Blockchain, Data, and Tokens: The Building Blocks of the Ownership Economy
Creators and individuals produce most of the value on platforms today — whether its via the data they create or the content they produce. What seems to be an unstoppable trend is still held back by one critical flaw: at some point, the underlying platform can pivot from cooperative behavior and turn to exploiting individuals and creators alike for the sake of higher profits.
Thanks to blockchain, it’s now possible to program incentives and distribute merit-based ownership to both creators and users who believe in each other. In recent months we’ve seen digital art, and their NFTs conferring ownership, sold for hundreds of thousands, sometimes millions of dollars. To date these tokens have represented ownership of relatively simple assets, art, music, etc. making their value largely speculative and predicated on a belief that they will have social and historical value. While our attention has been grabbed by large price tags and trendy memes, we often overlook the importance and potential of NFTs as an enabling technology: the link between NFT’s and Data, not just the ownership of the NFT, dictates the value that the NFT represents.