Adobe Inc. (ADBE), a leading design software company, announced the launch of new tools for creators at its annual Adobe MAX event on October 26. The company plans to significantly expand the versatility of its Creative Cloud, which is a collection of more than 20 apps designed and developed to help creators.
The company embraces the creative economy by meeting the needs of every type of art and artist. Photoshop, Premiere Pro, After Effects, and Lightroom are its primary standard photo, design, and video production tools. The company now intends to capitalize on the growing popularity of digital art by unveiling new tools to help NFT artists create high-quality content.
I am bullish on Adobe stock due to the brand value associated with its creative tools and the favorable outlook for the digital economy. (See the top analyst stocks on TipRanks)
What is NFT art?
A non-fungible token, often referred to as an NFT, is a digital asset that represents easily reproducible items such as artwork, music, game items, photos, and videos. These products, like cryptocurrencies, are stored as a unit of data in a digital wallet and can be bought and traded.
The concept of NFT has been around since 2015, but it gained popularity in 2021 when creators became aware of this technology that allows them to sell items that would otherwise have a limited market. NFTs also allow creators to collect a percentage of the NFT value for every second sale made.
Another reason for its popularity is that it allows buyers to own the original item with its built-in authentication which establishes verified and public proof of ownership. The original file, however, can be copied and typed by other users without giving credit to the original artist, and this is where Adobe wants to take the lead in preventing the theft of the original artwork.
Adobe gears up to address top artists’ issues
In 2019, Adobe co-founded the Content Authenticity Initiative by partnering with technology companies to combat visual misrepresentation by providing technology to validate the authenticity of digital content. This initiative was taken to help people determine whether media uploaded to a website has been modified by an authorized member or by an unidentified third party.
The company will deploy the same technology for NFT illustrations created using Adobe products. This function, called Content credentials, was launched on October 26 in response to the growing demand for security features from NFT artists.
The tool is now in beta testing only for Photoshop users and is designed to determine the original creator of digital content. All Adobe Creative Cloud customers will have access to the Prepare as an NFT option in the future as well, which will include a signature certifying the new NFT pieces as unique.
To further strengthen the authenticity of digital art created using Adobe’s Creative Cloud suite, the company is also partnering with NFT marketplaces such as Rarible, OpenSeas, KnownOrigin, and SuperRare. Adobe customers can use this tool to link their accounts to their social networks or cryptocurrency wallets.
NFT marketplaces will display a digital certificate of verified credentials of the NFT creators and Adobe’s online portfolio portal, Behance, will be linked to these verified credentials. As the content is edited in Creative Cloud software, this feature takes identity data and stores it as metadata allowing NFT buyers to see not only who hit the NFTs, but also who created them.
Deploying these features is likely to attract many new customers for Adobe, and the company is likely to reap the first-mover benefits in this market. This could greatly help the company to generate windfall profits over the next few years, as NFT art could become mainstream with the rapid adoption of cryptocurrencies.
The Taking of Wall Street
When it comes to Wall Street, Adobe has a strong buy consensus rating, based on 19 buys and three blocks awarded in the past three months. Adobe’s average price target of $ 722.65 implies upside potential of 12%.
To take with
The NFT market is booming, but many participants, including artists, expressed concerns that scammers could tamper with content.
Adobe, as the world leader in design software, plans to solve this problem by unveiling new tools to help digital artists create works of art that will preserve their authenticity.
Although the NFT art market is still in its early stages, Adobe’s entry is expected to increase the number of artists participating in this digital economy, which will benefit both this industry and Adobe’s revenue. .
Disclosure: At the time of publication, Dilantha De Silva does not own any of the shares mentioned in this article.
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