Art Distancing - How the Art Market is Turning Digital
The recent pandemic accelerated a process that was already in motion, and has caused the digital market for art to boom on an unprecedented scale. On the one hand, this market is appropriate for artworks that were originally created using digital techniques, and are then enjoyed and transferred using digital media. However, for a collector, making digital artworks available online is very different from exhibiting them at home, with liabilities akin to those of a publisher. On the other hand, buying a physical artwork without the possibility of examining it creates risks of fraudulent sales, higher margins of error and guarantees with reduced value, although at the same time the buyer may be protected by regulations on online sales. Furthermore, compliance with Anti-Money Laundering rules can become extremely difficult in a digital environment. Finally, the digital market offers the possibility of “tokenizing” works, i.e., creating digital certificates that are registered on the blockchain and that represent a portion of the artwork’s value.