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WHITE PAPER

Brave New Platform: A decentralized NFT marketplace for creative collaborators

Published On: September 14, 2021

Last Revision: January 3rd, 2022

--
Eva Sheluhina
José Batalla
hello@bravenew.art

Abstract

NFTs have been taking the world by storm, changing the way we create, consume and even think about art. Established and emerging artists have poured into the space awash with buzz and excitement over the new creative and monetization possibilities. At first, some critics deemed NFTs as just hype, but statistics are consistently showing that we are seeing the beginning of a new industry. Brave New Art's goal is to create a powerful platform that allows professional artists and collectors to easily collaborate and interact with each other.

This White Paper proposes a solution that will allow a seamless onboarding experience and the use of smart contracts for every digital content stakeholder: from a songwriter to a record label, from a gallery owner to an art collector. The Brave New Art platform will allow individual artists and communities to easily collaborate, opening doors to novel art forms and decentralizing the creation and distribution of art.

Lastly, this White Paper explains why our platform is the ideal ecosystem to implement Artificial Intelligence for generative content.

2. Background

The NFT industry is booming. It reached 2.5 Billion dollars in the H1FY2021 and $10 Billion in the Q32021. This boom can be explained by several factors: 

A. Discovering A New Market. 

Until recently, most digital assets were easily hacked, copied, and distributed, and it seemed there was no way, apart from legal enforcement, to prevent copyright violation and ownership rights.

Most valuable digital items have been protected by centralized technology, however, rare items in computer games are still often hacked or stolen, and movies and music are actively pirated.

Unfortunately, even though centralized technology works well on high-budget products and mass-scale projects, an average artist working in the digital field used to have very few monetization options. For example, for musicians, signing up with a label was the only way to scale their audience. For digital artists, most opportunities lie in moving their art offline, relying on merchandise, or working with a centralized entity like a gaming company. Fortunately, the possibility of digital ownership is now a reality. This opportunity has come in the form of Non-Fungible Tokens, giving artists the ability to monetize their art at scale.

Something similar has taken place in the gaming community. Almost every game utilizes some kind of internal currency to incentivize players, and the opportunity of moving them into a secure decentralized space has convinced many game developers to create their NFT-based metaverses, for instance: The Sandbox, Illuvium, or nft42.

B. Hype.

Although it would be easy to conclude that NFTs are "all hype and no substance" it's important to remember that almost every new technology starts similarly. Take for example Amazon and Google, both were part of the dot com bubble, but instead of disappearing, they went on to become two of the biggest companies the world has ever seen. Moreover, contrary to popular belief, most NFT collectors have a long-term approach. CoinDesk’s research managing director Noelle Acheson recently observed during an interview with Business Insider, 'The NFT craze is not so much about prices and quick profit as it is about a new model of creative monetization.' If artists and other content creators continue to mint NFTs, and consumers see value in them, it stands to reason the market is in for longer-term growth. Similar to Cryptocurrencies, the price tells only a small part of the story. It's crucial to look at how the industry is developing as a whole to understand its true value. Multiple emerging marketplaces as OpenSea, Foundation, Rarible, SuperRare, Mintable, or NiftyGateway are actively contributing to the steady growth of the market.

C. Monetization Potential

NFTs are closely connected to cryptocurrencies and can be used as financial instruments. Startups like Niftex, Drops, NFTBank, Liquidifty have been focusing on turning NFTs into financial instruments, introducing alternative protocols such as multiple ownership, NFT-as-collateral, and liquid NFTs.

Furthermore, to adapt to the monetization race, many NFT marketplaces have created governance tokens (i.e. $RARI) and even implemented some yield farming capabilities. A few examples are Glimpse, RageFan, and Chronicle.

 

3. Problems of the existing NFT industry

A. NFTs Are Perceived As Collectibles

Since Blockchain Technology has given NFTs two important advantages, proof of ownership and immutability, NFTs are currently being treated as valuable and rare digital assets, similar to collectibles in the physical world like sports cards and paintings. Though this perspective creates new monetization possibilities, it's also very limited. On most marketplaces, it's only possible to buy, sell or view an NFT. Those capabilities are built-in inside the protocol and extend no further than bidding, auctioning, limited edition drops, etc. Marketplaces offer no other interaction within the seemingly infinite capabilities of this technology.

B. File Location Immutability

The idea of treating NFTs as collectibles or a store of value is risky. It's easy to see how a painting from the 1300s has gone up in value since it's a physical object, but this is not the case for digital items. It's important to remember that so far, it's not possible to store files on a blockchain, not even small files like images. NFTs act as digital certificates that contain links leading to a particular file location, meaning that if a particular file has been removed from its original location (for example Google Drive), the link will point to a 404 destination. As a way to solve this problem, many NFT marketplaces offer decentralized storage (For example, IPFS, FileCoin, and VideoCoin) promising users their files will never be lost. That being said, even if they have the best intentions, if something happens to a file link's handling, domain name, or the data storage itself, the file will be lost forever making the NFT worthless.

C. NFT Royalties and Creatorship

There is a natural tendency to think of legendary masterpieces as the work of a solitary genius. Although this could be true for some artists from the past like Da Vinci, it's very difficult to find contemporary artists who don't collaborate with anyone else. Current NFTs only allow a single creator to receive payments and future royalties, however, this is disconnected from reality. Even the most accomplished individual artist has to work with others, let alone more complex projects like a film where large creative teams must collaborate for an extended period of time. The fact that current NFT protocols don't allow multiple creators, is a gigantic problem and limits the scalability of the industry. To make matters worse, many NFT marketplaces and auction houses simply mint the artwork from a single wallet, instead of sharing payments and royalties with all creators and participants in a transparent way.

D. Quality vs Decentralization

Some marketplaces like OpenSea or Rarible, following the decentralization vision, allow anyone to mint their work into an NFT on their platform, allowing virtually anyone to participate in the ecosystem. This is great for the industry, however, due to the lack of monitoring and curation, an increasing amount of low-quality work is flooding the market. 

In contrast to such an approach, many NFT marketplaces or auction houses have proposed the idea of 'curated' NFTs, where only approved artists are allowed to mint their work. Even though such an approach will improve the art quality, the marketplace holders remain in power of decision making. This centralized approach goes against Blockchain Technology's main purpose.

E. Onboarding Difficulties

The average person still has difficulties creating a wallet and buying crypto for the first time. Many creative artists are facing these types of onboarding challenges for the first time, and end up making mistakes, paying a lot of gas fees, or even worse, losing their funds. 

Most NFT companies promise 'easy onboarding' simply by allowing all payments and profits to go through a bank or a payment processing company, however, this "easy" onboarding comes with a catch. lt doesn't give artists access to the wallet, obscuring royalties and proof of creatorship.

Many artists are left out with minimal profits, leaving a negative impression of the industry. This disbelief and mistrust will only delay the mass adoption of NFT technology.  

F. Eliminating Middlemen.

Most NFT marketplaces are putting artists at the front place, encouraging independent creators to connect directly to their fans. Even though such an idea is very inspiring and even welcomed by some artists, the intention to eliminate or automate the middlemen is disconnected from reality. 

While it is more or less possible to imagine an art piece created solely by a single artist, when it comes to its promotion and distribution, third parties become inevitable. Apart from necessary intermediate parties (i.e. creative agencies, auction houses, publishing houses, record labels, etc), other third parties can be technical services, community representatives, investors, marketing agencies, streaming platforms, social network communities, art dealers, event managers, tour managers and many other crucial third-parties that cannot be eliminated or easily automated.

Contrary to popular belief, even though those third parties are in between the artist and the audience, in most cases, they are not 'stealing' the revenue from the artist. They produce added value, and in most cases, the cost is covered by the end consumer. For example, in 2020, the average musician's revenue was only 5.1% of the total market valuation. This kind of statistics illustrates the importance of targeting the so-called 'middle men' and making it part of the NFT space.

G. Centralization

The use of decentralized technology has been confused with the decentralized organization concept. While many NFT platforms are openly admitting to being 'a centralized solution', there are still a lot of cases of misuse of the terminology. Even platforms with a governance token are highly centralized. First, the governance tokens are mostly used to vote for technical upgrades, royalties, rules, etc. Second, the majority of token holders will always be in charge of making decisions, and the fact that the token exists within a decentralized system doesn't make any difference. For example, SuperRare transfers voting power to the community while at the same time offering the token on exchanges. This automatically de-values the art quality, as anyone with enough capital can vote for whatever they decide to create.

However, most of the curated NFT marketplaces require artists to go through an application process, before they can be featured on the platform. This means that decisions will have a small inner circle, usually closely connected to the founding team. This is the opposite of decentralization.

Overall, the key problems revolve around the attempts of making the industry adapt to the way NFTs work. We believe in Product-Market Fit, which means that the main goal is to make an NFT protocol adapt to the industry needs. To make it work, we have to first understand the market requirements.

 

4. Market Research

The scope of the market includes all the forms of digital art: image, video, sound, and interactive media. Apart from NFT marketplaces, there are multiple ways of creating, distributing, and monetizing digital content. Some of them are large centralized corporations, such as Netflix, YouTube, Apple, Facebook, and Spotify.

Music

Apple Music, Spotify, YouTube Music, Amazon Music, Tencent music, and several others represent a form of oligopoly, where artists must go through all kinds of obstacles including but not limited to high entry barriers and legal difficulties before they can reach their target audience. Furthermore, terms and conditions are usually vague and even misleading. The majority of artists who manage to sign up with a label and publish on a streaming platform, get their royalties diluted and end up with a very small amount of the actual profits.

On the other hand, technology represents an existential threat to record labels: production tools are becoming more affordable and accessible for artists, streaming platforms are aggressively taking the market share, and a global pandemic is eliminating most of touring revenue. Very few labels are addressing these challenges and shifting their strategy accordingly.

Images

Visual Content Stocks (Shutterstock, Unsplash, etc): visual artists must invest a lot of time onboarding before they can start earning any profits on these platforms. On average, it takes 1000 images to start getting noticed. On top of that, as with any centralized organization, Visual Content Stocks take large commissions and tweak the rules to favor shareholders. For instance, a contributor on Shutterstock receives a commission according to their 'Level'. This is a way to gamify the process and incentivize artists to be active, however, every year everyone's level drops to the bottom, back to the lowest commission.

Social Media platforms (Instagram, Pinterest, etc): these platforms do not pay creators anything for the traffic their content generates. The only way artists make a profit is by third-party advertising or by selling products themselves. In the case of digital artists, it can be a printed canvas (Artfinder, Saatchi, Etsy, etc) or physical merchandise like clothing. The problem is that more often than not, for artists to scale their business, they will have to pay the platform to advertise their work. These platforms are centralized, therefore aside from generating a gigantic amount of revenue from ads they also monopolize user-generated data and monetize it.

Video

YouTube: As an open video platform, Youtube allows anyone to broadcast their video content, however, as a centralized entity, they can also restrict or terminate an artist's account at any given time, without providing any explanation. YouTube revenue model does share their ads revenue with the creator, and it also allows creators to choose not to monetize their content. However, YouTube takes 45% of ads revenue and keeps the right to place ads on any video. Furthermore, Monetization will depend on the advertiser's budget.

Netflix, YouTube Premium, Amazon Prime Video: these services are similar to music streaming services. They have a very high entry barrier and most of the revenue is taken by fees and third parties.

Instagram: doesn't have an option to browse favorite artists’ content without watching ads.

User Experience: Most high-quality video content is locked behind a subscription wall, paywall, or ad wall. For example, Netflix will not allow a user to watch a favorite movie unless the monthly subscription is paid, even if they have been subscribed for the previous five years. Consumers are looking for an option to watch their favorite content ad-free and without the burden of monthly subscriptions.

Market Size

 

While the NFT sales volume is a rollercoaster with $17B at its peak, the valuation of the entire digital content market is close to 120B, including podcasts and commercial art. At Brave New Art, we are convinced that the NFT space will not only create more opportunities for artists, it will also force many existing digital content giants to use Blockchain Technology. Our market research shows that the technology behind NFT has all the capabilities to meet the needs of all three key players: artists, fans, and middlemen, creating value and allowing all parties to benefit from this emerging industry.

 

5. Proposed Technological Solution

The technological solution is divided into two levels: the protocol level and the platform level. Considering some of Blockchain's current limitations some functionalities will have to be executed separately.

A. Protocol Level:

The following proposed protocol alterations are already existent in different NFT standards, thus, it is technically feasible to combine them into a powerful single platform.

Multi-wallet creatorship: multiple wallets as a creators pool. A dimensional extension from the ERC1155 standard, that allows multiple ownership, will allow Brave New Art to enable multiple creatorships.

Mandatory unlockable content: current NFTs provide this functionally, however, they make it optional. We are making it a core feature of our platform.

Timed Token Copies capability: current NFTs have a limited number of "copies" to enable multiple ownership, however, they are all original. Due to the scarcity of those copies, they are very expensive to own, but they still can be viewed. The Brave New Platform will allow free previews, but access to the full content will be behind a paywall.

To explain this better, let's take for example "Liberty Leading the People" by French artist Eugene Delacroix. It would be very expensive to own, however, people who want to see it just need a ticket to the Louvre. It is still possible to find free images online, but it would not be the same as experiencing this masterpiece in person.

Similar concepts can be applied to digital media, where it's possible to see a low-resolution preview for a few seconds, however, to see a higher resolution or full content the user has to pay.

The "Louvre Ticket" concept in the world of NFTs can be represented as time-limited access to a copy of the original. Just like 'Renting' or 'Streaming'. When renting is requested, the TTC (Timed Token Copy) is created. This is also a token, which points to the copy of the file on a distributed file system, and it has an 'expiration date' - a point in time when the copy of the file is going to be deleted and the token is burnt. The price of Renting depends on the requested time before burning. The first stage of the protocol creation will be executed through an absolute expiration time, however, soon we will implement a "time watched" feature. This means that the NFT will be burnt upon the expiration of the actual time watched, not a lifetime of the TTC.

B. Platform Level:

File location check: every NFT will start with several copies and each copy will be assigned a separate decentralized storage location: IPFS, ArWeave, FileCoin, VideoCoin, Storj, etc. In case the initial NFT release has more copies than there are DFS available for integration, every file system will be assigned an equal number of copies, however, each of them will have a separate file location. Once a TTC is requested, a temporary copy of the token is created on the same DFS. In case the given DFS is not available, the copy will be created on a different DFS, from another original token. The file location link from the "damaged" token will be automatically updated to a new one.

Cross blockchain integration: even if a user purchases an NFT on another platform, it will still be possible to co-mint it on the Brave New Platform and monetize it using our TTCs system.

Voting system: any submitted artwork will have to gather a certain amount of votes in the form of tokens from a randomly chosen pool of validators.

 

6. Proposed UX Solution

User experience is illustrated using our key Platform Features and Functionalities:

Art Work

A Non-Fungible Token that represents a digital file with an artistic value.

 

The following functionalities are applicable:

Metadata: artwork description, properties, creator's pool, voting pool, file link, date/time of creation, etc.

Preview: a low-resolution version for images, short fragments for audio, video, and gif. Anyone can watch the preview, but only the owner can see the full version.

Buy/Sell: anyone can buy an NFT on the Brave New Platform. The transaction can be performed through the platform, using cryptocurrency. Anyone who owns Brave New Art's NFT can sell it on the platform.

Provenance: every transaction of purchase is recorded on the blockchain for provenance. The NFT itself doesn't have that information, but all the previous purchases and TTCs created can be traced on the blockchain.

Renting/Streaming: anyone can request a Timed Token Copy on the platform. Payment will depend on the amount of time requested. The shorter the time, the more expensive each minute is. Once a TTC's time has expired, it is visible in the watched history and available for re-renting. As TTCs are also NFTs on the platform, it is possible to buy and sell them too. This allows them to resell disliked TTCs on the secondary market.

Creators Pool

Refers to the capability to collaborate with others to create artworks and distribute all future royalties.

Creation: upon submitting an NFT for creation on the platform, the co-creators can be added to the Creators Pool via the interface (choosing the users of the platform) or by manually adding the wallet numbers and the corresponding percentage of contribution.

Verification: each co-creator will have to confirm their participation through their private key. This way they confirm and ensure the right percentage for their contribution.

 
 

7. Brave New Token

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Submitting new artworks: artists can submit their artwork directly to the platform using Brave New Tokens and become part of the voting pool.

Voting for other artists’ artworks: in order to mint an NFT in our marketplace, artists have to submit their artwork for community approval. After other Brave New Token holders contribute enough tokens to support the artwork, it will become available in our marketplace. Royalties from sales and streaming will be divided proportionally between contributors from the Creators and Voting Pools.

Cashing out: an artist can exchange their Brave New Token into ETH, however, the opposite won't be possible.

Receiving Royalties: The Brave New Token can be earned via royalties, i.e. by being a part of either the Creators or Voting Pools. From every sale and/or streaming, a percentage of the transaction will be converted to Brave New Tokens and distributed according to the Pools.

 

The Gallery

Users will be able to access previews and browse by:

Name of the artist

Title of work

Name of the community or collection

Category (audio, image, etc)

Date

Reverse Image Search

 

Submissions

Brave New Token holders who vote for a particular submission, automatically become part of a Voting Pool, and in case the Art Work is published, the voters will receive a percentage of the royalties. Voting contributes to the art quality on the platform, increasing future royalties and helping other artists get noticed. Only Brave New Token holders (artists, investors, and talent communities) can view unpublished Art Works or submissions.

 
 

8. Ecosystem Use Cases

Individual Creator: A solo or individual creator can be defined as an individual artist who executes the entire process of creation and NFT launches. This type of user will own all the copies and will be able to sell them and/or rent them out.

Collaborating creator: This type of creator participates and interacts with other users to produce an NFT. A creator not only can create NFTs, but they can also participate in marketing campaigns, user experience testing, gamification scenarios, and even provide technical support. Depending on the project, collaborating creators can be paid in advance for transferring royalty rights.

Private Collectors: Collectors can be individuals or organizations who initially don't take part in the creation process, do not vote, and do not receive royalties. A collector simply buys, sells, or rents to make a profit. That being said, a collector can provide funding to artists and obtain rights to future NFTs.

Talent Communities: These groups specialize in helping artists with Artwork creation and/or publishing.

Talent Communities can contribute to the Artists’ work with marketing, execution, equipment, or simply by providing Brave New Tokens. By growing their audience and art quality, Talent Communities will receive additional royalties. Examples of Talent Communities IRL: Producers, Talent Agencies, Record Labels, Netflix Originals.


9. Value Proposition

The Brave New Art platform is a digital art collaboration platform that allows artists and creators to discover new possibilities and create high-quality content. Aside from all the functionalities described up to this point, we are including in our roadmap an AI-powered recommendation engine, gamification features, and a strong focus on UX design to make the platform intuitive. Moreover, we are not simply building the technology, Brave New Art will also act as a Talent Community in the ecosystem.

Our growth strategy includes monetization through royalties. Those who choose to create, collaborate, and run their business through our platform, will automatically have Brave New Art added as a creator, for the significant role we play in helping each artwork come to life.

Received royalties will be used to vote for the artists, invest in the artworks, improve the platform, add new features, and gradually transition into a Decentralised Autonomous Organization.

10. Tokenomics

Initial Token Split:

Total supply: 14 Million

Founders & Team: 10% (1.4 Million) / 5-year vesting period

Investors: 20% (2.8 Million) / 3-year vesting period

Utility: 65% (9.1 Million)

Governance: 5% (700k)

 

Summary

Brave New Tokens (BNART) will be used for our Seed Round and the execution of the platform’s first milestones. Investors will only be able to purchase BNART during our private sale and Series A rounds.

It will not be possible to acquire Brave New Tokens through any public exchange. Private Sale and Series A Round investors will have the chance of becoming Talent Communities and thus have the possibility of acquiring additional tokens through the work of artists. On the other hand, artists, collaborators, and talent communities will receive Brave New Tokens via royalties. Once the vesting period is over, token holders will be able to convert BNART back to ETH at any given time.

Functionality

The Brave New Token isn't simply an investment vehicle. BNART is one of the few tokens in the NFT industry that is directly connected to the stability and innovation and growth of the ecosystem. The Price of Brave New Token is tied to the amount of Brave New Tokens contributed to voting for some time and is represented in ETH. This period grows and shrinks to adapt to the vesting period and thus guaranteeing the stability of the platform and artist communities.

Initially, there will be 9,100,000 utility tokens, and when Artworks are purchased or rented, 85% of the cryptocurrency payment will be transferred to the last owner. This means that 15% will go to the Liquidity pool, and the corresponding amount of Brave New Tokens will be transferred from the Utility Pool to the Creators and Voting Pools.

Governance

5% of tokens are reserved for the DAO transitioning period.

Seed Investment Allocation (5 months):

Operations: 10% (50K) / Salaries, office space, legal, accounting.

Marketing: 30% (150k) / CMO, Ads, Video Production, Social Media Team     

MVP: 35% (175K) / Engineering Team, UX/UI Design, Full-Stack, Solidity / Data Engineer, QA & Security

Community Engagement: 15% (75K) / Artist communities, collaborations, auctions, business development.

Creative Production: 10% (50K) / Art direction, production, studio time, software

Conclusion

Brave New Art is a future-oriented project that aims to become one of the key protocols of the digital art industry. Our goal is to be one of the first NFT platforms that begins as a startup and evolves into a Decentralized Autonomous Organization.

We will accomplish this by:

A. Allowing transparent collaborations and perpetual royalties fixed on the blockchain for all relevant contributions, including creative input, marketing efforts, and technical support. This will be accomplished by introducing a Creators Pool inside the NFT Protocol.

B. Changing a subscription-based monetization model to the pay-as-you-watch streaming system. This will give creators and consumers a new and more efficient way to monetize art.

C. Building token mining capability inside the creative process to accelerate the decentralization of the industry. The voting tokens can only be obtained via royalties ( after the initial investment rounds are closed.) In other words,  the Brave New Token will truly represent artistic value, rather than just monetary value. It's a decentralized protocol that represents art quality, not simply capital entering the ecosystem. We call this Proof of Artistic Value.

D. Alleviating technical difficulty by being inclusive and transparent with all parties, providing a smooth user experience, and creating an opportunity for technical and operational parties to legitimately participate in the art creation process. This will open the doors for all the valuable members of the creative industries, allowing producers and talent management agencies to move their operations to Blockchain, making the royalties distribution process clear and simple for people who are not familiar with the Blockchain Industry.

The Future Of The Brave New Platform

The Brave New Platform will be a powerful collaboration tool that will allow artists to create high-quality decentralized art projects, and at this given point in time, we believe that NFTs and metaverses will continue to be the dominant formats. That being said, art never stops evolving and soon we believe Artificial Intelligence will have a much more important role in the creation of novel forms of art.

AI-Generated Content

We see a wide growth of AI-generated music, images, and even videos. Even though AI’s performance is not overwhelmingly impressive at this point, it is clear that soon AI will be actively used to generate specific content. Marketing agencies, artists, and entertainers will be actively using AI to generate images, music, and many other formats. For example, Algorithms will be able to generate images on demand, by simply describing the desired image to a chatbot and providing enough feedback.

Why would anyone buy a particular picture or video, if it’s possible to buy access to an AI platform that generates an almost never-ending stream of high-quality content?

Problems 

Quality

Indeed, the quality of machine-generated content is still questionable. We still haven’t reached the point where machines can produce a full-length movie or a book, however, one particular strategy will greatly accelerate the learning process.
Machines supervised by humans are often capable of doing much more than machines or humans on their own (Xavier Litt). The idea of integrating humans and machines into collaborative teams is not new, there have been multiple promising studies on interactive AI systems (HAI Stanford).
Since machines are lacking skills in comprehending ambiguous contexts, and humans are far behind machines in terms of processing power, the “humans in the loop” concept seem to be the most logical approach.

Control 

A content generative system can be a very powerful instrument in a world where information is one of the most valuable resources but how can we stay in control?

AI isn't conscious, so its behavior is entirely dependent on the data and feedback provided, i.e. the input, features, and its labels. But given the enormous amount of data, its features, and labels, how will AI choose which data to learn from and which features to consider? If we stay in control of which data is processed by the AI, then we can stay in control of the output and even manipulate the content that is being produced. How to prevent such a powerful technology from being used for malicious purposes? Decentralized Technology might be the answer.

Decentralized Datasets

When it comes to data and decentralization, there are a lot of solutions for decentralized or distributed data storage. IPFSFilecoinArWeave, and many others are solving the problem of decentralized data storage. However, when it comes to data validation, there is no content assessment of the data on-chain, apart from malicious software checks.
To be able to validate the data, it is vital to be able to store metadata securely and be able to track its changes, the same way it’s done in the case of Non-Fungible Tokens. When Non-Fungible tokens are put under a smart contract to represent a ground truth for a certain ML task, they can form a decentralized dataset.

A decentralized dataset - is a limited set of dynamic NFTs, which gives the owner a right to change the file in the location it is pointing to and its metadata. NFTs have been treated as immutable precious collectibles, but it's time to look at them as instruments that grant the owner not only the valuable content inside the NFTs but also the responsibility to increase its value and use it as leverage for future profits.

Each NFT in a specific decentralized dataset is a piece of data with features and labels that can be fed into a neural network, which could then perform a particular quantitative, qualitative or generative task based on the data being fed.

Placing data on the NFTs is not the ultimate way to decentralize an AI engine, as any attempt to attack the engine and skew the data can be performed by creating a set of NFTs with malicious properties. To prevent such an attack, it is crucial to implement data labeling and verification inside the consensus mechanism.

Consensus Mechanism

Consensus mechanism is the process of reaching an agreement on a data value, block value, or a state of the network for all the participating nodes. The most widely used are Proof-of-Work and Proof-of-Stake. Usually, these consensus mechanisms are meant to operate automatically, provided electricity, relevant hardware, software, and/or stake. 

Human verification on the transaction level is a combined mechanism: each block is considered validated if the human assessment (label or vote) has been contributed. Each human node is incentivized by a reward, but the reward is dependent on the quality of their assessment. A detailed walk-through of the mechanism is best provided by examples of use cases.

Use Cases

News

Decentralized journalism. Every node is contributing with the approval of a piece of information on an NFT, assessing the provided metadata, and/or conducting its research. Viewers and their feedback are generating the reward, and it is safely reaching every contributing node, as it's recorded on the blockchain. 

Censorship

Decentralized Censorship. Every NFT can be reported during the verification process, thus, content worthy of being censored won't ever be published. On the other hand, targeted censorship won't be possible to execute, as the voting nodes are picked in a semi-random fashion.

Decentralized Data Governance

An approach to maintain a certain set of digital data points under decentralized control.

The Ultimate Masterpiece

A project to support decentralized assessment of various works of art, that determine the input for the generative model. A final piece of art will be a product of human artistic contribution and the generative power of AI. Revenue generated by this masterpiece is distributed among the participating nodes.

Mass Content Generator

As we previously mentioned, mass content generators will serve the mass market of creative consumption. Most generic content such as articles covers, ads pictures, product presentations, and many others will be AI produced.

Art Evaluation

Revenue prediction engine that analyses the digital art piece, its metadata and forecasts its future price.

This white paper is neither aiming to create a single-source-of-truth platform, nor a censoring algorithm. To stay away from fake news, social media, and other political substances, we introduce an example of quality generation of creative content: art and emotions.

Emotion Recognition

The research around EDR (Emotion Detection and Recognition) is expected to reach $85 Billion by 2025. A lot of companies are trying to teach machines to decode human emotions, and it is mostly performed through facial recognition patterns. However, it has been causing a lot of debates, regarding the bias and non-scientific foundation of such an approach. This whitepaper suggests eliminating these biases through applying decentralized techniques, borrowed from Blockchain Technology.

How art relates to emotion recognition? Even though there are many different definitions of what can be considered art, the majority of people would agree that art represents human emotions.
A feeling is the conscious experience of an emotion, and emotion is a particular set of neurochemicals released inside a human brain as a reaction to an external stimulus. These particular neurochemical patterns can be learnt given the right data. Such an approach won't be effective for reading human emotions but can be used for reading the most probable human reaction to the piece of content and generating content to trigger a particular emotion.

The Concept

Brave New Art aims to develop a decentralized network for analyzing human interaction with art by introducing human decisions into the consensus mechanism that allows to label the input in a decentralized manner.

Let's take a look at a simple example of an image as an input and an emotion as an interaction.
A creator submits an image for NFT minting. The image has a certain set of features that can refer to a certain emotion. Other submitted images from the same emotion cluster are placed into the pools of 4 different images and presented to validators, who vote which image best represents a particular emotion. Vote submission is performed by providing the token, which accumulates at the image balance, and carries the record of each voter. After achieving a certain threshold (i.e. 51% of validators have voted for an image) it is minted to the network and can participate in the model training. Every time an ML model that has included the image in the training dataset, generates an image, royalties are collected and transferred to the creators of the original image, as well as the voters. 

The model can be used to also generate images to train other models. 

In other words, this content generation system is combining humans and machines in a synergetic symbiosis, where both participate in the creation and validation of art.

Fraudulent Nodes

Such an approach can still be vulnerable to malicious attacks: as anyone can vote for their image in an attempt to generate royalties. However, if each voter is randomly assigned to a shard to vote for a particular set of artworks, this way an attacker would require 51% of validators to be able to upvote their art. 

Also, the network should be protected from the nodes with malicious intention to upvote "wrong" art and skew the model. This is solvable through the proposed reward system: if a node is not receiving a reward, this type of 'malfunctioning’ would become too expensive to execute.

To avoid overpopulation of the voters and attacks, we propose a one-way exchange policy: this means that a token can be "mined" only through the reward, and the reward can be exchanged for currency, but not the other way around. Thus, a node can become a validator only if it is a creator with a sufficient royalty stream.

Artificial Intelligence

The vast role of artificial intelligence in this project is not to automate human work, but to contribute with its strong side: speed, efficiency, and processing power.

Autonomous AI nodes will be contributing to human work in the form of provided automation and receiving royalties for participation in the project. Later on, AI nodes will be able to operate autonomously, being included in shards and having voting power, speeding up the creation of each block.

Considering that half of the voting on the platform will be processed by humans, the speed of the chain will depend on the number of nodes. In the inception of the chain, the blocks will be created very slowly, as valuation will be performed only by hundreds of nodes, and slowly increased over time.

Micropayments

One of the most important technical factors of this project is handling micropayments. As the royalty transactions will be split among multiple artists and voters, there will be thousands of them, transporting fractions of BNART. How will they cope with the GAS price?
There are multiple startups with developed layer-2 technology for supporting micropayments[1,2,3,4 etc], it will be possible to integrate royalties distribution to be handled that way.

Conclusion

Key project objectives: 

Increasing the quality of artworks,

Bridging human creativity and high performance

Key project tasks:

Human involvement inside the consensus mechanism,

High-performance Art Generative Algorithms


The Future of the Brave New Platform will be transitioning into a decentralized system that enables decentralized content validation as well as a foundation for safe autonomous AI.

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