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Tokenization: The Final Frontier

Tokenization: The Final Frontier is Rare Digital Art by Joe Chiappetta

This animated sci-fi image will soon be available as rare digital art on the Grand pixEOS Art Gallery. I drew it first as a quick sketch on my big old Samsung Galaxy Note 3. That's an over-sized phone that came with stylus and I have used it as a mini drawing pad reliably for almost 6 years. It seems fitting that a somewhat space-age handheld device was used to create this art inspired by space-age classic science fiction themes. Old shows such as Star Trek and others have become famous for introducing handheld devices that were decades ahead of their time.

Speaking of innovations that are ahead of their time, rare digital art is deserving of more attention. In fact, the benefits and interesting traits of rare digital art are worth listing all together.

Characteristics of Rare Digital Art

  • Digital art can be issued in a limited supply (similar to limited-edition prints)
  • Instant or near-instant sales powered by the speed of blockchain
  • International market exposure
  • Digital art becomes a personal collectible item
  • Ownership data available to everyone
  • Ownership of digital art is transferable
  • Creators and collectors can set flat rate for art sales or accept bids
  • Artwork is as durable as the Internet, the blockchain that holds the art data, and the server(s) that stores the image
  • Art collectors can easily publicize their collection
  • Collectors can show people their collection in person from their own phones
  • Artists can easily keep track of released art with release dates and any other data included in that art's release description
  • All sales final: non-reversible
  • Technology prone to attract new audiences, including younger audiences
  • Typically lower price of art (less art material cost) makes collecting art more accessible to wider range of collector income levels
  • Rare digital art has overlap with rare gaming items, increasing the potential for new art audiences 
  • Art can be static image or an animated piece
  • Artists are more likely to trade limited-editions with other artists
  • Artists can host giveaway art events without shipping or physical production costs
  • Cryptocurrency price volatility may be a good thing (if crypto price goes up), or a bad thing. Yet even if a bad thing (as in the price of crypto goes way down) the artists involved still gain market exposure to new audiences.
I am sure there are more interesting traits to list about rare digital art, but these stand out right away. As can be seen, blockchain has opened up a whole new market for artists and collectors. Prior to blockchain technology, digital art images had very limited market venues for artists to release them in limited quantities. Art collectors have a hard time being interested in owning such art since images on the internet are easily copied. So there was no way to prove art ownership. Yet all that has changed!

Yes, any user can still simply copy and paste images onto their own devices. But that is not the point. Now, for collectors who want a way to collect digital art directly from an artist through an authorized and collectible means, the technology is here now to make that happen while also tracking ownership and date of sale. Furthermore, collectors have an authorized means of reselling that rare digital art to a new owner on the blockchain.

Physical art trade and exchange has always been possible. Now digital art trade and exchange is also possible. Transfer or ownership, bidding, discounting, limited supply... all those features that the physical art world has enjoyed have now come to rare digital art.

What Makes Rare Digital Art Possible?

Rare digital art means that on a blockchain, the cryptocurrency (or tokens) issued through these networks are now able to be linked to specific artworks. The artwork details get coded and recorded on the blockchain. This data is designed to last for the lifetime of that blockchain. In the same way that cryptocurrency creators can specify how many units of their cryptocurrency they will release to the world in a limited supply, and which users own which cryptocurrencies, the same features are now happening with digital art.

For example, on the Bitcoin blockchain, the total supply of Bitcoin has been coded to be 21 million. That means only 21 million Bitcoins will ever be in existence... and that's it. In similar fashion, digital art can now be linked to tokens on a blockchain that have a limited supply.

So take the above sci-fi art image I created. When I release it on a blockchain through pixEOS, it will be written into the code to issue this art linked to a limited supply of only 10 tokens. This is where the "rare" from the term "rare digital art" comes from. Once issued, only 10 images of "Tokenization: The Final Frontier" will ever be available to be bought and sold on that blockchain. Perhaps one of those collectors will be you.

That is why I, along with many other rare digital artists, have "set phasers to tokenize!"

Joe Chiappetta

Rare Digital Art Avengers

Rare Digital Art Avengers - by Joe Chiappetta

New times call for new heroes. Thankfully, the Rare Digital Art Avengers have arrived. Protecting the art-loving cryptocurrency universe from confusing technical jargon, these valiant servants of blockchain righteousness never back down from a noble fight! Whether it be dismantling dangerous acronyms that repulse newcomers or educating the masses on why art on the blockchain is so cool, the Rare Digital Art Avengers work with inspiring vigilance. Join Captain Non-Fungible, Doctor Memetics, Baron Von BitCrystal, and more heroes as they leave behind a collectible trail of souvenirs for their endearing supporters to enjoy and read about in a business-friendly manner. 

This artwork will be available soon on the Grand pixEOS Art Gallery. As a premier destination for collecting rare digital art on the EOS blockchain, a high degree of my comics and art will be appearing there. They have a fantastic community and I am so grateful to be a part of it.

If you like searching for hidden treasures and nuggets of coolness in your arts and comics, then this piece of rare digital art is right up your blockchain boulevard. It's one of those digital paintings that has paintings within the painting and comics within the comic. As you might imagine, it took longer than usual to finish the artwork but I believe it was worth it. All my years making Silly Daddy Comics and watching old Columbo detective shows have prepared me quite well for this task.

In fact, I would even bet that--for at least one other person--it holds extra-valuable keys to opportunity. That's because this art is part of the EOS Treasure Hunt, which is a contest to find free cryptocurrency. An EOS account, thesecretkey, has been funded with EOS and other tokens. The private key (or password) to this account has been spread in clues across dozens of various platforms so that only the most diligent detective will win the treasure. Happy hunting.

Joe Chiappetta

Preposterous pixEOS Headgear

Do all your deep pondering with the protective, yet preposterous pixEOS Headgear. Deliver yourself from boredom by wearing this happy head garment. It is certified by a team of decentralized semi-fungible and semi-anonymous crypto art technicians. Patterned after the most stylish wrestling headgear, this item is sure to turn heads throughout the entire art market. Once fitted with this fashionable helmet, bright and artsy ideas will effortlessly pop out from your blockchain brain with no end in sight!

This animation will soon be available only on the Grand pixEOS Art Gallery. As limited-edition art, this whimsical piece will be among the first rare digital art items to be released on the EOS blockchain.

What Is Rare Digital Art?

  • Art issued electronically in a limited-edition through blockchain technology.
  • Art linked to a cryptographic token whose entire history can be tracked. This history takes the form of metadata on a blockchain and can record date of creation as well as buyer/seller and price data.
  • Also known by the following terms: crypto-collectible, crypto-art, non-fungible token (NFT), semi-fungible token, crypto goods, digital goods, and digital assets.
  • Creative collectible digital items that can be sold from artist to collector, and then from collector to collector, where ownership is verifiable via the blockchain.
  • Art dependent on the Internet, electronic devices, and blockchain technology to be seen and traded.

If the above animated rare digital art looks somewhat familiar, you have a good memory. This new version with the green background is a revised variation of a comic that I issued previously in the Book of Orbs marketplace... however that original comic (with a white background) is not animated. While the comic version with the thought balloon brings the humor, the new animated version has its own set of fun surprises too.
Compare all the differences for yourself, let me know which version you like best, and even consider collecting them both.

Joe Chiappetta

Global Art Market Data and It's Relation to Rare Digital Art

This rare digital art, which can be purchased on MakersPlace, is titled "Big Appetite for Nuts."

Perhaps you can guess why this crypto art has such a title? As a long time cartoonist, it is hard to resist making lighthearted jokes about the art experience. Such things can be seen in this satirical comic about the art market. It is a cartoon also influenced by my real life appreciation for nuts. I eat them every day.

While poking fun at the art market is pretty easy, this sector is actually no laughing matter; it's big business. Gratefully, data about art appears to be becoming more and more user-friendly. Artist industry professionals should take note of this, as relevant data can help guide business plans toward the appropriate opportunities.

One fine example comes from a recent 408 page survey using data and research from Dr. Clare McAndrew of Arts Economics along with an international art fair producer as well as an investment banking company. Here is what I got out of their collaborative efforts, known as the Art Basel and UBS Global Art Market Report, released in 2019 but covering data from 2018.
  1. Art market had just over $67 billion in annual sales.
  2. Just under 40 million different art transactions occurred.
  3. More millennials are buying art, especially those of high net worth.
  4. Countries where the largest total art sales happen are USA, UK, and China, in that order.
  5. Online art market made up 9% of all art sales. This level of digital disruption is considered low.
  6. The number 1 challenge in the art industry is finding new clients.
  7. The number 1 challenge for online art companies is increased competition from other online companies.
  8. On the auction side, Christie's hosted 88 online-only sales generating $86.4 million.
  9. An impressive 41% of new buyers to Christie's came from online.
  10. Male artists continue to dominate top sales and representation by major galleries and exhibitions.
  11. The report has a 3-page section on blockchain technology and cryptocurrency in the art market, plus it is covered briefly in a summary section. While not mentioned specifically by name, the article takes an unenthusiastic view of rare digital art on page 295: "A key issue in the tokenization of art, on- or offline, remains the lack of demand for the concept, which alongside management and other fees, will likely stall any mainstream interest for the time being."
  12. The mainstream art industry is cautiously warming up (somewhat) to using blockchain to possibly track the provenance of artwork. However there are many barriers that still need to be worked out, and blockchain providence providers appear to be competing with each other, creating unclear standard practices while not completely solving core issues (such as how to deal with errors on an unchangeable blockchain).
  13. The report gathered data from a variety of sources through many partners. It is unclear whether rare digital art market data was included in the research.
There are countless other observations that can be captured from this report. Yet the above is what stood out to me. Since much of my professional arts work today involves activity in the rare digital art field, and since the specifics of rare digital art analysis is largely missing from this mainstream study, it is necessary to take this topic a little further.

Currently I have issued rare digital art on 8 different marketplaces using 2 different blockchains (Bitcoin/Counterparty and Ethereum), with big plans to also issue new art on a 9th marketplace (pixEOS) through a 3rd blockchain (EOS) as soon as it opens later in Q2, 2019. There are many more rare digital art marketplaces than these nine. In fact, the number of additional rare digital art marketplaces keeps growing and it is difficult to keep track of them all.

Moreover, there currently is no up-to-date comprehensive list of where all these active markets are located. Some launched and are doing great (like many that I am on). Some tried to launch but never did. Others launched yet became inactive. And more are on the way. There are even tools now available (Pixura) where anyone without coding knowledge can now make their own rare digital art marketplace on the Ethereum blockchain. Therefore, let's take the mainstream survey findings and combined them with my own experience to come up with the following additional conclusions. 
  1. On the one hand, the rapidly increasing number of rare digital art markets means easier entry for artists wanting in on this unique market opportunity. 
  2. On the other hand, just like in the physical art market, this increase in rare digital art markets means that the supply of rare digital art will grow faster than demand.
  3. With supply being greater than demand, the majority of sale prices must be set lower to remain competitive. This means that it is a buyer's market. Art buying collectors should take note, as many bargains for high quality rare digital art are readily available.
  4. The rare digital art marketplaces who innovate and are great at communicating that innovation to the world (as in marketing) will be better positioned to survive and thrive. The gamification of art collecting and creating will drive future growth. For an example of innovation and gamification, look at pixEOS' roadmap as well as what they have already delivered in the crypto art space.
  5. Research on rare digital art markets could be beneficial to this sector's maturity, and help paint a more accurate picture of the art market as a whole. Since the sales figures and unique collector wallet addresses are all on publicly accessible blockchains, this data should be somewhat easier to compile.
  6. Rare digital art markets should form some sort of professional association to leverage shared resources and collaborate when strategic.
  7. Barriers to entry for women in rare digital art are much less evident compared to traditional art markets.
  8. Rare digital art marketplaces as well as their artists should divide their work week into 3 equal portions: 
    1. Making art
    2. Marketing art
    3. Educating art fans, potential and existing collectors, and tech savvy gamers on how and why to tap into this new market
Happy making, marketing, and educating to you!

Joe Chiappetta

pixEOS Paint Drawing Contest

pixEOS Paint is a crypto community pixel drawing app and so much more. I have been enjoying it (along with the rest of the EOS community) so much that today I am starting a...
pixEOS Paint Contest!

Prizes: 250 PIXEOS tokens for each winner. Three winners will be chosen by my Silly Daddy family and I. We will select winners based on our personal art tastes.

  1. Create a new drawing on pixEOS Paint using at least 20 pixels. Please make it family-friendly since me, my wife, and kids will be contest judges.
  2. Buy the pixels of that drawing, which locks that drawing into the EOS blockchain and the pixEOS Paint canvas.
  3. Share a screenshot close-up of that new drawing with me to my Twitter account or Steemit account.
  4. Write your EOS user name in that comment too.
Deadline: April 5th, 2019

For questions about pixEOS Paint, read the FAQs here or join the pixEOS Telegram chat.

Happy pixelating to you!

Joe Chiappetta