The Indonesian government looks to NFTs to preserve cultural heritage

One of the most important benefits of blockchain technology is the ability to record and capture information in a permanent, tamper-proof record. Once data is on a blockchain network, it cannot be changed, making it an ideal solution for record keeping.

Tokenized assets, such as non-fungible tokens (NFTs), can also be placed on a blockchain. This can confirm ownership while also showing that certain events occurred at certain times. For example, the Meta History Museum tokenized data from the war in Ukraine in May 2022, placing the information on a blockchain network to preserve records of the war.

Ensuring that specific events take place 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 can appear realistic.

NFTs for cultural heritage conservation

Preservation of information using decentralized technologies is becoming increasingly popular. For example, Muhammad Neil El Himam, Deputy Director of Digital Economy and Creative Products at Indonesia’s Ministry of Tourism and Creative Economy, told Cointelegraph that he has recently formed a partnership with Quantum Temple—a privacy company that uses NFTs for preservation—to help to maintain the country’s cultural heritage. Himam explained that NFTs can ensure that heritage can be preserved and created without borders:

“I believe that NFTs can help preserve Indonesia’s cultural heritage while enhancing virtual tourism. NFTs can also be a medium to usher the next billion users into the crypto space, especially if the NFT elements of the cultural heritage are well-known and appreciated.”

Linda Adami, CEO of Quantum Temple, told Cointelegraph that her firm is developing a multi-chain NFT marketplace to bring heritage and tourism to the Ethereum and Algorand blockchain networks. Adami explained that the platform is working closely with Indonesia’s Ministry of Tourism and Creative Economy to tokenize tangible and intangible cultural heritage as unique digital assets.

Recent: The secret to pitching to male VCs: Female crypto founders are blowing up

“Digital representations include 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 revenue streams through royalties, verified provenance and recognition for cultural creators,” she said.

On March 21, 2023, Quantum Temple launched its “Paths to Alangö” NFT collection at L’Atelier des Lumières in Paris, France, during Paris Blockchain Week. “The collection includes 11 unique NFTs representing various aspects of Balinese cultural heritage, such as dances, temples, landscapes and philosophy. The NFTs are made by local artists and heritage experts,” Adami said.

Adami said technological innovations such as blockchain can play a significant role in addressing key challenges within a country’s cultural sector.

– Authenticity and quality are fundamental to cultural heritage’s tangible and intangible value. Blockchain can be used to create an immutable and priceless record that recognizes authorship and guarantees the authenticity and provenance of creative assets,” said Adami.

Harry Halpin, CEO and co-founder of decentralized privacy platform Nym, told Cointelegraph that documenting things as cultural artifacts becomes critical to prevent manipulation. According to Halpin, blockchain technology is one of the best ways to ensure this, noting that Nym has worked with decentralized storage provider Filecoin to document war crimes on its blockchain network.

With this potential in mind, Himam believes it is highly likely that other regions will incorporate blockchain elements in the future. “Indonesia is just one example of many developing countries that have begun to explore the potential of these technologies,” he said.

Challenges remain

While tokenized digital assets can be a solution for preserving important information, regulatory and technical challenges can hamper adoption. For example, while Himam is bullish on blockchain technology, he noted that regulatory uncertainty in the region could create friction.

Himam said Indonesia’s Commodity Futures Trading Regulatory Agency controls how blockchain technology is used domestically. “Crypto-assets are categorized as a commodity that can be used as the subject of futures contracts traded on an exchange,” he said. However, he added that as Indonesia begins to implement more blockchain use cases, the government will begin to establish clear regulations and guidelines on how decentralized technologies can be used.

It is also noteworthy that Indonesia’s national crypto exchange is scheduled to be completed in June 2023. According to Himam, Indonesia is clearly showing interest in cryptocurrency adoption. “The country has created regulations around cryptocurrencies and encourages their use,” he said.

Recent: Adoption and nerves — Crypto pumps in the middle of the banking crisis

However, Indonesia’s technical infrastructure can create challenges for projects using decentralized networks. Himam pointed out that blockchain-based technologies require specialized infrastructure, such as digital wallets, which may not be widely available in certain areas of Indonesia. This, combined with the fact that most Web3 projects require skilled professionals, can result in slow regional innovation.

Despite the challenges, Quantum Temple’s Adami believes that Asian institutions may be the furthest along in understanding blockchain-based use cases. “The Indonesian Ministry of Tourism and Creative Economy understands how NFTs can offer a new financing model for the cultural and creative sector, while protecting the intellectual property rights of artists,” she said.