Is blockchain technology in the art industry going to be a good idea? This is the new big question that has come up in recent months. Media is also talking about this recent trend of integrating blockchain in the art sector and related pieces of news are increasing daily.
Now as blockchain has been recently introduced to the art industry, the new technology is expected to keep track of the artwork so that there is more transparency during the purchase process. Companies that are already using blockchain in this industry have received exposure to a wider customer base. Blockchain is proving out to be a successful integration in this industry.
Now let’s see how blockchain will help artists, collectors, art investors, and auction houses:
Every artist that makes a piece of art wants to sell it at the right price. Artists are creating art digitally and with the help of blockchain, they are getting them authenticated thanks to blockchain timestamping capability.
The inclusion of historical analog art ownership and sale data also is eventually being updated.
These artworks are presented to art collectors and investors via online art auction houses. Artist’s exposure to the marketplace has gone up with this additional online exposure.
Now getting the right price is no longer a dream for artists.
- Art collector
The collector does not want to be a victim of fraud. They are art admirers and want their collection to be authentic. With the help of blockchain technology, they can know the history of the artwork with the help of blockchain traceability and transparency features.
It helps them track the historical record like the origin and ownership of that piece of art so that everything is kept transparent.
- Art investor
Blockchain is also benefiting the art investors as they are investing large sums of money and doing business out of this.
Any type of fee or costs related to money transfers is not involved now with the help of Blockchain cryptocurrency transfers.
One of the big benefits for the investors is that overseas purchases have been made easier and fraud-free as a large amount of money can be transferred digitally across borders within a small fraction of time.
- Auction house
Auction houses are also leveraging blockchain as they are in possession of large quantities of artwork. They have to maintain a lot of data and historical records for all of them. Security and transparency of information regarding the artwork are very important for these auction houses. Timestamped articles and blockchain ledgers facilitate the process of maintaining these records. Blockchain-based auction houses guarantee a reduction in online issues and complaints such as non-payment and non-delivery for online purchases.
Blockchain Art Companies
Here are some companies that have adopted blockchain technology to develop new business channels. With this new alliance, they are grabbing an exposure to a wider market limit.
This trendsetter art company is the first-mover to incorporate the cryptocurrency-based blockchain technology. They were the first ones to discover this alternative revenue channel and introduced it to this industry.
DADA is a platform where non-artists and artists can communicate with each other to create art out of imagination or a rough sketch.
DADA leverages smart contracts to facilitate the processing of art transactions allowing artists to present and also sell that piece of work in the digital market.
Even though a growing number of art companies have started piloting blockchain technology, there is still much more scope that is left undiscovered. Blockchain technology is still in an adaptation stage and will be requiring much more exploration and an open mind to see more adoption in the sector.
The exploration continues.