New Markets: From Digital File to Digital Asset

Digital Scarcity — A Paradigm Shift

by Rah Crawford

Many of us utilize file types such as jpg, png, gif, and mp4 on our computers and phones regularly. Uploading photos to social media, sharing memes, or reposting artwork from our favorite entertainment source is a normal part of life for the “plugged in” person. An online search of just about any keyword or topic can produce a seemingly infinite amount of image options for you to scroll through, download and share. Oftentimes, copies of the same image will end up on multiple phones, computers, and servers around the world — but who created and owns the original source file? Does it even matter? Content producers sometimes watermark their images to declare ownership, but at the end of the day these digital files are not scarce items, they’re not physical, they reproduce easily and hold no monetary value.

But what if a digital file could be an asset? What if a record of the creator and the sales history of a digital file could be kept on a secure and trusted public ledger for all to see? What if musicians could sell limited editions of their album covers? What if publishers could sell the cover art for their books and magazines? What if artists could sell digital copies of their artwork? What if these digital assets could increase in value based on demand and popularity? What if a new market and revenue stream existed?

The answer is yes — it does.

Eth Girl by Trevor Jones

The creation, buying, and selling of digital images has been happening for over 2.5 years within growing communities of early tech adopters. In January 2020 a digital artwork entitled “EthGirl” was sold for 70 ETH ($14,525) (ETH/ Ethereum is a digital currency).

A search for #DigitalCollectibles #NFTs or #CryptoArt will produce many links related to the topic. Distributed Ledger Technology (DLT) experts predict that mass adoption by the general public won’t happen for another 5 to 10 years, but many believe the worldwide pandemic known as Covid-19 has shortened that mass adoption timeline considerably. Businesses have been forced to pivot away from a centralized in-office operation and over to a ‘work from home’ environment. As a result, the need for new technologies to support borderless communication, collaboration as well as recreation are at an all-time high. The global pandemic is dramatically emphasizing the reality of our connected digital and physical lives. Virtual meetings, venues, and personal avatars are stepping up to fill the void as burgeoning concepts like digital assets and digital currencies are becoming increasingly popular topics of conversation.

Things to think about:

Do you publish, manage, or own digital artwork or images? Would your audience, fans, or customers be interested in collecting your art, designs, or content? Do you have a strategy for curating, distributing, and monetizing your digital assets?

If you remember the dotcom boom then you may remember the frenzy of businesses trying to project themselves into the virtual realm for the first time. The new age of digital scarcity may be similar, as companies and individuals scramble to collect, organize and monetize their digital assets. My goal is to share some solid info and insights as these things unfold.