The Fractionization of Art

Throughout the ages, art has typically been a luxury for the rich and powerful. Whether it was music, sculptures or paintings, it was reserved for the aristocracy. The artists would leverage all their talents and influence in order to be recognized by those with wealth and status in order to receive the subsequent rewards from them. On the other side of the coin, the elite in many instances used art as a store of value or security to protect their wealth and/or even used art as an investment vehicle. That desire to protect wealth through art hasn’t changed too much over time and has even evolved as a hedge against inflation. However, the difficulty for the creators and the brokers of that art came in the form of limited buyers. There were many who could appreciate the art and would have treasured ownership, but the reality was that few could afford it. Therefore, the artist, broker, or dealer had limited “market depth” at their disposal. This means that there may be a high demand for a particular asset but there are few capable of purchasing that asset.

Fast forward to the 21st century and we can see how the nature of art is changing from the physical world to a digital world as well as hybrids of the two. How do the creatives fit into all this? How does this adjust their financial narrative? What rights does the creative have, and what latent powers are activated as a result? The answer lies in leveraging blockchain technology and supplanting one’s work from the traditional system that has limited the creative’s expressive and profiteering abilities from their artwork for so many years.

So how can art become a collective endeavor in which numerous stakeholders can benefit from the artist to the commissioner to the admirer? The answer is simple, by creating an digital ecosystem around the art itself, in which multiple stakeholders and artists are able to buy, sell, and trade fractional value seamlessly without intermediaries interfering or leeching off that value.

Attempts at creating this new world have already been started. The company, Marceanas, has already successfully tokenized an Andy Warhol painting, “14 Small Electric Chairs.” Songs have also been tokenized, as well as literature. The advancement of NFTs (non-fungible tokens) has only fueled this movement. However, the question that still remains revolves around turning each creative work into its own untethered economic ecosystem where participants can have free range of options around how they utilize or trade around that art’s value.

Through tokenization on the blockchain, that value can be realized and exploited. The key is identifying the layer that matters most and creating a serviceable. application that allows content creators, art lovers, art collectors, and art dealers to pursue a symbiotic relationship with one another in a trustworthy digital environment.

Visit CineBlock.info to learn more.