Pragmatic applications of blockchain technologies for arts and creative organizations

Pragmatic applications of blockchain technologies
for arts and creative organizations
Adrian Gonzalez Sanchez, MBA MSc
Big Data, AI & Blockchain Strategist
University Lecturer
https://www.linkedin.com/in/adriangs86
Montreal - November 4, 2020

Pragmatic applications of blockchain technologies for arts and creative organizations
Adrian Gonzalez Sanchez - Nov 4, 2020 2
Blockchain
ARTS & CREATIVITY

Our discussion today will focus on the strategic level
of analysis for your industry and companies

“Blockchain is more than technology.
It’s a movement that's redefining our
most important business
relationships through trust,
transparency and newfound
collaboration.
It’s the work of visionaries — people
who see the world differently and
are compelled to help the rest of us
believe in the art of the possible.”
https://www.ibm.com/blockchain/resources/blockparty

Introductions - Tour de table
Who are you and why are you here today

Adrian Gonzalez Sanchez
Big Data, AI & Blockchain Strategist
Certified Product Manager (CPM)
Certified Scrum Product Owner (CSPO)
MBA, MSc., Telecom & IT Engineer
x
www.linkedin.com/in/adriangs86

Why Blockchain & Adrian?

• Understanding Blockchain, its origins and technologies
• Presenting general Blockchain applications
• Introducing Bitcoin and other Crypto-currencies
• Comparing Blockchain vs. Crypto-currencies
• Introducing Blockchain for arts and creative organizations
• Discussing potential ideas together
Concretely, our goals today are...

Let’s define our working agreements 🖍

Let’s start!!

The Blockchain is just a chain of “blocks” (duh) which contains data (i.e. transactions)

The Blockchain is based on the distributed ledger principle (a decentralized network)

The Distributed Ledger allows to store transactions in a secure and transparent way --
Obviously, there is a trade-off between benefits and complexity
Example: Blockchain-based financial transaction

There are different areas of Blockchain applications for new use case creation (1/2)

There are different areas of Blockchain applications for new use case creation (2/2)
Discussion:
Can you identify potential
applications for arts and
creative industries?

PwC identifies similar areas based on the potential boost to global GDP by 2030
1. Provenance (US$962bn)
2. Payments and Financial Instruments (US$433bn)
3. Identity (US$224bn)
4. Contracts and Dispute Resolution (US$73bn)
5. Customer Engagement (US$54bn)
Source (2020): https://image.uk.info.pwc.com/lib/fe31117075640475701c74/m/2/143b66d5-0ba6-49ed-8766-5c7139dcc2f0.pdf

Second iteration: Do you see now other potential areas of
application for arts and creative organizations?

We will keep these three concepts for later (1/2)
The last mile problem of
Blockchain refers to the bridge
between a physical asset and its
digital avatar on the chain.
The credibility and effectiveness of
a Blockchain solution critically
depend on “the way” or “the last
mile” of bridging these two types
of assets.
Tokenization is a process where
some form of assets are converted
into a “token” that can be moved,
stored, or recorded on a
blockchain.
Cryptographic tokens represent
programmable assets or access
rights, managed by a smart
contract and an underlying
distributed ledger.
Cost of verification is the cost
related to the ability to verify the
attributes of a transaction (e.g.,
showing someone your ID card in
order to buy liquor, verifying goods
moving through a supply chain, or
checking the full KYC process of
getting a mortgage loan).
Source: https://www.datadriveninvestor.com/2019/04/26/the-last-mile-problem-understanding-the-economics-affecting-the-future-of-blockchain/

We will keep these three concepts for later (2/2)
← Best choice for
commercial applications
in terms of scalability and
adoption

Based on your knowledge of the industry, what’s the current level
of maturity of blockchain for arts and creative organizations?

McKinsey compares the impact of Blockchain per industry (2018)
Source (2018): https://www.mckinsey.com/business-functions/mckinsey-digital/our-insights/blockchain-beyond-the-hype-what-is-the-strategic-business-value

Don’t worry… Blockchain technology and its adoption are still
evolving, we will explore some use cases together!

But before, we will explain a few key concepts and share some
additional pieces of information

The Blockchain hype comes with a series of myths and misconceptions

But what’s the difference between Blockchain and cryptocurrencies...

… and how do they compare to “normal” currencies? (1/2)

… and how do they compare to “normal” currencies? (2/2)

What are the main cryptocurrencies today?

And what does Bitcoin looks like? (1/2)

And what does Bitcoin looks like? (2/2)

Some facts:
- Blockchain and cryptocurrency (e.g., Bitcoin) are important tools for a decentralized market
that needs to protect its speed, security, and reputation.
- Blockchain technologies are being researched by the largest corporations to securely deliver
and transact business.
- Despite government regulations, cryptocurrency is more mainstream than it has ever been.
- Many people believe cryptocurrency is the next gold rush, investing in projects without truly
understanding how they work.

All the noise around Blockchain (specially cryptocurrencies) is “helping” governments
to wake up and to increase regulation
Discussion:
Why do you think we need
regulation for “cryptos”?

The current trend in terms of cryptocurrency is what we call “stablecoins” -- Countries
like China, Russia, USA or even UE are exploring this option to digitize their currencies

The Blockchain hype is real, and its importance as “buzzword” will continue evolving
Read more:
The 4 Phases of the Gartner
Blockchain Spectrum

We can now explore both general and specific Blockchain-based
applications around the world

But before… let’s take a 10-minute pause

Example 1 - Supply chain and Transportation, IBM’s Tradelens

Example 2 - Diamonds (Provenance), Everledger

Example 3 - Social Media and Reputation, Steemit

Example 4 - Instant Payments, Bitpesa

Example 5 - Diploma Verification, Blockcerts

Example 6 - Gold Investment, UK The Royal Mint

Example 7 - Insurance and Smart Contracts, Limonade

So what about arts and creative organizations?

McKinsey identified several areas of application for creative industries

Australia’s RMIT University explored additional applications for creative industries
1. Smart Contracts and payments
2. Royalty payments
3. Investments and donations
4. Ticketing
5. Rare digital objects
“Creative industries blockchain platforms are experimenting
with royalty payments for music and screen works, proving
the authenticity of visual artworks and fashion, avoiding ticket
scalping and more. For creative practitioners, this means
simpler and more transparent transactions, easier contracting,
fewer overheads and less reliance on intermediaries.
Streamlined processes for collaboration between creative
practitioners might also emerge.”

Everledger works to guarantee art authenticity and traceability

Breaker.io enables decentralized content distribution

Artnome explains how to create a Blockchain-based art marketplace via Pixura

SuperRare is an official marketplace for digital art

BlockchainMyArt is a dedicated platform for payments

The Foundation for Art & Blockchain works to incentivize and support artists

Do you have any additional idea? Share it!

Summarizing:
- Blockchain is not a new technology but its applications are still evolving. It is not too soon,
and definitely not too late.
- Arts and creative industries are usually not top candidates for high-level applications, but
there are a few areas where they can really generate positive impact.
- After this workshop, try to reflect on the potential fit between Blockchain and your own
business and activities. Be PRAGMATIC and look for real impact.
- Fortunately, there are already platforms and communities out there, you don’t need to start
from scratch!
- If you decide to move on, we can explore together how to a) generate new sources of
revenue, b) explore potential savings, and/or c) enable new lines of business.

Pragmatic applications of blockchain technologies for arts and creative organizations

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