is developing faster than we think

The relationship between blockchain and art

is developing faster than we think

Although there are many unanswered questions relating to legislation, standardization, and governance, various stakeholders and many start-ups are increasingly involved in implementing these emerging technologies.

This prompts a thorough review of their capacity for disruption of the market and of the inherent challenges.

I am very concretely without the presumption of completeness, giving you some of the recent cases of a blockchain application to the art business.

Cryptocurrency to buy art

Buying art with cryptography is the straightforward application of blockchain and cryptocurrencies to art. Cryptocurrencies are well suited for these kinds of transactions, as they enable you to quickly and safely transfer large value stores to anyone in the world. There’s no need to wait until banks approve the transfer, and there’s no percentage of the transaction going to the processor.

Billions have been raised with this new sector over the last decade, and some of the early investors are looking for diversification why not give them art in addition to conventional investments?

Disrupting the art market

Blockchain network Maecenas collaborated with London gallery Dadiani Fine Art in July 2018 to sell fractional stakes in 14 Small Electric Chairs (1980) by Andy Warhol. 31.5% of Warhol’s work went up for sale in cryptocurrencies, including Bitcoin and Ethereum. The total dollar value of the work’s crypto-currency share was $5.6 million. It was an artistic and technological landmark.

Moving forward, using blockchain and tokenization in this way could allow easier market access, investment diversification, lower transaction costs, and increased liquidity.

For one, it will make the securitization process much simpler and less costly than it is currently, requiring less and at times no intermediaries. That, in turn, makes fractional ownership of expensive pieces of art (or of any highly valuable item) much more viable than was the case before.

Since blockchain-based digital assets can be traded quickly and safely without the need to trust a centralized authority, markets in such tokens are inherently more open, requiring far less volatility than markets that use conventional intermediaries. That tends to make them more available and, therefore, more liquid.

Art tokenization

Blockchain network Maecenas collaborated with London gallery Dadiani Fine Art in July 2018 to sell fractional stakes in 14 Small Electric Chairs (1980) by Andy Warhol. 31.5% of Warhol’s work went up for sale in cryptocurrencies, including Bitcoin and Ethereum. The total dollar value of the work’s crypto-currency share was $5.6 million. It was an artistic and technological landmark.

Moving forward, using blockchain and tokenization in this way could allow easier market access, investment diversification, lower transaction costs, and increased liquidity.

For one, it will make the securitization process much simpler and less costly than it is currently, requiring less and at times no intermediaries. That, in turn, makes fractional ownership of expensive pieces of art (or of any highly valuable item) much more viable than was the case before.

Since blockchain-based digital assets can be traded quickly and safely without the need to trust a centralized authority, markets in such tokens are inherently more open, requiring far less volatility than markets that use conventional intermediaries. That tends to make them more available and, therefore, more liquid.

Disrupting the art market

It’s possible to purchase a digital artwork directly from the artist with no middlemen using blockchain. Consequently, having been an art dealer has never been cheaper in history. You can purchase a piece of art online right now for under $10. The file you are getting wouldn’t be an original reprint. Instead, it would be an original, verified copy that is part of a limited (or perhaps unique worldwide) run.

Modern art markets are the élite domain. These are curated and mostly suit the preferences of Westerners of the upper class. Nevertheless, as soon as you digitize art and create blockchain art marketplaces, access to those marketplaces will become more straightforward for everyone.

Without a gatekeeper or gallery manager standing in the way, any artist can sell it to everyone else in the world.
This movement towards the decentralized selling of art gives control to artists and owners on what to do with their art. Buying and selling art will happen peer-to-peer at much faster levels than traditional art markets. You may want to buy a piece for a week to display, and then resell it next week. That is possible with decentralized blockchain art marketplaces.
You will be able to take out offers from all over the world when you sell. Eventually, smart contracts should enable the transaction, ensure your funds are obtained, the file is transferred to the receiver, and the original is no longer on your computer.

Digitally produced Art using Blockchains and Tokens

One part of the digital art movement focuses on computer-based art creation. This can mean sketching something, shopping for existing pictures, or depicting something in the form of GIF. These kinds of art start life as computer code.
Since tokens based on blockchain are unique and uncopyable, they can be used as the basis for purely digital artworks that cannot be forged and whose ownership can be clearly claimed, preserved, and transferred. This can and is opening new art forms and the markets for digital collectibles.

Such kinds of technology art projects keep questioning our preconceived ideas about what art would look like. Projects such as CryptoPunks have inspired the CryptoArt movement, challenging digital art stereotypes through the development of works explicitly designed for an exchange through cryptocurrencies.

Originally started as an “experiment,” they have gained attention in the last years, being featured alongside similar digital marketplaces like SuperRare and Dada.nyc at Christie’s Art+Tech Summit.

Cryptokitties were introduced in 2017 as a unique collectible tokens and sold for over 100’000 USD each.
Artist Kevin Abosch created ‘Forever Rose’ in February 2018, a virtual artwork worth $1 million and offered for cryptocurrency fractionally. Each purchaser will own 10 percent of the work as a token in a blockchain

Blockchain Art Provenance

Provenance and authenticity are the main determinants of any artwork’s value. The applications of Blockchain technology in art don’t end with just digital art. Digital artworks often take advantage of blockchain art authentication and open marketplaces, but this can be applied to traditional art as well.

One important application is blockchain art provenance, helping art buyers establish a history of previous owners back to the original artist.

The benefit of using blockchain is that the database is immutable and is append-only. The provenance of a piece of art once mentioned on the blockchain will be challenging to copy, fake, or alter. As blockchain enters the art market even for older pieces of art, the technology-art divide closes even further, bringing analog art into the digital age.

Christie’s New York made art world history in November 2018 when it was collaborating with the blockchain-secured Artory registry. The Barney A. Ebsworth collection’s $318 million auction house sale, one of the year’s most prestigious sales, saw its transactions reported entirely via blockchain. Artory’s registry records history, provenance, and archival material while enabling buyers to remain anonymous, increasing trust among buyers and sellers.

Another critical project in this field is the Swiss-based 4Artechnologies. The company has created a complete ecosystem for the Art world, producing digital passports for art, allowing a full track and immutability of the blockchain by tracking the 3D characteristics of the Art object the Art DNA.

Those are not abstract exercises alone.
And this is just the tip of the iceberg. As tokenization and blockchain-related technologies and applications mature and become more traditional, we can expect more online platforms and more established players to use this new technology.
To art dealers, fans, and aficionados, this means a whole new world of opportunity.

new policies and mechanisms for recycling in "smart cities" & the "smart world"

At the moment only developed countries have enacted recycling policies, while the rest of the world unfortunately has inadequate systems. . . . . .

Waste and Environmental Pollution

Every year 3.5 trillion plastic products are put on the market, which contribute to environmental pollution: in fact, almost 2.2 billion tons of plastic ends up in the world’s rivers and seas! Just think that 90.5% of the plastic produced has never been recycled, and it is estimated that by 2050 the world will have around 12 billion tonnes of plastic waste.

Without clear visibility and traceability of plastic production and recycling it is, and will be, impossible to control pollution not only on an international scale, but also simply on a local scale. Traceability and accountability policies and procedures are therefore needed to create awareness among the population, both of the situation and of the progress made.

In a context where waste management has reached critical situations, new technologies must be used to create change.

The blockchain has emerged as a solution to trace and make data unchangeable and unalterable, and to enforce policies, monitor funds and donations, providing an efficient and transparent reward system.

In the following paragraphs I will outline some of the most significant initiatives in this area.

Rewarding Money Laundering

Globally, 1.3 billion tonnes of waste is produced annually and is expected to continue to increase.

Unfortunately, at the moment only developed countries have developed recycling policies, while the rest of the world unfortunately has inadequate systems, or chooses the path of indifference or starvation and avoids making decisions in that direction.

In order to encourage recycling by using blockchain, models and initiatives can be developed that through the tracking of “recycle” reward participants, thus giving a tangible value to the plastic material and/or recycling activity.

The ability to implement these initiatives, especially in countries with deep socio-economic inequalities, could provide a strong incentive to recycle waste through a reliable and easily accessible means of income.

However, one should never lower one’s guard: the environment (like many other non-profit initiatives) is often used as a breeding ground for fraud, often using funds illegally. The blockchain ensures transparency for donors through the correct use of funds.

Some examples of projects

Some tangible examples of these projects are:

• Agora Tech Lab:

aims to help cities, to create participatory waste management frameworks. Using our state-of-the-art technology, city dwellers can easily be compensated for their contribution to society in exchange for a local token that can be exchanged for government services;

• Plastic Bank:

a company offers incentives for recycling and collection of plastics through the blockchain by giving Plastic Bank Digital Tokens participants;

• Litterati:

an application that allows the user to share geolocalized images of waste. In addition, through labelling describing what kind of waste they are, their artificial intelligence system continues to be implemented. Although there is no reward system, users can invite or challenge others. It is an interactive way to motivate collaboration and help keep the neighbourhood, street, school or city clean. Reportedly, the use of the app has caused public institutions to move from plastic to paper packaging;

• Empower:

a Norwegian start-up that uses a blockchain-based system to value plastic waste. It is proposed to track and make digital inventories to ensure that most of it is reused or recycled. Through collection points around the world, financial rewards are given in exchange for a plastic deposit, which is then digitally recorded. They are currently available in 15 countries;

• GiveTrack:

strives to provide transparent, real-time reporting on fundraising numbers and targets. Created in 2015, GiveTrack is BitGive’s flagship project: its mission is to leverage blockchain technology to revolutionize philanthropy;

• Circularise:

a Dutch start-up that monitors recycling, in an industry that goes beyond donations, but still requires responsibility. Its creators have designed a block chain solution that provides an accurate price for recycled material and indicates the number of times a product has gone through the recycling process before. For example, they can inform brands using recycled fabrics and plastics about the content they need to use, providing transparency in the supply chain and encouraging companies to adopt a circular economy;

• WePower:

has worked with governments to use blockchain for energy savings. The blockchain can also be used to monitor emissions and provide a trusted framework for treaties and law enforcement. In addition, it can provide visibility to financial investors, encourage responsibility in waste management and stimulate micro and macro-scale projects. This company is operational in Estonia.

In conclusion:

Can the blockchain be the key tool in the fight to save the environment?

The ability to track waste and the transparent management of all processes, from financing to waste logistics, and the way in which waste is disposed of and recycled, is one of the main ways to bring about a cultural change towards more environmentally friendly societies around the world. As we have just seen, the use of blockchain technology can be cross-cutting, from tracking waste disposal habits, promoting recycling practices with reward systems, to creating plastic identification. The goal is to implement local and global initiatives that together can make a difference. New technologies deliver on promises in the environmental sector, but they must be accompanied by consumer behaviour and changes in the economic business model.

new policies and mechanisms for recycling in "smart cities" & the "smart world"

At the moment only developed countries have enacted recycling policies, while the rest of the world unfortunately has inadequate systems. . . . . .

Waste and Environmental Pollution



Every year 3.5 trillion plastic products are put on the market, which contribute to environmental pollution: in fact, almost 2.2 billion tons of plastic ends up in the world’s rivers and seas! Just think that 90.5% of the plastic produced has never been recycled, and it is estimated that by 2050 the world will have around 12 billion tonnes of plastic waste.
Without clear visibility and traceability of plastic production and recycling it is, and will be, impossible to control pollution not only on an international scale, but also simply on a local scale. Traceability and accountability policies and procedures are therefore needed to create awareness among the population, both of the situation and of the progress made.
In a context where waste management has reached critical situations, new technologies must be used to create change.
The blockchain has emerged as a solution to trace and make data unchangeable and unalterable, and to enforce policies, monitor funds and donations, providing an efficient and transparent reward system.
In the following paragraphs I will outline some of the most significant initiatives in this area.


Rewarding Money Laundering



Globally, 1.3 billion tonnes of waste is produced annually and is expected to continue to increase.
Unfortunately, at the moment only developed countries have developed recycling policies, while the rest of the world unfortunately has inadequate systems, or chooses the path of indifference or starvation and avoids making decisions in that direction.
In order to encourage recycling by using blockchain, models and initiatives can be developed that through the tracking of “recycle” reward participants, thus giving a tangible value to the plastic material and/or recycling activity.
The ability to implement these initiatives, especially in countries with deep socio-economic inequalities, could provide a strong incentive to recycle waste through a reliable and easily accessible means of income.
However, one should never lower one’s guard: the environment (like many other non-profit initiatives) is often used as a breeding ground for fraud, often using funds illegally. The blockchain ensures transparency for donors through the correct use of funds.



Some examples of projects



Some tangible examples of these projects are:
• Agora Tech Lab:
aims to help cities, to create participatory waste management frameworks. Using our state-of-the-art technology, city dwellers can easily be compensated for their contribution to society in exchange for a local token that can be exchanged for government services;

• Plastic Bank:
a company offers incentives for recycling and collection of plastics through the blockchain by giving Plastic Bank Digital Tokens participants;

• Litterati:
an application that allows the user to share geolocalized images of waste. In addition, through labelling describing what kind of waste they are, their artificial intelligence system continues to be implemented. Although there is no reward system, users can invite or challenge others. It is an interactive way to motivate collaboration and help keep the neighbourhood, street, school or city clean. Reportedly, the use of the app has caused public institutions to move from plastic to paper packaging;

• Empower:
a Norwegian start-up that uses a blockchain-based system to value plastic waste. It is proposed to track and make digital inventories to ensure that most of it is reused or recycled. Through collection points around the world, financial rewards are given in exchange for a plastic deposit, which is then digitally recorded. They are currently available in 15 countries;

• GiveTrack:
strives to provide transparent, real-time reporting on fundraising numbers and targets. Created in 2015, GiveTrack is BitGive’s flagship project: its mission is to leverage blockchain technology to revolutionize philanthropy;

• Circularise:
a Dutch start-up that monitors recycling, in an industry that goes beyond donations, but still requires responsibility. Its creators have designed a block chain solution that provides an accurate price for recycled material and indicates the number of times a product has gone through the recycling process before. For example, they can inform brands using recycled fabrics and plastics about the content they need to use, providing transparency in the supply chain and encouraging companies to adopt a circular economy;

• WePower:
has worked with governments to use blockchain for energy savings. The blockchain can also be used to monitor emissions and provide a trusted framework for treaties and law enforcement. In addition, it can provide visibility to financial investors, encourage responsibility in waste management and stimulate micro and macro-scale projects. This company is operational in Estonia.



In conclusion:



Can the blockchain be the key tool in the fight to save the environment?
The ability to track waste and the transparent management of all processes, from financing to waste logistics, and the way in which waste is disposed of and recycled, is one of the main ways to bring about a cultural change towards more environmentally friendly societies around the world. As we have just seen, the use of blockchain technology can be cross-cutting, from tracking waste disposal habits, promoting recycling practices with reward systems, to creating plastic identification. The goal is to implement local and global initiatives that together can make a difference. New technologies deliver on promises in the environmental sector, but they must be accompanied by consumer behaviour and changes in the economic business model.