Artcyrption is a platform for art markets users to protect, track and sell art assets on the blockchain. The main problems in the art world revolved around lack of market transparency, fragmented artwork records resulting counterfeits and fraud, price manipulations and undisclosed conflicts of interests.
Art crimes are the third most common source of international illegal activities after drugs and weapons. The art world has to constantly deal with issues of copyright infringement, authenticity, forgeries and counterfeits. Currently, most artwork records and data are fragmented and ambiguous amongst various galleries, collectors and artists. They can easily be manipulated given most are paper based and records stored on computer databases can be changed. While databases of art records and sales exist, the veracity has never been completely trustworthy. This is where blockchain comes in.
The Artcryption blockchain platform aims to rectify this by creating a digital ledger and one stop shop for art transactions and identity. Artcryption is a platform utilizing blockchain technology for artists, creators, galleries, auction houses and other art world players to protect the physical, digital and intellectual property rights in artwork, collectibles and the luxury goods market whether a painting, photograph, illustration, video or other collectible work. Blockchain technology can solve the issues of provenance, chain of title, security, transparency, faster transactions and protect intellectual property in the art, collectibles, luxury goods and other intellectual property assets. The record of art transactions on the blockchain can help with valuation, appraisals, tracking movement and other goods, conservation/restoration records, insurance, shipping and authenticity etc. by having all transactions and purchases placed on a blockchain. Ths will help reduce and prevent counterfeits and infringing artworks from entering the art marketplace creating more trust – and generating a higher value of the artwork itself.
In addition, artists can create and sell a digitized version of their art on the blockchain identifiable with a unique blockhain URL – creating an additional revenue model for artists and adding value to their artwork repertoire. It permits users to sell, license, protects, store and manage intellectual property rights such as art, limited editions, collectibles and other luxury goods.
|“New technology could transform parts of the art industry. Blockchain could revolutionize the art industry by resolving questions of provenance, and improving transparency”. Deloitte Art and Finance Report, 2017 (www.deloitteartandfinance.com) copyright and ownership issues.|
The platform will utilize modern copyright infringement and tagging strategies to counter infringement. These include physical tags, fingerprinting, artificial intelligence, deep learning, location tracking and machine learning.
Transactions of value such as art sales once hashed to a blockchain are irreversible and create a record of that transaction forever with a digital signature so that it is traceable, auditable and verifiable. In addition, artists can manage and control the use of their IP through smart contracts and infringement tracking software. Blockchain technology is revolutionary and stores data cryptographically in a traceable and inalterable records of transactions of value on a shared distributed ledger. It allows users to do peer-to-peer transactions without the need of a third party intermediary to create trust and prevent fraud and manipulation of records.
The Artcryption is a database utilizing the Fast Access Blockchain (FAB) blockchain technology platform instead of the commonly used Ethereum blockchain platform. All transactions on the FAB platform are highly scalable to an enterprise level and faster and secure ensuring provenance and authenticity of the artworks are preserved – giving Artcryption a competitive advantage over any other art blockchain platform.
Blockchain technology can help artists and other art world players with enforcing, selling, protecting and licensing their intellectual property rights in a way that current legal protections and systems have been unable to do so. Blockchain technology’s ability to provide encrypted information and data to a unique public digital blockchain hash code (complex alphanumeric codes) that can protect and control IP rights where the law and traditional IP law has failed.