Art Chain combines art and blockchain to achieve a digital art community

[Global Network Technology Comprehensive Report] On the afternoon of July 4th, 2017, the art chain successfully held the theme conference of “Cultivating Consensus Credit Soil Starting Digital Economy Ocean” in Beijing Chaoyang Baichuanhui. Former Vice Minister of China's Ministry of Foreign Trade and Economic Cooperation, Vice Minister Zhou Keren, Dean of the International Trade and Economic Cooperation Institute of the Ministry of Commerce, Huo Jianguo, Director of the Bank of China Research Institute of the State Council Development Research Center, Wang Gang, and Secretary of the Internet Finance Research Center of the People's Bank of China, Li Bo Mr. Liu Ming, Director of China E-Commerce Financial Blockchain Development Research Center, Director Liu Youwei of China Original Art Research and Development Center, and Xia Xuemin, Deputy Director of China E-Commerce Financial Blockchain Development Research Center attended the conference.




At the meeting, Mr. Xia Xuemin, CEO of the art chain, introduced the status quo of art and blockchain, the situation of team members, the business model of the art chain and the profitability of the art chain in the future. At the same time, many representatives from the industry and related entrepreneurs The representative also delivered a speech at the press conference.

As the application of blockchain technology, the art chain has taken the lead in combining art and blockchain and achieving its landing. Based on blockchain technology, the art chain is committed to creating a self-trusted digital art community that not only records the historical information transmission and value exchange records of the original selected art treasures, but also restores the art to the real digital identity. Participate in the transparency of the actions of all parties, improve the system's accountability, reduce the trust cost of the system; and introduce the traditional thinking operation of art into the digital economy model, the first art mortgage issuance mechanism and the consensus display mechanism, hope to create a More pragmatic art financial market, remove the art market circle, and finally "cultivate consensus credit soil to set sail digital economy ocean."

The value of traditional art faces four major puzzles

China is the oldest civilization in the world and has the most continuous history. The underground and underground art has accumulated the advantages of the quantity and quality of art treasures unparalleled in the total number of artworks in any country and even other countries. The physical currency gives a constant huge value. For a long time, due to the constraints of traditional thinking and non-breakthrough technology, huge and incomparable value resources have been sleeping for a hundred years, almost entering a puzzle of traditional thinking and traditional operation. The main appearance is in the following four aspects:

1. entangled in true and false identification

Art forgery (70 to 75% of the estimated 1 billion art transactions per year are fraudulent); Art Appraisal (There is a study that estimates that the annual market for art and collectible counterfeiting and fraud is as high as $6 billion. It accounts for almost one-tenth of the total transaction volume of art.

2. Confused to the valuation authority

Whether on the Internet or in real life, you usually encounter the question: How much is this piece of art worth? A piece of art, even if it is a genuine product, its value is not assessed in a single way, but is constrained by the combination of physical, artistic, market, academic, and cultural values ​​of the artwork. The assessment of the value of art becomes very complicated. It can be said that the evaluation of the value of art is a very professional question. There is no unified statement in the industry about how much a piece of art is worth, and how much the price fluctuates. Take Chinese contemporary art as an example. In 2007, when contemporary art was the highest, it reached tens of millions of yuan. With the bursting of the market bubble, its price fell to the level of several million yuan. The degree of shrinkage is 80% to 90%. The same works of art can be sold at different prices in the hands of different operators. The more rare the category, the greater the difference in the price of different merchants. Practitioners often attribute the reasons to the different customer levels of each merchant, the different payment capabilities, and therefore the price is different, the actual situation is far more complicated than these.

3. Lack of technology to determine the right

Incidents of true and false art, disputes arising from sources, non-payments, and claims are often visible; the authorization mechanism is opaque (for example, by signing licensed paper certificates to create scarcity, but this approach also undermines digital art. Features that are needed, such as how to spread around the world and prove the authenticity of digital signatures; the ambiguity of art increases the difficulty of tracking and fraud prevention.

4. The traditional trading path

With the continuous improvement of people's living standards, the old art shops and antique shops have once again entered people's lives. At present, the traditional trading methods of the Chinese art market, such as gallery transactions, art fair transactions, and private transactions, coexist. Due to the information asymmetry between the buyers and sellers and the narrow trading channels, there is a great trading risk in the art trade. Therefore, in the trade of artworks, an interesting phenomenon has formed. A rare and high-quality art piece has often undergone a lottery between several experts before entering the hands of collectors. Small connoisseurs can only be sold to small collectors, and big experts can sell them to big collectors. The connection between the big expert and the big collector has the same social status, and this identity has two-way exclusiveness. The big collectors will not agree with the small experts, and the big experts will not agree with the small collectors.

In view of these drawbacks, the application of blockchains to the art market has always been considered a new industry opportunity. However, whether it is anti-counterfeiting, tracking, or digital confirmation, peer-to-peer transactions have not yet touched a deeper level. The most fundamental transformation of the blockchain for this industry is not just here. It is more valuable: it helps to liberate the art market from the ripples of the circle, and to create a more fluid A shared community order leads to a digital art concept of inclusiveness.

Based on the blockchain infrastructure network, the art chain pioneered the art mortgage issuance mechanism and the consensus display mechanism, which not only successfully realized the digital identity verification of art, but also introduced the traditional thinking operation of art into the digital economy mode. Use identity to restore the value of art treasures, and use the value of the Internet to anchor the trust of all participants. The art chain creates a unique digital identity for each piece of art and every user. Based on this, every transaction record, every value investment, and every asset transfer will be recorded truthfully. It is the circulation record of things, as well as the relationship between people and the interpretation of stories. On the art chain platform, once fraudulent information is generated, it will not be deleted, and it will be traced back to any related person or thing. It will also introduce people's credit in real life into the value chain of the art chain, plus art. The unique value of the social network design will help artists, enthusiasts and investors to establish deep links with each other to build a good digital art community.

Everyone knows that with the continuation of history, trust will be upgraded to the greatest value. It is foreseeable to create a valued community of collectively maintained, self-trusting digital art communities. As mentioned above, the art chain will not only give the art financial technology genes, but also hope to promote the transformation of the art market into the digital economy era.

Blockchain technology solves historical problems

The art chain is aware of these shortcomings in the art market. Through painstaking research and the close cooperation with the blockchain R&D team and the laboratory for nearly half a year, the blockchain technology has been successfully used to fundamentally solve this historical problem, at least as follows: Great advantage.

Decentralized digital confirmation

After landing, the art chain products can store the belongings in encrypted form in the blockchain, so that they can be established and made public, and no one can change them. The art chain records each circulation, making the trade history of the artworks. (including ownership, exhibition history, written records, circulation records and other key information) from this evidence, everyone can obtain confirmation information by tracing the art treasure blockchain, which helps to establish the integrity mechanism of the art market and improve Market liquidity.

2. Consensus value recognition

The valuation of a single artwork has never been recognized by the market, and it is difficult to adjust. It will be subject to various factors such as the author's factors, historical factors, circulation factors, holder factors, auctioneers, etc. The impact of each factor will make a fundamental difference in its valuation. In addition to the high price threshold of its single product, the main reasons for its value recognition are also the main reasons. However, the value-added attribute and value recognition of cultural art as a human-recognized cultural heritage is recognized by the whole society. If there is a medium that can represent the value of the whole art category, then the circulation of art and its financial value will reach unprecedented The popularity and height, and this is exactly what the art chain needs to do. The name of this medium is called "铨".

3. Convenient and intelligent trading

Because smart contracts have many advantages such as autonomy, self-sufficiency and distribution, the art chain adopts the blockchain intelligent contract mechanism in the framework of art trade transactions. Any two parties agree on the rights of their own digital identity according to the terms of the smart contract. The object of identification can easily achieve traceability. The implementation process of the software chain operating system intelligent contract begins with the contractual agreement between the two parties. The content of the contract is digitized and written into the blockchain to realize the formalization of the contract content. Once the conditions agreed in the contract occur, The execution procedure of the contract is automatically triggered.

In this way, the art chain platform can realize real-time transaction settlement, create tamper-proof verifiable sources, improve the transparency of art transactions, simplify and automate lengthy financial service processes, reduce front-end and background interaction, and save a lot of manpower and material resources. To improve the competitiveness of the art chain in the art market.