13 Nov How ArtChain Global will Prevent Art Fraud
Stories about art fraud and forgery are all too common and often featured in the media. Simply said, art forgery is the creating and/or selling of artworks which are falsely credited to other (and mostly famous) artists.
There are three types of art forgers:
- People that produce fraudulent artwork.
- People who pass off artworks as something that they’re not.
- People who discover that an artwork they’ve bought is a fake, but sell it on as an original anyway.
While art forgery is often idolized in films and TV shows, it creates a lot of problems for art buyers who are out of pocket as they believed they purchased a genuine artwork. The frequent stories about fake art and how people were duped leaves the artworld with a bad reputation and many people are hesitant to buy or invest in art as a result.
While it’s estimated that high net worth investors currently have 6% of their portfolios invested in art, this level of investment will likely rise when they can purchase art with more confidence. Similarly, fixing the trust issue will attract a new wave of investors who may have been afraid to buy in a market they didn’t have enough confidence to buy in.
ArtChain Global was founded for exactly this reason and aims to eradicate art fraud and bring back trust and transparency in the artworld. Let’s have a look at a recent example of art fraud before we explain who ArtChain Global are and how this type of art fraud would never have happened if ArtChain Global had been around.
Recent example of art fraud
A recent example of art forgery is highlighted in this article in the Sydney Morning Herald from the 3rd of November about the sale of a forged Adam Cullen painting called Wild Brumby.
In short, the story involved a seller of art whose art gallery doesn’t physically exist at the address on her business card and is also not registered as a business with the Australian Securities and Investments Commission. The seller had sold a painting called Wild Brumby she claimed to be from the late Adam Cullen and even had a forged certificate of authenticity and a forged condition report to go with it.
Adam Cullen had in fact produced a painting titled Shackled Young Brumby in 2010, but this painting looked markedly different to the painting in question called Wild Brumby:
- The signatures on the paintings are different.
- The original painting is square whereas the forgery is rectangular.
- The colours and details of the paintings are different.
How ArtChain Global will eradicate art fraud
The above example shows that the lack of a trusted central registry for art is the main reason that art fraud is still so prolific. Prices are currently based on a false sense of trust in the history and documentation of paintings, which leaves ample room for fraudsters to ply their trade.
ArtChain Global’s platform, once officially released in February 2019, will be this much needed central registry for art and will provide trusted art registration, tracking, protection and accountability for artwork.
The platform is built in partnership with Swinburne University of Technology and is based on the latest blockchain technology that synchronizes digital and offline assets for anyone involved in trading, collecting or producing works of art.
ArtChain Global will be accessed by artists, galleries and art institutions (or their authorized agents) in the primary or secondary markets to upload and document their art. Once an artist or gallery uploads their artwork they will be eligible for trading on the platform, taking advantage of a smart contract function which provides transparency and provenance creating a footprint for the artwork at every stage it is bought or sold into the future.
The platform ensures art forgery can be totally eradicated in the future in the following ways:
- Each artwork can be traced back through its complete history and only one true original piece of art can ever be registered on the platform. If someone other than the artist (or their authorized agent) wants to upload art to the platform there is an A.I. process to ensure it is an original piece and not a fake. This would prevent the above scenario, where someone produces a work of art that is similar to an original artwork, from happening.
- There is no value in counterfeiting an artwork that is registered on ArtChain Global as it can’t be registered or sold twice as there is full transparency on the trading history and transfer of ownership.
- ArtChain Global IoT sensors will be also be available to artists and traders to install into/attach to their art. This device will enable artworks to be tracked in real time and sends alerts when it is moved, thereby preventing theft or substitution. These devices may also record temperature, humidity and pressure placed on the artwork fabric to ensure the artwork is kept in optimum conditions.
The platform will put an end to art forgery and will ensure that investors pay a fair price for an authentic piece of art as they will be able to see its trading history and all its associated original documentation on the blockchain. ArtChain Global brings total provenance to the art industry and it will attract a new wave of art investors, which is fantastic news for artists all over the world.
To incentivize artists to upload their art and add more information about it, such as its authenticity documents, they will be rewarded for doing so. This is a novel way for an online platform to ensure artists are motivated to provide that extra level of trust and provenance to potential buyers.
If you’re interested in protecting your legacy and ensuring your art isn’t subject of fraud and forgery, go to www.artchainglobal.com and register your interest to get notified when the platform goes live in February 2019.