Blockchain allows digital information to be distributed without being copied – ultimately re-shaping the way in which the internet functions. Blockchain reached its peak in popularity back in December 2017 when the value of one Bitcoin, the first application of the digital ledger technology, reached a huge $20,000. Since then, the applications of blockchain have diversified into varying fields such as healthcare, food and energy. In particular, the arts has now begun to embrace the possibilities of blockchain, showcasing the ever-evolving relationship between the arts and technology.
This might be surprising if we explore what Apollo magazine describes as the ‘traditionally conservative and technophobic’ art market but in some quarters the arts has been pushing back against such stereotypes and embracing the possibilities that blockchain can bring to the field.
Building Transparency and Accountability: Blockchain in Art Registries
Blockchain has now begun entering the realm of art registries, in which the technology is being used to securely record works of art and their trading histories in an innovative way.
The art market is notoriously known to be opaque when it comes to trade. When making a purchase, buyers may find themselves asking: how do I know if I am making the right investment? Is this piece authentic? Ultimately, is this worth my money? The issues aren’t just for the buyers either, auction houses also find themselves having to spend a lot of time researching items and insurance companies need to acquire appraiser reports as well. Indeed, the process is complicated.
Yet, the introduction of blockchain into the arts aims to solve exactly these issues in a secure and efficient way.
An example of this is Codex, a blockchain platform that makes the purchase of art and collectibles much more efficient and streamlined. Codex stores the provenance of art assets in a secure database – providing an authentic and verified solution for buyersand businesses to acquire art and collectibles. When a seller has a Codex Record for their product, all they have to do is share access to the record with the potential buyer in order to verify its authenticity.
Thus, blockchain in art registry poses great potential, not only in streamlining the process of trading art, but also encouraging transparency and accountability in the market. Of course, there are still areas to improve in terms of fully integrating blockchain into this field. Developments that are required include ensuring that legitimate data is being stored in databases, as well as developing compatibility amongst different registries so that records can be transferred accordingly.
Originality in Digital Art
Initially, the replicability and distribution issues in the digital art field posed many challenges for artists attempting to authenticate their ownership of particular pieces. Yet, blockchain technology can now make digital art truly one-of-a-kind – increasing its value to astronomical heights. ‘Digital scarcity’ equals big business, online marketplaces facilitating the trade of digital art such as CryptoKitties continue to experience fast-paced growth, primarily using the uniqueness of each image as a major selling point.
For instance, CryptoKitties is one of the world’s first blockchain games, the site states that each kitty has a unique genome that defines its appearance and traits…CryptoKitty is one-of-a-kind and 100% owned by you.
The exclusivity of each designed kitty immediately translates into big profits – Celestial Cyber Dimension, a distinctive digital image of a cat, sold for $140,000 despite being initially estimated at $25,000 –$30,000. Another example is artist Kevin Abosch’s piece Forever Rose, a digital piece of art which was sold last year for a value of $1million in cryptocurrency.
Interestingly, this piece was sold to a collective of investors rather than one individual – each buyer was the recipient of one-tenth of the piece, in accordance with the amount that they had invested. This showcases a completely new way of acquiring digital art called tokenization. This essentially converts artwork into many digital tokens using blockchain, thus allowing multiple investors to own sections of a piece. Not only does this prove a lucrative investment option, it also democratizes the art market – opening it up to a much wider net of investor circles.
It is clear that blockchain technology is changing the art market in profound ways, it is revolutionising the way in which art is authenticated, bought and sold. Artists are able to validate their work and ensure originality; auctioneers are able to streamline the research and evaluation process by easily tracking the provenance of pieces; and buyers can invest in pieces knowing their exact value and trading history.
Undoubtedly, there is much more to come in the future.
