In today’s digital world, we are witnessing the impact of emerging technologies on almost every industry. From virtual reality to artificial intelligence, bots, and the Internet of Things, technology is transforming the way we live and work. The art market is no exception. In fact, thanks to blockchain, the art market may soon undergo a revolutionary transformation as well. With Web 3.0 and blockchain technology entering the picture, it’s time for you to explore new ways of selling art or buying pieces that speak to your soul (or wallet). Let’s explore how blockchain technology and Web 3.0 can revolutionize the future of art by reducing intermediaries and increasing transparency, trust, and security for artists, collectors, dealers, brokers, and galleries alike.
Why the future of art is so exciting
Many developers are working hard to create Web3, a third iteration of the internet that brings personal privacy, anonymity, and openness back to web usage. It does this by using blockchain technology as an open ledger for all digital information on the web—making it decentralized again! These new technologies offer art lovers the opportunity to own their digital property in a much more secure way than traditional methods, with less risk of forgery or theft online. Owning your digital property is only one benefit of these new advancements. Web3 also has exciting implications for artists in the way that they create their work, earn money from it, and share it with fans who want to follow their every move!
Digital scarcity—what it means for artists
Today, art can be viewed as an object that exists in the tangible world. However, this could change with the use of blockchain technology in the future. In Web 3 (Third-generation Web), digital scarcity is a reality that would enable artists to truly own their creations by providing them with higher profit margins on their works as well as complete control over how they are perceived or used. Because each piece is assigned a unique identifying code, artists would be able to create scarcity with it by setting its availability limit (whether physical or digital) and establishing who can interact with it, such as buyers or viewers.
The current industry problems
The contemporary art industry is largely dominated by a few wealthy people. This prevents new collectors from entering the market and encourages big buyers to keep purchasing more pieces to increase their wealth. Aside from greed, another current problem is the lack of clarity regarding ownership rights for digital art. It’s difficult to tell who owns what when it’s bought or how many copies are made as a result of different edits that can be applied to an artwork digitally (think Photoshop). That leads us to discuss one way Web 3.0 and blockchain technology could help the future state of this particular industry.
How blockchain technology can change everything
Blockchain technology is a way to distribute data across peer-to-peer networks with an immutable record of transactions. It’s the backbone of digital currencies like Bitcoin, but it can also be used for online art auctions and digital land registries to prevent forgery, fraud, identity theft, theft of intellectual property rights, and other kinds of malicious behavior in the art world. It has applications for authenticating physical objects from original artwork to prove that medicine was properly manufactured in a laboratory. Major museums are already investing big time in blockchain technology as a way to securely store their collections without worrying about hackers stealing their valuable information. So how might this new paradigm change the future?
Smart contracts and Ethereum—how they are used in art
Today, the most popular token-based smart contract is Ethereum, which runs on blockchain technology to process transactions. It can be used to create agreements between users through a series of programmed conditions and will enforce those obligations automatically once they are activated (Bitcoin uses fiat currency in this way). Artists can use Ethereum to release their work into the world along with specifying how much they want each buyer to pay for it; then, when a purchase is made, the funds from the buyer’s digital wallet are transferred directly to the artist’s account using Ethereum’s digital currency called ether.
Non-fungible tokens (NFTs)—what they are good for
Non-fungible tokens (NFTs) are one of the latest innovations in blockchain technology. These tokens are assets with individual value that can be traded as desired. As such, they are mostly used for artwork—but other potential use cases include collectibles, tickets, and deeds to the property. They’re similar to cryptocurrencies such as Bitcoin, but with a few major differences.
What could be done to help artists today?
Artists have to be smart contract literate to make sure they get a fair share of their income, but it doesn’t stop there. There are plenty of things that can be done to help artists today, and it starts with making sure their contracts match the future world they’re stepping into with Web 3.0 and blockchain technology, which will give them more control over their work than ever before, as well as recognition from everyone in the community who supports them.
In many ways, blockchain technology is almost tailor-made for the art industry. Artists can create a digital ID for their artwork and track its sale lineage throughout their life. Larger investors can buy a piece of art using cryptocurrency, while smaller investors can also participate using digital currency. If you’re interested in buying or selling art as an investment, blockchain may be worth checking out!