The intertwining of art and blockchain technology has been underway for years. But with a pandemic fallout that has dramatically impacted institutions and decimated artists’ income, that relationship has grown and thrived in 2020 — providing digital artists a much-needed avenue to present and sell their creations, and collectors an innovative way to discover art. As our world grows increasingly virtual, this surge in the crypto art market should be no surprise.
SuperRare, along with other crypto marketplaces like OpenSea, MakersPlace, and KnownOrigin, sell art in primary and secondary transactions and function on blockchain networks — shared, decentralized cryptographic ledgers that track assets. Works purchased in cryptocurrency like Ether (on the Ethereum blockchain), are sold as Non-Fungible Tokens (NFTs), unique digital tokens tied to blockchains representing an asset, guaranteeing its value and scarcity.
Meanwhile, institutions have been entering the blockchain ecosystem too. After the Austrian Museum of Applied Arts became the first museum to fork over Bitcoin for artwork in 2015, other cultural institutions from Cleveland’s Great Lakes Science Center to Florida’s St. Petersburg Museum of History have experimented with Bitcoin payments to enhance the visitor experience.
How Does Blockchain Help the Art Sector?
Blockchain applications are well-known in the financial industry. Developed in 2008, this technology enables secure internet transactions such as cryptocurrency payments and smart contracts. A 2021 analysis of the blockchain market by Markets and Markets indicates that the sector could grow from a value of $4.9 billion (in 2021) to $67.4 billion in 2026.
Blockchain applications in the music, film, theater, and publishing industries could lead to revolutionary improvements in the not-too-distant future. NFTs (Non-Fungible Tokens), which have revolutionized the traditional art market, were discussed in 2020. NFTs are blockchain-enabled digital contracts that guarantee the ownership and authenticity of a work of art.
Advantages of Blockchain in Art:
Reduction of Intermediaries – The large number of intermediaries involved in the sales transaction makes it very difficult for writers to reach their target audience and makes the job expensive.
Initiatives based on blockchain applications and smart contracts will give artists back control over their work. This allows them to show or sell their work to potential buyers in a secure cyber environment and at low prices.
Maecenas Fine Arts, a pioneer in blockchain art auctions, is using this technology. On this platform, sellers list their works and investors can buy some of them, which reduces operating costs. Also, there are no middlemen, which is only possible with the transparency, traceability, and speed of the blockchain.
Guaranteed Intellectual Property – It can also use for copyright innovation. Thanks to the blockchain, we can permanently store the intellectual property of work in the cloud and manage it wherever and whenever we want.
This increases transparency and guarantees copyright at a sensitive time for internet art: 132 billion visits to pirate websites were mentions in the first nine months of 2021, up 16% from the same period in 2020, according to a study by pirate-based online in the London Muso Company (latest data available).
Improved Traceability of Creative Content – Another blockchain application is to improve the traceability of works of art. Because it is a sophisticated cryptographic technology, we can trace the entire journey of a painting, sculpture, or other valuable object from its creation to its destination.
Blockchain stores information about records, sales, surveys, analyses, certifications, reviews, etc. Associated with works of art. This will reduce the illegal trade in cultural goods and solve the problem of counterfeiting.
Blockchain can make the marketplace safer
One of the art market’s greatest challenges for works where the artist is no longer alive is to verify their authenticity and provenance. In a 2014 report, The Fine Arts Expert Institute (FAEI) in Geneva stated that over 50% of the artworks. It examined was either forged or not attributed to the correct artist. Blockchain could change this. As a public, decentralized list of records linked and secured using cryptography, blockchain’s key feature is its fragmented nature. Hosted by millions of computers simultaneously, no centralized version of the information exists for hackers to access or corrupt.
Thus, blockchain is currently believed to be the most secure way to transfer digital data. ‘When it comes to selling artworks, two things are important,’ Verisart CEO Robert Norton said. ‘Is the artwork real, and do I have the authority to sell it to you?’ Blockchain’s capacity to track and verify authenticity through timestamps on transactions and cryptographic signatures can solve that problem.
New art, new collectors – Blockchain has become part of artists’ practice, both as subject and medium. There is a nascent blockchain art movement from bitcoin graffiti art to artworks such as The Last Bitcoin Supper by French artist Youl, which sold for nearly USD 3,000 on eBay in 2014. The likes of Simon Denny have examined blockchain and cryptocurrency as a subject for years. Other examples include Plantoids – blockchain-based robotic plants which interact with people who donate via Bitcoin and Ethereum.
Is Blockchain the Future of Art?
Databases drive the modern world, meaning blockchain will soon play a significant role in transforming professional and personal lives. Besides trading bitcoins, blockchain plays a vital role in the art field.
What is the Association Between Blockchain and the Art Industry?
Art has always been part of society. Most wealthy individuals love art pieces that they obtain from art auctions. However, today, numerous electronic forgeries of art corrupt provenience records, thus leading to huge losses for artists. Like other sectors, the art industry would benefit tremendously from modernization.
Blockchain technology has a lot of optimistic promises for individual artists and art organizations. Through it, artists would solve most of the problems they encounter today.
Does Blockchain Have Potential in the Art Industry?
Since blockchain records are permanent, they elevate artworks’ security and prevent fraud. Blockchain promotes legitimacy and egalitarianism. This technology is a stabilizer of the art auctions’ inconsistency.
Blockchain can combat antiquity trade and stolen art by rummaging through global and domestic art sales to solve legitimacy issues in the art industry. This aspect is valid because blockchain has proven beneficial in other industries. For instance, it helps track down stolen antiquities by recording their movement in the supply chain.
Art collectors can determine the number of pieces available for sale through blockchain technology, minimizing the chances of getting ripped off. If you are an art collector, this information will help you discern the reasonable price for an art piece. Artists can also minimize the number of copies of a specific artwork to remain unique.
Blockchain would enhance the trust of art collectors because an artist can register original copies, thus making unauthorized copies noticeable and worthless.
Final Thoughts
Is the Blockchain Here to Stay?
Blockchain is here to stay and changes many industries, just as it has in the arts sector. The technology is likely to give artists and art collectors more control. They can choose who sees their work and whether it should be distributed and reproduced.
As blockchain increases the affordability and affordability of artwork, it attracts many art collectors, thereby revolutionizing the art industry. Also, this powerful technology will change people’s lives by transforming the publishing industry, the music industry, and cinema.
Therefore, understanding the relationship between technology and art is interesting especially if you are an art seller or love to buy art, you should consider using it because you can earn a lot safer.
Earl Miller is an art enthusiast and cryptocurrency learner who believes that the future of money will be digital. He’s been investing in cryptocurrency for over a year now. He’s also a passionate photographer and video editor.
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