Blockchain Technologies and Art: Opportunities and Open Challenges
23 Pages Posted: 9 May 2023
Date Written: May 5, 2023
Abstract
Recently, blockchain technology has been introduced in multiple sectors and industries. This technology is currently stimulating a broader process of social and industrial transformation impacting several potential areas of adoption (e.g., payments, tracking and tracing solutions, authenticity). This transformation is also gradually affecting the creative industries and the art sector. In particular, blockchain solutions aim to increase the art market’s transparency, track ownership and provenance, and provide an infrastructure for the tokenization of fractional artwork sales. This paper analyses applications of blockchain technology in the fine art sector, from provenance and authenticity to online sales, auctions, and NFTs. We provide an overview of the main blockchain platforms operating in the art industry and we analyze in detail the functionalities of two of the most prominent live solutions. The first platform tackles issues related to provenance and authenticity, while the second one offers an online fine art marketplace. Despite the great potential and applicability of blockchain technologies in this sector, new challenges and risks are posed to the fine art world, which are discussed and categorised in this paper.
Keywords: Blockchain, smart contracts, digital art, provenance, authenticity, decentralised marketplace
JEL Classification: C88, R30
Suggested Citation: Suggested Citation