Our view is that both blockchain technology (and non-fungible tokens (NFTs),) are the perfect tools to transform the traditional Fine Art sector, for the benefit of artists as well as collectors. With this in mind, the Invictus NFT Lab’s inaugural Out of Africa collection aims to blaze the trail by facilitating, via the Ethereum blockchain, the sale of a professionally-curated collection of 118 unique physical artworks from Southern Africa’s top artistic talent.
Major socioeconomic changes have largely occurred when new generations replace older generations who are less set in their ways. These changes often occur because of technological advancements. Millenials, Gen Z, and others have seen technology, smartphones and computers revolutionize the way we live. These generations are now skeptical about traditional institutions and their inability to adapt.
Fine art is at high risk of being left behind. A static business model unchanged in decades passes on significant middleman costs — hampering the market’s ability to attract new demand, ultimately resulting in unfulfilled artistic potential.
The generational divide
Around the world, younger generations currently control a tiny share of global wealth — with the The US’s wealth is more than half controlled by the Baby Boomer Generation. Inheritance is a way to pass wealth on to younger generations.
This is what we should be focusing on:
- The younger generations are familiar with ascribing value to assets for collectible value and exclusivity — as evidenced by crazes around collectibles such as rare Pokemon cards and purely cosmetic items in online games that fetch astronomic prices.
- This generation is far more familiar with online technology than their parents, and they are all using cryptocurrencies as well as NFTs.
It’s a matter of This is evident as it becomes clear that a lot of the wealth of these assets will end up in this new category of digital assets.
Blockchain brings benefits
The NFT market has been able to tap into a niche market for digital art and collections generative NFT avatars such as CryptoPunks and Bored Apes. However, The key benefit of using NFTs for transferable ownership certificates can be obtained by purchasing them.For collectors as well as artists. With the Out of Africa Collection, this is our approach.
This is the first step towards improving efficiency in the industry and lowering costs. Galleries and auction houses provide valuable services to industry participants, however, these premium businesses come with high overheads — necessitating large middlemen costs on art transactions. They are usually charged both to the buyer and seller. Delivery costs can also add to a buyers’ final price — even if the artwork is purchased as an investment, with no desire to display the art.
Blockchain offers a way to drive down costs while still allowing traditional auction houses and galleries to operate. Secondary market sales for NFTs in TheCollection Out of Africa, a total of 10% of the sales price is taken by the protocol, however, instead of finding its way into the sales platforms’ hands, the distribution is far more equitable — These spoils are shared with artists and the community. Taking delivery is also not required if you’re holding the NFT purely as a speculative investment, and the NFT can be sold on to a new owner who can then elect to take delivery (or not).
Opacity and concern about provenance is the second problem. With over half of all art sales private transactions, it becomes difficult to get a sense of what a fair market valuation for an artwork may be, as it’s not possible to see the sales history in many cases. Furthermore, even in public sales such as auctions, bidders’ identities are often not revealed — leaving onlookers to question the veracity of sales that can drive exploding valuations for artists. NFT technology also has potential for improving authenticity and provenance. These issues can be solved by adopting blockchain technology to keep track of art transactions.
These issues aside, it also allows for other benefits such as allowing you to Model of royalty-driven revenueVisual fine art is also available in physical form. This helps to unlock global demand as well as reducing transport costs. This leads to greater artists’ success and increased demand. These artworks, including the Out of Africa Collection, are kept safe for the NFT holder. No delivery charges are required by the owner if they hold the work for speculative reasons and don’t have to take possession.
“The Out of Africa Collection is made up of 118 unique NFTs on the Ethereum blockchain and is the first time many of the artists have worked in the NFT space. This collection is a triumph for these artists and represents some of the finest new, upcoming and established talent.” – Marelize van Zyl, curator for the Out of Africa collection
While it’s clear that the art world is ripe for disruption, legal frameworks are still playing catch up. The Out of Africa collection is hoping to blaze a trail towards widespread acceptance of the utility that NFT technology can provide outside of digital art — and hopes to kickstart an industry revolt against unfair and inefficient practices.
You can keep up-to-date with all developments by signing up for our newsletter. Sign up for our newsletterYou can also follow us via our social media channels. If you’d like to learn more about how the project works, including the sales process and innovative community features (including a series of 1770 deflationary poster NFTs that you can own for free!) Check out the LitePaper or our Medium article.
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