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 authentication 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.
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 ICOs are usually sold at a lower or discounted rate.
One possibility for ICOs is that they could become alternatives to things like Patreon for artists. In other words, artists could gain followings online and then start ICOs to fund their work and lifestyle. And for fans who have purchased the artist’s ICOs, they could gain special access to tutorials, video courses, and other perks. The artist can also offer VIP treatment at special events as a reward for purchasing the ICO.
3. Fan Tokens
These are similar to ICOs, but applied to sports teams. The fan tokens give fans special privileges, like the ability to connect with their favorite sports teams and participate in decision making. These crypto innovations are described as new digital assets for fans, primarily in sports at this point, with the aim of strengthening and encouraging fan engagement. Artists could follow the lead of sports teams and sell fan tokens as an additional revenue stream. This will allow their fans to gain special perks and access. Their fans can purchase the tokens via crypto on the blockchain and hang onto them. Since artists would also be owners of the tokens, they could engage with fans and network in VIP events.
Non-fungible tokens, or NFTs, are not the same as crypto -- but since they do operate on a blockchain, they have already established themselves as new forms of digital assets. Some common examples of NFTs are rare artworks, photographs, music, videos, and multimedia. Since these digital assets are non-interchangeable, like fine art, there can only be one legitimate owner at any time.
Of course, artists can take full advantage of NFTs and use them as official digital signatures for their unique and modern masterpieces, including digital art. An artist can also develop a platform in the international community, communicate with fans and gain monetary compensation for their work.
Blockchains are a convenient way of fast-tracking transactions, legitimizing ownership, and formalizing exclusivity. With these traits, blockchain technology will inevitably find its application in the world of art. This trend has so much to offer and it is definitely worth keeping an eye out for.
Submitted for artblr.com by Peyton Avery