Blockchain and the art world

1. New services for artists

Copyright protection and management

Questions related to “who created a certain work, when and what was the content of the work” are very common in disputes between copyright holders. Although the law does not require you to file your work with a registry to have your rights protected, being able to easily answer the above questions is a key advantage in conflict resolution.

Blockchain technology, as a global, secure, immutable, and free ledger allows us to solve the root of the problem by uniquely answering the aforementioned questions. By inserting a copy of the work (specifically a code uniquely associated with it, see NFT section) in a transaction on blockchain, it will be forever registered in the ledger along with a timestamp.

In addition to notarizing works, it is also possible to securely manage rights on the blockchain. For example, by dividing them up unambiguously between several co-authors or by entrusting them to “smart contracts” which, for example, could allow them to be assigned automatically when certain events occur (incoming payments, fixed dates, assignment of other rights in exchange, etc.).

Fundraising

By simplifying the transfer of value between people, blockchain technology allows for very simple and secure fundraising campaigns. Art enthusiasts can directly fund artists or, conversely, aspiring artists can launch campaigns to raise money and fund their careers. All without intermediaries and with maximum security.

NFT

What gives value to a collectible is its authenticity and “uniqueness”. But, in the digital world, everything can be copied/replicated easily.
With NFT technology, based on blockchain, it becomes possible to create unique and original objects even in the digital world. Any work of art can be uniquely associated with an NFT and, at this point, becomes unique and authentic: here is that the digital collectible acquires the same value as the analogue one.
NFTs can be used in all typical commercial scenarios of works, such as: buying and selling, rights of use and reproduction, investment, etc.

Cryptocurrency exchanges

The adoption of cryptocurrencies (based on blockchain) by artists and the art market in general allows for faster, more secure and global management of economic flows.
Artists could surrender the works or rights associated with them (all or in part) in exchange for cryptocurrency and exchange their value within minutes in a secure and certified manner.
Performing both cryptocurrency exchanges and copyright management on the same blockchain would allow for synergies and automation (smart contracts) digitally.

Examples

OpenSea

“Discover, collect, and sell extraordinary NFTs on the world’s first & largest NFT marketplace”

Pixsy

Leading global digital image rights protection platform acquires the company Binded, involved in copyright registration on blockchain.

Maecenas | The Art Investment Platform

Investment platform that uses Blockchain technology to create a marketplace of works (both digital and analogue).

Blockchain Art Collective

Platform for the certification and digital verification of the authenticity of works of art.

2. User engagement through tokens

Tokens are simply digital objects, created on a blockchain and transferable between its users. Their possession can be associated with, for example, the right to:

Access to exclusive events, meet the artists, ticket upgrades, etc.
Access to events/facilities/staff that are not usually accessible: preparing for events, dining at the same venue as the artists, etc.
Conversion of tokens into physical goods or real experiences (autographs, photos with artists, etc.) that you can only have/do if in possession of the tokens

Tokens are acquired through active participation in the life of the organisation. For example:

Attending initiatives/events
Volunteering during events
Promoting activities on social media
Inviting other users to events

Or through gamification techniques:

Mini games that allow you to earn Tokens such as surveys, games during events, etc.
Gamification funnels into dedicated events (augmented reality treasure hunts to find tokens or NFTs, etc.)

In addition, the tokens could be distributed directly by the organisation at its discretion, for example, on the occasion of anniversaries, the season ticket campaign, important events, etc. Another option would be to create contests among aspiring artists that would allow them to earn tokens.

Luga Points (cryptocurrency of the MyLugano circuit) could be converted directly into the organisation’s tokens, thus creating a synergy with local commerce.