How Blockchain Is Transforming Museums And Art

If you ask someone from the Web2 world what art and blockchain have in common, chances are that one of the more common replies you can expect will be “money laundering”.

Both industries do have a reputation for illicit gains, though what extent these reputations are well deserved is another thing.

However, there is one other place where these two things intercept- NFTs.

This week, Zaf Chow, Chief Commercial Officer at Artifact Labs, and Koh Lixin, Assistant Director at the National Gallery Singapore, were invited to share their thoughts on how blockchain tech and NFTs were changing the landscape for artists, museums, and other stakeholders in the local art scene.

NFT fundraising

One way that NFTs have been helping museums is with fundraising, according to Lixin.

Lixin says that currently, the National Gallery is custodian to around 9000 pieces of artwork, from a varied collection of artists. What the National Gallery has done is to fractionalise these artworks, and convert them to NFTs. These NFTs are then sold to collectors, and the proceeds from these sales help to fund the National Gallery.

However, NFTs also go far beyond one time fundraising.While buyers can choose a one-off contribution, though Lixin also reports that there are many buyers who choose to donate regularly in exchange for donor privileges.

Additionally, Zaf pointed out that because people can track where NFTs go and who holds NFTs, these NFT collectors also form a community that consistently contribute to the art scene and form a group of alumni that continue giving to artists.

Blockchain can help museums save time

Furthermore, the panellists also pointed out that the transparency and immutability of the blockchain can help them save time.

Zaf pointed out that with traditional art, a lot of effort has to be expended on the part of curators to find out who has owned which art pieces before, to verify the authenticity of a piece, and to actually preserve the art piece.

However, curators and collectors do not have to go through the same arduous process when it comes to NFT art pieces. Since information on the blockchain is transparent and immutable, NFT collectors and curators are able to easily verify the authenticity of art pieces, without having to expend the same resources as before.

Additionally, Lixin points out that blockchain automates a lot of things for the National Gallery, including tracking of donors and donations, and since it is immutable, it also functions as an undisputed ledger.

Reputation is an obstacle

That being said, the panellists also noted that while the benefits of blockchain adoption are immediately obvious to them, not everyone shares their convictions.

Lixin recalls that blockchain is still linked, at least in popular perception, quite strongly to cryptocurrency, and this linkage raises questions for many potential investors.

“Board members have questioned me about what blockchain adoption is about. Many are concerned about its links to cryptocurrency, and what the regulations say about blockchain technology. They ask if MAS is going to come after us if we use blockchain technology, and we have to really educate them about the tech and how crypto isnt involved.”

Zaf concurred with this point, suggesting that some of the stereotypes that have come to typify the crypto space have also spilled over into blockchain’s image.

“Blockchain’s reputation as being linked to crypto can really be an obstacle, since people automatically have reservations about it. People associate it with hype, and we have to educate them to dispel these false perceptions.”