Blockchain and art - a revolutionary market
If you’ve ever heard about blockchain technology, it’s probably related to one of the hottest 2017 subjects: Bitcoin.
The king of cryptocurrencies, whose price reached a new all time high record - breaking
easily the $11.000 wall - relies on the above mentioned tech which made it famous.
But what is blockchain?
Blockchain technology involves an electronic distributed ledger, that allows every member using it to make secure and clear transactions. On top of this structure you can build a coin - a cryptocurrency - exchanged in a defined community to run the business. All the coins have a different value and they can be cashed out.
Revolution in the art market
Among all case studies and uses discovered for blockchain, it can also be implemented in actual art markets. How?
Unlike other businesses like books, films and music, the art market doesn’t allow any
content creators to maintain the rights on their works. Once you sold it for a revenue, it’s done.
Thanks to blockchain technology though, nowadays it’s possible to leave a trace and
compensate an artist for every transaction involving their pieces.
The concept of linking blockchain and art isn’t a totally new combination. Some decentralized platforms already have built a marketplace on its features: Verisart, Artbyte, Artlery and Ascribe are clear examples of the impact that this disrupting technology can have on the art market.
From Verisart’s site: “Verisart is the world’s leading platform to certify and verify artworks and collectibles using the Bitcoin blockchain. Since its launch in 2015, Verisart has provided contemporary artists including Shepard Fairey, with a free and easy way to generate permanent certificates of authenticity and reduce the scope for fraudulent activity. Verisart combines museum certification standards, distributed ledger technology and image recognition to its provenance and registry services”.
From this brief description we can see the key points of blockchain technology applied to the art business and understand its strengths on improving such a complex market. Clearness and security: It’s quite easy. If you think about the art business in its general bubble (collectors, auctions, artists), one of the main characteristic that stands out is lack of transparency. Fraudulent activities and a certain diffidence are definitely present in the trade of art works.
These elements led blockchain technology to enter the field as a game changer. The ledger
inside of the accounts, which is always the same and records the transactions, increase
drastically the security levels, while the transparency is due to it being public and usable. Plus, as it’s known that art collectors value their privacy, so blockchain further suits their requirements by implementing an encryption component.
Advertising: Other than just connecting artists and buyers, a key feature could be a
market based on advertising. As is the case for WildSpark. This particular platform, run its transactions through AMPs. Cryptocurrency can be spent by users to award a content creator, and they can subsequently use it to advertise their works on the platform.
A new horizon
As we wrote in a preceding article, a revolutionary wave is hitting the current art market through the development and fast evolution of a digital arts space.
Blockchain technology and platforms such as Verisart or Artbyte are already setting a new horizon, bringing the art market into a new epoch, where not only more artists can enjoy greater revenues, but a future where digital and physical art will have a new fundamental structure in their exchange and setting value.