How the Art Market Can be Revolutionized by Blockchain Technology
As one of the latest technologies, blockchain technology is guaranteed to be one of the key drivers of the next industrial revolution. Blockchain technology was first introduced as a solution for ultimately eroding and hijacking the power that financial institutions like banks had over their accounts of its users. Since cryptocurrency and the blockchain technology became popular in around 2017, it has seen leaders in technology, finance, and humanitarian aid embracing this decentralized ledger. This has seen an increase in dedicated blockchain developers in the market.
The art world has not been left behind in as far as blockchain technology is concerned. The art world is exploring in what ways the blockchain technology can revolutionize this sector. That is in terms of how to buy and sold art and thwart fraud and even tax evasion. Moreover, with the introduction of blockchain technology in the art world, another potential benefit is a reduction in friction during the process of auction. As you have seen, there are many benefits when you find a blockchain developer. Consequently, below are various ways in which blockchain technology is changing the art market.
Because we are in the digital age, it is not surprising that many visual artists are producing fine art or artwork that is computerized. Such a digital artwork may end up not having a physical presence at all. Now, one of the main disadvantages of computerized work or digital files is that they can be reproduced and even distributed without the knowledge and permission of the artist.
However, thanks to blockchain technology, it is now possible for a visual artist to register his/her work on a blockchain platform. An artist is allowed to establish ownership proof. The blockchain application is a perfect solution for digital art security. The app creates a decentralized, self-contained, and democratic system allowing for in-built provenance of works, copyright, and payments. Furthermore, there are even some artists that are using the technology of blockchain as a canvas.
The Art Acquirer/Collector
Art collectors usually invest vast amounts of money in the acquisition of artworks, and it is known that even in the art world, forgeries are still a common occurrence. For this reason, art collectors are usually worried about the genuineness or authenticity of any artwork before purchase.
However, if you are an art collector and you are worried about the authenticity of an art piece, understand that you can use blockchain for tracking its ownership and history. For example, there are organizations including Verisart and Codex, which offers a platform to collectors and artists certification services and galleries registration. When an art piece is registered with a blockchain platform, its details such as history and physical characteristics are recorded and stored in the digital ledger and appropriately time-stamped. And so, the art data is made more accessible to check and detect.
A blockchain platform for art ensures that both the artists and art acquirers can benefit. An artist is legitimately associated with an art purchase made and gets the right returns.
The Auction House
In November 2018, Christie’s made history with its piloting of a blockchain-based service of art encryption and registration. This activity was done in New York during the auction of the collection of Barney A. Ebsworth. The auction house worked with Artory, an art registry service, to produce the digital certificate for the $300 million art sale. This art sale included the works of Georgia O’Keeffe and Edward Hopper.
The digital certificate records the work description and price, and even monitors its provenance as it is subjected to selling or buying. The blockchain technology can help an auction house increase long-term data security and transparency for the relevant information concerning artworks.
Blockchain-based Auction House
The use of blockchain technology has also led to the launch of Portion, which is a blockchain-based auction house. The auction house operates just like eBay, in that it aims to provide collectors, creators, and bidders with an authentic means for exchanging high-end goods in return for crypto.
Blockchain technology-based auction house promises to reduce online auction fraud such as non-delivery or non-payment in online auctions. Using the blockchain technology, ensuring that goods (crypt collectibles and crypto art) are certified and ratified and payments are made is possible. Every transaction performed is registered with the blockchain-based auction house courtesy of this technology delivered when you hire blockchain developer. Such an undertaking is essential for creating transparency. That is in terms of ownership of goods and also the prices paid for the goods.
What is more, there is a three-step process put in place for ensuring that goods available in the auction house are appropriately represented and are authentic.
Applications of Blockchain Technology in the Art Market
Tracing Origin Of An Art
Blockchain technology makes it possible for the origin of any art to be monitored. If you consider the fact that the art information is time-stamped, anyone can track the source of an art piece. Doing that makes it possible and straightforward to exhibit art authenticity, another great benefit derived from dedicated blockchain developers.
Connection With Investors
Many people who love art are always looking for an opportunity to invest in fine art. Apart from blockchain giving artists a platform for them to feature their different artworks to interested parties, if you are an investor, you can invest in the project thanks to cryptographic money. While this is a new practice, with time, it is expected that it will have changed the art business for good.
Before the introduction of blockchain technology, it was effortless to reproduce and distribute digital artwork. At present, blockchain technology is increasingly being embraced by artists since it permits them to do a restricted release of their digital artworks.
The potential benefits of blockchain technology innovations in revolutionizing the art market are numerous if you find a blockchain developer that is an expert. There is no doubt that that trend in adoption of the technology is set to continue into the coming years. The underlying blockchain technology reception in the art market has been excellent and momentous. However, still more has to be done to move from the traditional art world to the new blockchain technology art space.
In conclusion, so that you are not left behind in the adoption of blockchain technology, you can also invest in the opportunities available in the art world. When looking to hire blockchain developer, ensure that you have considered various factors such as the experience and qualifications of the developer. Choose a blockchain development company that can combine its expertise in blockchain technology with the latest trends to resolve the needs and challenges of your art business.
In your article you don’t really mention tokenization of artwork and fractional ownership.
Do you think there is a future in this?