Do you lack transparency and trust in the art market
The research paper examines the potential for art to be used as an investment asset for small investors, particularly through the use of tokenization and blockchain technology. The paper notes that the use of art in investment portfolios is still relatively uncommon, despite potential interest from small investors across countries like the United States and United Kingdom.
Analyzing Recent Trends in the Art Market
The paper's approach involves analyzing recent trends in the art market, including data from the Deloitte Art & Finance Report. The report finds that auction sales have slowed by 20% in the first six months of 2019, which the authors attribute to factors like uncertainty surrounding Brexit and the U.S. trade war with China. The paper suggests that one key reason for the lack of investment in art is a lack of transparency and trust in the art market, which is often criticized for issues like corruption and forgery.
Conclusions on Tokenization and Blockchain Technology
The main conclusions of the paper are that tokenization and blockchain technology have the potential to increase transparency and trust in the art market, making it more accessible to small investors. Tokenization allows for the sale of art to be tracked through the blockchain, providing a more secure and verifiable provenance. It also enables better rights management for artists, allowing them to receive royalties in real-time when their work is used or viewed.
Expanding the Art Market Through Transparency and Trust
The paper suggests that these improvements in transparency and trust could help to expand the art market beyond its current boundaries, potentially attracting more interest from asset managers and next-generation investors who are increasingly focused on social impact in addition to financial returns. Overall, the paper presents a promising outlook for the use of art as an investment asset, particularly if the art market can leverage emerging technologies like blockchain to address longstanding issues around transparency and trust.
