Bitcoin blockchain to track the ownership of art
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Those are the realities. One third of small and medium-sized businesses now take cryptocurrency as payment. Bitcoin can be purchased using Paypal. Mastercard, Visa, and American Express are all embracing blockchain technology.
The Question of Energy Consumption Blockchain is undergoing rapid evolution and improvement. Bitcoin is often held up as a major example of this excess. Each transaction burns more than , Visa transactions as far as energy goes. When you consider these things, Bitcoin is not a great system. Bitcoin operates on a Proof of Work mechanism which is energy inefficient.
The Ethereum blockchain which powers NFTs and other platforms are moving to Proof of Stake, which is much less energy consumptive. We could end up with an actual decrease in energy usage. Art as NFTs NFTs art sold as non-fungible tokens have captured the imagination of the world and produced record-breaking sales.
I asked art advisor, curator and crypto expert Georg Bak about this phenomenon. I believe that this market has a huge growth potential, not only for art but also for any kind of collectibles in the game, fashion and sport industry. At the moment the market is a bit overheated and many buyers are only buying NFTs in order to flip them instantaneously and make profits. I believe we will see a correction towards a more consolidated and matured market.
There are so many historical digital artworks which never had a market and can be discovered by a wider public. Selling platforms are cropping up like wildfire, offering an opportunity to artists who want to enter the crypto art market. Over time it will shake out and mature, and providers will address some of the existing technical limitations.
Right now the sky is the limit. Once we have some history in the rearview mirror, the road will become clearer. This is good news for artists who create both digital and physical artworks, which can be embedded and tracked. Nevertheless the data on the blockchain is only valuable if the physical artwork can be identified and assigned clearly to the data. Putting the hash of the signature of a file's hash in the blockchain makes the owner of the private key associated with the signature the owner of the file in the blockchain as long as someone else doesn't show up with a proof certified before.
Using a new blockchain It's also possible to create a new blockchain for this purpose. This blockchain wouldn't only store coins but also notarized proofs. Content of a proof Ownership Only the people with the private key associated with the signature can prove they are the owner. Existence A Proof of Ownership is always attached to a piece of data.
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