Ensuring the origin and authenticity of a work of art is a very complex task. Thanks to Blockchain, this is possible, writes investment banker and art collector Niko Kipouros in a report entitled “Blockchain in Art” published on 21 July. Technology is changing the way we buy, sell, support, view or even create art.

The art market is one of the most dynamic, lucrative and attractive markets. Last year, the sales volume was 67.4 billion US dollars worldwide. This market has a very high barrier to entry. The unique and best works of art, such as the work of Jeff Koons sculpture of a rabbit, are traded at extremely high prices. It is difficult to keep an overview in the flooded art market. According to experts, it is estimated that 30 to 50 percent of all works currently traded on the art market are forged.

Blockchain technology is designed to prevent this. In the art industry blockchain based “toolboxes” have been around for some time. Niko Kipouros, CEO and founder of 4ARTechnologies, offers one of them with 4ARTapp. With the help of the app, all relevant tasks in dealing with art are digitalised and all players are networked with each other. Blockchain-based applications create more transparency, security, process efficiency and a significant cost reduction.

According to Kipouros, galleries and art fairs are accelerating their online presence – not least through Corona. One aim of the art industry is to digitise the art experience together with Blockchain. A practical example was shown by the New York artist collective “Snark Art”, who are working on digital art projects on the Blockchain. They are not only turning the viewers into collectors, but with the trade of Non Fungible Tokens they are also active participants.

In the collector’s context, the Blockchain technology in any case guarantees the owners of the artworks access to their collection. This is done with full privacy and security.