Technological Framework of NFTs and Smart Contracts for Preserving Malaysian Arts and Cultural Heritage

Abstract

Non-Fungible Tokens (NFTs) have been developed over the past few years as an impactful new digital asset class that allows both artists and cultural institutions to securely generate revenue from their digital creations while protecting them. However, limited research exists that fully addresses the integration of NFTs and smart contracts as a technological framework for preserving and promoting artistic and cultural heritage in Malaysia. While there has been much discussion about the economic advantages of NFTs paired with smart contracts, the technical backbone infrastructure remains largely unexplored in many ways for cultural preservation. The research explores NFTs and smart contracts to offer automated royalties and an unprecedented transfer of ownership system with cultural impact. This research, through a mixed-method approach-including a literature review, interviews with experts, and the formulation of relevant mathematical models-conducted an analysis of how smart contracts automate the NFT transaction and royalty distribution. The results have so far shown that, underpinned by blockchain technology, NFTs can offer a promising solution to present and future Malaysian artists and cultural institutions in ensuring the authenticity and financial viability of traditional and modern forms of art. Besides that, scalability, environmental concerns, and legal frameworks are several sober challenges to widespread adoption. Finally, this research concludes that NFTs and smart contracts have the potential to revolutionize Malaysia's cultural economy by offering a sustainable model for heritage preservation and a supporter of the arts in general.