The world of tech is ever-changing, and those companies who make their living in it have no choice but to evolve with the times. One of the start-ups that helped transform e-commerce in Sri Lanka is Urban.lk, providing a platform for quality tech equipment with friendly and competent customer service and delivery. Celebrating their fifth anniversary this year, Urban.lk was established by two engineer brothers, Malinda (an aeronautical engineer) and Kalana Muthumuni. Urban.lk as a concept was developed while Kalana was pursuing his undergrad in computer science and engineering at the University of Moratuwa.
Urban.lk is set to mark another milestone in transforming e-commerce by hosting the first-ever NFT (Non-Fungible Token) auction on 12 June, hosting an auction for 10 pieces of digital art in an entirely new way. What is an NFT auction though? What is an NFT, for that matter? Brunch chatted with Urban.lk Founder and Director Kalana Muthumuni to find out more.
What is an NFT?
Most explanations on NFTs are quite tech-related, but to break it down, NFT means a Non-Fungible Token. To understand that, we should start with blockchains, which is a digital system, or ledger, of recording information in a way that makes it difficult or impossible to change or hack once it has been stored. An NFT is a unit of data stored that certifies the NFT to be unique and not exchangeable. Now, cryptocurrency like Bitcoin is easily exchangeable with no change in value, but an NFT is more unique, and non-exchangeable, like trying to exchange the Mona Lisa for another work of art.
The origin of the NFT, and who it belongs to, can be tracked on the blockchain, the digital ledger, and this is why NFT is currently blowing up. You can trace NFTs back to the original artist, artwork, or owner. NFTs can be created for anything digital, from drawings to music to any other kind of digital assets. Think of an NFT as something like a deed to a digital asset that only you possess. The NFT signifies that the ownership of that artwork is with someone else, and based on the agreement they have with the platform and the creator of the artwork, the owner can use it in a commercial or noncommercial sense as they would like.
Most NFTs are part of the Ethereum blockchain (this is the blockchain that the cryptocurrency Ether is based on. While not as famous as Bitcoin, Ether is actually older than Bitcoin and is a very stable cryptocurrency), and this blockchain is what Urban.lk will be using to implement our NFT auction and platform.
Urban.lk is launching an NFT platform in Sri Lanka. What’s it called and what does this mean for the Sri Lankan digital landscape?
The first step of launching the platform is the auction we will be holding on 12 June. Initially, we had hoped to hold the auction in May with a small corresponding physical event, followed by a 24-hour digital auction, but looking at the current situation in the country with Covid-19, we decided to postpone to June with an entirely digital event. We’re also using this time to add more NFTs into the auction.
After the auction, we will be launching the platform itself in November, which will allow anyone to create and sell NFTs for their work and products. We see this as a way for local artists to gain value and traction for their art.
A unique feature of NFT is that after the initial sale of the NFT, the transaction doesn’t end. With each NFT, artists can build in a percentage of how much they will receive from the proceeds of any resale of the NFT after its original sale. With normal transactions, once a piece of art is sold one, the artist receives no benefits from any other sales of that piece of art. With an NFT, however, the artist can receive a percentage of the proceeds every time that NFT is resold.
What is being sold at the upcoming NFT auction? 
The highlight of the auction is a piece of digital art by the artist Deluge of Ash titled “Sigiriya 2077”. It features a dystopian representation of Sigiriya in a futuristic cyberpunk setting (cyberpunk is a subgenre of science fiction and gaming that deals with a dystopian futuristic setting that features heavily advanced technology alongside a breakdown or radical change in the social order of the world). The name “Sigiriya 2077” draws from the game “Cyberpunk 2077”, which is one of the most famous examples of cyberpunk.
We are also adding nine more pieces of art to the auction from different artists and photographers in Urban.lk’s Gallery, a platform launched earlier this year for local artists to reach a wider digital audience. Once we announced the auction, we had several people wanting to buy NFTs for pieces in our gallery.
Have you been working with NFTs before this? How new is the NFT concept?
For Urban.lk, this is the first time we’re dealing with NFTs. The NFT market is fairly new, but has gained huge amounts of traction over last year and early this year. It’s grown 2,100% in the first quarter of 2021 alone. The market is very hot right now, and we want to become the bridge between artists and buyers looking to purchase NFTs.
The NFT auction and platform launch later this year is being held to mark five years of Urban.lk. What has that journey been like? What have you got planned next?
The journey has been very challenging but very satisfying at the same time. My brother Malinda and I started Urban.lk in 2016, and the market was very different. We found what segments worked best for us and worked with that. Even with the challenges in the marketplace over the last few years, like the Easter Sunday attacks and Covid-19, we’ve continued to grow. It’s been a lot of sleepless nights, but very rewarding.
Next month, we will be launching our global store – a way to allow local brands and artists to export to the international market. We’re launching fashion first, catering to the Dubai market, and taking it from there.
Urban.lk’s NFT auction is scheduled to take place on 12 June. For more information and to stay updated, please follow Urban.lk on Instagram (@urban.lk).
