The Block Generation

HOW ARTISTS CAN UTILISE CRYPTOCURRENCIES AND BLOCK CHAIN TECHNOLOGY

Abstract

The discussion within this document is the overall accumulation and summary of research conducted into the speculative and innovative online space that is cryptocurrencies and blockchain technology. By elaborating on the history gathered on this economic factor in relation to a sector that has been chosen, that being the creative industries as a whole we will cover and consider the spread of real world application this topic holds towards artists. This essay covers the three theoretical blockchain artistic archetypes, research, interviews, articles and a final reflection piece on them all. Additionally throughout this document there includes an overall look at the market as it exists today and the formulation of a discussion on how a single Bitcoin went from its lowest valuation of $150 to $20,000 with an estimated 13,300% increase and then to subsequently lose 70% of it in the span of just 4 years between 2014 and 2018 (Coindesk, 2017) and how this can still benefit any artist wanting to get into this area of work today. It will also explained fully how I myself can apply this knowledge to my own work as I begin my career as an artist later in 2019.

The Block Generation

Introduction

The title of the argument applies to the applications and software that have been and are being developed currently by teams of programmers, producers and artists across the world in order to utilise the technology that is blockchain and building them in conjunction with crypto currencies and tokens alike. The definitions of both Bitcoin and Blockchain add some particularly required clarity to this essay in order to come to a logical conclusion by the end of the reflection. A 'Bitcoin' is a digital virtual peer-to-peer currency without the need for an intermediator that is not subject to hyperinflation (Bitcoin.org, 2018). A 'Blockchain' is a growing list of records, called blocks, which are linked using cryptography and recorded on a public ledger (Wikipedia, 2018). That is as simple a definition for each of them that can be given in order to get you interested in these products if you aren’t already. The events discussed throughout this essay also relates back to December 19 th of 2017 when Bitcoin reached an all-time high of a near $20,000 in valuation (Fortune, 2017) but not everybody understands why that happened. Anybody can look at the chart of bitcoin and see how it naturally progressed from the single longest bear market it had ever experienced to one of the greatest bull runs it has ever seen and come to their own conclusions about natural growth. After analysing the research gathered and formulating on this subject, misbelief the real change in value and the reason the price increase happened between 2014 to 2017 (Kristovatlas, 2017) when no one appeared to be talking about crypto or blockchain was because all the while new platforms, applications, coins, exchanges, influencers and ideas were beginning to flourish and this began to slowly obtain more public interest again overtime. There of course are scams that exist within cryptocurrency (Cointelegraph, 2018) and in the future there may be real products that prove themselves as such but we will be talking about this phenomenon purely from an artist’s perspective.

Three types of Crypto Artists

During these current ‘difficult’ times of a bear market many people have been hard at work creating many products that are already using the tech and succeeding in earning profits and significant market caps in such a short amount of time (Hackernoon, 2018). Artists in particular have now been given more opportunities than ever before to get involved with projects or have created work on the subject itself gather massive amounts of attention worldwide. This leads us to the theory that there are three categories that artists can fall into if they associate themselves with crypto. First there is the art about blockchain itself, created by artists on the subject and basing their work around what it means to them (Bitcoin Isle, 2018). Second there are the artists receiving payment via crypto whether that’s by through artwork they have generated about blockchain or anything other product for that matter (BBC News, 2018). Lastly we have people creating on blockchain who develop games, applications and software with the sole purpose of them making a product to be sold or used by individuals all over the world online (Forbes, 2018). Arriving to this conclusion came after observing the multiple angles in which people approach this new market so as to profit from it. It has therefore from today found to be common practice to either create something about the subject, integrate it into your workflow or contribute to it directly and make a usable product but the question then becomes for existing artists: ‘Which projects should I contribute to’?

Examples of Coins and Tokens

Currently there exist over two thousand different tokens and coins but I will be covering only a few that have any relation to either games or have artistic prospects. They are Mana, RavenCoin, Enjin, FunFair and Basic Attention Token. Mana is used for ‘Decentraland’ where you can buy virtual real- estate and build any kind of world on it that can then be viewed and experienced within VR (Decentraland, 2018). RavenCoin has the ambition to be used for distributing assets that you own and create yourself with your name attached to them and Funfair is a token used for gambling and other types of games (RavenCoin, 2018). Basic attention token or BAT is part of a web browser called Brave that distributes itself based on what websites you visit and individuals you watch the most (Basic Attention Token, 2018) and Enjin can be used to add value to in-game items or economies to add true ownership to individuals’ items (Enjincoin, 2018). All of them have different functions but each are unique enough to benefit any specific type of artists no matter what they create from virtual worlds to online multimedia content. Some notable examples of products being developed on certain tokens and coins are ‘Crypto Kitties’, ‘Ether Online’ and ‘Pirates Conquest’ Which are built on Ethereum, one of the original cryptocurrency coins (State of the Dapps, 2018). Additionally there is ‘War of Crypto’, ‘Cats in Mechs’ and ‘Forest Knight’ which are all powered by Enjin and can be downloaded from several ‘dapplication’ stores that host over 2000 different items available (State of the Dapps, 2018).

Mana is a unique coin that wants to create a virtual landscape in which you can buy portions of land to then build your own world that others experience and potentially pay to rent or use. This can create an open door for 3D artists to spend time working on a product which they find value in and can then be sold like a portion of property in relation to its value increasing over time as more people add to it like a real home (Bloomberg, 2018). As an artist you could buy a portion of ‘land’ which you could then develop and turn into an experience that players can enjoy and contribute to, thus earning a profit in the process. RavenCoin additionally intends to add scarcity to your own products where you establish how many copies there are and the function of your uniquely names token to then have Raven you then can receive knowing that only so many were made and that your name could be attached to them. It focuses on asset ownership and creation for distributing content with a phrase, name or detail that could be yours (Cointelegraph, 2018). This coin could let you add value to my products over time and give them scarcity, leading to more demand for your work. Basic Attention Token or BAT wants to create a better experience for the user when visiting their favourite websites and making sure they are supporting the creators directly. This token can be used to obtain a variety of advertising and attention-based services on the BAT platform thus allowing someone to have a sustained form of income as they grow their online presence, creating incentive to then produce more by having that security (Businessesgrow, 2018). By applying the best use cases for each of these cryptocurrencies, we can start to realise the potential of not just one but from several tokens’ utilities that all can be exchanged against bitcoin for real monetary value if not readily exchangeable through the coins and tokens themselves. Analysing wasn’t enough though and by receiving second opinions to discuss these concepts with other individuals can help us in viewing these projects as legitimate causes to support and utilise fully in the future.

Interviews and Sources

While no one individual contacted for the purposes of this analysis had any direct connection to crypto directly other than their interest, opinions and products they’re thoughts and opinions were gathered through online conferences or meetings in person. I met with Abertay University lecturer and Doctor Greg Bremner, clairvoyant Matt Zonca and designer Guile Twardowski, all of whom gave me great insight into their opinions on crypto. Their thoughts and opinions differed between each other from either passively encouraging to speculatively intriguing in the sense that the market could go anywhere as it stands today. One of the common positions that they all had however was that there is a possibility that anything could happen and that bitcoin and the blockchain technology could change things even more than they already have. This positive but rational approach from all of them gave me insight into how people from different walks of life and not just artists, can view this subject with encouragement and enthusiasm even during the worst time periods for it ever experienced and with so much loss happening by the percentage every day. The conclusion drawn after documenting their comments about such a speculative and non-physical market such as crypto, is that the general idea and ambition that it could work for everyone one day is one of the driving forces behind its effectiveness so far and will continue to be its preferred method of rationalisation for both investors and developers alike.

Reading developments on individual projects over time though from reliable news sources in small articles is how any average person would stay informed on the changes and improvements in the crypto world, but this area of news reporting is ripe for exploitation and fear, uncertainty and doubt or ‘FUD’ if not careful enough (Cointelegraph, 2018). During the research stage for this essay it was found that not many news outlets that are considered referenced journals had supportive news or encouraging things to say on crypto even to this day unless they were directly involved with promoting any influential figure or product within their interests (Jai.iijournals, 2018). Outlets such as the ‘Financial Times’ covered how big names and big tech figures such as Steve Wozniak who got into crypto recently is getting in the game (Coindesk, 2018) and ‘Market Business Insider’ discussed the effects of currencies as they tumble through the ever failing fiat monetary system we live with every day describing the events in a way that sounded inevitable and irresponsible on the country’s behalf themselves (Business Insider, 2018). While other sources discussed bitcoin's validity, several creators and businesses building on the blockchain such as the Enjin team had discussions with crypto platforms and are raising awareness for their projects all the while traders and speculators guess where bitcoin’s value is going to go next (Youtube, 2018). As stated previously these journals were found to be biased in a negative sense but they serve a valuable purpose for all readers. By being aware of different people's opinions on the subject matter it allows you to reduce the probability of developing an echo chamber for yourself and improving your overall understanding of the tokens, markets and projects out there. Simply staying up to date on the news through online platforms and traditional ones it can benefit artists by keeping them in the loop and it will make them more aware of new tech developments as they emerge.

Reflection

After looking at all the evidence, that being interviews, case studies, events and examples, along with having some predisposed opinions on the subject, what do we feel we are supposed to take from all this? When I first came to the university of Abertay in 2016 I had absolutely no intention of going near crypto but not for any specific reason as it was more due to ignorance and neglect. That’s what new technology does though as it gains more ground over time; it reels you in especially when it applies to you the most at the time you hear about it. The last time I looked at it or even remember thinking about it was back in 2014 not because that was when it reached a new all-time high of $1,000 in valuation (CNBC, 2013) but because of its whitepaper description: A digital virtual peer to peer currency that doesn’t require an intermediator and isn’t subject to hyperinflation. I only wish that I had looked into it further and understood what that really meant back then. However, the mental anguish that comes with the thinking of ‘Oh man, if only I’d just put all my money on this one thing I’d be a millionaire by now’ is never constructive and will always depress anyone to an immense degree. I believe I have found a solution to this issue though. What we can do for ourselves is help it by looking forward and thinking of the prospects instead of the potential downfalls or missed opportunities. Even if crypto were to never recover from its current price at the time of writing this at $6400 and only declined more so over the next few years, it is becoming harder every day to say that virtual digital currencies aren't going to be the future at all (Forbes, 2018). Simply by being able to attach a bitcoin donation button to your own website is enough for us to know that it is worthwhile having as a revenue of income that could have so much potential and in a lot of peoples opinion already does with the Cryptocurrencies sub section on the community oriented content submission website Reddit estimated to be reaching one million users by the end of this year (Reddit, 2018). So many people will have forgotten about the coins that they bought out of fear of missing out or ‘FOMO’ during Christmas time in December of 2017 (The Guardian, 2018) but something about it has been so intriguing to me that I just can’t ignore it and has kept me watching and listening every day to the news surrounding it. So far we have all technically weathered the worst loss days in crypto history this past year (CNBC, 2018) and even so I intend to stay up to date on it no matter what is happening in the market, for better or worse. No one knows what new thing will come along and change the world but for now it looks to be crypto and as much as people might claim that we are all ‘already late to the party’ (Cointelegraph, 2018) I would ask them if they know what Bitcoin is and if not to read the white paper on it again and check the charts for the answers. While past performances never ensure future outcomes, all I can say is that these next few years will be exciting to watch it none the less.

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