Centralization is a major problem within the industry.
Blockchain functionality will significantly reduce fraud, if not eliminate it altogether
Investors especially benefit from instant ownership transfers, where art is tokenized and tokens can be traded 24/7.
This article will explain in detail how blockchain technology can merge finance, technology and law to create a perfect solution for the gradually emerging ‚digital renaissance‘.
In the art world, unique pieces are sometimes sold for millions of dollars, and one would expect a universally applicable technological, legal and financial standard that supports the background processes of a such transaction has already been implemented.
The infamous Mona Lisa alone inherits an estimated value of over $ 2.6 billion, though she isn’t even available for purchase. Still, paintings on the market, like Da Vinci’s Salvatore Mundi, require outdated processes to sell them.
This particular coin was sold for over $ 450 million to Saudi Crown Prince Mohammed bin Salman . This brings us to another major problem within the industry: centralization.
Only wealthy individuals are able to afford this type of asset. What about the cultural value for society? Blockchain and the accompanying tokenization enabled by its players aim to address these problems.
An introduction to the world of art
Looking at the history of art, one would certainly agree that its various products have been around much longer than financial products like stocks or bonds. Ancient pieces like the Bhimbetka and Daraki-Chattan petroglyphs date back around 700,000 years. Most recently, the oldest painting (44,000 years old) was sold for millions of dollars.
Throughout the history of the world and economic volatility, one constant aspect has always prevailed: items sold by humans in visual form for aesthetic purposes, commonly referred to as artistic.
However, it is quite difficult to actually determine the overall market capitalization, simply due to regional fragmentation and the fact that almost anyone can produce a work of art. Some good quality, some worse, but it always depends on the human perspective because even bananas on the walls of Art Basel have been sold for hundreds of thousands of dollars.
So we can’t really make a final statement on the capitalization of the industry. The latter oscillates between 70 and 800 billion dollars, depending on what you define as “artistic”.
There is a wide range of applied arts and fine art, which ranges from traditional sculptures and paintings to film, photography, graphic designs, performance – although it is quite difficult to make one. token – animation and even video games. The average art sales by sector worldwide from 2017 to 2019 are shown in Figure 1 below.
The history of mankind is described as a chronology through masterpieces. Each period of civilization had its own specific tendencies. While this was a “high culture” story, more recent developments shift this paradigm towards much greater exposure to the general public.