pixEOS Gallery Live on EOS Mainnet

Many years ago, when the EOS blockchain was still just an unlaunched idea in active development, I wanted to assemble the right people together to create a rare digital art gallery on top of that promising new technology. In the course of this wild and entirely unpredictable journey I met a few others who had the same vision and we joined forces. Finally, after much prayer, planning, perseverance, and development, that fine art marketplace has become a reality that we now call The Grand pixEOS Art Gallery.

It has been a long, winding, and sometimes abstract-expressionist road, yet I know that this is really just the beginning of a paradigm shift in the art market! The gallery is now officially open for business as the first professional international digital art marketplace on the EOS blockchain. Art collectors can now collect their favorite pieces of rare digital art (also known as non-fungible tokens, NFTs), trade them, and participate in the future of art today!

I thank God for victorious moments like this, and for the blockchain and arts communities for being so patient and supportive of us!

Joe Chiappetta

The Future of Art in Gaming

Gamified Art Gadget is rare digital art by Joe Chiappetta on MakersPlace.
This animated tech cartoon alludes to what must happen for the art industry to be saved.

The Future of Art in Gaming:

Revitalizing the Art Market Through Game Integration

The ability for the masses to create art has become commonplace in our highly technological society. Everyone can be an artist, especially with all the online art-making tools available now. In the past, a person needed artistic skills to make art. Now all we need are certain websites that make the art for us through a form of artificial intelligence. To reiterate, I am not talking about tools that are coming soon. I am talking about free art-making tools that are available right now. A person needs to look no farther than Artbreeder to see the truth in this.

On one hand, making art simply by pressing buttons is a good thing, since more people can express themselves creatively. On the other hand, it may not be great for those trying to sell their art in an increasingly flooded and talented market. As the supply of art increases, it's value will decrease.

Therefore the future of art--as a highly valued commodity--lies not just in creating "better" art. Rather the future of valuable art lies in creating a better art experience. When art gets integrated into gaming environments, art can get radically more fun, relevant, and valuable. The exhibit halls, galleries, and artists able to make art-viewing and collecting more of a literal game are the ones who will rise to the top of an over-saturated art market.

The Plight of the Current Art Market

Some might still argue that the art market is fine as-is and does not need fixing. People might point to a few high-profile art sales at auction. However, these stories are in a fractional minority, and in most cases, the artist gets nothing from the resale of their work at auction.

Moreover, the rate at which colleges are cranking out graduates with $100,000 art degrees is staggering because most of those poor folks end up in horrible debt with no career in the arts to show for it. According to a 2014 report on art degree results, only 10% of those with art degrees make their living in the arts. So there is a massive disconnect between what the art market can currently sustain verses the myth sold to naive art students. Such issues can only fester for so long.

Saving the Art Industry

A number of companies already see the writing on the wall for the art market and are providing solutions to this matter. Opportunity has presented itself in the form of a whole generation that has grown up with video games, craving more, more, more. Therefore some digital visionaries are making bold moves to blend art and gaming into one integrated ecosystem.

EverdreamSoft CrystalSuite, MakersPlace, pixEOS, and CryptoVoxels all have projects that combine gaming with art in various ways, providing potential economic opportunities for the entrepreneurial artist. It should come as no surprise, since I am a long-time artist and art collector, that I am an active member of these communities. In fact, I spend a good deal of time touting the benefits of these new projects because most still don't know that these opportunities exist. I drink the Kool-Aid--so to speak--as do a growing number of professionals in the art and gaming industries.

Ironically, all 4 of these projects are blockchain-based, with cryptocurrencies playing a key driver in their innovation and economic agenda. All 4 projects also have ways to issue limited-edition cryptocurrency that is tied to artwork. This effectively makes owning limited-edition digital artwork possible too.  Yet the surviving projects will not be the ones who simply flash cryptocurrencies around... or rare digital art around. Rather the attractive companies will be those who integrate payments seamlessly (as in user-friendly) into their systems while also maintaining a lively gaming and artistic atmosphere that leaves customers coming back for more.

Soon it will not be enough to just collect art, or view art. The rising population of digitally native people will want to experience new adventures with their favorite art. Games can provide the perfect vehicle for such art. Imagine a virtual game where collectors shoot at each other's avatars while holding defensive shields that take the form of particular pieces of their art collection. Perhaps the art remains digitally scarred for a week before reverting back to its original appearance. The winner of the game could receive new rare digital art from an artist. Or perhaps the winner could receive a piece of the defeated collector's art.

Or imagine a virtual 3-D world where you--as an avatar--walk through digital galleries that display art on virtual walls that prompt you to discover new art by solving mysteries or riddles. All sorts of gamified incentives can be coded into this realm. Perhaps the more artwork of other artists that you share about on social media, the more points you receive that can be traded in for new artworks. Another option is that members of this 3-D virtual art world can earn new gallery wall space to exhibit their own collections as they complete certain online games or tasks.

As you can quickly see, such experiences are well-suited for building memorable interactions, and they are exactly what is needed to keep art more relevant as a highly valued item in our fast-paced, attention-competitive society. Therefore to the galleries, curators, artists, and collectors, I pose this question as a challenge;

To build a more vibrant future, how will you gamify your corner of the art world today?

Joe Chiappetta
http://SillyDaddy.net

Tokenization: The Final Frontier

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.

Why would anyone want to collect rare digital art? We are speaking of monetizing digital art, which is an innovation ahead of its time--yet here now. Rare digital art is deserving of more attention and I do think someone should win a Nobel Prize in Economics for its inception. In fact, the benefits and interesting traits of rare digital art are worth listing all together. The below list can be used to help art collectors see the benefits of collecting rare digital art.

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
• Royalties for secondary sales can be written into the blockchain so artist automatically receives a percentage of resale price each time a collector sells that artist's work to another collector
• 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 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
• Physical art can be bundled with rare digital art as an option
• 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 today 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 1 token. This is where the "rare" from the term "rare digital art" comes from. Once issued, only 1 image of "Tokenization: The Final Frontier" will ever be available to be bought and sold on that blockchain. Many can be copied infinitely. But only one copy can be monetized--the one image that I link to the blockchain, to be collected by only once collector at a time. Perhaps that one person will be you!

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

Joe Chiappetta
http://SillyDaddy.net

Global Art Market Data and Its 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). There are many more rare digital art marketplaces than these. 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. 

Rare Digital Art 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.
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

http://SillyDaddy.net