFTs is how they could help brands collect royalties — forever — on secondary sales of physical goods. Though the mechanics of doing so are not ironed out yet, brands could ideally code NFTs tied to physical products with smart contracts triggered by certain conditions and benefit every time an item is sold, not just at the initial sale. But, technical loopholes used to circumvent loyalties and finicky marketplaces leave brands and creators without ways to enforce rules.
“One of the big principles of Web3 is these royalties are the idea that it's a creator led economy, it wouldn’t necessarily be controlled by a big centralised organisation … Except that’s not really playing out,” said BoF technology correspondent Marc Bain.
Key Insights:
- Marketplaces are responding to controversy over enforcing royalties. Opensea, one of the biggest Web3 marketplaces, wants to attract creators, so it has an incentive to honour creator royalties. Newer marketplaces just looking for sales are willing to cut fees for buyers.
- This has led to an existential crisis for the NFT community, showcasing that creators are not entirely in charge in a space that was touted as having enormous potential to empower them.
- Marketplaces and infrastructure for fashion brands that would want to get royalties for secondary sales don’t exist right now. It also remains to be seen how brands would scale such a system.
- A number of start-ups including EON and Aurora Blockchain Consortium are working on linking digital identities to physical goods, but doing so is complicated.
Follow The Debrief wherever you listen to podcasts.
Subscribe to BoF’s YouTube channel to never miss a video.
Look out for more VOICES videos coming soon, bringing you the best of our annual global gathering for big thinkers.
CONNECT WITH THE BUSINESS OF FASHION:
Web: https://www.businessoffashion.com
Twitter: https://www.twitter.com/BoF
Facebook: https://www.facebook.com/businessoffa...
Instagram: https://www.instagram.com/BoF
LinkedIn: https://www.linkedin.com/company/the-...
Pinterest: https://www.pinterest.co.uk/fashionbu...
Newsletter: https://www.businessoffashion.com/new...
ABOUT THE BUSINESS OF FASHION: The Business of Fashion is a next-generation fashion media company conceived for today’s global and hyper-connected world. Founded in 2007 by Imran Amed, BoF is known for its authoritative, agenda-setting point of view on the global fashion industry, and is an indispensable resource for fashion executives, creatives, students, and entrepreneurs in over 200 countries. It has been described as “The Economist of Fashion,” “A Daily Destination for Fashion’s Power Players”, and “The Industry Bible”, www.businessoffashion.com
Видео The Debrief | What Happened With Fashion and NFTs? канала The Business of Fashion
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28 декабря 2022 г. 22:30:03
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