“Everything that can be automated will be automated”, – Robert Cannon (2015)
Well, that’s it. Automation has become a crucial part of our lives. From letting a car drive itself to making secure and verified transactions through the blockchain technology, automation is just living with us and to be honest, it’s growing everyday! The world is moving towards a digital future and like everything else, our art is being digitized too. NFTs, cryptocurrency and blockchain – these words are literally ruling the world and it’s just the starting phase. If you’re a regular visitor, you must’ve already read our pieces about Crypto and NFTs but today, we’re going to talk about blockchain!
A blockchain is a public database which permanently records the digital transactions. It’s highly secure because when a transaction occurs, it automatically starts appearing on a vast network of computers. Although public, it can only be used with a specific “key” or password. Moreover, it leaves an immutable trail when accessed. To put it in simple words, blockchain technology eliminates the need for a “trusted third party” to verify that a transaction has taken place. Relating it to the artists, one of the art market’s greatest challenges is to verify the authenticity of the art pieces (more in cases where the artist is no longer alive). According to a report published by FAEI in 2014, 50% of the sold artworks were examined to be either forged or not attributed to the correct artist. Blockchain has the potential to solve this problem as one of its key features is its fragmented nature which protects the information from the danger of being hacked. Also, it enables the seller to verify authenticity through timestamps on transactions and cryptographic signatures. Blockchain, for sure is a safer option for sellers but it has a lot more benefits! We’ve listed a few of them right here.
New forms, wider audience : Blockchain is becoming a part of artists’ lives. In the sense that everyone is now looking forward to digitize their artworks in order to make them available to a wider audience. To take an example, we can look at the cryptokitties, a virtual game that allows the players to purchase, collect, breed, and sell various types of virtual cats. Back in 2018, they were auctioned for up to $140000, attracting a new class of consumers – “the gamers”, who’re perhaps less likely to be interested in the more conventional forms of art.
Saves time, makes money : Another aspect of artists’ being involved with NFTs is that a lot of “investors” (not always art lovers) are interested in buying NFTs because it’s a way of making money, both for the seller and the buyer. Moreover, making it more “virtual” means attracting buyers from all over the world. You don’t have to be at the Serpentine Gallery, all dressed up for an auction! You can instead be in Malibu, sipping on a fancy Piña Colada and still buy the artwork you’re interested in. It opens the doors for the sellers to attract a wider audience and probably make more money!
Art is everywhere : Of course we appreciate the beauty of timeless pieces but that doesn’t limit our willingness to appreciate the “trending” new forms of art. With blockchain and NFTs gaining more popularity, there is a wider scope for art to be appreciated. We’re now experiencing the beauty of art in every field, be it gaming, fashion, entertainment or anything else. Brands are recognising the power of digitized artworks and entering the world of NFTs and we believe that there’s no going back.
Art as an asset class : Buying NFTs is not only limited to experience, money and the love of art. It has a lot to do with your status! With digitized art becoming a status symbol, blockchain has a lot of potential. This is another way the emerging artists are thinking about capital and the way it relates to people as a commodity and a financial entity.
Though the digitized art industry is already worth $21.33 billion, it is still in the starting phase! Let’s see where it goes, maybe to the moon?
Sources :
Art basel – Blockchain, artists and cryptocurrency
Art basel – Artists as cryptofinanciers
Statista – Monthly art sales value
