 This work of street art was destroyed in Lisbon, Portugal the footage of the explosion is now being sold for thousands of dollars as an NFT When you hear NFTs, you probably think of crypto punks or board apes But what happens when something physical like street art is turned into an NFT? What value does that adds the original especially when the physical piece is removed or destroyed? To find out we traveled to Portugal a bustling seaside country with a dynamic street art scene Here local artists are exploring how NFT technology can serve as a bridge between the physical and digital worlds I started as a graffiti writer So it was a lot of the work that I was doing was always I never knew what it would happen to it So it's my work is a family by nature Alexander Farto also known as Vils is one of Portugal's most prominent artists He carves portraits into city walls using hammers chisels and even explosives Vils started experimenting with NFTs by putting videos of his explosions on the blockchain The artwork is actually what you film, you know, it's not the what happens in reality So in that sense, I needed a technology that I could not just documented which is with cameras and digital format, but then Bring it on a blockchain. He kind of creates a second life to to to the works that I do I think NFTs was the first example of how this can be disrupting an industry And I think art industry will be disrupt by bodies technology. It sounds crazy Blowing something up videotaping it posting the video online and then expecting someone to buy it How does turning a video into an NFT suddenly make it valuable enough to purchase? To answer that we first need to understand how NFTs work To put a physical asset on a blockchain you need to create a non fungible token or NFT NFTs are unique pieces of code registered on an immutable digital database known as a blockchain Think of it as an unchangeable sequence of digital signatures that shows who the creator was and who the current owner is This means that the NFT cannot be replicated and its movements through cyberspace can be tracked This is a groundbreaking innovation because prior to NFTs proving the ownership of digital art was impossible Anyone could copy a photo or video an infinite number of times and each copy would be exactly the same as the original But now we can know for certain who made it and who owns it These two facts are opening up a whole new market for digital art Because before I was not able to sell a video work or a video installation With the certificates in a gallery it was difficult It's when it's a very niche market of collectors that collect video art What NFTs brings you is value to digital work because before I was not able to sell a video work or a video installation With the certificates in a gallery. It was difficult Because digital ownership can now be proven Digital artists can take advantage of one of the longest lasting and most lucrative revenue streams in the art world royalties the royalties that really solves the problem with artists getting paid In the long term with a career that was solved with music with royalties with science was with patents But with artists visual artists you never were able to you know get paid throughout your life By the work that is being sold. However, the NFT market is often criticized for being highly speculative Sales surged to nearly ten point seven billion dollars in the third quarter of 2021 That's over eight times more than the previous quarter It sometimes seems like people are willing to buy any NFT regardless of artistic quality Fabio Colasso a young contemporary artist from Lisbon believes the technology may actually be undermining the art Every person can create an NFT and turn something into art. I can go to your Instagram Do a print screen of a photo of you and do an NFT and that is a single unique piece of art And that is art. Tell me is that art? For me, it's not about art. It's about money In the traditional art world artists have to rely on galleries and auction houses to showcase and sell their work with NFTs Anyone can upload and sell theirs online That feature makes this technology curiously similar to street art, which is also mainly exhibited in public spaces graffiti Brought me that the power to paint on the streets and the power to I don't need to go to art galleries are to have to have you know One one expert or two experts saying that it's good for me to be considered a good artist Mr. Deo is one of the pioneers of graffiti art Portugal His artwork can be found on the walls of over 40 cities around the world in 2021 He started creating digital versions of his graffiti using NFTs So I think graffiti in like street art or graffiti in specific kind of changed the whole way We saw art until a certain point And I think NFTs are exactly the same and that's why I'm so interested about it But not everyone believes in the democratizing power of NFTs Just because anyone can make an NFT doesn't mean they will be able to sell it at a profit It is still hard for artists to sustain themselves without an already established fan base If you are a big artist with a big name in the markets, you can sell NFTs If you don't have name or if you are very young, as me, you cannot sell NFTs It's very difficult Despite the criticisms, it's undeniable that NFTs are changing the very perception of physical and digital art In 2021, a group of crypto enthusiasts bought a print by renowned graffiti artist Banksy and burned it in a live stream video The video was then sold as an NFT for $380,000 They wanted to show that digital art can outlast its physical counterpart, while also preserving and even increasing its value That same idea is behind one of Ville's first NFT experiments We did the explosion and then we demolished the whole building So that work doesn't exist anymore Then, bringing it on a black chain, it makes it something that is ephemeral in a way that I cannot do it When I do work in a public space and then gets destroyed and disappears NFT technology opens the doors for creativity beyond the limits of traditional art There is only so much that artists can achieve in the physical world with materials, colors and services These boundaries don't exist in the virtual world On the street, I have limits You know, I cannot work with sound, I cannot work with animation I cannot work with more than still images The thing with NFT is I can take everything further What I can add to what I've done before It's absolutely crazy So let's say I have a 2D image of a concept that I did With the movement, with the sound effects, with the music I can bring senses to a whole different level The digital medium also fosters interactivity between artists and collectors Thanks to smart contracts, NFTs can be burned Burning is when tokens are sent to an inaccessible address By burning NFTs, a collector can be rewarded with newer rare collectibles or even influence the artist's creative process I do an addition of 10 NFTs and if you give the opportunity to 5 of them to burn those 5 NFTs and then each NFT will activate an explosive on a wall or it will activate a brush stroke in my painting That interaction that you make your community participating in your process of creation, it will change everything This level of participation is unprecedented The modern art community is more and more inhabiting the digital space I really see it as a completely different community And I think it's actually all about the community Like Twitter is the main social media for the NFT market I never used Twitter before So being in the NFT world meant for me started building a new community From people who didn't know my work before NFTs without the communities that they build around They are not much And I think that's the connection between an artist and the people that follow them And that's respect their work and that's like their work It's the connection is made in a very transparent, easier way than the traditional art market, let's say From social media to virtual reality to cryptocurrency Our lives are increasingly moving from physical to digital spaces It's only natural that NFTs are allowing art to go in the same direction We are just at the beginning of this transition But new communities are already emerging with a completely new way to create experience and value art