Is Blockchain The Future Of Art?

The blockchain seems to be finding a foothold in virtually every industry from banking to retail, and the world of art is no exception. For some time now, blockchain has been looked at as a way of simplifying certificates of authenticity and helping artists maintain full control over their work. The use of blockchain technology for authentication purposes seems virtually inevitable since the data on the chain is secure and verifiable.

Looking at some crypto and blockchain applications in other areas, one can begin to imagine other uses for blockchain. Read on to see how blockchain is being used in other industries, and how it can possibly be used in art.

1. Smart Contracts

Blockchain is being used in the real estate market. The idea is simple – basically, blockchains solidify contracts so that the contracts cannot be altered, and in some cases, contracts can be automatically fulfilled. It sets up the conditions for money to be transferred after which all parties would know when the funds arrive. The blockchain regulates everything that happens in this process.

Artists could begin using the same concept to firm up commissioned work, such that a price and time of delivery are agreed upon in advance. In addition, if anything goes wrong, complete details of the transaction would be recorded and no one would be able to manipulate anything, thus making transparency of all transactions available to everyone. Transferring ownership of items would go from taking weeks to minutes, and in some cases, a few seconds.

1. ICOs

Initial coin offerings, or ICOs, are essentially a way for businesses (especially startups) to gather funds and raise capital by selling their own cryptocurrency. Since it is an initial offering, the tokens are usually sold at a lower or discounted rate.