BLOCKCHAIN AND ART
There is increasing talk of Blockchain…
Let’s find out why the Art World is being caught by this subject.
The System and the Art Market have always been characterised by an opacity and a difficulty in accessing the information; a world where operators have adapted to the mechanisms and dynamics that have been generated.
Now Blockchain is pointed out as a solution to the art world problems; but it is worth understand what it is and how it can be used in the service of Art and its players.
The Blockchain is like a ledger, a virtual register where the information is validated by several users making the data unchangeable and certifying its authenticity and truthfulness.
A document, a contract, an information that is encrypted and linked to a complex alphanumeric code.
This code, after entering the network, receives the validation from database from all over the world; this to support the existence of a traceable chain of blocks, where the relative alphanumeric code encrypted information is verifiable.
This is the power of the Blockchain, which is gaining increasing space beyond the world of cryptocurrencies, in aid of specific problems existing in art that hardly coexist with criteria of transparency.
These uncertainties involve provenance, price manipulation and lack of transparency of information.
For the Blockchain three main lines of specific use in the artworld have been identified :
-Art Business Solutions
These three aspects encompass the whole ecosystem of the art world.
In the first case, the Digital Art, which is therefore created exclusively for digital media and made entirely using computer, gains value thanks to the chance of certify, encrypt and control its distribution with the Blockchain; a protection for Artists and Collectors.
On the occasion of the Etheral Summit, an event dedicated to art organized by the Etherum company, the digital image of a small kitten called “Cryptokitty” was auctioned for 140 thousand dollars.
The second line of specific use is linked to the tools that can be framed in Art Business Solutions, operating procedures to support the system and the art world concerning origin, tracing the history of the artwork and their management, including verification of the authenticity.
At the moment several platforms are being developed that use the Blockchain to support the certification and management of collections for artists, collectors and operators in the sector.
One among all Art Rights, the first platform for the management and certification of artworks with Blockchain technology; highly professional tool to trace the history of a work, making it possible, in order to protect the privacy and security of the various stakeholders, to validate the information entered and decentralised, but made incorruptible.
Finally, the last aspect is the Tokenisation, namely the securitisation of a luxury item, in this case an artwork.
Securitisation means the subdivision into several parts of a single asset. The Blockchain allows this subdivision, giving the possibility of selling a single work in small shares of property opening the opportunity to a more liquid and larger market, offering real and ownership microtitles, whose goal is to create a secondary art market, like the stock market in which it is possible to sell these securities and make transfers of ownership.
Beyond these technical aspects, the Blockchain can be a great solution for what is the protection of artists, the copyrights, as well as a collectors’ assurance in the management of their collections and a valid tool for operators in the sector.
The Blockchain for the World of Art could be a solution to different problems, a valid tool that deserves study and deepening.
And you, do not get caught off-guard…
Watch the video on YouTube: