For nearly 100 years, artists have been searching for ways to retain greater control of their artwork and improve the way they earn their living. One of the most popular ideas has been around since at least the 1970s: artist royalties. And while many countries around the world have adopted legal provisions requiring second-hand sales of artwork to share a percentage with the artist, the US has failed to do so. But even where such provisions exist, the artist has little control over the percentage amount. Under most circumstances it’s a fraction of one percent
Fortunately, blockchain technology is poised to change all of that.
While most people associate the blockchain with cryptocurrencies and NFTs, it has the potential to disrupt the art world in significant ways, benefiting artists in the process. Blockchain ledgers are completely transparent and secure, so every transaction can be tracked with near perfect accuracy. This allows artists and collectors the ability to see a piece of artwork’s provenance with the click of a button. In other words, blockchain technology makes it possible to track and trace artwork like never before.
So, why is this so significant? Because foolproof tracking like this allows artists to finally enjoy royalties on every sale a piece of art undergoes. Thanks to smart contract technology, artists can set their artwork up so that a percentage of every subsequent sale automatically goes to their bank account. Just imagine what this could mean for modern artists. Under today’s rules, an artist might sell a piece of artwork for $4,000 right now and watch it sell tomorrow for $400,000. But the artist would only see the $4,000. However, if they implement a smart contract, they’ll not only get the $4,000 today, but they’ll also get a percentage of the $400,000 tomorrow that they specify.
Finally, artists will be in control of their own destiny. However, this isn’t the only way artists will benefit from blockchain technology and smart contracts. Currently, most artists split sales with their galleries or brokers 50/50. But the internet has flattened the art market, making it possible for more artwork to be sold without a middleman. This allows artists to keep more of the money they’ve earned for themselves.
All of this means that today’s artists have the potential to make exponentially more than their forebears. So, how does it all work at a practical level?
With Regestra, artists will be able to create a unique, verifiable ID that can be attached to each piece of art they create. Then, that art can be logged into a secure blockchain that accurately tracks its ownership. And with Regestra’s royalty feature, artists can easily ensure that they’ll earn a percentage of every sale their artwork undergoes. It really is that simple.
We are finally living in a world where artists can earn their due. Rather than watching most of the money spent on their artwork go to galleries and collectors, creators will see more of it hit their bank accounts, allowing them to create even more great artwork.
And that’s good for everyone. Artists, collectors, investors, and galleries.
