Digital Artwork Using Blockchain Technology

The advancement of blockchain technology has brought transparency and decentralisation to the wider public. Although this method of documentation can be applied to both tangible and intangible goods, this way of trading has most captivated and taken over the world of digital art. Developers have created codes using the same software as numerous cryptocurrencies for more transparent online records.

Problem

The advancement of blockchain technology has brought transparency and decentralisation to the wider public. Although this method of documentation can be applied to both tangible and intangible goods, this way of trading has most captivated and taken over the world of digital art.

Solution and Method

Developers have created codes using the same software as numerous cryptocurrencies for more transparent online records. They primarily contain data about ownership and the history of their behaviour in the network. The technology has made it easier for creators to control advertising, distribution and recording of sales, and has reduced or even eliminated these costs.

In a short time, numerous platforms for trading non-fungible tokens have been perfected on the market and have reached or even exceeded the number of sales of traditional galleries. Due to their uniqueness, rarity and immutability of metadata, their value grows from the collectors' perspective. High demand and growth in sales value have forced major platforms to create simple online publishing.

By completing a form to create a digital wallet and providing a brief description of the product or its significance, the artwork is ready and published on the selected platform. Due to the revolution of modern markets, artists working in the digital field will finally be able to track the use and sale of their works. Due to users' awareness of environmental impacts, the NFT market has experienced declines in demand and purchases.

On the other hand, the presence of leading brands shows support and brings new interested and affluent individuals to its use. The accessibility of the technology leads to market saturation, which is not necessarily full of digital artworks by recognised authors and influential brands. There are increasingly more products sold on platforms that do not contain knowledge of the technology, nor basic art guidelines.

Experts can quickly distinguish successful products from products published solely for the purpose of presence in a rapidly growing market. In the history of art market development, we quickly notice shortcomings that were inevitable until decentralisation and ownership control. Although blockchain technology protects the artist and buyer and improves the overall market experience, it causes negative environmental impacts.

The large consumption of electrical energy is proportional to carbon emissions. The largest platforms do guarantee solutions in the coming years, but the development of technology does not yet align with sustainable design guidelines.