21/11/2019 Computer - IT - Webs
What is Art tokenization?
Art has so far (and still in the present) has been a very costly affair. Only those Art Connoisseurs, curators & collectors who have the financial backing have been able to afford the artworks.
Tokenizing an Art means that the art's cost of ownership is ascertained, the rights to own it is digitized into multiple tokens and sold to the interested buyers. Since each token is backed by Art's value and right to ownership, it implies that you own a portion of the art for that particular value. Art asset-backed tokens have a ceiling limit as to how much units of tokens they can sell, so the quantity is limited and the value increases over time without getting diluted.
The primary advantage of tokenizing an artwork is that it lowers the entry barrier for everyone who might be interested in purchasing the artwork but may not have the funds to purchase the artwork. The concept of Tokenized art allows a group of individuals to collectively invest in the artwork by purchasing few of the tokens that are equated to a certain value. The holders of these tokens can trade(Buy or sell) the tokens in asset exchanges that support them to make profits.
Any artwork can be tokenized using an Art Tokenizing platform. In a few steps, they can create art backed tokens easily.
Why is art tokenization important to the Artists and everyone in general?
The art world is tightly controlled by certain groups that determine the pricing of an artwork, and it suffers the same fate as many cottage industries that get shadowed by monopoly and middlemen (Art dealers).
To understand this, you'd need to know how an Artwork is priced before it reaches a gallery.
The price of an artwork is influenced by certain factors like the size of the artwork, reputation of the artist, the reputation of the art dealer, the medium etc. In a regular scenario, the art dealer buys out the art from the artist and based on his reputation, establishes a price bracket to price the artwork. The gallery which displays these works operate on two main business models, It either buys out the artwork directly from the dealer, displays it or works with the art dealer on a Profit sharing model.
Model 1: Directly buying the artwork, makes sense when the artwork is negotiable and the art dealer wants to let go of the artwork or the artwork is bought in more quantities. The gallery would then store the artwork or loan it to other galleries or exhibit to increase the value of the artwork (Just like how advertising works, the more you see it. The more you become familiar, which is directly proportional to the value of the artwork increasing.)
Model 2: Profit sharing model, for artworks that are created by reputed artists and are backed by reputed art dealers, the gallery operates in this model where the auctions are held in a profit-sharing basis when the art is sold. If there was no sale, to absorb any loss, the gallery may take a minimum guarantee before the auction or exhibition event.
First lets start with how normal Crowd Funding sites like Kickstarter Works: It all starts when an Entrepreneur comes up with a Brilliant idea of a pr...
First lets start with how normal Crowd Funding sites like Kickstarter Works: In a Nutshell Crowd Funding sites are Marketplaces that connect Innovativ...
How does this Decentralized Video Sharing Script work? This Video Sharing Script runs on the Steam Blockchain. Every video uploaded by your users gets...