The Benefits of Combining Art and Blockchain
When you think about blockchain technology and the future of its use cases, what does it mean to you? What possibilities come to mind?
Smart homes where a refrigerator detects that the milk is running low and sends a drone to the corner store to pick up more milk? Fully autonomous robot dogs armed with sniper rifles that make their own decisions? Androids that infiltrate humans? Ok, that's a little far-fetched (for now), but what can we do with blockchain today?
Are there ways blockchain can be used to benefit people and society? How can we make the most of this new technology? You will be surprised at how far-reaching the benefits of combining art and Blockchain technology can be
Benefits of using blockchain in the arts
Tokenizing a work of art means creating a digital version that is linked to the physical work. It offers buyers the ability to purchase art with cryptocurrencies, or cryptocurrency holders the ability to invest in art.
It also allows artists to raise money by selling digital tokens that represent fractions of the physical work.
The blockchain technology behind cryptocurrencies provides proof of ownership, secure transactions, and transparency into who owns which work at any given time.
This means that when you buy a share of a piece of art, you can track its history on the blockchain as it changes hands over time. You can see where it was displayed, when it was sold, and how much money was raised from the sale in each transaction. Does this make sense in a world where increasingly sophisticated fakes are selling for millions? We think so. Not convinced?
A few more benefits
- You have access to information about every change of ownership;
- You are able to verify authenticity;
- The owner is credited with each exhibition or auction and receives income equal to their share of the artwork;
- There is less risk of fraud by third parties;
- There is no need for costly storage space since the artwork is not physically stored;
- A greater opportunity for people to own art they might not otherwise be able to afford.
- Creative freedom and free expression are encouraged, as artists no longer have to account to galleries or middlemen
- Investors can more easily diversify their portfolios and acquire new types of assets without getting into trouble with securities laws (e.g., they can buy shares in paintings without needing an investment license).
- If you are an artist looking for funding opportunities: Tokenizing your artwork can give you access to fundraising opportunities and new markets beyond traditional art galleries and auctions. For example, we have seen people using crowdfunding platforms like Kickstarter issue digital tokens representing shares in future artworks like ArtChips, rather than issuing stock certificates
- If you are a buyer looking for something new: There are now more opportunities than ever to acquire unique original artworks from around the world.