Blockchain technology offers rapid advancements for designers and creatives in terms of ownership and distribution of their artwork, allowing them indisputable rights and the chance to monetize their work in more than one way. With decentralization as its hallmark and unprecedented transparency, blockchain could improve collaboration among creatives and streamline sharing ideas and resources while providing enhanced security.
In this article, we’ll cover the transformative impact blockchain could have on the design and creative industry in the near future. Read on and find out (possible) advantages of blockchain for creative professionals.
Changing the Definition of Owning an Artwork
When a collective of New Orleans art dealers first bought Leonardo Da Vinci’s “Salvator Mundi” for $1,175, little did they know this artwork would reach a staggering value just a few years later. In 2017, Saudi Crown Prince Mohammed bin Salman Al Saud bought a famous portrait of Christ for a staggering $450 million.
The reality is people from low- and mid- classes rarely, if ever, buy first-class artistic works, which became a rich affair exclusively. So, the possibility of an average Joe purchasing “Salvator Mundi” for $1,175 and then selling it further to wealthy art lovers is once in a blue moon, figuratively speaking.
Introducing blockchain in the creative industry would open the door for tokenizing art, making it available for art lovers with strained budgets, who could purchase artworks in segments.
This could be possible through smart contracts, allowing art enthusiasts to purchase a portion of rights for the artwork. An owner could then decide whether to keep their percentage, trade it for another artwork (or its fragment), or simply wait until the right opportunity arises and sell their share to someone else willing to pay the price for it.
And if you think this is highly unlikely or impossible, just remember financial institutions thought the same before blockchain became widespread. Thanks to this technology, it’s now possible to trade cryptocurrencies without physically owning the asset safely and securely through innovative crypto trading platforms like Exchange Plus.
Smart Contracts as a Problem Solver
We already touched on this subject in the previous entry – smart contracts could play a crucial role, not just for art lovers but creators, too. Such a concept would allow creators to enhance authorship by providing an immutable record of ownership and intellectual property rights.
Because of the very nature of blockchain, the true authorship of any creative work, be it a painting, poem or music composition, would be permanently recorded and impossible to alter.
Smart contracts could solve another challenge – royalty payments. Legal disputes over alleged copyright infringement are not uncommon in the creative industry.
If you remember, in 2016, the iconic rock band Led Zeppelin was facing a lawsuit when Randy Wolfe, guitarist of the band Spirit, claimed the opening riff for the famous “Stairway to Heaven” was a copy of their instrumental track “Taurus.”
And while Led Zeppelin won the case in the end, this inconvenience sparked countless discussions about the thin line between inspiration and infringement.
Smart contracts could include conditions for the use of creative works. For instance, creatives can use them to specify under what circumstances their work can be used, ensuring they are in control over how their creations are utilized.
Eliminating the Middle-Man
The adoption of blockchain would decentralize the creative industry and eliminate people and/or institutions in the middle.
For example, in 2021, Spotify has paid artists only $0.0033 per stream. This means that each track on the service has to hit a minimum of 1,000 streams to start generating royalties.
Blockchain technology could solve this problem by allowing creators to set their own rules and conditions for utilizing their work. But it doesn’t end there. By eliminating the third-party influence, the owners could determine the price of their creations and provide discounts based on supply and demand to promote their work. And this does not apply to the musical industry only.
Blockchain could reshape the way art galleries work. Thanks to NFTs, art lovers won’t have to travel long distances to enjoy artwork. Instead, art enthusiasts can enjoy their favorite creations with one tap on their smartphones. Eliminating physical galleries could result in reduced artwork prices and allow creators to reach a broader, global audience.
Artists could leverage Blockchain and NFTs to establish a direct connection with collectors, ensuring secure ownership and transparent transactions. Such a shift from traditional galleries to digital platforms could democratize access to art and open new possibilities for artists to establish themselves in a decentralized and borderless market.
Introducing blockchain into designer and creative industries can solve multiple challenges for both creatives and consumers. Establishing the NFT model could revolutionize the way art lovers own artworks. In other words, enthusiasts would be able to purchase and possess a fragment of artwork through smart contracts. This would allow art aficionados with strained budgets to buy, sell or trade their ownership as they please.
On the other hand, a decentralized model could bring creatives more income from royalties and solve many challenges regarding copyright infringement. Finally, blockchain could reshape the way streaming platforms and modern art galleries work and eliminate the need for third-party presence, allowing creatives to reach a wider audience without geographical restrictions.