The new infrastructure must be substantially better to transform the status quo and move the art market forward.
Art must become a liquid asset class. Transaction fees must be cheap. Transactions must happen almost instantaneously. Energy consumption must be minimal. Registered art on the blockchain must be compatible with established regulations and copyright law. Collectors must be able to benefit from purchased art beyond speculatory trading. Art on the blockchain must follow international standards for provenance documentation and verification.
When the proper protocols are in place, we have a base for unlocking almost US$2 trillion in art value stored behind closed doors. For this to happen, collectors must have confidence in the underlying technology, and there must be a proven track record and widespread institutional adoption.
Once transaction fees are lowered, a proper solution for license rights is introduced. There are immediate benefits to collecting and utilizing those rights, incentivizing more people to enter the NFT space. This mechanism will create a positive adoption loop, where more and more galleries and artists will realize the benefits of bringing art to the blockchain. In a way, this process is already taking place.
The new market dynamics could stimulate prominent collectors to reveal their hidden collections and bring valuable art into the open. An abundance of priceless art with significant historical value is only accessible to a few people, but if those artworks and artifacts were shared with a wider audience, it would create an unprecedented cultural shift that would benefit the global civilization.