What If We Marry Art and Blockchain
As a blockchain-driven public ledger can simplify transactions that would otherwise require intermediaries, the technology can come in handy for any industries involving third parties, including arts. Apart from verifying artwork provenance, blockchain can help to assert co-ownership rights, set prices, and carry out transactions at less cost.
Is It Authentic Art?
Do you know that at least 20% of arts located in museums are fake, and this number is soaring?
Typically, those interested in buying art do this through an art gallery, an auction, or online. In these cases, sellers act as intermediaries authenticating a certain work of art. However, their commission for such a service is pretty high. During the last 40 years, their fee grew from 20-30% of a deal price to 40-50%. Sometimes, their commision can be as high as 60% of the artwork price. Blockchain can make such deals much more affordable.
How Blockchain Helps
Verisart not only authenticates pieces of art but issues appropriate certificates for them. All the data is stored on the blockchain, which makes it accessible for authorized parties in real time. Collectors can trace the ownership history of a certain work of art before purchasing it. As records are decentralized, no forging is possible.
At the same time, the blockchain-driven ascribe was developed to track digital artworks. It assigns proper licenses to uploaded artworks and tracks their provenance. With the help of smart contracts, this platform automatically claims copyright upon a third-party request.
How to Invest in Art with Blockchain
According to the research conducted by Invaluable, one third of consumers consider artworks as a form of investment. This means buyers are interested not only in the provenance of a certain piece of art but in its potential price growth.
For this, it’s crucial to compare prices against market benchmarks. Furthermore, buyers need to be able to co-own an artwork. In their turn, sellers would be interested in a safe deal when a purchaser guarantees her liabilities. Blockchain can simplify this.
How Blockchain Helps
Maecenas is a decentralized art gallery that takes care of every aspect of investment in arts. It prevents art forging by tracking each artwork’s history. It monitors and stores any alterations to the artwork details, including ownership, price, and the market benchmark. As data is decentralized, it can’t be hacked and falsified.
When it comes to the commission, the platform takes only 2-6% of the deal, and the deal budget can be as low as necessary. Moreover, it supports both full and partial ownership. Its blockchain-driven smart contracts trigger payments and transfer ownership rights instantly.
How to Enter This Market?
Despite the art market is getting rife with blockchain-backed solutions, there is still enough room for newcomers. If you’d like to enter it as fast and cost-efficiently as possible, you can use the genEOS blockchain platform that is well-scalable, secure, and delivers ready-made smart contracts. Basically, any features you need for a Dapp are already pre-designed and built into genEOS.
In Short: How Blockchain Enhances Art Market
The ample opportunities of blockchain attract not only such well-established industries as banking or legal services but some unexpected spheres like arts, too. Here, blockchain becomes helpful in terms of both tracking artwork provenance and enabling safe and convenient investments.
Although blockchain-powered companies are cropping up in the market, there are still niches for newcomers to take. In their turn, blockchain platforms, such as genEOS, can help them create such solutions much faster compared to developing from scratch.