How can the art market be financialized by the general economy?
At the art + technology summit in Oslo,Norway, the organisers were keen to find revolutionary solutions to make their markets more transparent and trustworthy. Charles Wirth makes his case: exploring the blockchain and discovering an art market in desperate for digital disruption.
More than 200 artists, entrepreneurs and collectors are facing Keynote Speech on how blockchain technology can change artwork production and reduce risks. Authentication and provenances, and how the cryptocurrency model makes the art market more “liquid,” allowing some investors access to traditional exclusive markets.
Nicolas Cary is making all this possible，He provides a digital identity for everything on the earth，and then, allow poorer population to use international payment system. Anton Rudenklaw of KPMG has argued that blockchain is now barely proving itself, he points out that most of the projects he deals with are in the more provable logistics supply sector.
For Muirhead at Fabric Venture, online trust between people is inevitable, although there is no risk-free path. Blockchain is a way to share data without compromising privacy and security, allowing companies and individuals to share information in a mutually beneficial way.
Companies like KPMG, which has a large reputation and business, have concentrated on law making and regulation and have the most strained relationship with blockchain. Lawyer Jonathan (from the big law firm Clifford Chance) has raised a series of questions — if blockchain data is stored on computers in 50 different countries, it is impossible to achieve privacy data regulation. Cybersecurity is a myth; For all the talk of “democratization,” most cloud computing platforms are still controlled by giant American technology platforms like Amazon and Microsoft, whether they can run blockchain applications or not.
In addition to the naysayers, blockchain clearly has its own supporters. CHRISTIE’S Anne Bracegirdle, a photography expert at Christie’s, argues for the adoption of blockchain in the art market，Anne believes this will simplify transactions and improve transparency, trust and security.But the main driver is that blockchain allows artists to monetize their work, limited edition images that can be sold. Blockchain can be both a source of images and a validation of images.
As it turns out, currency digitization and asset allocation are major issues for artists and developers.
Yehudit Mam’s dada.nyc sells raw digital images of various artists to create value, and artists can also get their follow-ups here. John Zettler’s R.A.R.E. network does similar work for artists of digital images, photography and animation.
It is worth noting that these innovators are keen to adopt the limited supply model of the traditional art market rather than licensing or subscribing to the mass market in discussions around making “scarce” artworks, and the potential relationship between the infinite reproducibility of digital entities and physical artworks is a perennial topic.
In this market, art is both exclusive and anonymous.So Nanne Dekking, who once auctioned at sotheby’s but now runs Artory, a digital registry of art verification information, point out that the biggest obstacle to the secondary market is mistrust; Jess Houlgrave, who started the Codex deal, observed many buyers trading behind the middle tier and offshore entities.
Online innovators have transformed collectors’ relationships with galleries, making the art market more “virtual” and anonymous than ever before.Gone are the days when collectors could only trade face to face with dealers.Increasing distance and anonymity in art market transactions are driving demand, which is evident in exploring blockchain.
But it is also clear that there is a thirst for money to drive a more trustworthy art market. Inevitably, a way for cryptocurrencies to financialize the art market is imminent.Why not sell the value of the shares to someone else, and then trade those shares with each other? Big collectors can get locked in on their liquidity; Small investors can create new markets based on the scarcity and perceived value of art.
Of course, all this extra money comes from the global economy, so why are people so keen to invest their wealth in unproductive assets?
With the uncertain development of the world economy, the capital share of the art market is surprisingly high.But in general the economy, the value is more and more virtual, works of art to be traded for investment “diversity”，as a scarce commodity, the additional value of the digital is irresistible，So while skeptics might argue that blockchain doesn’t really prove its worth, it won’t stop art market enthusiasts from trying.
Because if it works, there will be a lot of money to be made.
Art Dip #Blockchainart #artmarket
