Looking at NFT Art Through the Eyes of Virtual Communities: A Netnographic Analysis

Abstract

With the rapid advancement of technology, the transformation of images into digital codes has enabled computer technologies and their derivatives to be included in the art environment, production, and exhibition methods, as well as traditional tools used in artworks. Blockchain and NFT technology, which emerged because of these developments, merged with art to create a new digital art field. This new technology offers new perspectives on the preservation, exhibition and evaluation of art and plays an important role in the digital art economy. The main problematic of this study is to develop an in-depth understanding of the rise of NFT (Non-Fungible Token) technology in the art world and how this new digital art form is perceived by virtual communities. The effects of NFT on the production, distribution, appropriation, and evaluation of artworks have provoked different reactions among artists and art lovers. This study aims to reveal the value, acceptance, and criticism of NFT art in virtual communities through a netnographic analysis. In this study, the perspectives of virtual communities on NFT were examined using a netnographic analysis method. For this purpose, forum sites such as Donanım Haber, R10, Reddit, Shift Delete and Technopat, which have high traffic and active members, were selected and the content shared on these sites between January and October in 2021, when NFT was popular, was analyzed. Discussions, comments, and opinions about NFT on these sites were analyzed in depth. As a result of the study, it was determined that NFT has received various reactions in the art world, some users find this technology meaningless and speculative, while others see NFT as a revolutionary step in the digitalization of art. It is concluded that NFT offers new opportunities to artists and collectors by securing the ownership, authenticity, and trade of artworks in a digital environment.

Plain language summary

Understanding NFT art through the eyes of virtual communities: a netnographic study

Aims and Purpose of the Research: We wanted to explore how the rise of Non-Fungible Token (NFT) technology is changing the art world and how virtual communities perceive this new form of digital art. Our goal was to understand the impact of NFTs on art creation, distribution, and ownership, and to see whether they are embraced or criticized by online art communities. Background of the Research: NFTs have transformed digital artworks into unique, verifiable assets through blockchain technology, sparking debates on their value, authenticity, and impact on the art market. This technology has introduced new ways for artists to monetize their work and for collectors to secure ownership of digital pieces. Given the rapid growth of the NFT market, it’s important to understand the community’s perspectives on this trend. Methods and Research Design: We conducted a netnographic analysis, which is like an online version of ethnography, to gather insights from virtual communities. By examining discussions, comments, and opinions on popular forum sites between January and October 2021, we aimed to capture a wide range of views on NFT art. This method allowed us to analyze the sentiments of virtual communities in depth. Results and Importance: Our findings reveal mixed reactions to NFTs within the art world. Some view NFT technology as speculative and lacking in meaning, while others see it as a revolutionary step towards the digitalization of art. NFTs offer new opportunities for artists and collectors by ensuring the ownership, authenticity, and trade of artworks in a digital environment. This study highlights the diverse perspectives on NFTs and underscores their significant role in shaping the future of digital art. By examining how virtual communities perceive NFT art, this research contributes to a broader understanding of its impact on the art world.

Representation of Image and Sound with Codes: NFT

The security, verifiability, transparency, and smart contracts provided by blockchain technology, which emerged for cryptocurrency transactions in the financial field, have started to be applied to many fields (Nakamoto, 2008). Blockchain technology offers a decentralized framework that significantly impacts trust mechanisms in digital transactions. Trust is not only a facilitator but a catalytic cue that triggers and forms user experiences with blockchain technologies (Shin, 2019). The role of trust as a heuristic in user interactions with blockchain services is crucial. Trust serves as a mental shortcut for users to form judgments and make decisions about the technology (Shin, 2019). Numerous studies have explored the pivotal role of security and traceability in the adoption and effectiveness of blockchain technology. For instance, Shin and Hwang (2020) argue that security and traceability are fundamental affordances of blockchain systems. Their research demonstrates that these affordances significantly impact user trust and the perceived utility of blockchain applications. By embedding security and traceability into user-focused models, they provide a robust framework for understanding how these factors influence user interactions with blockchain technologies (Shin & Hwang, 2020). Additionally, the study by Shin et al. (2022) highlights the sociotechnical dimensions of blockchain implementation, examining how societal and technical factors interact in the UAE’s blockchain initiatives. They emphasize the importance of integrating social, cultural, and legal considerations into the design and deployment of blockchain systems (Shin et al., 2022). Moreover, Shin and Bianco (2020) in their study “In Blockchain We Trust: Does Blockchain Itself Generate Trust?” elaborate on how blockchain technology inherently fosters trust through its transparent and immutable ledger system. They state, “Blockchain’s inherent transparency and immutability foster a level of trust that is not easily achievable through traditional systems. Users’ trust in blockchain is significantly influenced by the technology’s ability to provide secure, verifiable, and transparent transactions without the need for intermediaries.” This intrinsic trust-building characteristic of blockchain is crucial for the adoption of NFTs and other blockchain-based applications (Shin & Bianco, 2020).

Today, it is very difficult for artists who produce visual, audio, physical or fully digital works to verify the originality of the works they produce and to fully enforce intellectual property and copyrights in terms of traditional commercial relations (Kosba et al., 2016). Verifying the authenticity of an artwork is still done in traditional ways. In addition, it is difficult for artists to fully collect and track the royalties that arise from the display or transfer of their works in various media (Howell, 2018). NFTs first emerged in the Etherium blockchain by representing visual and audio genres through unique codes and turning them into digital assets based on their non-substitutability (Wright & De Filippi, 2015). When we translate the words that make up NFT into Turkish, we see that it stands for “non-substitutable/non-tradable token.” Unlike financial asset units that can be substituted or traded, such as cryptocurrencies, gold, or other currencies, what is referred to here as “non-substitutability” is that unique audio/visual elements can be recorded as a code on the blockchain (Antonopoulos & Wood, 2018).

In its simplest form, NFT can be defined as a digital certificate that transforms analog or digitally produced works, products, images, goods, or files into registrable and saleable assets. NFTs are used not only for items that can be digitized but also for the sale of items that physically exist in real life (Karki, 2023). NFTs appear as a certificate attached to everything from artworks to tweets or animations, that is, everything that is produced digitally and analogically. NFTs are traded on the blockchain like cryptocurrencies and are bought and sold on NFT marketplaces such as OpenSea, Foundation or Rarible and predominantly in Etherium (ETH) (Ante, 2022).

The NFT concept originally comes from a token standard of the Ethereum blockchain and aims to differentiate each token with distinguishable characteristics. Such tokens can be associated with virtual/digital properties as unique identities (Wang, Li, & Niu, 2021). Within the blockchain logic, audiovisual products and works are tokenized as having a unique code. The concept of token, which we can translate as a token, is the name given to small, metal, or plastic objects used instead of money in daily life. Physically or digitally produced products and artworks are included in the blockchain by tokenizing them through NFTs (Radziwill, 2018). NFTs, each with unique code, can autonomously pay royalties to artists through smart contracts in every transaction. All NFT transactions are recorded on the blockchain network. These recorded transactions are designed in such a way that the data on the blockchain is unalterable and transparent. For example, when person A wants to convert his/her token or asset into NFT and send it to person B, the transaction is encrypted on the blockchain network in an unalterable way and recorded on the network so that no one can change or intervene (Özrili, 2021). After the transactions, the NFT will be recorded on the blockchain and will be owned by the digital signature of the person who takes ownership of it (Dağlı, 2021).

NFTs are digital assets that represent physical and digital art, audio files, collectibles, and objects in games. They are traded online, usually in cryptocurrency and through smart contracts on a blockchain (Nadini et al., 2021). NFTs are unique, making them suitable for uniquely identifying any digital type or asset, enabling it to contain smart contracts. It allows one to easily prove and transfer ownership of digital assets in the form of any photo, image, video, audio file, artwork, or event ticket to another buyer. If desired, the creator/artist is entitled to earn royalties each time a sale is made (Wang, Li, Wang, & Chen, 2021). On March 21, 2006, when Twitter CEO Jack Dorsey’s first tweet, “just setting up my twttr,” was offered for sale via NFT, awareness of the term “NFT” began to increase. The popularity of this new concept reached its peak with the sale of the American artist Mike Winkelmann, known as Beeple, for $69.3 million, the highest price ever paid. In this work, Winkelmann combined the images he regularly produced every day since May 2007 into a single “jpeg” file and offered them for sale (Ayaz & Düz, 2021). Public interest in NFTs exploded in 2021. Between June 23, 2017 and April 27, 2021, there were a total of 6.1 million transactions for 4.7 million NFTs (Nadini et al., 2021).

NFTs can be audio/visual artworks, music files, digital collectibles, computer game characters and achievements or prizes won in these games, as well as the ownership of a physical asset in digital media. For centuries, works of art have been seen as valuable objects that can be touched and seen (Tokgöz, 2021). Today, with the transformation of art, artists have started to realize their works in digital environments. NFT has also influenced the transformed art and made it more popular. In addition to owning the work, art NFTs may also have access to some functions or rights in the future. In addition, they may also have the right to receive a percentage of each work of the artist who produces the work when it is sold (Aydın, 2022). Those who exhibit their physical artworks in museums have started to gain a place in the virtual world with the advancement of technology. By purchasing virtual plots, they can exhibit both digital versions of previously acquired physical artworks and artworks directly produced digitally and converted into NFTs. Users can enter these virtual universes to visit exhibitions and purchase artworks. There are many famous artists who have shown interest in NFT. One of them, Murat Pak, converted his works into NFTs and sold his work “The Merge” on the Nifty Gateway platform for 1 million dollars in 2021 and became one of the most important cryptocurrency-oriented artists (Özcan, 2021).

The fashion industry has also followed the digitalization trend and taken its place in the NFT world. Clothing and accessories designed for online avatars have created a new space for companies and manufacturers that closely follow fashion, while at the same time offering unique and limited-edition products that cannot be worn in real life (BtcTurk, 2021). Nike entered the NFT space by applying for a patent for its CryptoKicks. When customers purchase the shoe, they take a unique NFT with them. When the shoe is later sold, ownership of both the physical product and the NFT is transferred, acting as a way to protect the authenticity of the product and against counterfeiting (Gilbert, 2021). In the gaming industry, NFTs represent elements such as virtual items, assets, character outfits and powers. Users can earn income by playing games and can bring their purchased characters to different games. This shows that the power is now in the hands of the users. For example, CryptoKitties, launched in 2017, is the world’s first blockchain-based NFT game (NFTing, 2021). NFTs emerging in the music industry provide new opportunities for musicians by offering solutions to copyright issues. Individual songs can be minted as NFTs on the blockchain network with original ownership. Musicians receive revenue from each sale through smart contracts recorded on the blockchain, thus reducing their dependence on music labels. Furthermore, by selling their albums as NFTs, artists can gift special concert tickets to purchasers and increase interaction between the artist and their fans (Sharp, 2023; Tharun et al., 2023).

New Media and NFT Art

Art has evolved throughout history, adapting to changes and reaching the present day where it is being reshaped by new communication technologies. In this transformation process, traditional art forms have persisted while new art forms have emerged. Initially, digital technologies focused on digitizing traditional artworks by converting them into digital codes. Over time, these technologies have profoundly affected the production process, the media used, the methods of presentation, as well as the preservation, archiving, and documentation of artworks (Kartal, 2018; Yıldırım, 2012). As a result, art, which was previously perceived as a commodity, has become accessible to a wider audience thanks to these new interactions (Groys, 2017). With these developments, the concepts of “digital” and “art” have come together to form digital art. Digital art consists of works that are produced in a computer environment or produced by traditional methods and then transferred to a computer environment and converted into digital codes. This may include scanning a traditional work and transferring it to digital media or reproducing it in three dimensions using digital photography techniques (Kutup, 2010). In digital art, elements used in traditional art such as point, light, line, color, and texture continue to be used. However, additional tools such as computer environment, software programs, video cameras, cameras and scanners are needed to produce digital artworks.

Since the first graphic works using the Internet, software programs, virtual environments, and artificial intelligence, all these works have been included in the field of digital art. The term “Digital Art” has undergone various name changes over time. First called “Computer Art,” it was later defined as “multi-Media Art” and towards the end of the 20th century, different forms such as film, photography and video were combined under the name “New Media Art” (Winegard, 2019). In this text, after the definition of new media art, it is stated that digital art is considered a sub-category of new media art and that these two terms can be used interchangeably.

To understand the origins and development of new media art, it is important to look at the evolution of computer technology. In 1945, the “ENIAC” (Electronic Numerical Integrator and Computer) developed by the University of Pennsylvania went down in history as the world’s first digital computer (Erkayhan & Çaşkurlu, 2014). In the 1950s, American artist Ben Laposky produced electronic shapes by graphically projecting the shapes of waves on the screen using a device he called “oscilloscope” and used these shapes for aesthetic purposes in art. This is considered the beginning of digital art. By the 1970s, the transition to new media art became easier with the emergence of the video art movement. During this period, portable cameras became an important tool for artists. Portabak cameras produced by Sony allowed artists such as Nam June Paik to exhibit their videos in physical environments (Erkayhan & Çaşkurlu, 2014). Towards the end of the 1980s, new media art began to take a more prominent shape and institutions such as the ZKM Art Museum, the Frankfurt Institute for New Media and the ISEA (Inter-Society for the Electronic Arts) were established (Wagner et al., 2014).

Following all these developments, new media art has emerged with the aim of exhibiting art in an environment that transforms artworks into digital codes produced with the use of the internet, computers, and new technologies and to bring a new dimension to art. Since new media art is generally created with new technologies such as computer graphics, video, virtual art, digital art, 3D animation, it is also known by various names such as “Digital Art,”“Multimedia Art,”“Net Art,”“Video Art” (Burdick, 2016; Dietz, 2013; Hashimi et al., 2019; Manovich, 2001; Solak, 2022). The most prominent feature of new media art is the interaction between the artist and the audience. While in traditional art the viewer is usually in a passive role, in new media art the viewer can take an active position and interact with the works and become a participant. While materials such as paint, marble, paper, and canvas are used in traditional art production, in new media art these media are “renewed” with innovative materials such as the internet, computers, software programs, virtual reality and coding. According to Quaranta (2013), new media art is the result of the transformation of digital art and media art, which means that digital art and new media art are synonymous.

Although digital art and new media art are often used interchangeably today, these two art forms are distinguished from each other in different environments. While digital art is generally considered to be art created with codes, developed on three-dimensional designs or Photoshop applications (Kartal, 2018, p. 91), new media art is considered to be an art that is more advanced compared to other art forms, affects the way artists think more, encourages interaction between the artist and the audience, and artists transform new media in the digital age (Castellanos et al., 2020).

In addition to affecting the artist and the audience, new media art also transforms the content of art. These effects can be listed as follows (Güney, 2014):

• Moving and static images and photographs can be coded and transferred in a computer environment and changes can be made to them.

• Thanks to developing software and hardware programs, audiences can also be involved in the creation process.

• Digital artifacts produced in or transferred to virtual environments can be easily transferred over long distances.

• Simulated artifacts can be easily exhibited in virtual environments. Artifacts can be easily copied and reproduced in this virtual environment, thus reducing their uniqueness.

In the 21st century, the acceleration of digitalization has also digitized art, allowing artworks to be produced with digital tools and shared on digital platforms (İldaş, 2022). The fact that digitized artworks and digital assets can be easily produced and reproduced in a computer environment has also brought along problems related to ownership. At this point, popular solutions such as NFT Art have started to find solutions to these problems (Pawelzik & Thies, 2022; Şenkardeş, 2021). Especially during the pandemic period, artists have increased their production by moving their works to digital environments and started to exhibit their works to audiences around the world through social media and virtual applications without the need for any intermediary (Das, 2023; Millner, 2023; Panebianco et al., 2023). With this transformation, many artists have stated that they no longer want to pay a certain fee to art galleries and museums, they do not want to depend on intermediaries, and they want to get paid for their work by producing their works in their own environments and prevent their works from being copied and losing value (Volynets, 2023). Blockchain technology offers the possibility to guarantee the authenticity and ownership of digital works by verifying NFT ownership. Thanks to this verification, the jpeg file of an original work produced digitally by an artist cannot be sold to two different people at the same time. However, the fact that the jpeg file of a work is seen elsewhere does not preclude the uniqueness of that work. The main purpose of NFT is to publicly demonstrate the uniqueness and non-tradability of the work produced by recording it on the blockchain network (Arapoğlu, 2021).

The value creation elements of NFT can be analyzed under three main headings:

• Value: It requires the creator’s belief that the work will gain value in the future. For example, the belief that the works of artists such as Picasso or Van Gogh are still valuable today and will maintain their value in the future is included in this category (Smith, 2021).

• Rarity: The produced work must be rare or have a single owner. The rarer an artifact is or has a single owner, the more valuable it is considered. Blockchain technology takes on the role of proving this ownership (Johnson & Gray, 2022).

• Community: The work needs to be appreciated by an audience that is interested in buying and collecting it, or that has an interest in NFT (Lee, 2023).

When these three elements come together, NFTs can be as valuable as the precious works produced by Picasso, Van Gogh, or other artists. As Berger (1986) notes, glass in front of a painting protects it and gives it an impressive, mysterious appearance. This protection and impressiveness derive from the sale value of the artifact. In artistic genres such as photography, NFT involves the process of uploading.

The captured frames to NFT platforms and offering them for sale after they have been symbolized and made suitable for the NFT market. In this process, the photograph uploaded to any NFT platform is pixelized, making it unique and uncopyable (Jain, 2022). Thus, the person who takes the photo and uploads it to the platform becomes the owner of the photo in both symbolic and material terms. The uploaded photo can be screenshotted and saved on a computer by others; however, even if physical ownership is achieved, ownership in terms of material value cannot be achieved.

Research Methodology

This study was conducted using a netnographic analysis method to understand the perspectives and perceptions of virtual communities towards NFT. Netnography is a qualitative research method used to examine the cultural practices and interactions of online communities. Developed by Kozinets (2002), this method is a form of ethnographic research techniques adapted to online environments and is specifically used to collect and analyze data from social media, forum sites, blogs, and other online platforms.

The research was conducted between January and October 2021, focusing on the period when NFT was popular. Data collection was conducted on forum sites with high traffic and active members, such as Donanım Haber, R10, Reddit, Shift Delete and Technopat. These sites were chosen because they provide rich content about NFT and host a variety of user opinions. The researchers analyzed the NFT-related topics, discussions, and user comments in depth on these forum sites. In the data collection process, the posts and user comments under the relevant topics were taken into consideration.

The focus of the study is limited to individuals who have thoughts about NFT and are interested in NFT. The study analyzed conversations, comments, thoughts, and posts on forum sites. Posts and comments made by fake user accounts of members on these forum sites were not considered in the analysis process.

Since the netnography research method is applied, identifying virtual communities is the most important step of this study. In the first stage of the research, relevant keywords and questions were identified and virtual communities were identified accordingly. The data available on blogs, forum sites and social media platforms and suitable for the research were collected and analyzed in accordance with research ethics. The questions to be asked in the research were determined first. These questions are as follows:

1. What is NFT?

2. What could be NFTs?

3. How is NFT done?

4. If you were to design an NFT, what would it be?

5. Does it make sense to buy or sell NFTs?

6. Why are artifacts on NFT platforms not available as screenshots, but people prefer to buy them?

Once the questions have been identified, it is necessary to identify the communities to be analyzed to find answers to these questions. In order to reach the communities, six keywords were first identified: NFT, digitalization, new media art, blockchain, immutable token and digital art. Using the determined questions and keywords, forum sites where virtual communities operate were identified. In the selection of the virtual communities on the forum sites, special attention was paid to the number of active members of the sites, the discussion and sharing of topics appropriate to the purpose of the research. Based on these criteria, forum sites such as Forumdonanımhaber.com, R10.net, Reddit.com, Shiftdelete.net, and Technopat.net were selected for the research.

Within the scope of the research, various channels such as websites, forum sites, social media platforms, blogs, search engines, and Google Trends were examined. Accordingly, sites characterized by high sharing traffic, a wide range of topics, abundant subject-related data, and a large user base were identified. Based on these criteria, Donanım Haber Forum Site, R10, Reddit, Shift Delete, and Technopat were determined to be the platforms where the greatest amount of content and data were accessed.

Donanım Haber Forum is an active community site accessed through keywords and questions related to the research topic. Launched in 2001, this forum is among the most visited sites. There are 1,040 sub-forums under 25 categories such as technology, gaming, culture, education, sports and topics opened by members. The site has one administrator and a total of 65 moderators for each topic. The total number of full members is 2,321,558 and the number of active members is 465,537. The forum has a total of 27,280,617 topics and 157,820,723 messages. There are 11 forums related to NFT and 158 replies to these forums.

There are a total of 180,390 members and 22,029 active members registered on the R10 site. There are a total of 3,383,391 topics under topics such as social media, e-commerce, shopping, technology, gaming, and hardware services. A total of 24,312,473 messages were sent to these topics. Regarding the subject of the research, 1 forum was opened and 16 people responded to this forum.

Reddit is a social news and discussion platform that allows its members to post various types of content, such as text, photos, videos, and polls. These posts can be voted on by other users, and if they receive enough votes, the post can rise to the top of the page. Users can also discuss topics such as sports, gaming, music, photography, and news in subgroups called “subreddits.” If a post gets enough votes, it can be featured on the main page of the site. Reddit has more than 57 million members and more than 100,000 active members. There are a total of four topics related to NFT with 812 entries.

Shift Delete is one of the leading technology forums in Turkey and provides its members with the latest developments in the fields of informatics and technology. The site offers informative content about animations, software, hardware, and the internet. The total number of members is 425,648 and 5,891,704 messages were posted under 728,300 topics. One forum was opened related to the topic of the study and five entries were made to this forum.

Technopat is a platform where technology enthusiasts meet and informs users on topics such as current technology, internet, hardware, software, and games. The total number of members is 552,449 and there are 19,778,574 messages under 2,432,211 topics. There are 18 forums related to NFT with a total of 138 entries.

Data Collection

In netnographic research, the data obtained from analyzing the contents can include visual, graphical and audio data as well as textual exchanges (Kozinets, 2002), which suggests that there are three ways of collecting data in netnographic research: archival data, provided data, and field note data.

• Archival data: Data where the researcher can download pre-recorded content from online environments without interacting with any community members. This data is collected without the researcher’s participation.

• Acquired data: Data obtained with the active participation of the researcher. This includes data such as e-mails, instant messages, and comments on posts.

• Field note data: The researcher makes careful observations in the field and takes notes of community members’ sharing and interactions. These notes are recorded as field note data.

In the data collection process, tools such as Google, Google Social Search, and Google Groups were used. With the help of these tools, the data of pre-recorded contents were collected by becoming a member of some virtual community sites and without becoming a member of some others, without interacting with the community members with the archival data collection method used in the netnographic method. The collected data were evaluated by carefully examining the correspondence, posts, opinions, thoughts and shares to answer the questions identified in the research. The users of the forum sites were identified as active members and user comments were analyzed in line with the keywords and questions related to the research topic. These reviews and analyses were conducted between January and October 2021, in 2021, when the NFT topic was popular, and previously recorded content was collected as archival data.

Findings

This chapter presents an analysis in which the researcher analyzed the thoughts shared by virtual communities on forum sites, compiling information exchanges about NFT, their views on NFT, reasons for being interested in NFT, and information about selling NFT. Below, the statements of virtual community members are discussed in line with the research questions:

Question 1: What Is NFT?

According to the information shared by the communities, NFTs symbolize the innovation of an emerging technology, digital assets that represent real-world artwork, in-game items, music, and videos in digital form, and are non-tradable, unique, and limited-edition digital assets that are produced and encoded. They are a data technology that is recorded as a digital certificate on a blockchain network, proving the authenticity and ownership of a digital asset.

The NFT is considered a digital museum. Just as we examine artworks in a real museum, the metaverse offers the opportunity to examine artworks in a virtual museum. It was stated that artists in Turkey do not get the value they deserve when they exhibit their works in galleries, but the NFT gives artists the opportunity to reach a wide audience and get the value they deserve, to reach buyers easily and to prove the originality and ownership of their works.

Nevertheless, some members expressed that they consider the NFT to be a financial tool only, used to make money, and that it does not make sense to pay for meaningless and quickly drawn artworks for images that people can easily save on a computer or phone. These and other differing opinions, along with those of other community members, are detailed below:

NFTs are also commonly referred to as digital certificates. Just as it is clear in real life that a person is the rightful owner of something (deed, invoice, etc.), it is clear in the digital environment with NFTs. So what is this certificate a certificate of? It can be a certificate of anything. In fact, an NFT can be a certificate of anything in the digital environment as well as a certificate of real-life assets.

We can call NFT a method of proving the authenticity of a digital work on the blockchain. You can see many places selling the Mona Lisa painting, but each of them is not worth the same value because the copy is valuable and it is much easier to copy the original of the original painting, which is the only one, digitally. NFT provides this in NFT, one of those copies is stamped with the stamp of authenticity, which makes that work valuable.

You know, there was a crime against humanity where a banana taped to the wall was sold for 120,000 dollars. What I understand is this: Since crypto coins cannot be sold at auction, someone has set up this scheme. It is necessary to fill the cube while the fountain is flowing.

NFTs represent the innovation of an emerging technology.

I don’t have an opinion on NFTs at the moment, but I think we need to develop more use cases to gain more respect.

It’s ridiculous.

There are people who spend their money in strange places, the guy took pictures of himself for years, he made NFTs and sold them. What good will it do? I see it as a new area for wasting money.

It implies a visualized virtual value of a token that makes sense financially, which makes no sense to normal logic, and which, in my opinion, should never have had such a market in the first place.

When people give them money, it means they own the thing.

NFT is valuing various digital products using alternative coins and crypto tokens, which we call cryptocurrencies. The digital product itself is not money, but it has a monetary value, and this is determined and exchanged through crypto tokens, which work in a similar way to cryptocurrencies.

NFT can also be called a digital museum. With digital tokens and coins called cryptocurrencies, people can buy the artworks they like.

NFT is art in digital media, I know you can draw good pictures and sell them if you have talent.

It can be called the owner of the digital thing made. For example, you took that photo (it may not be a photo, just an example) SS, but the owner is known. He changes the owner for money. This is how I know it and I think it is very unnecessary.

You can think of the NFT as a museum, meaning it’s a priceless coin token. In other words, if you have it, it is now yours, and this is actually related to the metaverse, just as you go to the museum and see a portrait now, you will see these portraits with the metaverse, which I think is ridiculous, but it may be something you will not regret in the future.

It is generally seen as negative and unnecessary. Personally, I saw that a drawing that did not take 2 minutes was sold for a million liras, and I did not find it logical, while I could draw better pictures if my brother drew it in paint.

I see nft as money laundering.

I think it’s absurd to buy something that everyone has the right to record, such as a video, just for the sake of paying for it.

Question 2: What Could Be NFTs?

In the responses of virtual community members to this question, the view that NFTs can be used in various areas to enrich user experiences comes to the fore. Different areas of use such as character acquisition in games, purchase of in-game objects, acquisition of electronic books, participation in certain communities, and creation of digital brands were mentioned. In addition, one member stated that with the appropriate infrastructure and government approval, material goods such as houses and cars can also be sold or purchased as NFTs, and that these transactions can be as easy as ordering food over the internet. In another post, it was noted that NFT could also be used in areas such as second-hand ticket sales, paintings, or collectible cards. In another community member’s comment, it was emphasized that NFTs have a wider range of uses besides art, such as the sale of musical compositions, photographs, and the representation of contracts in the fields of insurance and real estate. Other comments on this question are presented below:

It is not possible to limit the uses of NFTs, and therefore it is not possible to limit their functions. Today, NFTs can serve many different functions, such as community entry, social status, digital branding, character acquisition in games, and many more. Some NFTs can even provide passive returns. See CyberKongz NFT project and $BANANA. Genesis CyberKongz holders can earn a passive income of approximately $4,000 per month by holding their NFT.

It is very important as a technology, after the states give their approval and provide the appropriate infrastructure, even products such as houses and cars can be recorded and sold and purchased in the form of NFT, without going to the notary and deed office, kind of like ordering food online.

The NFT market has gone in the same direction as the collector’s cards of the 90s. Huge hype bubble that deflated. Most projects made by random people have no value. There are many projects that will copy alpha mtg or first set Pokemon and there will be a huge online market in the future, just like collectible cards today.

NFTs can really improve the user experience for people in several different industries - gaming, e- books, identity, ticketing.

Everyone thinks of NFTs as images, but there are other uses for a digital object that can be verified as real, it just takes the right inspiration. The biggest one I can think of is ticketing, I don’t think anyone has implemented it yet, but it would solve the problem of secondhand tickets being illegitimate.

NFTs have great use cases beyond artworks. They can represent contracts used in insurance. They can be used to represent fractional ownership in something like real estate.

A digital content is valued, and the valued artwork creates a supply and demand relationship. This is not limited to photography, because sound recordings can also be released as NFTs.

It can be an art form, a photograph, a literary piece of writing and many other qualities.

Anything you can think of. For example, if you are a musician, you can sell a composition, if you are a photographer, you can sell a photo you took. The best part is that even after you sell that NFT, it continues to make money. Every time that NFT changes hands, the commission value you set is credited to your account.

Question 3: How Is NFT Done?

According to members’ posts on forum sites, it is important to have a good understanding of the market and the data used before creating NFTs. For beginners, modeling or making simple drawings in tools such as Paint or on pixel art drawing sites can be a starting point. It was also emphasized that effective use of the programs used to create NFTs is essential, but that successful promotion of the NFT and increasing the recognition of the author are more important factors in the NFT creation process. Some thoughts on this issue are presented below:

First of all, those who know how to use programs and programs well (Python, photosop, 3dmax, etc.), artists, briefly celebrities (Cem Yilmaz, etc.), those who have more than 5000 NFT followers on Twitter Facebook Instagram, those who are engaged in the nft business, not the normal ordinary 5000 people, those who are painters or artists and have an advanced level of creativity, those who do their advertising and promotion well. If you have what I have written above, you can make very good earnings, otherwise it is very, very difficult to sell. You produce a masterpiece, you can’t sell it for $ 1, the man is recognized, his appearance is worthless, he sells it for thousands of dollars.

I don’t think the NFT currently has any real-life purpose other than speculation or certain use cases such as uniswap positions, special benefit from the project, etc. If you are currently trying to get into the NFT. Unfortunately, you missed the easy mode. NFT is in crazy difficulty mode right now. You have to really understand the market and know how to interpret data, trend, market sentiment. There is a NFT marketplace war going on right now which complicates the situation even more.

Select MetaMask. It will give you 12 words as you enter. Do not keep those 12 words somewhere on your computer, write them down on a piece of paper. Don’t even give them to your mother. You need a bank account to withdraw the money, yes (Visa, Mastercard, etc.). Before selling, set up a place to share only your NFTs on Twitter, Discord, Instagram, etc. Share your NFTs on NFT servers. Think of interesting things, stereotypes don’t work well in the NFT market unfortunately. When you put your NFT on opense, make it polygon in the sales network section, if it stays in Ethereum, the system can ask for 220 dollars or so depending on the density.

Actually, it depends on your skills. For me, the most important thing about NFT is being able to advertise. You do modeling, drawing and create NFT.

You don’t have to produce content to make money, most people on the platform make money by trading. You can start with a small investment and buy NFTs that you think will appreciate at the base price set by the creator and wait for them to appreciate. This is a very common method. It is not investment advice.

Entry level people can design a simple NFT even using the familiar Microsoft Paint. If you are going to draw in pixel art style (this style is usually chosen at first) I recommend pixilart com. NFT sizes are usually 1000 × 1000. If you have an iPad and a stylus, you can draw using ProCreate, which is usually used on the tablet side.

Question 4: If You Were to Design an NFT, What Would It Be?

When the answers given to this question were analyzed, it was observed that one member stated that he wanted to design an NFT of his own dog. Another member expressed her desire to make an NFT of a person who was in her profile picture and who was dear to her. The opinions of other members are given below:

I think my answer is my dog.

I would love to create cyberpunk content. In fact, now you can produce nft-like content by typing a few words with artificial intelligence robots like Dall-e. I think these technologies will change the nft industry.

The person in my pp.

It could have been certain models of global vehicle brands.

Question 5: Does It Make Sense to Buy or Sell NFTs?

When the posts of the members regarding this question are analyzed, it is seen that one member commented that it would be more logical in the future to buy and sell the items used in the game as NFT. In another member’s comment, it was stated that companies, hospitals and accounting firms would use NFT in the digitalized world and that this would be logical. Another virtual community member stated that trading digital assets will make more sense if the market is well followed and knowledgeable about the subject. Another member thought that NFTs do not make sense for people to spend money to own something that is digitally accessible to everyone, stating that NFTs, such as tickets or property deeds, are generally not very useful and are not seen as a logical method for reasons such as wallet security and the risk of sending to the wrong address. The opinions of other similar community members are presented below:

In my eyes, even the tasos I collected as a child are more valuable, but if there are people who “buy nft not to sell”, then you can buy and sell, I have nothing else to do.

NFTs will make sense to get items etc. in games in the future, but otherwise unnecessary.

When I look at a now seemingly dead NFT market, it doesn’t really make sense how people were. willing to spend hundreds or even thousands of dollars in cryptocurrency to have something digitally. accessible to everyone. Other than the “utility” of a project, there was really no utility for them. In general, even with “digital NFT tickets” or “NFT ownership deeds”, I feel that there will be no use for them in the future as there is too much risk involved with keeping wallets safe, sending to the wrong address, etc.

Unless you see a future for NFTs, you seem to limit your understanding of them to art/monkey type NFTs. Everything is digital these days. Why not use blockchains in the future for digital record keeping? Corporations, loan companies, hospitals, accounting firms, etc. If the world continues to move digitally, it will be inevitable.

I think it’s better to trade if you can follow the market well and have knowledge about it. But NFT is not for everyone. If you can’t do interesting things, nobody is interested. People gravitate towards interesting and different things. This is not investment advice.

Question 6: Why Are the Artifacts on NFT Platforms Not Captured in Screenshots, But People Prefer to Buy Them?

Community members’ posts on this question highlighted the idea that paying for an NFT is a sign of modern times, even though an artwork can be right-clicked and saved. One member shared that it is not the artwork itself that is valuable, but the token address recorded on the blockchain, meaning that when a person purchases an artwork as an NFT, the token of that artwork is recorded on the blockchain in the name of the purchaser. Another member of the virtual community states that right- clicking on an artwork and downloading it to the computer with the “save as” option does not ensure ownership of the artwork. As an example of this issue, another member explains that a jpeg file downloaded from a website can be used with VR goggles in a virtual universe called Metaverse, and that it is even possible to hang the work on the wall by uploading it to the wall of the house in this virtual universe. The view is expressed that people prefer to pay for and buy ownership of digital assets rather than downloading them to a computer or taking screenshots, and that in a virtual universe like Metaverse, this asset is hung on the wall and shown to everyone. In another post, an NFT buyer is enabled to own an original digital asset, and people value the ownership of the asset more than the asset itself, which is why they prefer to buy NFTs.

He pays for a ridiculous character. People don’t even pay 50 TL for a very beautiful painting at a painting exhibition. But they go and pay thousands of dollars for this nonsense. It’s digital art. Even photography is being debated whether it is art or not, and now we are left with this nonsense.

Because an NFT allows the buyer to own the original item. Not only that, it includes built-in authentication that serves as proof of ownership. Collectors value these “digital bragging rights” almost more than the item itself.

Although I could right-click and save any of the source links, I see paying for NFT as a modern-day form of patronage - a way to support artists so that they can continue to create work that resonates with you.

By this logic, if you go and take a picture of physical artworks, you can own them, if you go and take a picture of the Mona Lisa, you own it, but is it the same thing? NFTs are Crypto tokens sold under the name of “art”, each product has a unique token that is actually bought and sold.

Actually, it’s not the work itself that makes money, it’s the token address registered in the blockchain. So let’s say someone bought an nft image for money, when you right-click on that image, say “save as” and download it to your computer, there is no point in saying “hehe I got the jpg image for free”. Even if someone sells that work to someone else, since the token of that work is registered on the blockchain, that person wins. So the work you copied to your computer doesn’t mean anything. In a way, it is a good development in terms of eliminating the problems related to copyright, but it is also obvious that it is an element of money laundering today.

What you call NFTs (Non- Fungible Token) are digital objects that will be used in the future in the Metaverse or in the OASIS in the movie Ready Player One or in Oculus or in the Universe, which will be the first Virtual Universe of the future. For example, we take a photo in real life and share it on websites, right? Think of it this way. Take a jpeg file that you put on a website, then think of it as an OBJECT that you have a VR glasses and that I can use this jpeg file or upload it to the wall of the house I bought for myself in the virtual universe, in a “FETAVERSE”, that is, in this virtual universe, where every person in the world enters and plays a common game or hangs out together. Now I hope I can explain why people invest so much money and make investments. Innovative technologies such as NFT - Metaverse or WEB 3.0, promise a technology that will enable people to live their lives in their own worlds in a virtual universe that is (Decentralized), that is, without being connected to any state or institution.

In this study, thematic analysis was conducted to understand how NFTs are perceived by virtual communities. Various main themes and sub-themes were identified and structured based on discussions and comments on forums, focusing on the value of NFTs, social perceptions, and economic/legal aspects.

The Value and Uses of NFTs

Art and digital assets: The most prominent use of NFTs in the art world is securing the authenticity and ownership of digital artworks through digital certificates. One participant commented, “NFTs are seen as digital certificates proving the authenticity of digital artworks, allowing artists to sell their work globally.” This reduces artists’ dependency on traditional galleries and allows them to reach a broader audience. This aligns with the findings of Shin (2024), which emphasize the role of blockchain in enhancing the trustworthiness and marketability of digital art.

Gaming and collectibles: The use of NFTs for in-game items and digital collectibles is also significant. One participant remarked, “NFTs will make sense to get items in games in the future, but otherwise unnecessary.” This creates new economic opportunities for gamers and enriches the gaming experience. According to Wang, Li, Wang, and Chen (2021), NFTs in gaming can provide players with true ownership of their in-game assets, which can be traded or sold independently of the game.

Music and other media: NFTs are also used for music files and other types of media. One participant noted, “If you are a musician, you can sell a composition; if you are a photographer, you can sell a photo you took,” highlighting that NFTs provide artists with a direct way to earn income. This allows artists to deliver their works directly to fans, eliminating intermediaries. As noted by Tharun et al. (2023), NFTs in the music industry offer innovative solutions to longstanding issues related to copyright and royalties, giving musicians greater control over their works and earnings.

Social Perceptions and Reactions

Positive perceptions: Some participants view NFTs as an innovative and revolutionary technology. For instance, one participant stated, “NFTs represent the innovation of an emerging technology.” This suggests that NFTs are creating a new paradigm in the art world. This is supported by Tapscott (1996), who argues that blockchain technology can significantly alter the landscape of various industries by introducing new ways of verifying and transferring digital assets.

Negative perceptions: Conversely, some participants consider NFTs speculative and meaningless. One participant commented, “NFTs imply a visualized virtual value of a token that makes sense financially, which defies normal logic.” This indicates that NFTs are perceived as a quick profit tool. Shin and Bianco (2020) also highlight the skepticism surrounding blockchain-based technologies, noting that concerns about speculative bubbles are prevalent among critics.

Accessibility and representation: The fact that NFT technology is not accessible to everyone and creates a digital divide is also a critical issue. One participant summarized this by saying, “NFTs offer global reach, but the platforms and technologies involved may not be accessible to all artists and collectors.” This suggests that NFTs may create access barriers for some groups. This issue is echoed in the work of Shin et al. (2022), which discusses the sociotechnical dimensions of blockchain implementation and the need for inclusive approaches to technology deployment.

Economic and Legal Aspects

Intellectual property and royalties: NFTs provide a significant advantage in protecting artists’ intellectual property rights. One participant mentioned, “NFTs ensure artists’ royalties automatically.” This allows artists to earn income automatically from each sale. Wright and De Filippi (2015) discuss how smart contracts in blockchain can automate royalty payments, ensuring that artists are fairly compensated for the use of their works.

Financial opportunities and risks: NFTs present financial opportunities and risks. One participant noted, “Trading digital assets will make more sense if the market is well followed and knowledgeable about the subject.” This emphasizes the importance of careful investment in NFTs. This is consistent with the findings of Ante (2022), who notes that while NFTs can offer significant financial rewards, they also come with high volatility and risk.

Legal and ethical issues: Legal and ethical issues related to NFTs are also an important topic of discussion. One participant stated, “Future research should focus on the legal and ethical issues surrounding NFTs.” This highlights the need to address intellectual property rights and transparency issues. Shin (2024) emphasizes the importance of embedding privacy and security considerations into blockchain applications to build user trust and ensure ethical use.

This thematic analysis comprehensively reveals how NFTs are perceived and evaluated by virtual communities. While the economic opportunities NFTs provide to artists and the assurance of the authenticity of digital assets create positive perceptions, speculation and accessibility issues lead to negative perceptions. These findings provide an important foundation for understanding the place of NFTs in the art world and their societal acceptance.

Discussion

The findings of this study highlight the diverse perceptions and reactions to NFT technology within virtual communities. The analysis of discussions on various forum sites reveals a spectrum of opinions, from viewing NFTs as a groundbreaking development in the digital art world to skepticism about their value and purpose. One key insight is that some perceive NFTs as a revolutionary tool that enhances the digital art economy by ensuring the ownership and authenticity of artworks. This technological advancement provides artists with new avenues for monetizing their work, reaching a global audience, and maintaining control over their creations through smart contracts. This perspective is particularly significant for artists who have struggled with traditional methods of verifying and enforcing intellectual property rights. The ability to secure royalties automatically through blockchain technology is a noteworthy benefit that could reshape the economic landscape for digital artists.

However, the study also uncovers substantial criticism and skepticism towards NFTs. Many community members express concerns about the speculative nature of the NFT market, likening it to a financial bubble. The perception that NFTs are primarily tools for making quick profits rather than genuine art appreciation is prevalent. Instances of exorbitant prices paid for seemingly trivial digital items exacerbate this viewpoint, leading to questions about the true value and sustainability of the NFT market.

The study by Joshi et al. (2018) highlights the critical nature of security and privacy concerns in blockchain environments. The influence of these concerns on users’ intentions to adopt blockchain technologies is significant and aligns with our findings. The cognitive process of embedding privacy and security in user-focused models provides a robust framework for understanding user trust in blockchain. This aligns with Shin and Ibahrine’s (2020) findings, which emphasize the importance of addressing privacy, security, and transparency concerns to foster user trust and acceptance of blockchain technologies.

Another important discussion point is the issue of accessibility and representation. While NFTs offer global reach, the platforms and technologies involved may not be accessible to all artists and collectors. This digital divide could potentially exclude less tech-savvy individuals or those from regions with limited access to necessary resources, thus perpetuating existing inequities in the art world. Shin (2024) explores how artificial misinformation can shape user interactions with technology, highlighting the role of trust in these interactions. This is particularly relevant in the context of NFTs, where the authenticity and ownership of digital assets are paramount. As users navigate this new digital landscape, understanding the dynamics of trust and misinformation becomes increasingly critical (Shin, 2024).

New Theoretical Framework Proposal

Our findings suggest a new theoretical framework to understand NFTs in the art world, termed the “Digital Art Value Creation and Social Acceptance Model,” encompassing three components: Value Creation, Social Acceptance, and Economic Opportunities.

• Value creation: NFTs secure the authenticity and ownership of digital artworks through digital certificates, preventing duplication and enabling global market access. This aligns with Davis’ (1989) Technology Acceptance Model (TAM) and allows artists to reach broader audiences and earn direct income (Rogers, 1962).

• Social acceptance: Virtual communities play a critical role in NFT adoption. Discussions on forums and social media accelerate the spread and acceptance of NFTs, consistent with Rogers’ (1962) Diffusion of Innovations Theory. Social acceptance significantly increases the rate of NFT adoption (Tapscott, 1996).

• Economic opportunities: NFTs offer artists direct income and automatic royalties from each sale, increasing financial independence and reducing intermediaries. Digital Economy Theory highlights the economic opportunities provided by NFTs (Tapscott, 1996). Smart contracts ensure continuous income for artists (Wright & De Filippi, 2015).

This framework aligns with existing literature, integrating TAM, Diffusion of Innovations Theory, and Digital Economy Theory. For instance, perceived usefulness and ease of use (Davis, 1989) and relative advantage and observability (Rogers, 1962) are crucial for NFT adoption. This model offers a new perspective for understanding NFTs’ place and societal acceptance in the art world. Future research can further develop and expand this framework to examine the long-term effects and sustainability of NFTs

Conclusions, Limitations, and Recommendations for Future Research

NFTs have emerged as unique and non-tradable digital assets thanks to blockchain technology. This technology enables the authenticity and ownership of artworks to be secured digitally. The use of NFTs allows artists to exhibit and sell their works in a global marketplace and collectors to prove ownership with a digital certificate. The value creation elements of NFTs are analyzed under three main headings: value, rarity, and community. Value requires the creator’s belief that the artifact will gain value in the future, while rarity emphasizes that the artifact should be rare or have a single owner. Community, on the other hand, states that the artifact should be appreciated by an audience that wants to buy it and build a collection or has an interest in NFTs. This study uses netnographic analysis to develop an in-depth understanding of the rise of NFT technology in the art world and how this new digital art form is perceived by virtual communities. The research was conducted between January and October 2021, focusing on the period when NFTs were popular. Discussions, comments, and opinions about NFTs on forum sites such as Donanım Haber, R10, Reddit, Shift Delete, and Technopat were analyzed in depth. The discussions on NFTs on these sites reveal the perspectives and perceptions of virtual communities towards NFTs.

The findings of the study show that NFTs have received a variety of reactions in the art world. While some users find the technology frivolous and speculative, others see NFTs as a revolutionary step in the digitization of art. It is concluded that NFTs open up new possibilities for artists and collectors by securing the ownership, authenticity, and trade of artworks digitally. The general view from the virtual communities’ posts on NFTs is that NFTs represent the innovation of emerging technology and represent digital assets, such as in-game items, music, and videos, that are too unique and one-of-a-kind to be traded. These digital assets are recognized on the blockchain network as a digital certificate of proven ownership and authenticity. It is seen that the works of artists in Turkey do not find the value they deserve in art galleries or museums, but with NFTs adding value to the works of artists, the works reach a wide audience and provide artists with the opportunity to prove the originality and ownership of their works. In this context, some virtual communities refer to NFTs as a “digital museum.”

Some community members see NFTs in a negative light, thinking that any digital image can attract people’s attention and make money and that it is used as a financial tool. However, information from positive communities and sources reviewed shows that NFTs are not only seen as a monetary instrument but also as a certificate that is issued as a digital signature to those who purchase ownership by giving a digital code to unique, one-of-a-kind, and non-tradable assets. This unique feature ensures the protection of the work produced by the artist, while at the same time enabling the purchaser to acquire the originality, ownership, and value of the artwork.

The findings suggest that NFTs have had significant impacts on the production, distribution, appropriation, and evaluation of artworks. These impacts have led to different reactions among artists and art lovers. While the new possibilities provided by NFTs offer new perspectives on the preservation, exhibition, and appreciation of artworks, they also raise concerns about speculative investments and the digitization of art. In conclusion, the rise of NFT technology in the art world presents both opportunities and challenges.

This study has certain limitations. Firstly, it focuses on data collected between January and October 2021, which coincides with the peak period of NFT popularity. However, the rapid evolution of technology and market trends may result in changes in perceptions and uses of NFTs beyond this timeframe. The research is limited to forum sites such as Donanım Haber, R10, Reddit, Shift Delete, and Technopat. While these platforms provide a broad range of opinions, they may not fully represent global perspectives, especially for non-English-speaking communities or groups using different social media platforms.

The research is inherently qualitative and relies on the subjective interpretation of online interactions. This approach may introduce bias and does not provide the statistical rigor of quantitative methods. It is assumed that user comments and posts are genuine and representative; however, the presence of fake accounts, bots, or manipulated discussions could affect the findings.

Future research should consider extending the time frame to include more recent data. This will help in understanding the long-term trends and evolving perceptions of NFTs as the technology matures and more use cases emerge. Incorporating a wider range of data sources, such as social media platforms like Twitter, Instagram, and TikTok, as well as international forums, could provide a more comprehensive view of global perspectives on NFTs. Combining qualitative netnographic methods with quantitative analysis could enhance the robustness of the findings. Surveys or structured interviews with artists, collectors, and other stakeholders in the NFT ecosystem could provide additional insights and statistical validation. More research is needed to explore the cultural and social impacts of NFTs. This includes examining how different cultures perceive and engage with NFTs and the potential for NFTs to influence societal values and norms.