The new freedom in the direct marketing of art in a decentralized art economy

In an increasingly digitalized world, art and creativity have been undergoing a profound transformation for years. Despite all the disruptions to the status quo and numerous challenges for artists, one significant new advantage is emerging: artists no longer have to rely on traditional galleries or auction houses to present or sell their works.

New platforms, digital networks, and innovative technologies create spaces in which art becomes independent, direct, and globally accessible.”

Brave New World: Digital opportunities for creative minds

Digitalization has opened up a multitude of channels that offer artists new avenues for self-realization. Through social media, online galleries , and specialized platforms, they can reach their audience directly—without intermediaries and geographical boundaries.

The growing connection between art and technology is particularly transformative. Platforms that originally originated in the world of finance or tech are now also being used by artists to create new forms of interaction and monetization. For example, a crypto exchange  the opportunity to trade digital artworks securely and transparently or to integrate innovative payment models. This creates a space where creativity and economic empowerment go hand in hand.

New forms of presentation and networking

Digital technologies have not only changed the way art is sold, but also how it is perceived and experienced. Virtual galleries allow exhibitions to be experienced in immersive 3D environments , while augmented reality (AR) brings artworks directly into the viewer's physical space.

Furthermore, platforms such as art networks and digital communities are creating new forms of exchange. Artists can collaborate, receive feedback, and launch joint projects there, regardless of whether they live in Berlin, Vienna, or Buenos Aires. The boundaries between the local and global art scene are blurring—which means not only greater visibility but also more creative freedom.

Technology as a tool, not a replacement

While some fear that technology could threaten the authenticity of art, the opposite is true in practice. Digital tools offer new forms of expression, but they remain tools guided by human creativity.

Many artists today use tablets , AI-supported software , or 3D printing to realize their ideas. These technologies expand the spectrum of possibilities: They make experimental forms accessible that would previously have been technically or financially impossible. At the same time, artists retain full control over their work and its presentation.

Independence through innovation

Another key advantage of new technologies is the independence they create. Artists used to rely heavily on galleries, collectors, or publishers to secure their livelihood. Today, they can sell their work directly to their audience, offer subscriptions for exclusive content, or tap into additional revenue streams through digital licensing.

Platforms that ensure transparency and traceability are particularly important here. They enable fair compensation models that protect copyrights and reward artists for every reuse of their work. This puts self-determination back at the heart of artistic creation.

Taking stock of the crypto art market – hype, correction, and resilience

The digital art market, fundamentally transformed by the introduction of non-fungible tokens (NFTs) and blockchain technology , recently experienced a significant post-hype correction. Following unprecedented speculative growth, the sector has experienced a decline and significant volatility since 2021. This necessary correction eliminated projects based solely on speculation, while simultaneously creating resilient market segments that convinced even critical voices by offering real utility and real earning opportunities for artists .

The programmable licensing model enabled by smart contracts continues to represent a strategic opportunity for creators: it can transform artists' revenues from one-time transactions into continuous, automated income streams from secondary sales throughout the asset's lifecycle.

This mechanism will revolutionize long-term wealth creation for digital artists.”

Nevertheless, systemic vulnerabilities remain. The main problem is the high frequency of intellectual property (IP) theft and illegal minting , which requires artists to expend significant resources to protect their works from unauthorized tokenization . Regarding financial fraud schemes such as wash trading and pump-and-dump operations, these aspects must be addressed with strict security protocols and increased regulatory maturity.

Future resilience and growth depend on the widespread adoption of scalable and sustainable technologies. To mitigate high transaction costs and address environmental concerns, it is crucial that energy-efficient blockchain protocols such as Proof-of-Stake (PoS) are adopted and that Layer 2 solutions (e.g., Polygon, Arbitrum) are widely deployed. Long-term success in this decentralized paradigm ultimately depends on combining digital scarcity (NFTs) with increased community utility to create deeper relationships between artists and their engaged audiences.

Digital infrastructure, platforms and protocols

There are now different levels of NFT marketplaces, each designed for a different group of creators and collectors. These differences can be seen in how they select curators, how much they charge, and whether they are more concerned with quantity or quality.

The aggregators: Markets that are open and have a lot of trading

There are still many digital assets on NFT platforms like OpenSea . These marketplaces offer everything from art and antiques to virtual real estate. OpenSea operates on 19 or more blockchains and remains the most popular choice among producers and collectors because of its long history and large user base.

These sites usually don't charge high fees for secondary sales. OpenSea , for example, receives around 2.5%. The goal of this method is to make trading more accessible and increase the number of transactions. This open model, on the other hand, overcrowds the market, so artists often have to engage in a lot of self-promotion and storytelling (also "shilling" ) to gain visibility for their work.

Selected platforms with high prestige (The digital gatekeepers)

Platforms like SuperRare and Nifty Gateway, on the other hand, strive to be the best by focusing on unique, limited-edition drops and high-quality, carefully selected digital art. People know that SuperRare only displays a small number of artworks after carefully vetting them. This ensures the pieces are authentic and that collectors will have a hard time finding them elsewhere.

The way the fees are set varies considerably. For example, SuperRare 15% of all major sales, and other curated platforms like Foundation also take 15%. The fact that artists are willing to pay a lot of money to be present on these sites demonstrates a significant trend in the market.

The decentralized movement initially called for "disintermediation ," but since there are already too many buyers of digital art, they need "indirect quality signals" to feel secure and support higher prices. In this case, curation is necessary. It brings back the role of an intermediary to demonstrate status and keep prices stable in the high-end digital market.

Apart from NFTs, there are aggregation and self-publishing models for distribution

NFTs are the latest way to monetize digital art. However, this is just one of many ways people are making money in the maker economy. Self-publishing sites and music aggregators were the first to move toward direct sales. Musicians can share their music on all major social networks and streaming services with services like TuneCore and SoundOn .

However, they still own and run their own businesses. This model transformed the way traditional music labels operated by partnering directly with digital stores as early as 2006. It also set the standard for artists to expect to retain full ownership and direct access to the marketplace. The success of these pre- Web3 laid the psychological and financial foundation for the later desire for NFT smart contracts. These allow people to take full control over their own income from creative work.

Different types of blockchain protocols

Older blockchains still have issues that artists have to deal with, such as high costs and slow speeds. Various Layer 1 methods on platforms address the problems associated with high prices. Because Solanart is built on the Solana blockchain, it can mint and trade quickly and easily because the blockchain is fast and has low transaction fees.

As ecosystems like Solana gain popularity, they make the market more competitive. This means that established Layer 1 leaders like Ethereum must continually find new ways to scale and become more efficient if they want to keep up with the high-volume activity of creators.

Long-term market outlook: Short-term decline with aggressive growth forecasts

Although the non-fungible token market is declining rapidly in the short term, the long-term forecast remains excellent. According to market research by Grand View Research , the global NFT market is expected to be worth $211.7 billion by 2030. This represents a massive compound annual growth rate (CAGR) of 34.5% from 2024 to 2030.

There's a huge discrepancy between predictions that the market will continue to decline and forecasts that it's far from reaching its potential. Some experts believe that blockchain and smart contract technology will be useful in many more areas than just collecting digital art. Some examples of such applications include tokenized financial assets, intellectual property management, and gaming frameworks.

The digital art market will only be able to survive and grow if it successfully fits into these high-level utility frameworks. NFTs can be used as financial instruments and interactive experiences because they have verifiable ownership structures. Adoption among US consumers is still quite low, but the overall penetration rate is slowly increasing (0.18% in 2023). This means that as the technology becomes more advanced, there are many potential customers who have not yet been reached.

Challenge of the traditional valuation system: rarity, provenance and significance

The decentralized art model completely changes the way art can be valued. It creates a new way to assess the value of art based on both its aesthetic and financial merit:

• Artificial scarcity : Traditional art relies on each piece being unique. NFTs make files that can be copied forever seem scarce in the digital world. This shifts the focus of value from the medium itself to the tokenized proof of ownership.
• On-chain provenance : In the past, paper documents, museum records, and auction house master sheets were used to demonstrate that something was genuine and had a verifiable history. Blockchain is a better choice because it maintains a public, real-time, and immutable record of every transaction. This makes it easier for both artists and collectors to trust and verify each other.
• Weakening institutional authority : Digital artists can now sell their work directly to people around the world. They can build communities, become financially independent, and find value in the marketplace without the help of traditional art critics or established institutions.

Opportunities and possibilities for the creative industry

Financial Freedom: Basics of Programmable Royalty

The best thing digital artists can do to improve their finances is to leverage programmable royalties. The artist only earns money on the first sale of their artwork. But smart contracts , which are digital agreements built directly into the code and executed automatically, allow creators to earn money on an ongoing basis.

This system ensures that the person who created the NFT receives a certain amount of the sale price each time it is resold on the secondary market. This change ensures that the artist's work generates income over a long period of time, giving them greater freedom and financial security throughout the work's economic lifecycle.

This feature presents content creators, musicians, and artists with a real opportunity to generate a sustained income. A prime example is Yuga Labs , which receives 2.5% of resales as royalties on early projects. NFT technology also makes it possible to create art that changes based on how people interact with it or the addition of data from other sources.

Fractional Ownership: Better Access to Investments and Cash Flow

Fractional ownership is a great way to make investing in art easier for more people and make assets more salable. Many more people can now invest because the idea allows many to own tokens representing a piece of a valuable digital artwork.

Fractionation makes a significant asset more accessible by breaking it down into smaller pieces. It's easy to sell shares on secondary markets, which accelerates the process of converting digital art into securities and could make it more attractive as a recognized asset class.

But fragmentation makes it difficult to figure out how to manage and control assets. The models we currently have show that a platform typically manages investments in fragmented art . This means investors lose control over key decisions, such as when to sell their art. There's also a significant governance gap in this fractional model when it comes to the autonomy of the original artist.

Investors like liquidity, but there must be clear controls to show artists how they can influence management decisions, benefit from token splits, or manage platform-specific risks. For fractionalization to work in the long run, clear rules must be put in place to protect both the rights of creators and the interests of investors.

Earn money by building communities and interacting directly with fans (Web3 strategy)

The Web 3 environment allows creators to interact directly and meaningfully with their fans, without the middlemen who typically take a significant portion of the profits. This brings together highly active and engaged communities.

Artists can offer fans various levels of special content, such as virtual studio sessions, exclusive tracks, or even voting rights that allow fans to directly influence creative or project decisions. For example, Rally a platform that allows content creators to issue their own tokens and receive direct cryptocurrency tips.

The fact that about half of fans in some ecosystems participate in fan token surveys shows that this model can create strong, active communities and stronger financial bonds between creators and consumers.

Risks and dangers: Weaknesses in copyright law

The most significant threat to crypto art is intellectual property theft, also known as illegal minting . Criminals often use copyrighted or trademarked material or logos to create and sell NFTs, damaging the artist or brand. The alleged tokenization of the works of deceased artists demonstrates how easy it is to illicitly exploit the ecosystem.

Owning an NFT on the blockchain typically means owning a single digital record, but not the copyright to the associated virtual artwork. The original creator owns the copyright unless it's licensed or included in the smart contract.

Many artists struggle to be creative while constantly monitoring their digital works and reporting stolen works on marketplaces. This ongoing threat contradicts the promise of "effortless monetization."

Artists should stay on trusted marketplaces and use simple yet effective barriers like visible watermarks or copyright notices. They should also leverage advanced, proactive methods like SA-NFTs (Securely Accessible NFTs) , which delay the public release of the decryption key until a certain point in time, making initial theft more difficult.

Fraud schemes persist

Wash trading and pump-and-dump refer to practices in which people collaborate to buy and sell an NFT (sometimes even to themselves). These practices serve to increase the NFT's popularity and inflate its price, before selling it to unsuspecting buyers.

Fraud also occurs when project developers abandon a project shortly after receiving the money, leaving investors with assets that are worthless.

Between mid-2021 and 2022, over $100 million worth of NFTs were stolen. Criminals often use bots to sell stolen goods at low prices before the victim reports the theft.

To mitigate these risks, markets must have strong security and monitoring measures in place. Examples include flagging suspicious behavior, freezing or delisting stolen assets, and combining AML and KYC processes .

Threats to technology security

Common technical flaws include issues with smart contract integrity and user interaction. Phishing remains a major problem, with people rushing to fake wallet recovery pages after losing their credentials.

For strong security, you need two-factor authentication (2FA) , hardware wallets (cold storage solutions like Ledger and Trezor) to keep private keys offline, and should educate yourself about marketplace and wallet URLs.

Platform security makes the ecosystem stronger. Marketplaces protect digital assets with IPFS , pre-vetted smart contracts, and encrypted metadata. The blockchain tracks ownership in a way that cannot be changed, but smart contracts can become corrupted by programming errors such as reentrancy .

The decentralized system relies on professional, centralized third-party code audits to ensure its security. This means that the integrity of the ecosystem continues to depend on external technical capabilities.

A new era of creative self-determination

The combination of art and technology marked the beginning of a new era of artistic freedom, one that continues to grow. Digital platforms enable creatives to independently create, present, and market their work. At the same time, new forms of collaboration and exchange are emerging that make art more democratic and accessible. Despite the risks mentioned, we believe the market opportunities outweigh the risks, and based on the forecasts available to us, strong market growth is expected.

Whether through immersive exhibitions, digital tools, or innovative trading models around NFTs, fractional art, and smart contracts, the modern art world is becoming increasingly open. Artists can now determine for themselves how, where, and under what conditions their works exist. The future of art lies not in turning away from technology, but in its conscious use—as a tool that empowers creativity.