One of the main benefits of blockchain technology is the ability to record and retrieve information in a permanent and tamper-proof record. Once the data is in the blockchain network, it cannot be altered, making it an ideal solution for record keeping.
Token assets, such as nonfungible tokens (NFT), can also be placed on the blockchain. This can verify ownership while showing a specific event occurs at a specific time. For example, the Meta History Museum tokens data from the war in Ukraine in May 2022, placing the information in the blockchain network to preserve the records of the war.
Ensuring that certain events happened is also becoming more important than ever due to the rise of artificial intelligence (AI) and its ability to generate deep fakes, along with historical images that look real.
NFT to preserve cultural heritage
Preserving information using decentralized technology is gaining traction. For example, Muhammad Neil El Himam, deputy head of digital economy and creative products at Indonesia’s Ministry of Tourism and Creative Economy, told Cointelegraph that he recently formed a partnership with Quantum Temple – a privacy company using NFTs for preservation – to help protect the country. cultural heritage. Himam explains that NFT can guarantee that heritage can be preserved and created without limitations:
“I believe that NFT can contribute to preserving Indonesia’s cultural heritage and promoting virtual tourism. NFTs can also be a medium to enter the next billion users into the crypto space, especially if the NFT elements of cultural heritage are known and appreciated.
Linda Adami, CEO of Quantum Temple, told Cointelegraph that her company is developing a multichain NFT market to bring cultural heritage and tourism to the Ethereum and Algorand blockchain networks. Adami explained that the platform is working with the Indonesian Ministry of Tourism and Creative Economy to mark tangible and intangible cultural heritage as unique digital assets.
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“Digital representation includes traditional ceremonies, crafts, and knowledge of nature and our universe, but also musical and oral expressions, dances and pilgrimages. By tokenizing cultural heritage, three critical areas of value are created: immutable cultural archives, transparent alternative income streams through royalties , verified provenance and recognition for cultural creators,” he said.
On March 21, 2023, Quantum Temple launched the NFT collection “Paths to Alangö” at L’Atelier des Lumières in Paris, France, during Paris Blockchain Week. The collection includes 11 unique NFTs that depict various aspects of Bali’s cultural heritage, such as dance, temples, landscape and philosophy. The NFT was created by local artists and cultural heritage experts,” said Adami.
Adami said that technological innovations such as blockchain can play an important role in solving major challenges in the country’s cultural sector.
“Authenticity and quality are the basis for the real and intangible value of cultural heritage. Blockchain can be used to create an immutable and priceless record that recognizes authorship and guarantees the authenticity and origin of creative assets,” said Adami.
Harry Halpin, CEO and co-founder of the decentralized privacy platform Nym, told Cointelegraph that documenting such cultural artifacts is critical to prevent manipulation. According to Halpin, blockchain technology is one of the best ways to ensure this, noting that Nym has partnered with decentralized storage provider Filecoin to document war crimes on the blockchain network.
With this potential, Himam believes that other areas will incorporate blockchain elements in the future. “Indonesia is just one example of many developing countries that have begun to explore the potential of this technology,” he said.
The challenge remains
While tokenized digital assets can be a solution for safeguarding valuable information, regulatory and technical challenges may hinder adoption. For example, while Himam is bullish on blockchain technology, he notes that regulatory uncertainty in the region could cause friction.
Himam said that the Indonesian Commodity Futures Trading Regulatory Agency controls how blockchain technology is applied internally. “Crypto assets are categorized as commodities that can be used as the subject of futures contracts traded on exchanges,” he said. However, he added that once Indonesia starts implementing more blockchain use cases, the government will start establishing clear regulations and policies on how decentralized technology can be applied.
It is also important that Indonesia’s national crypto exchange is scheduled to be completed in June 2023. According to Himam, Indonesia has shown a clear interest in cryptocurrency adoption. “The country has made regulations on cryptocurrencies and encourages their use,” he said.
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However, the technical infrastructure in Indonesia can create challenges for projects that use decentralized networks. Himam pointed out that blockchain-based technology requires special infrastructure, such as digital wallets, which may not be available in certain regions of Indonesia. This, coupled with the fact that most Web3 projects require skilled professionals, can lead to slow regional innovation.
Despite the challenges, Quantum Temple Adami believes that Asian institutions can be the furthest to understand blockchain-based use cases. “The leadership of the Indonesian Ministry of Tourism and Creative Economy understands how NFT can provide a new funding model for the cultural and creative sector while also protecting the intellectual property rights of artists,” he said.