Blockchain Tokenization for the Art Sales
Using the TokenD blockchain software platform, we created a marketplace for transparent and secure art trading, enabling ownership and copyright tracking, transactions involving digital currency, fractional ownership, and crowdfunding.
The art director of a company dealing in fine art sales reached out to us with a request to help modernize the way that the company did business. The art market has undergone few changes, so the company was dealing with a lack of transparency in art sales, low liquidity and an old-fashioned financial system. While eCommerce in general is developing very quickly, in the art market it is still difficult to track copyrights, trade restrictions and ARR.
The Client needed our assistance to create a modern marketplace that would:
- Increase transparency for everyone involved in the process: dealers, buyers, investors
- Become a user-friendly and immutable database containing all certificates, copyright information, etc.
- Optimize spending
- Be flexible enough to be easily expanded and complemented with new functionality in the future
To make this marketplace reality, we selected the Blockchain tokens technology, which converts the rights to an asset into a digital token, stored securely in Blockchain. The technology is fast and allows multiple parties to make data entries that will be visible to all, as well as immutable and easily trackable. We created a marketplace with the following functionality:
- Provides the opportunity to list artists and their art pieces, buyers and mediators
- Organizes data in a transparent internal registry, which allows for easy tracking of all copyright information as well as transactions
- Enables peer-to-peer trading options: direct sale, exchange, auction, fractional ownership and crowdfunding
To implement this solution on a budget, we used TokenD, a ready-made Blockchain software platform, which is simply integrated into the customer’s business and customized to provide the necessary tokenization and online trading opportunities. Following are the factors that shaped our decision:
- It is fast, which cuts down on development time and enables a faster launch
- It is easy to set up and use for all parties in the 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. After 3 months of using our solution, the Client had decreased the overall time and fees associated with the trading process and had provided more transparency to those who participated in this process. Due to these changes, the company attracted new investors and revenue streams.