ArtBankChain Uses Blockchain as an Engine for Efficient Art Trade
BEIJING, March 26, 2018 /PRNewswire/ -- 2017 marked a significant shift for the global art trading market. According to the "Art Market Report 2017" published by the art market's leading information provider Artprice and AMMA, the turnover of fine art trading reached 14.9 billion USD, up 19.76% from 12.45 billion USD in 2016. China remained the largest market in 2017 with a turnover of 5.1 billion USD, accounting for 34.2% of the global market. The U.S. was the second largest market with a turnover of 4.96 billion USD.
The turnover of the global art market in 2017 increased 456% from 20 years ago, and the number of countries involved grew from 34 to 59. Salvator Mundi painted by Leonardo da Vinci was traded at 450 million USD by Christie's New York, a staggering price which set a new record for global art trading. Following Christie's and China Guardian's Auctions, more auction companies are launching their online businesses, and the Internet is becoming the new battleground for art trading. Public soliciting, artwork tours, and auction agencies are becoming popular, and many players in this market are developing their global businesses. Artwork demand and transactions are expanding worldwide.
Recent reports clearly demonstrate the trends of globalization and digitization. The three main obstacles to the development of traditional art trading continue to be limited circulation, authenticity, and legal ambiguity on inheritance. Informed buyers demand better-qualified artworks and more sensible purchasing. The only way to survive in this ever-changing market is to explore and innovate constantly. The birth and maturation of block chain technology has offered a new solution for the art trading industry and supporters of block chain. Block chain is immutable, decentralized, and trust-free, which has helped embed artwork as a financial instrument into the ecological chain to promote the healthy development of the art trading industry through the power of technology.
ArtBankChain accelerates the ecological chain of art trading
It is known that block chain is the core fundamental technique involved in the groundbreaking concept of "value internet". Block chain is decentralized, tamper-proof, transparent, and secure, and features distributed ledger technology. Focusing on exploring the combination of technology, art, and finance, ArtBankChain introduced block chain to the art trading and art finance industries.
The team at ArtBankChain accumulated data and experience, and value of art trading. Set up in August 2017, the team was led by project founder Thomas Gilbert, and they brought block chain into art trading for the development and application of this technique. At present the team has gained support from the art finance industry, auction houses, internet industry, art agents, and artists.
Just imagine that a secure art trade is completed without traditional institutions' trust system. No commission fee for intermediaries, no credit evaluation agent to keep track of the trade for credit assessment purposes, most of all, the trading platform is owned by no one. You can enjoy the convenience and security brought by big data and digital identification without knowing anything about how the protocols are running technically.
- Current application of block chain in art industry
Technically, the main focus of discussions regarding the applications of block chain lie in its tamper-proofing, decentralized data and authenticity verification. For instance, start-up company Verisart in LA released an app based on block chain for artists, collectors, and traders to verify the origin of artworks. Artchain.info adopted block chain to identify the authenticity of artworks. Codex are planning to take the same approach, as well as develop the application of Biddable to curb the defaults caused by auction houses by means of intelligent contract management. All these efforts are being made to address trust problems, the fundamental issue on the art market, expecting to build a reliable system for art trading with the assistance of block chain which is traceable and anonymous.
But ArtBankChain wants more.
Surpassing the traditional trading mode
Based on block chain, ArtBankChain aims to build a ecological network focusing on the art trading industry, in order to drive the industry's healthy development and provide reliable guarantees of artwork origin, ensuring an orderly, authentic, and liquid market. With the Chinese partner Xijian FinTech helping to expand the application of block chain in the art trading industry, ArtBankChain applied the technique on the identification and backup system, and successfully broadened the territory where block chain could be conducted.
- Intelligent digital analysis report
Art collectors are frequently burdened by the problems of authenticity, value assessment, and investment directions. Aware of this, ArtBankChain input such details as artworks, artists, private collectors, auction houses, and relative institutions as digital information into the block chain, to distribute a unique id to the artwork. Meanwhile, artificial intelligence and big data work together to make multi-dimensional intelligent analysis to produce a report. The report will reveal all previous trading information, to form an assessment about the possibility of authenticity as well as provide market trend analysis and purchasing advice. Based on the information on the block chain, ArtBankChain will release an annual report to analyze the actual market trends in the past year.
- Allotment of shares in art investment and trading
Recently, a landmark deal conducted by Sotheby's London was closed. The painting "Femme au béret et à la robe quadrillée" by Pablo Picasso was bought at the price of 49.827 million pounds on February 28, which set a new record for the art market. Soaring prices and indivisible ownership make art collecting formidable for collectors. ArtBankChain does away with the limit of indivisible ownership, repricing the artwork as denominated by ArtBankCoin and promoting the digital allotment of shares of the artwork. The intelligent contract and digital id can constrain the artwork as a financial asset and lower the threshold for trading, and as a result, buyers could afford the expensive artwork by obtaining a digital allotment of shares.
- Intelligent contract for p2p trade
The decentralization of block chain, i.e. the method of storing and verifying information through multiple computers, could eliminate the risk and doubt about one specific entity being the sole controller of information. The adoption of intelligent contracts and advanced e-signatures could guarantee the effectiveness and authenticity of art trades, which would help artists trade person to person without paying expensive commission to intermediaries. Normally a 10% commission is to be charged from the seller to the agent to close a deal. By trading an artwork with a digital id on ArtBankChain, merely 3-6% commission is needed to own a private net key and initiate intelligent trading.
- Application of artwork finance
As ArtBankChain's partner in China, Xijian FinTech is a pioneer in the field of the internet artwork mortgage and third party guarantee businesses. Utilizing the safe operation method of p2p under strict supervision, Xijian FinTech is experienced in the application of block chain to art finance. In the future, ArtBankChain hopes to realize the digital mortgaging of artwork through its worldwide network of artwork storage established by ABC Foundation. The owners of ArtBankCoin (ABC) can invest on the object mortgaged by the borrower, or make payments denominated in ABC for the object of repurchase via intelligent contract. For the application of block chain, ArtBankChain has predictable prospects in various scenarios ranging from trust mode, private equity, and online auction.
A new currency for the Internet era: ArtBankCoin
According to the white paper issued by ArtBankChain, ArtBankCoin is the only original digital currency circulated on ArtBankChain, where all the objects within are denominated in ABC, which is tradable in major exchange markets worldwide.
ABC can be used as a digital payment instrument for acquiring from the block chain intelligent analysis and opinions concerning authenticity and valuation, artwork storage, insurance, art exhibition access, art investment, mortgaging, standard appliance, and intervention. Most of all, along with the improvement of overall service performance, the limited ABC has to be divided to meet growing demand, so the value of each individual ABC will appreciate, causing the owners' assets to also increase in value.
ArtBankChain has a clear vision for the upcoming development of the art trading industry's ecological chain, and it showed strategic directions for online and offline services covering artwork authenticity, artwork mortgage, artwork shopping mall, artwork investment and storage, and so on. ArtBankChain makes art trading trustworthy, fast, and fair. Considered an improvement to internet architecture, distributed trust networks have turned the internet to a equal system. We will witness and embrace a new era together with ArtBankchain.
SOURCE ArtBankChain
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article