From game characters and digital paintings to film and poetry, non-fungible tokens (NFT) continue to change the artistic landscape in the age of blockchain. Despite the prevalence of online sharing, blockchain technology offers a solution to the blurred lines of media ownership.
Digital art blockchain technology enables the tokenisation of virtual assets to establish clarity in ownership and guarantee authenticity, which is an important facet of digital art since artists and owners need proper attribution for their work.
In this guide, you’ll understand how blockchain and its features help navigate the digital art landscape, redefine art value and unlock potential revenue streams.
Impact of blockchain on digital art ownership
The effects of digitalisation continue to shape the art landscape in positive ways. In particular, blockchain promotes digital art ownership’s identity, style, value, and revenue.
Identity
A common problem that artists tackle, regardless of medium, is attribution. Fortunately, the advent of NFTs helps artists by way of digital certificates of authenticity generated on the blockchain. The technology allows artists to establish and preserve their identity in the digital space and ensures that artists receive royalties with every subsequent resale of their work.
Through the minting of digital creations, artists permanently link their identity to the artwork for an irrefutable proof of authenticity that safeguards the work’s provenance and ensures creators retain ownership rights.
Style
Style is one of the things that many say can’t be taken from an artist, and that’s precisely how NFTs impact artists. They encourage artists to reevaluate and adapt their creative styles to suit the unique characteristics of their medium. Due to the global accessibility of NFTs and blockchain technology, the artist’s style has to appeal to an international audience and consider how different parts of the world appreciate art.
Digital transformations like blockchain prompt artists to experiment with new techniques and tools, exploring innovative ways to enhance the overall appeal of their creations. Blockchain elevates the quality of work and thought process behind an art piece. It also introduces new approaches to art because of the competition and value volatility.
Blockchain art has to be unique, indivisible, authentic, and portable, which should all be considered in an artist’s style. These essential properties inspire artists to infuse their work with distinctive elements, create a visual signature that aligns with their exceptional artistic identity and ensure each piece stands out.
Value
NFTs have high value because of blockchain properties like uniqueness and exclusivity. The limited editions or exclusive variations often associated with NFTs enhance the “scarcity factor,” elevating the desirability and market value of these digital creations.
Moreover, blockchain boosts an art’s value because of its accessibility and portability. Since it’s all digital, you can own a high-valued art in your phone in your pocket, unlike the logistical issues you might face and traditional art (shipping, permits, etc.)
The blockchain verification process bolsters the authenticity of digital art and its value, making it more desirable to collectors. Earning royalties with each resale adds a layer of ongoing value, creating a symbiotic relationship between the artist and collector.
Revenue
Minted digital creations are coveted artworks that many would spend a fortune on. Backed by blockchain network’s properties, NFTs potentially open significant revenue streams for artists. Tokenised NFT gives the artists an opportunity to sell to a consumer directly. With the elimination of intermediaries in the buying and selling process of art pieces, a higher return on the artist is expected.
Royalties on resales, crowdfunding initiatives, licensing opportunities and collaborations also become lucrative possibilities. The access to a wider audience means more people can see your art and be considered for purchasing. Eventually, blockchain can increase your revenue stream and diversify income sources beyond traditional art market constraints.
Advantages of digital art ownership
Digital art ownership unveils a myriad of tangible advantages for artists and collectors alike. From heightened accessibility and portability to the novel opportunities facilitated by blockchain technology, this section discusses the transformative benefits for those engaged in digital art ownership.
1. Verified authenticity
With NFTs providing immutable and unique artworks, buyers and collectors are sure they are getting authentic items. Each NFT has a unique digital certificate, providing an unalterable blockchain record that verifies the artwork’s originality and provenance.
The originality of digital art eliminates concerns related to counterfeit or unauthorised reproductions, establishing trust between artists and collectors.
2. Immutable ownership records
Verifying digital art ownership is easy because NFTs have a reliable and permanent record on tamper-proof ledgers. The history of ownership includes transactions from initial purchases to subsequent transfers.
3. Increased value
Since digital creations are tokenised as NFTs, their scarcity can be verified and their value potentially increase over time. This value appreciation often results in higher earnings for artists, primarily through resale transactions in the secondary market—where scarcity drives the artwork’s desirability.
4. Fractional ownership
NFTs introduce the concept of fractional ownership, allowing multiple individuals to own a portion of a digital artwork collectively. This broadens the investor base and enhances the artwork’s liquidity in the market. Fractional ownership enables a broader audience to participate in art investment, making it more accessible and inclusive for different types of collectors.
5. Smart contract capabilities
Smart contracts make automating and enforcing ownership agreements easy through self-execution. These contracts contain specific conditions, such as royalty provisions for artists with each resale, to ensure that artists receive compensation and investors the promised artwork without intermediaries.
6. Global accessibility
Digital art ownership through NFTs provides global accessibility by showcasing them to a worldwide audience. Collectors can explore and acquire diverse artworks from creators around the globe. This global reach fosters a more inclusive art market, connecting creators and appreciators regardless of location.
7. Democratisation of ownership
NFTs democratise access to art ownership by offering more competitive and inclusive platforms than traditional galleries with high commissions and exclusivity requirements. This model allows digital users to participate in the art market. For one, emerging artists benefit from broader exposure, while other collectors outside of select groups can own these artworks.
8. Decentralised ownership
In a decentralised ownership model, artists and collectors do not go through traditional art institutions or intermediaries. NFTs cater to a peer-to-peer ecosystem that makes art ownership more transparent and straightforward.
Criticisms and challenges of digital art ownership
While NFTs and blockchain technology bring unprecedented opportunities, they are not immune to scrutiny. This section tackles the complexities surrounding digital art ownership, including emerging critiques and challenges.
1. Commodification of art
The commodification of art emphasises trading artworks as financial assets, especially through NFTs. Many artists fear it might overshadow their artistic expression’s intrinsic value.
Critics argue that art commercialisation could lead to a market that is driven more by investment interests than genuine appreciation for artistic content. Artists and collectors must find a balance that preserves artistic integrity while acknowledging the market dynamics that come with their trade value.
Although this is a valid critique of digital art, it is arguably just as valid as the traditional brick-and-mortar gallery model.
2. Environmental impact
More people worry about NFTs’ environmental impact because this type of artwork requires energy-heavy proof-of-work consensus mechanisms.
There is a fundamental misunderstanding that proof-of-work consensus mechanisms are inherently computationally, unscalable and excessively energy-consuming.
Proof-of-work blockchains as they were originally designed, and as promoted by the BSV Blockchain, aim to achieve scalability while ensuring security and interoperability within an energy-efficient system.
Enabling scalability in proof-of-work by increasing the number of transactions processed per block per second inherently leads to a notable reduction in energy consumption. As more transactions can be accommodated within each block, the energy expended per transaction naturally decreases, resulting in a more energy-efficient system overall.
3. Intellectual property rights
While NFTs establish a transparent record of ownership, issues regarding unauthorised use, replication or alterations can raise questions about the ability of existing legal frameworks to protect digital artists’ rights. Today’s digital art landscape necessitates a more tailored approach to preserving artists’ intellectual property rights.
4. Market volatility
The digital art market can also experience sudden and unpredictable price changes. This can be risky for artists when setting professional fees, while buyers may be unsure about the lasting value of their NFT investments.
Art in new horizons
Nowadays, art can exist in the digital world. Blockchain digital art ownership is on the rise, and NFTs redefine artist identity and value globally. Despite some challenges—from environmental concerns to market shifts—the advantages illuminate the path forward.
BSV blockchain is a robust infrastructure for a data-based economy, including digital art ownership. To learn more about the intricate interplay of art and blockchain, download our eBook on enterprise blockchain products.
