Upcoming trends. (Kunst21 Blog)
In 2021 digital artworks deployed and negotiated via blockchain, also known as NFTs, have surged with an exponential growth. NFTs are a rather new selling method for the artists, which provide a proof of provenance, ownership and value. Provenance can be defined as the artwork first sold by the artist himself or the gallery representing him. Therefore, future owners can trace prior possessors up to the creator. The definition of ownership at Kunst21 implies that the share of the artwork is secured to the collectors personal blockchain address and he is the only one capable of future trading. The artwork remains available for internet users to be seen and enjoyed. For value, if traded through well-known NFTs platforms, the prices paid by collectors are publicly available, enabling the bringing of the long-awaited transparency to the artworld.
The Internet Renaissance
This rise of digital artwork has been named the Internet Renaissance. As part of this period, wealth is transmitted to art, and wealth is represented by art collections at the same time. It comes with the following advances: the ease in negotiation, directly sold for a fix price or via an auction, speed of transactions, art pieces directly sent to your address once the auction is finished or your bid is accepted, as well as fast payments both bringing agility to the art commerce. The simplicity in art trading has not been experienced before, neither with the entry of internet and ecommerce. This ease in negotiation brings new investors into art, helping to achieve more art sales and higher prices.
Parallel to the NFTs development, the fractionalized ownership trend has emerged. The purchase of an artwork is divided into shares with rights for the future proceeds after a sale. Fractionalized ownership has proven to support increasing the value of artworks, since it enables a broader participation of individuals in investments, which would not have been possible in the past. Thanks to the digital artworks’ negotiation and fractionalized ownership, more money than ever is invested in the art world, and Kunst21 will help direct it to the art creators and promoters.