1. These are the minimally reformatted and slightly expanded notes for what would have been a 15-minute presentation.
2. The presentation was meant to be followed by questions and form part of the introduction to a panel discussion. Any questions in the comments here or on netbehaviour gratefully received.]
Art and money have always been involved in each other’s production. This is a Greek Drachma from 600BC with a relief depiction of a sea turtle on one side. For many people this would be the artwork, or at least the image, that they saw most frequently in their everyday lives.
In the present day, high art and high finance (or big art and big finance) go hand in hand. Blue chip artworks produced by brand name artists like Jeff Koons are collected by hedge fund managers and oil oligarchs as investments and as signifiers of socioeconomic position (while stolen Old Master paintings are used as signifiers of value in transactions between criminal gangs…). This tendency reaches its logical conclusion for now with Damien Hirst’s “For The Love of God” (2007), a diamond-encrusted platinum cast of an actual human skull complete with the original teeth. It was sold for fifty million pounds sterling.
Looking inside the sale of “For The Love Of God” makes its narrative less straightforward. It was sold to a group including the artist and their dealer, making the actual figure and its ownership less straightforward than a simple sale would suggest. Nanex’s High Frequency Trading visualizations from 2010 look inside transcations in electronic stocks & shares markets, finding aesthetic forms in the activity of share trading bots. What the sawtooth waves of this bot’s activity represent is unknown: a glitch, a strategy, a side-effect. But without making these forms visible, we would not be able to ask these questions or reflect on this economic activity.
It is part of the value of art, particularly Conceptual Art, that it can afford us these opportunities for reflection and critique. Cildo Meireles’ “Insertions Into Ideological Circuits 2” (1970) overwrites the contemporary equivalent of the Drachma’s turtle with a rubber stamped message on a banknote, intruding into everyday use and circulation of currency in order to give its audience a pause for critical reflection.
Lynn Hershman’s “Check” (1974) is signed by their artistic alter ego Roberta Breitmore, using financial transactions and their attendant contracts as a producer and guarantor of identity, literally underwriting it.
Douglas Huebler’s “Variable Piece no.44” (1971) incorporates an image of its current owner into itself each year for its first decade, in an analogue precedent for Bruce Sterling’s idea of “spimes”. When the artwork is sold a new owner appears, making the artwork’s contingent economics its aesthetic subject.
The initial critique of the ontology and economics of art that Conceptual Art represented in its “dematerialisation” phase represented as much of a challenge for the livelihoods of artists as it did to its chosen targets. One solution found early on was to produce certificates of authenticity or ownership for otherwise un-ownable art. This re-appropriates conceptual art for scarcity economics and as property, returning it to the market. Sol LeWitt’s certificates for two wall drawings (1980) demonstrate how this works. If you own such a certificate and I do not, and we both follow the instructions on the certificate, you produce an authentic LeWitt and I at best produce a forgery.
This stretegy was criticised (and parodied) within the Conceptual Art movement itself. An early Art & Language artwork, “Guaranteed Painting” (1967), contains a printed certificate guaranteeing that the painting accompanying it contains particular content and addressing the curator of the show it appears in as someone who can possibly intervene in artworld economic relationships.
Carey Young’s “Declared Void” (2005) is a wall drawing that creates a space in which its audience enters into a contract agreeing that the constitution of the United States. Legal form as sculptural form, this is no longer about the relationship between art and money but rather between the individual, contract law, and the state. This is the kind of relationship that produces money, or at least fiat currency, and is a broader context for considering the more specific relationship between art and money.
I love this flower currency from 2005, produced by a group of Viennese artists. It’s both a LETS-style complementary currency and a use of the aesthetics of pressing flowers to allegorize and aestheticize the relationship between nature, production, and value in economies.
This Danica Phelps stripe drawing (2013) shows the artist’s expenditure on reparing their car. If it depicted income rather than outcome the stripes would be green rather than red. Phelps’ work combines the ledger of their economic existence with the artistic record of their social presence.
Bitcoin emerged as a critique of state-issued “fiat” currency following the financial crisis of 2008. Bitcoin is a cryptocurrency, a piece of software that runs on computers (“nodes”) spread across the network that communicate with each other to reach a shared consensus on the current state of a cryptographically-secured ledger. Every ten minutes or so these computers bundle up transactions into “blocks”, each of which refers to the previous block. This is the “blockchain”. This is yodark’s fanciful depiction of the blockchain proceeding from the first block of transactions, the “genesis block”.
In reality news blocks in the chain are validated (or “mined”) by nodes in the network using increasingly specialised hardware, such as this milk crate mining rig from a couple of years ago. They perform difficult to solve but easy to validate sums on each block, the “proof of work”, and the first node to succeed gets a reward (paid in Bitcoins) for doing so.
Bitcoin account addresses, Bitcoin transactions, and the proof of work system all use cryptographic algorithms. These are mathematical ways of taking data and creating an almost un-fakeable, almost un-reversable, almost unique (where “almost” means “as likely to fail as the Earth is likely to be hit by a civilization-ending asteroid in the next 20 minutes”) identity for it. The examples here show how feeding a cryptographic hash function the same data twice results in the same incredibly unlikely number, but feeding it even slightly different data results in very different and unrelated numbers.
Bitcoin uses these functions to secure its network in the “proof of work” system by searching for auspicious numbers in their output (strings of zeroes in the current scheme). My Facecoin (2014) implements an alternative proof of work system in which the useless work performed is that of portraiture, (mis-)using machine vision algorithms to find imaginary faces in cryptographic hashes represented as bitmaps rather than numbers.
My Monkeycoin (2014) takes a different approach, searching for the complete works of shakespeare in textual representations of those numbers.
Cryptocurrencies can be used in lieu of fiat currency for all kinds of transactions, including artistic ones. Here the artist Eric Drass is offering a painting for sale via Bitcoin. Different means of exhange create different kinds of social relationships, buying the painting via Bitcoin is a different kind of social and economic transaction than paying with fiat currency for it via Saatchi Online.
Cryptocurrencies can be created as complimentary currencies with specific intent or for specific constituencies. This is the logo of Banksycoin (2014), an attempt to create a currency to pay for art and create a parallel economy for artistic production.
Cryptocurrency-based technology can change how individual artworks are owned as well as paid for. This is theironman’s “nxtdrop” (2014), the ownership of which is represented by shares on the “nxt” blockchain. Ownership of the painting can be changed fractionally by dealing in those shares.
There are poems, images, and other cultural artefacts embedded in the Bitcoin blockchain, disguised as transaction information. I embedded the cryptographic hash of my genome in the Bitcoin blockchain to establish my identity with “Proof Of Existence I” (2014).
This is Caleb Larsen’s “A Tool To Deceive and Slaughter” (2009). It contains a computer that must be connected to the Internet as part of the conditions of ownership, which then immediately offers itself for sale on the eBay auction site. This kind of “smart property” is a good example of smart contracts, in which arrangements such as ownership are managed by software rather or more immediately than by law.
My “Art Market” (2014), uses the Ethereum smart contract system (a generalization of Bitcoin to contracts other than for the exchange of money) to record “owenrship” of infinitely reproducible digital files and allow them to be “sold” for cryptocurrency. Other systems exist to do this, such as the Monegraph and Rarebit systems.
My “Is Art” (2014) uses a simple smart contract to democratize the nominational strategy of conceptual art. The contract can be set to nominate itself as art or not with a click of a mouse and the paying of a small fee to execue the change on the blockchain.
My “Art Is” (2014) applies behavioural economics to the philosophy of art, allowing individuals to pay as much as they feel their definition of art it worth. This disincentivises malicious or unserious definitions and indicates an individuals’s confidence in their definition, using market mechanisms to price and allocate knowledge and even truth efficiently. fnord
This is Art & Language’s “Index 002” (1972), a collection of the group’s writings assembled and indexed for presention in a traditional gallery setting to assert their identity and productivity at a time when their largely conversational practice might not have looked much like “art” to outside observers. Filing cabinets and photocopied sheets were contemporary information technology, later “Indexes” would use microfilm and (allegedly random) computer-generated tabulations. Their use and the production of the “Indexes” was both a solution to and a subject of the problems of Art & Language’s work. A contemporary group could use the blockchain to similarly focus and problematize their work.
The Cypherfunks are a distributed music group. Anyone who uploads a song to the SoundCloud music sharing web site tagged #thecypherfunks receives the groups cryptocurrency FUNK in return, becoming part of the group.
Dogecoin is one of the most popular “altcoins”, Bitcoin-derived cryptocurrencies that are not interoperable with the original Bitcoin network. It is the coin of an intentionally constructed culture of virtue and play, with its own argot and social norms based on Internet memes (particularly the titular “Doge” and the idea of a potlatch-like norm of tipping).
These are all more contemporary, and more complex, ways of demonstrating affiliation to a group than simply painting currency code-like letters on a canvas (this is a detail from Millais’ “Isabella” (1849). Possibly the ultimate in creating a group affiliation, or even a society, using smart contract technology is the idea of “Decentralized Autonomous Organizations” (DAOs), economic agents that exists on the blockchain and manage the resources of an organization via code rather than bylaws or legislation.
This is “The People’s Republic of DOUG”(2014), a DAO implemented as smart contracts on the Ethereum smart contract system’s blockchain. You can become a citizen, own property, vote, use its own currency in transactions, all functions traditionally provided by the state as conceived of in terms of contract law. Bitcoin’s dream of a stateless (but not property-less, making it anarcho-capitalist rather than anarchist) future realised in a few thousand lines of code. Imagine using (and/or critiquing) such a system for artistic organization and/or production.
“Now make art with it.”