We have already seen how Blockchain technology can revolutionize the art market and one of the ways is the process of Tokenization of works of art.
But what is the Tokenization?
Tokenization consists of the fragmentation (or securitization) of a single work into several virtual parts, represented by tokens.
Tokens are digital securities or shares made certain and secure by Blockchain technology, a Ledger, a virtual register where information is validated by multiple users, making the entered data incorruptible and confirming the authenticity and truthfulness of the same.
What does Tokenization allow?
-the sale of a single work in small ownership shares
-a liquid art market aimed at the general public
-to lower the investment threshold, with less risk
The first experience of tokenization applied to art dates back to June 2018. Andy Warhol’s painting “14 Small Electric Chairs” was tokenized with sales of 31.5% of shares corresponding to € 1.7 million.
What future for tokenization?
There is interest in new forms of investment in art, especially among the younger ones, with the birth of the so-called Millennial Collectors, but still many limits in the use of tokenization for art in particular, which have critical points such as the possession of work, its insurance, its use and enhancement.
But the moment in which new technologies will be increasingly present in the art market is getting closer and closer, today the Blockchain arrives in a concrete way to be applied to professional tools such as Art Rights, which offer the opportunity to create a value chain information on works of art in favor of all the protagonists of the art world, in total privacy and security.
And you, are you ready to learn about technologies for art?
Photo credits: Snark.Art