Posted by Steve from UppstArt on June 28, 2018.
Steve Gow and Brent Cheal are the co-founders of Adappcity Inc., a company that develops high social impact blockchain applications for social good. How do you use blockchain technology to solve artist’s problems with the lack of resale royalty legislation in Canada and the US?
In this interview by Danielle Smith of Newstalk 770, Steve and Brent talk about how Adappcity’s new blockchain application, UppstArt, is providing a commercial solution to a societal issue that the US and Canadian governments have failed to address.
Listen to the entire show here: https://omny.fm/shows/danielle-smith/whole-show-june-28
Danielle: Well here’s some happy news, some positive news. Some of you say that I’m the grim reaper and the merchant of doom when it comes to information. I’ve been wanting to do some more segments on blockchain technology so that you can understand how, as I do, how transformative this has the potential to be of our economy. So I keep trying to find practical examples so that it’s easy to grasp and understand why this might be a benefit to you, whether as somebody who might want to create a company on your own that employs this or work at a company that does or if you want to be a consumer and how it will make your life a whole lot easier. This one really caught my eye because a number of years ago, this has always bothered me, the secondary market for the sale of artwork, you’ve got this poor struggling artist who sells his artwork for a fraction of the ultimate value and then in the secondary market every time it gets sold and re-sold it continues to grow so ultimately over time these are worth millions of dollars. And then we read these stories about “oh yea he died a pauper, he died impoverished.” You think: How could it be? It strikes me that the art market is almost like scalping tickets. It’s almost like you’re going out there, selling the ticket for a reasonable price, $70, and then the scalper comes in, turns around and sells it for a thousand dollars and they’re the ones that benefit. I’ve always thought that the artist should be the ones who benefit from the fact that there’s a high demand for their work. So, this is what this next group, if I understand what their business model is, this is what they’re trying to address and we’ll see how it is they’re going to go about doing it. I’m joined by Brent Cheal and Stephen Gow who are co-founders of Adappcity, and we’re going to find out a little bit more about what they do. Brent and Stephen thanks so much for being with me.
Steve: Thanks Danielle
Brent: Thanks Danielle
Danielle: So first of all who is the artist in the group? I mean one of you are either an art purchaser or an artist that you feel so passionately about this.
Steve: That’s me. It’s Steve. I’m very passionate about art and I always have been. I took art lessons when I was younger, I’ve purchased a lot of artwork online, and I also volunteer for a not-for-profit gallery that’s run by artists for artists called Motion Gallery. So I know a lot of artists and I’ve heard a lot of their struggles, so I’ve always had that background that drive to make the art world a better place.
Danielle: Can you add to that issue that I just put on the table because I think I did either a segment on it in the last couple of years or I’ve heard about this issue in the last few years, so its a problem in search of a solution. Is there any more you’d like to say about the impact it has on artists?
Steve: Absolutely, particularly in respect of the resale royalty element. Resale royalty legislation exists in 93 other countries in the world and unfortunately Canada and the US have not adopted it yet although there’s been several attempts to pass it through the legislature in Canada. So what it basically does is it entitles the artist to participate in the increase in value of their artwork when it re-sells. So when someone buys it for $100 and then later re-sells it for one million, the artist usually doesn’t get to see a penny of that, so that’s why artist resale rights were initiated. So we’re trying to build a solution that allows artists in Canada, in recognition that we don’t have the legislation to protect them, to actually participate in the value increase in the secondary market when their artwork re-sells.
Danielle: Ok so let me bring Brent in because I’m assuming that you have some of the technical know-how to explain a bit about how this would work. So are you able to give an easy explanation for how blockchain works when its applied to this particular problem?
Brent: The blockchain allows us to record transactions […]
[Full Transcript to be added soon]