The Emergence Of DAOs In Art And Creative Industries

Source

DAO stands for decentralized autonomous organizations and this is something we are seeing in our present time like it's completely taking over and it's like the new big thing in most institutions as the effect and change it has brought about is really being felt in most sectors and even in the area of art and creative industries DAO has shown capability of truly transforming even this sector.

But then when we talk about decentralized autonomous organization like we know being a decentralized system should give us an idea that this organization must be one built on blockchain and their mode of operation is possible only through self executing smart contract which means then that all decision making on DAO is not made from a single point of authority but almost like automatic we know smart contract are set of codes run on blockchain which means then they execute by themselves and thus the decision making here is purely automatic.

DAO is an organization which runs on blockchain and their operations are facilitated through smart contract which allows for automatic decisions and being decentralized means they are not answerable to any overall boss or dictate terms for anyone as such they are one that functions in a very clear and transparent manner, here the blockchain ensures that transparency is paramount.

• Democratization of Art Creation and Ownership

Now this is such that it could factor both in the funding and collaboration and the community governance, in the aspect of the funding unlike in centralized autonomous organization where to be able to raise funds the artist often needs passing through different channels or medium to connect to the community who might be willing to help, but with the emergence of DAO in arts and creative industries it helps artist get the funds they want from the community and they do this without much stress because there is no third party standing as a middle man to facilitate anything.

The global community is easily able to help and even sharing of ownership amongst various artist is a real possibility now given the fact this is DAO and the ensure that major decisions the opinions of all involved are equally weighed and factored in before making such decision demonstrating the true nature of a decentralized autonomous organization where each artist contribute equally in community governance mostly when the need calls for it share ownership.

• New Revenue Models :

When artist create their unique set of nft with emergence of DAOs in creative arts industry it allows them to ensure there is a royalty programe in this nft they owned and it will be in such a way that not only we they earn from the primary sale of this nft but even stand a chance of receiving a further decent percentage from any future secondary sale, DAOs simply empower this artist and all in the creative industries with a boost in incentive.

What this does it it thus help to create a way of revenue distribution in the art and creative industries as well as creating a perfect opportunity for tokenization from artist who are inclined to do so and ofcourse with this they further creates opportunity for people to invest in their token which may often represent owning a share in their future work and this is a win win situation as the artist benefits whilst offering opportunities for the users who are invested to profit baring the future progress of their project.

Source

• Transparency and Trust :

This is another good aspect where DAOs greatly improve the art and creative industries, something lacking in centralized system is often lack of trust and transparency but ofcourse we know that decentralized autonomous organizations are dependant on blockchain and function from it which ensures that every art piece is truly a unique piece and gurantees the authentication of each piece.

What blockchain technology does would greatly increase users trust in the art and creative industries and would no doubt greatly reduce risk of fraud in art industry that is otherwise prevalent today.

There is something about transparency that makes people gets drawn to it, when a system is transparent it means nothing is hidden and that is what blockchain rightly offers to the art and creative industries, nothing is hidden transactions are made public each art piece authenticity is guaranteed which goes a long way to showing how good decentralized autonomous organization has been to the art and creative industries.

And when there is an agreement isn't something that can be easily breached, decentralized autonomous organization runs on self executing smart contract based on blockchain technology which means every agreement is binding and when it comes to payment to artist it is made in regards to the agreed upon condition which is almost certainly automatic.

The emergence of decentralized autonomous organization in art and creative industries have been good though there are some challenges and few considerations.

Firstly one of the challenge has to do with unclear and constantly changing regulations in different countries so the regulation of DAOs hugely depend on the area one is staying, that is hugely factored in and generally just like how cryptocurrency is under scrutiny in many places in same manner some may not yet take lightly or adopt DAOs as of yet maybe with time, some this is one of the challenges.

Secondly we know that DAOs are built on a sophisticated technology and somewhat complex technology which means not just anyone could go in and know there way around as it requires some technical know-how from the users for easy operations now this may present a challenge for many who don't have the proper technical know-how on how to do this and could serve as a hindrance.

Source

Indeed had it not been for regulations which continue evolving DAOs would have been nice and good to be utilised by art and creative industries of every countries of the world am sure most will come to change their mind as the innovation it brings especially to this sector and also to others are be overstated.