Can the #Blockchain Technology Make Forgery a Thing of the Past in the Visual Arts? Insights from the #BlockchainExpo in London, #Bitcoins, Cryptocurrencies and Many More.
By: Lorenzo Belenguer
Tags: Bitcoin, Blockchainexpo, New Technologies, Blockchain

Can the #Blockchain Technology Make Forgery a Thing of the Past in the Visual Arts? Insights from the #BlockchainExpo in London, #Bitcoins, Cryptocurrencies and Many More. Lorenzo Belenguer Follow Apr 26, 2018 · 4 min read

We are living unprecedented times because of the rapid technological advances perhaps not seen since the invention of the printing press and the spread of the railway system and the telegraph. It is the first time, perhaps aided by the proliferation of smartphones, that mankind is truly connected and the sharing of communication, and miscommunication, is faster than ever. A social network boasts the staggering figure of 2,200 millions of active users. Things are moving fast.

The latest Blockchain, Internet of Things and Artificial Intelligence Expo held last week at Kensington Olympia, London, was a great opportunity to directly listen to the pioneers of today. 3 co-located events. 18 conference tracks. 12,000 attendees. 500+ speakers. 300+ exhibitors meant, it was the right place to be.

AI, IoT and Bockchain Expo at Kensington Olympia, London. ©Lorenzo Belenguer

Blockchain is a virtual, public ledger that records transactions in a safe and transparent way containing a string of information, or blocks. Unlike banks that facilitate transactions with traditional currencies, the blockchain allows the free transfer of cryptocurreny through a decentralized environment. All the data is then held in an interlinked network of computers, owned and run by none other than the users themselves. As Oleg Mazonka explains in his paper Blockchain Simple Explanation:

“Each data block consists of the hash and the payload. The hash of each block is calculated out of the whole previous block. Payload in each block is arbitrary data. This hashchain has the important property: no data can be modified at any block without affecting the integrity of the subsequent blocks. For example, if the payload of the first block is changed, then the hash of the second block must be changed as well, and hence the hash of the third, and so on. Next step is to authorise only one person to create a new block in the chain. One way to do it is Public Key Cryptography (PKC)”.

Once done, the public, and only, database will be updated in all computers which will automatically check the information against the one they already had and each other’s.

The use of this technology allows to track an artwork down all the way to the artist, first seller, or a reputable provenance, thus, making forgery obsolete and validation, a straight forward process. Not just that, the committees, auction houses and galleries that held the power of authenticating artworks will become less necessary. More players will be able to trade in a more transparent industry.

Jess Houlgrave, Co-founder & COO of Codex, one of the participants in the expo, says:

“At Codex we are excited about all the possibilities that blockchain technology can bring to visual arts. In particular, one of the key pain points today is doing due diligence on the provenance of items we purchase. This makes it time-consuming and expensive to transact. Using blockchain to record and verify this information can make buying and selling artworks easier for both businesses and collectors. It can enable the art and collectibles asset class to flourish”.

In a 2 trillion dollar arts and collectibles market provenance is an important factor as Vishal Kumar comments in the short video below:

Frédéric de Senarclens, Art Dealer and Founder of ArtAndCollect, adds:

“Blockchain technology is increasingly being viewed as the solution that offers the most security, trust and transparency in the art market. Smart contracts and blockchain networks may allow the formation of more honest art exchange platforms, which enable artists collectors and investors to safely carry out direct transactions. Blockchain may also reduce the need for intermediaries such as auction houses, galleries, brokers or art dealers. This would lead to a potential drop in transaction costs as blockchain portals offer an opportunity to eliminate one’s dependency on traditional financial methods by presenting trustworthy, decentralized trading platforms. Another pivotal change this new technology would bring to the art market is the public recording of all transactions, for the blockchain price discovery mechanism promises significantly higher levels of transparency and liquidity”.

Finally, if your appetite for Blockchain, cryptocurrencies and the new technologies has not vanished by now, you are in luck. The Victoria & Albert Museum in Kensington, London, opens on the 12th of May #TheFutureStartsHere which will include a Bitcoin Miner to represent this new picture of an advancing future with more than 100 objects.

Courtesy Victoria & Albert Museum, #TheFutureStartsHere

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