Blockchain-Based Ownership Breathes New Life into Historic Art

Crowdfunding remains a popular way of raising funds for art, heritage conservation, and restoration projects. Fundraisers solicit donations from individuals who are passionate about art or heritage conservation and can reach large audiences. They promote campaigns widely across channels to maximize their reach. Well-structured campaigns include engaging content that tells the story behind the project, showcasing its specific details and the team involved.

However, crowdfunding is far from an easy way to raise money. The campaigns are time-consuming and intense, and there is a risk of not receiving the pledged money if they are unsuccessful. In contrast, funds raised under a blockchain-based distributed ownership model serve as both an investment in protecting historically significant works and a means for project participants to own a share of the art.

Raphael Coin (RAPH) was launched with the mission to liberalize ownership of historically significant fine art. The project was created to enable public participation in cultural heritage using blockchain technology after European auction house Dorotheum’s recent rediscovery and authentication of the masterpiece “Recto: Study for the Battle of the Milvian Bridge” by Renaissance artist Raphael. Dorotheum is actively involved in historical art, and they’re currently auctioning a series of Old Master Paintings online.

Verified provenance and authenticity are among blockchain’s advantages for art

Blockchains help ensure authenticity, verified provenance, secure international payments, and royalty sharing for physical works. In 2018, Christie’s became the first auction house to register a blockchain sale with its Barney A. Ebsworth collection, one of the most sought-after collections of 20th-century American art worldwide, featuring works by landmark artists such as Georgia O’Keeffe and Edward Hopper. The live auction took place online, in person, and over the phone, fully facilitated by blockchain technology.

Christie’s tech partner was a blockchain-based fine art register, which managed the registration process for almost 100 art pieces. Provenance technology was used to establish the custody chain and authenticity of works sold, creating an immutable transaction record through verifiable cryptography. There are dozens of blockchain-specific art apps today, and auction houses worldwide are incorporating blockchain into their processes. Raphael Coin is powered by Gleec, a comprehensive blockchain ecosystem built in 2015. The fully compliant ecosystem provides integrated blockchain infrastructure, banking solutions, centralized and decentralized exchanges, secure chat, and crypto cards.

Raphael Coin enables fractional ownership of the artwork and Raphael’s heritage. Available for trading on the Gleec BTC Exchange and Mandala Exchange, the artist’s collection redefines connoisseurs’ experiences of his works, combining the latest digital technology with centuries-old genius to offer historians, collectors, and art enthusiasts a fresh perspective. The Gleec blockchain maintains transaction and ownership records immutably. Each RAPH token represents a commitment to culture and a connection to history.

On privacy, fairness, and public audits

Blockchain technology ensures privacy between sellers, buyers, and other stakeholders. Blockchain art markets foster fairness and transparency in the auction and transfer phases, as well as the ability to audit transactions publicly. The utility of blockchain technology extends to preventing forgery and fraud, which have long plagued the art world. It achieves this by producing a permanent record of the asset’s provenance; the transaction is recorded each time an artwork changes hands. Authorized entities can access this information, enabling collectors or investors to confirm the artwork’s authenticity or identify potential issues. It becomes possible to trade new forms of digital art and drive sales through verifiable scarcity.

Banks and brokers are frequent intermediaries in conventional art sales. Their clients’ data security and privacy are at risk, which blockchains reduce by providing secure peer-to-peer transactions that eliminate the need for intermediaries.

Distributed ownership democratizes access to art 

Smart contracts automate ownership transfer using self-executing agreements directly coded into software. They streamline transactions, reducing the time and costs associated with transacting in art, and ensure that creators, where relevant, receive their royalties when their works are sold. Courts are increasingly recognizing independently verifiable blockchain records as valid legal evidence in disputes. Once registered, a piece’s record becomes its certificate of authenticity, eliminating doubts about origins.

The most notable utility of blockchain in art is wider access to it. We can’t very well embrace art history without knowledge of and access to it. Fractional ownership through tokenization democratizes access so more people can invest in valuable art. Platforms divide the artworks into shares that blockchain tokens represent, eliminating much of the rigidity typically associated with these investments.

A further highly desirable feature of fractional ownership is the ability to purchase and sell tokens on secondary markets. It enables fractional owners to diversify investments without having to own the artwork in full. Galleries and artists can attract interest in their collections and tokenized investments as a new potential source of revenue. Fractional ownership provides more people with the opportunity to be economically active while preserving the essence of art. Token holders can opt to pool their money and buy valuable pieces of art, which would be impossible without distributed ownership. 

Fractional ownership must adhere to any applicable legislation to ensure the protection of artworks and investors. Legitimate platforms like Gleec use proper KYC and AML measures to guarantee safety, mitigating many of the risks inherent to traditional art investments.