Art Blocks Launches Its Own Secondary Market and Enforces Secondary Market Royalties

On March 30th, Art Blocks, an NFT platform for generating art, announced that it had launched its own secondary market and would enforce secondary market royalties in response to the weakening enforcement of creator royalties. Art Blocks stated that it had decided to create this feature on the website to address the three pain points of security, authenticity, and royalties. Users can use this feature on the latest Curated version of Cargo.

Art Blocks Website Launches Secondary Market Functions for Enforcing Royalties

Art Blocks, an NFT platform for generating art, recently made headlines when it announced the launch of its own secondary market. The platform stated that it would enforce secondary market royalties in response to the weakening enforcement of creator royalties. This new feature has been introduced to address the three pain points of security, authenticity, and royalties, and is available for users on the latest Curated version of Cargo.

What is Art Blocks?

Art Blocks is a blockchain-based platform that enables artists to create generative art. The platform uses smart contracts to create a unique art piece or series of pieces that are generated based on a set of predetermined rules. The art pieces vary in their complexity and are sold as non-fungible tokens (NFTs) on the platform. Each piece is unique, and once sold, the buyer becomes the owner of that particular piece.

What is the Secondary Market?

A secondary market is a platform where users can buy and sell NFTs that they have previously purchased. This market enables art collectors to resell their Art Blocks NFTs to interested buyers, and also allows new buyers to purchase previously owned art pieces. This secondary market is beneficial for artists as it generates additional income for them through royalties on each resell.

Why Did Art Blocks Launch Its Own Secondary Market?

Art Blocks launched its own secondary market as a response to the weakening enforcement of creator royalties. The platform was concerned about the fact that some NFT marketplaces were not ensuring that artists received their royalties on resales. Art Blocks wanted to ensure that their artists were adequately compensated for their work, and as a result, created their own secondary market with the feature of enforcing secondary market royalties.

How Does the Secondary Market Work?

The secondary market on Art Blocks works similarly to other NFT marketplaces. Users can list their Art Blocks NFTs for sale, and buyers can purchase them through the platform using cryptocurrency. The key difference in Art Blocks’ secondary market is the enforced secondary market royalties. When a user resells an art piece, the artist automatically receives a percentage of the sale in royalties, as predetermined in the smart contract.

Benefits of Art Blocks’ Secondary Market

Art Blocks’ secondary market offers several benefits to both artists and collectors. Firstly, it ensures that artists receive the royalties they are entitled to on each resell of their work. This ensures that artists are compensated for their work and are encouraged to continue creating. Secondly, the platform ensures that the sold art piece is indeed authentic and has not been tampered with or reproduced, thus increasing the security of the platform. Lastly, the secondary market provides collectors with an opportunity to purchase rare and unique art pieces that were previously unavailable to them.

Conclusion

Art Blocks’ decision to launch its own secondary market with the feature of enforcing secondary market royalties is a step forward in addressing the pain points of security, authenticity, and royalties. The platform’s commitment to ensuring that artists are adequately compensated for their work is a welcome move in the NFT market. The introduction of this feature on the latest Curated version of Cargo showcases Art Blocks’ dedication to innovation and improving the NFT space.

FAQs

Q1. What is Art Blocks?
Art Blocks is a blockchain-based platform that enables artists to create generative art.
Q2. What is a Secondary Market?
A secondary market is a platform where users can buy and sell NFTs that they have previously purchased.
Q3. What are the benefits of Art Blocks’ Secondary Market?
Art Blocks’ secondary market enforces secondary market royalties, ensuring that artists are adequately compensated for their work. It also ensures that the sold art piece is authentic and increases the security of the platform. Lastly, the secondary market provides collectors with an opportunity to purchase rare and unique art pieces.
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