Blockchain Tokenization for the Art Sales
Using the TokenD blockchain software platform, we created a marketplace for transparent and secure art trading that enables ownership and copyright tracking, transactions involving digital currency, fractional ownership, and crowdfunding.
The Art Director of a company that deals in fine art sales reached out to us with the request to help modernize the way they do business. The art market hasn’t changed much, so the company had to deal with a lack of transparency in the art sales, low liquidity, and old-fashioned methods on the finance side. While in general, eCommerce is developing very fast, art dealers still find it hard to track copyright, trade restrictions and ARR.
The Client needed our assistance to create a modern marketplace, that would help:
- Increase the transparency for all sides of the process: dealers, buyers, investors
- Become a user-friendly and immutable database of all certificates, copyright information, etc.
- Help optimize budget spending
- Be flexible enough to be easily expanded and complemented with new functionality in the future
To make this marketplace a reality, we selected the Blockchain tokens technology, which converts the rights to an asset into a digital token stored securely in Blockchain. It is fast, allows multiple parties to make data entries that are immutable, easily traceable and visible to all. We created a marketplace with the following functionality:
- Provide the ability to list artists and their art pieces, buyers and mediators.
- Organized data storage in an internal registry that is transparent, allows easy tracking of all copyright info, as well as all transactions.
- Enabled peer-to-peer trading options: direct sale, exchange, auction functionality, fractional ownership, and crowdfunding.
To implement such a solution on a budget, we used TokenD, a ready-made Blockchain software platform that is easily integrated into the customer’s business. TokenD is also easy to customize to provide the necessary tokenization and online trading opportunities. Here’s what shaped our decision:
- It is fast, allowing our customers to cut down the development time and launch faster.
- It is easy to set up and use for all sides of the complicated art trading process.
- It enables the needed functionality, helping with secure, private and fast transactions using digital currencies
Thanks to the TokenD platform, the solution for the art market was released 1 month after the project started. Within 3 months of using our solution, the Client decreased the overall time and fees associated with the trading process and provided more transparency to the participants of this process, which attracted more investors and new revenue streams.