Trade Me a Fairly! Sorry if No! Art Nft

sg

Back to Blog

Arcc Insights: Is The Rise of Blockchain and NFTs An Artist'due south Curse or Blessing? feat. ArtWallStreet

Learn more well-nigh how the blockchain and NFTs are going to affect an artist's career with Arun Sugumaran, CEO & Co-Founder of ArtWallStreet.

The rise of blockchain applied science has made a huge bear upon globally with only a handful of professionals truly agreement the mechanics of how it works and the possible innovations that can exist built upon the revolutionary technology.

Trivial did people also realize that the art industry really played a pivotal role in unveiling the true potential of what industries tin can create with blockchain, through the emergence of non-fungible tokens (NFTs).

But, is every major stakeholder embracing a decentralized ecosystem established by blockchain? Are NFTs a chimera that could burst in time similar what some believe information technology to be? Where volition blockchain end upwardly down the line globally and what does it actually mean for the futurity of artists?

Join 1 of our partners, Arun Sugumaran, Founder & CEO of ArtWallSt and Cleve Yap from Arcc Spaces to observe out more than in this very informative episode of Arcc Insights.

---

Click hither to mind to the podcast on Spotify.

Click here to watch the entire podcast episode on Youtube.

Cleve: Welcome to the show. how's your forenoon been then far?

Arun: Oh it's been skilful. Just doing our daily catch-up and excited to be here so thanks for having me hither to share more about ArtWallStreet and the industry in full general.

Cleve: That's some practiced progress to hear.

Arun: Definitely.

Cleve: And so, I believe your company is really no ordinary platform for artists here simply a rather forward-thinking one because it seems to revolve effectually blockchain tech so probably you might want to first to share with us more on what ArtWallStreet is and its mission?

Arun: Certain. Thanks for the kind introduction and you lot know, ArtWallStreet is a de-fi investment platform for physical art and collectibles and then that'due south our master signal of differentiation. I mean, our focus is on physical fine art and collectibles. I call back

you would accept heard a lot of news and hype effectually the digital scene, digital arts and collectibles over the last y'all know, six to viii months and we're really excited about that but our focus is on the physical side of art.

So, our main mission is to make physical art and collectibles more accessible to anybody. Traditionally, that nugget class has been adequately inaccessible and only affordable. But, it's only afforded by high net worth individuals and the men on the street or the mass affluent take no access to these art collectibles. So, our mission is to modify that by leveraging blockchain technology.

Cleve: Aye, That's skillful to hear because I believe there are non only just high internet worth individuals who are looking into art simply also mutual people similar us. We all might have a high interest in fine art out there and I think information technology's really good to hear that people similar you lot and your team are actually trying to practice something to get themselves more exposed to this.

Arun: Yes, exactly. I'1000 not certain if you're aware just the art and collectibles industry in terms of its market size is not actually well defined. But, nosotros know it's huge. So, some banking concern reports claim that information technology'southward worth US$ii,000,000,000,000 worldwide but only 3 to 4% of that is traded every year through traditional sale houses and private sales. So like what you said, the human on the street would not get to invest in expensive art or vintage cars for example, or expensive jewellery.

And then, I call up our mission is to change that. I think it'south an asset class that has been kind of shut to the mass affluent and the middle income segment and I think there's a big opportunity in that location for us to change that.

Cleve: Aye. Even for myself, I call up I might I might take this chance equally well to see what else I can collect in the futurity.

Arun: Sounds not bad.

Cleve: And you might want to elaborate more in a nutshell on how ArtWallStreet works really?

Arun: So what nosotros do on the supply side is that, we onboard artists from emerging artists to established artists, and nosotros onboard their artwork on our platform. We and so requite them the opportunity to "tokenize" the artwork, meaning that we convert them into NFTs (not-fungible tokens) and we enable those artwork to exist listed on the platform and be auctioned off to anyone on the platform.

On the demand side, we're working with the mass affluent segment. So, that's concerning the heart income to mid-high income market. Retrieve of the target market as anyone who'southward invested in stocks. You know, we have many apps out there that enable you to invest in the equity markets right? We are kind of parallel to that but our platform is focusing on art and collectibles. And then, we enable you and the masses to invest in art collectibles, similar to how people are investing in stocks right now.

Cleve: OK, that sounds like in that location's a lot of new terms over in that location but I estimate we'll go down there (chuckles). We'll trickle downwardly there. And so, according to you, how is the art industry changing and how would information technology be like in the post-COVID world co-ordinate to your stance?

Arun: I remember that's a good question. I recall even during pre-COVID times, there was a lot of innovation in the art space so during the pre-COVID period, there was you know AR (augmented reality) tech, VR (virtual reality) tech, online galleries using those technologies and I retrieve what has happened was during the pandemic, some of these technologies have been accelerated in adoption so obviously, you know people are not traveling and yous can't be in person in physical spaces due to restrictions.

So, in that location has been an acceleration of the adoption of digital solutions during the COVID flow, which is now nigh 1½ years. Time flies. I call up mail service-COVID if there is such a term, COVID-nineteen is becoming endemic as we all know. I think the velocity of adoption volition continue so you would see sale houses, artists, and other service providers adopting tech. For example, the big auction houses that are already auctioning off digital art, dealing with cryptocurrencies, who are already setting up virtual galleries and virtual auctions.

Then you lot know, we have COVID-19 to thank for that If you have anything to thank COVID for (chuckles), and i think postal service-COVID, that's what's going to happen. I think people will continue to be on that velocity of adapting solutions so that they're more connected to an audience and to maybe other artists.

Cleve: I guess it'due south a sign of growth whereby considering of COVID-19, a lot of people, companies or any stakeholders in the art industry, they're also forced to adapt right? That's what we're seeing right now?

Arun: Right. I mean, you run into that with hawkers, our nation'due south pride. You know,

I've personally seen a lot of them adopting more digital solutions so I have my wallet out less now. I don't similar coins so it'south easier to go and buy your kopi (coffee) in the morning without using coins. And so yes, i mean that was accelerated during COVID-19. I literally saw that happening at the market near where I live. I was similar.. Oh wow, there are more and more than vendors using digital payments. So, I think even with other segments and other verticals, zoom calls are a thing now. It's nigh a norm now. That wasn't something that we thought virtually 18/xx months ago.

In the art world, I recollect similar changes are happening, where artists are trying to grow their online presence and exploring more tools. They are starting to acquire more than nearly what's happening in the digital art space, which is nifty. I mean.. I recall it'southward all accelerated by COVID-xix.

Cleve: Yeah.. Speaking about hawkers, at times I do forget nigh my wallet and my phone volition save me (chuckles). It's a neat phenomenon to encompass every bit well.

Arun: Exactly.

Cleve: Actually, there seems to be a lot of ground covered today about the ascension of blockchain in the fine art industry, and I think today we will need yous to further elaborate on the engineering of blockchain and the rise of NFTs for us like what yous mentioned just at present. And so, how are these developments going to alter the manufacture, or like what some people think is actually a chimera that is going to burst in time to come or not?

Arun: Yes. And then, I recall in that location are a few aspects to that question. We'll start with what is blockchain technology. I tin can't claim to be the best expert in the world. I mean I practice understand the space but in simple terms, it's a distributed ledger or what you call a distributed database. Information is recorded in this distributed ledger database by some form of consensus machinery and then no single person can record data. In simple terms, information technology'due south based on consensus and that's how transactions are recorded on the blockchain.

Blockchain has been effectually for a very long menstruation of fourth dimension now. The biggest challenge that blockchain and the projects have faced is adoption. The audience or customers or even big enterprises have a hard time understanding blockchain. Just, that has changed in the last 18 months thanks to a few companies that have made it a flake more accessible. How and so? They're riding on consumer behavior.

I don't know when you're growing upward you remember collecting all kinds of different collectibles? For instance, during my fourth dimension when I was growing upwards, kids were crazy about Dragon Ball cards. They were crazy about some soccer trading cards or whether it was Hong Kong stars.. Whether you go Andy Lau on a card and you lot collect that. Or, whether information technology's Magic cards. People collect that, trade and they'll sell it. Some will say "okay I want $20 for this." and and so as a ten-year-former kid, you're thinking almost $20 back and then in the late 80s or 90s, that'southward crazy. Yous'll exist similar "why the hell would you spend that kind of money?" and it'due south the same conversation that nosotros're having today most collectibles. Instead of concrete, in that location are digital collectibles now on the rising. Part of that is art. Part of that are likewise things like collectible kittens. I'm non sure if you heard of Crypto Kitties?

Cleve: Oh, i retrieve it's like some kind of game right?

Arun: Well, Crypto Kitties is kind of like a collectible platform where you can create unique kittens. So, you breed kittens and when you lot breed 2 kittens, a unique kitten is created and people offset trading these unique kittens. I mean.. it's a cute cistron. People understand why it's unique because a token represents this unique nugget. So, that token is basically an NFT.

An NFT is basically a token that represents a digital nugget or an asset in the real earth. So people started understanding that like "okay I go it now, you tin merchandise this unique digital particular as it'southward ane of a kind online. Information technology'due south represented by a digital identity or a token" and people started realizing "okay that'due south what blockchain technology is".

Information technology gets more adopted at present and then you know you have NBA top shot. I'yard not sure if you've heard of it but it's an astonishing platform. Basically, in the past people used to collect NBA cards like how I merchandise NBA cards with yous. Now, yous accept highlight clips or highlight reels. Videos that you can actually trade. Then, you lot own the videos. Maybe the LA Lakers or the Chicago Bulls or whoever y'all support, and there might be a very exciting play. Whether it'south a three-point shot or whether you're laying up or it'south an amazing slam dunk and there's a highlight reel for particular players of particular teams, and that becomes a unique highlight reel. They release what they telephone call information technology drops. Yous can open up a digital bundle, you won't know what it is, and then when you open up it, you'll realize what highlight reel yous have and then y'all start trading that with people, and that's enabled by an NFT equally well.

So, I remember what's happening with blockchain now or the groovy thing that'due south happening is that it's something that people are starting to understand. Something that is led by NFTs. So, y'all know NFTs are enabled by a blockchain but I think blockchain has at present received more spotlight thanks to NFTs and digital art in the last eight months. Therefore, what'southward going to be exciting is I retrieve there'll exist more than solutions built on blockchain. I hateful.. You're seeing banks now looking at adoption. They've been looking at blockchain for the longest time but yous know they're at present kind of implementing a lot of those plans that they had and you lot're going to see that more in enterprises and SMEs as well.

Cleve: It seems like we are all looking at blockchain every bit the adjacent web era whereby information technology's equivalent to how much the internet dorsum in the twenty-four hour period actually made such a huge affect globally.

Arun: That'south right.

Cleve: Ok. Talking about the digital forms of art, I've done some inquiry before this podcast. I've seen a lot of digital forms of NFTs going around the market yeah. They're actually sold with very high prices online every bit well so, to be honest personally I'grand actually quite surprised that there are really people ownership something with a presence that can only exist felt on the net. So, a few of them that I saw was something like the CEO of Twitter's very first tweet to be sold at such a loftier price and there was a very beautiful cat with some rainbow stripes in the grade of a GIF, likewise sold at very high prices. So, I was wondering how does an artist actually determine the right type of audience to sell their art pieces?

Arun: Yes, then this is a scrap of a philosophical question like how exercise you value something right? You know, if you lot go on Carousell today, you're going to find all kinds of interesting items for sale right? Someone just showed me a screenshot yesterday about a BTS meal from McDonald's on auction for $2500. So, to me I'one thousand sorry. Yous know, I admire the Korean entertainment industry, I really do. But, you know the BTS meal is actually but chicken nuggets with special sauces and purple boxes and I apologize to all the BTS fans but why is that worth $2500?

And so, back to that question now. OK, the CEO of Twitter tweeting his kickoff tweet. I mean, that might be more than valuable than a BTS meal in context right? Perception-wise, if you think nigh the value of that is probably worth more than Chicken McNuggets. But, going dorsum to the history of fine art and how it'south evolved, typically art increases in value over time and there are a few factors that impact the value of art. One is the scarcity, how unique it is, and of form, liquidity. The market. Whether there'southward plenty coin in the market to buy art and collectibles and of class changing consumer trends right?

So, you said that yous're surprised by how recently there is this hype around digital art and how expensive some of these items are listed for and sold. You have to go along in heed a lot of these digital art forms are tokenized every bit NFTs so they are scarce. Firstly, there's a promise of scarcity. It's i of a kind, information technology's unique on the internet, y'all buy information technology and it's a digital asset that you own forever. Even if they're copies, you lot take the certificate for it. Let's call information technology a certificate.

Then that's scarcity there. There's too liquidity. So, you lot must sympathize that in that location have been many early adopters of cryptocurrencies like 5, vi, vii, 8 years ago. These early on adopters are now multi-millionaires in the crypto sphere, holders of cryptocurrency. Then, every bit much every bit yous wouldn't be surprised, if a millionaire drives a Ferrari, you'll be like "OK, I can't believe y'all bought a Ferrari". It'south like, yeah it is a Ferrari, a car that is 100 times ameliorate than a Toyota Corolla, maybe 10 times. Only, why is he paying that much coin right? I think similarly when yous have that much liquidity. It drives the toll of digital art and NFTs as well.

You know, some people are also crypto evangelists or blockchain evangelists. They believe in this new form of assets and therefore, invest in it. And then lastly, you lot accept consumer trends changing. If yous compare with trends twenty years agone, It's very different today like how you consume games today for example, versus 30 years ago. If you lot retrieve most it from a form of entertainment, you'll run into a lot of serious gamers spending a lot of coin on in-game purchases which to me, it blows my mind. They're so committed to the game. For me, it's a form of entertainment simply it is questionable right? Like why are you spending that much coin on a game?

So, while it'due south a game, it's non a collectible. Information technology is still a digital asset now similar in-game purchases are an asset correct? Interestingly, NFTs are being used for that also. But, that's some other topic and i think that'southward what'south been driving the toll upwards and the liquidity in digital art.

Cleve: I see.

Arun: Now, what'south left to run into is whether this continues every bit a tendency or whether it kind of normalizes and whether it'due south going to be applied to other aspects. For example, like for ArtWallStreet, nosotros believe that physical art and collectibles are the long-term game. It'south a proven nugget course and we are using this technology to kind of establish ourselves in this asset class.

Cleve: Past seeing how the industry flows right at present, it makes me feel a little bit old (chuckles) considering personally, I'm not someone who is into the digital art trend though. Like I mentioned, I'one thousand still a physical person so a lot more than fine art that I've actually appreciated comes in the physical grade so yeah, I guess it'due south just a change of how people perceive art nowadays.

Arun: Actually, that's a very interesting point that y'all raised and you know recently, i was at an online tech conference hosted by a private bank dealing with high net-worths and they were talking to their clients about what's been happening in tech, what's the future looking like. They had i of the leading auction houses talk near NFTs and cryptocurrencies and the president of this auction business firm for APAC said that they're starting to encounter crypto natives, holders of cryptocurrencies bidding on physical fine art too.

Cleve: Oh.. OK, that's interesting.

Arun: And then, information technology's not just that they're looking at digital fine art. They're starting to see a trend of crypto natives, holders of cryptocurrency purchasing physical fine art too. I mean our hypothesis is that liquidity from the crypto earth will move to the physical globe in terms of assets.

Cleve: Oh, that's really interesting to hear though.

Arun: Yeah, real estate or physical art or whatever other collectibles or even goods and services. So, i retrieve that's a tendency that'south going to increment in velocity over time moving forwards too.

Cleve: I see. That'southward very expert to know. So, as nosotros speak about a crypto-based marketplace which is also a decentralized form of east-commerce right? And then, will the rise of these platforms actually touch on the general market place established past the financial system set past central banks? This is something I think the globe is curious about.

Arun: I think the short answer is, they'll coexist. You know, the centralized financial ecosystems will continue to contribute to society and they would take a very of import function in the stability of countries, nations, and communities. So, I don't think decentralized solutions are going to wipe out centralized solutions. I call up they're going to coexist. They might be applied in unlike forms and different contexts and I remember there's still some time for the world to kickoff agreement what decentralized is and the benefits of that.

Then, I feel that over the next 3 to 5 years there'due south going to be leaps and bounds made moving forward with blockchain technology. Similarly, you lot would find centralized financial ecosystems adopting some of that technology or retaining some centralized solutions like some kind of a hybrid model. What that means for the consumer is that yous're going to accept different options on the table. I call up the consumer is the winner. Then, if y'all experience like "OK, I don't actually want centralized solutions, information technology's non in line with what I am equally a person. I believe in decentralized open information and transparency", aye that might exist a solution for you. Or, you might be more financially savvy. You might say "OK, yous know what? I want to invest in crypto and I desire to stake tokens, earn a yield on tokens considering it's giving me a higher yield than my local bank account".

So, I think a lot of what's going to happen, and this is merely me crystal balling or forecasting information technology, I call back there are going to be a lot of financial advisors down the route and service providers coming out of nowhere saying how do you invest or should information technology exist role of your portfolio. Perhaps banks would start offering that as part of their services. Aye, you tin accept you know your fiat savings and current account but peradventure you lot want to have a crypto portfolio and this is what our experts recall. Then, banks might kickoff hiring crypto researchers y'all know? You lot already have fund managers who manage crypto funds and and so i think at that place'due south going to exist a coexistence between the two ecosystems which is very exciting for all of us moving frontward.

Cleve: Interesting. So, you believe as the earth moves forward information technology's going to be more of an "each-to-its-ain" kind of thing right?

Arun: Yeah, I would say each to its ain cartoon down from the all-time of both worlds.

I think the key is that yous would have options and then peradventure you might have an AMEX card that gives you lot nifty miles and you will still buy a coffee with your AMEX card at one café. But, perhaps there's another buffet that accepts tokens, and every token that they accept automatically contributes some social cause. Whether it's animal conservation or serving the underprivileged in gild and "You know what? I resonate with this cafe for that, I desire to pay in tokens because this café accepts those tokens". Yous know what I mean?

Then, every bit a consumer, yous start relating to different things like when I talk about miles. Hopefully travel comes back. I mean.. I take religion that travel will come back (chuckles) but I think it's going to be interesting fifty-fifty with travel. Imagine if you could offset spending on crypto. You don't have to go to money changers anymore right? Information technology could be a universal token of identifiable value that does not depend on geography or the central banking concern system. Imagine if you travel and you simply started paying in whatever particular cryptocurrency that is available for travelers at that point in a very widely accepted format. But, at the same fourth dimension, you might notwithstanding use your credit cards for other things. Maybe for your Spotify subscription or your Netflix subscription. So, this is what I mean.

You lot know, we're in Singapore. I think Singaporeans e'er look for the best deals. i recall there's going to be some experts coming on forums proverb "hey, you should become this card" or "you lot should become this wallet considering it gives you the all-time result", "maybe you should buy furniture with crypto here's why.", you know? So, I think it's non too far off. I honestly remember it'due south a couple of years away. Mayhap ii/3 years away or faster, and I'm personally excited about that how blockchain technology is going to exist embedded in our lives or be a part of our fabric and part of society. There's a lot of benefits to engineering science. The biggest hurdle similar I've said at the start of the podcast is basically having mass or order-wide adoption of the technology and educating people well-nigh the benefits and that's changing at present, led by NFTs, digital art and that'due south going to flow into other applications and verticals as well. And so, I'm super excited to be in the space. It's actually a privilege to exist part of the evolution of this nascent market.

Cleve: I guess information technology's good to see that because of emerging tech like blockchain, we have a lot more offerings that nosotros tin can embrace through people marketing their ain stuff their own way already. So, yeah information technology is heady to run into definitely.

OK, terminal question here. Would you like to provide some advice for artists today?

Arun: Yeah sure. I accept many friends who are artists that are probably in a better position to requite advice. I hateful, I'm not an artist myself just i definitely capeesh art and the piece of work that artists do. The main thing that I'd say is that technology is a tool and engineering volition evolve over time. i think there'll be many amazing tools that'll surface over the next few years. But, the key is that artists firstly have to remain true to themselves. They still have to build their identity, piece of work on the quality of art, their identity, their story, and the quality of art makes a departure in cost every bit well.

I inquire any art appraiser and they benchmark you confronting different genres of fine art or different peers of fine art and if you're a young artist, this advice probably goes out to more of yous. I call up the distraction would be to say applied science is going to

transform my art. Yes, there are some tools that will exercise that but engineering is not going to transform the quality of art, your make, and your identity. So, I'd say the advice is to utilize engineering to help you build that story, to help you build an identity, aid you build your craft, and and so recall about tech and solutions that will increase or amplify your presence, whether it's online or offline so that people tin can discover you. So, being discovered is key and for the audience to understand your story, connect with your story or art is likewise key. And then, that withal remains very very of import.

If not, you know even in the digital art infinite y'all're going to find lots of art that don't become sold. Information technology's non valued very highly and that happens in the physical fine art space as well. Not every slice of art is worth a million dollars and then the focus is really nonetheless focusing on your craft, identity, and the story that you're telling or the brand as I call it. So, information technology'south a combination of developing your artistic skills as well as your business set of skills.

Cleve: That's right.

Arun: I mean.. Some artists may not like this but y'all know art in itself is a concern. You lot're producing something that's amazing. y'all're like the manufacturer and art is a class of expression. It's an identity. It's a form of communication and it obviously personifies what the artist believes in. Only at the aforementioned time, y'all need sustenance every bit an creative person and for you to take a sustainable career. Hopefully, your fine art gets sold as well. Just like any other business, you accept to learn how to sell and you need to learn how to connect with your audience and it'southward merely non just artistic skills but the business side of it and I would say perchance that's kind of like the biggest weakness that many artists have. Like how practice you sell my fine art?

Hopefully, these tools that come on lath over the adjacent few years could assistance these artists become ameliorate sellers of their art.

Cleve: Yeah, That's good to hear. All right, and so if you're an artist you lot heard from the human being himself. Arun, thanks for coming to join united states for this podcast.

---

Click here to find out more about 75 High Street by Arcc Spaces.

Click here to find out more about ArtWallStreet.

More than Articles

daltonolstoord.blogspot.com

Source: https://www.arccspaces.com/arcc-insights-is-the-rise-of-blockchain-and-nfts-an-artists-curse-or-blessing/

Share this post