Fragile Permanence: How NFTs Shape Perceptions of Artistic Identity and Value

Nonfungible tokens (NFTs) are unique digital assets securely recorded on a blockchain, a characteristic that fundamentally distinguishes them from other digital goods. Building on this characteristic, our research examined how people perceive one-of-a-kind (unique) artworks. Drawing from the literature on permanence and essentialism, we demonstrate that NFTs are often seen as lacking permanence compared to traditional artwork. This perception diminishes their ability to capture an artist's essential identity, explaining why people prefer traditional on-canvas (over NFT) artwork. However, when an artwork's permanence is threatened (e.g., by intentional or accidental destruction), NFTs may better preserve value, eventually increasing preferences. We tested our predictions in four experiments (N=1,628) and three replications (N=697). Results enhance our understanding of how technologies (e.g., NFTs) shape the perception of artwork. We expand the limited research on permanence and connect with literature on essentialism, offering insights into why individuals may ascribe value to artwork.