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Oct. 29, 2021

E14: Democratizing the real-world art market with AI & Blockchain - Ilan Klein - Founder of Open Art Source

Open Art Source is looking to bring down the barriers of entry for the real world art market. Bringing rich data, cheap authentication and a marketplace to buyers and sellers in a mobile-first experience thats backed by blockchain technology.

Have a glimpse into a company changing the $65 Billion a year art market. Making it more accessible to everyone.

Open Art Source is looking to bring down the barriers of entry for the real world art market. Bringing rich data, cheap authentication and a marketplace to buyers and sellers in a mobile-first experience thats backed by blockchain technology. Have a glimpse into a company changing the $65 Billion a year art market. Making it more accessible to everyone.


Ilan Klein Interview (Open Art Source)

Jake: [00:00:00] What about art fascinates you?

Ilan: So I think art is what makes life worth it, to me. And I think to many, many other people I've spoken to hundreds of people, probably more. I don't know exactly. I've been dealing with this project for almost two years now. I never met the person that told me I hate art. You know, you're talking to investors, they're maybe not going to invest in your business.

Maybe they don't understand that, but everybody loves it. And everybody has strong feeling for it, even if they don't understand those feelings, the feelings are there. So I think art connect us in different ways that are mysterious to most people. And without it just life will be less worth it. And I actually think that having more art, more quality art and making connections between artists, collectors and just bringing [00:01:00] art forward is something that is important to have, and it was not happening enough. So we wanted to make it make a difference. 

Jake: Yeah. I've heard it described that art is the thing that speaks to the unconscious. Like when you create it, it's your unconscious speaking and when you're internalizing it, you can't quite put into words what you're experiencing, but it's felt deeply.

Ilan: Yeah. I think it happens to me many times that I look at something and it does something to me, whether it's good or bad, or just evokes a memory, does something. When the feeling comes up, you know, you feel something it's hard to explain many times. It's just there, there's like this mystery of things happening within your mind that are influencing what you see, what you hear, et cetera.

And art has been with us since the stone age, I think, you know, cave drawings and all that. [00:02:00] 

Jake: So before we get into what you're creating, I think we really got to give a good definition for the people of, what is provenance?

Ilan: So provenance is a fancy word of saying, how do I know that this is real? Art has been with us for thousands of years and some art pieces are old, they've been in different hands. When somebody purchases, something like that. They want to know that it is the original. And the provenance is this logical tree that tells you yes, it came from this person to this person and we track the sale.

And now we know that Leonardo made that or Warhol made it, or my nephew made it. You know, all of those things are, uh, equally important, I think to all people. But provenance is the ability to know if something is real or not.

Jake: I can see a clear benefit to having blockchain for this kind of thing. You know, it's verifiable, it's [00:03:00] cryptographically secured, but what has been the history of provenance? How, how have they confirmed what has been the truth telling mechanism for that? 

Ilan: Okay. So there are ways to tell if something is true or not, and there are people that's their business.

And they have companies, provenance companies. So if you let's say you want to buy a Leonardo, you want to buy a Picasso, you want to buy something. You want to know that it's true. You just don't know. You're not sure there's no documentation to this space, not enough documentation, you can sell companies who have laboratories and they will.

X-ray your painting. They will take paint samples. They sometimes even use carbon dating and to make sure that this is something that came from the 14th century. Oh, that's something, that's the start, the same type of, uh, of a paint that was only available since that date. So it wouldn't be before that, et cetera.

So today to remain some bits of [00:04:00] research, so to do serious provenance on a piece. It's about $19,000. If you buy a piece that cost, a million dollars, $19,000 is nothing. Of course, you can spend it. and you should. It's the right thing to do to secure investment, but most art in the world is not priced that high.

And if you love something and it was $5,000, which is alot of money. You know, I think for a piece of art, You're not going to spend $19,000 to verify. It just doesn't make sense. So all those services, which are good and accurate and nothing bad to say about them, they are really geared toward what they call the one percenters of the art world, the most expensive artists, the richest collectors and those people.

There's a gazillion companies who are willing and able to provide services for them at the right price,, but most artists about from the search, it's just too [00:05:00] expensive. So we have provided way for people, for artists to get provenance for the arts, without having to spend that amount of money with that I spoke about before.

Jake: Okay. And, uh, that's a good segway. What are you guys doing to, to bring that cost of a provenance down for the lower tier, but equally adept artists?

Ilan: Yeah. 

So, you know, the pricing on when art piece is really complex and there are many, many factors, but they're not, and quality is only one of them. There are many other things that comes to branding and others.

So what we did is we developed a technology. It's an AI technology, artificial intelligence. What it does, it actually can tell you as a collector, if what you bought is the same thing that the artist [00:06:00] created and, and works like that. Let's assumed that you bought, you know, it's podcast people. Maybe don't see. I have the video here, but the two pictures behind you and let's assume that runs for a second.

You are the artist who made those pictures and you wanna make an NFT for them.. So you'll take your smartphone, you know, Android, iPhone, take picture of the piece, and then the picture that you painted, you made, and you create an NFT in our system. Create an NFT, Then you have the physical item. And you have the digital NFT in your wallet. Then you want to sell it on Open Art Source.

On our market. You upload it, you put the price. A month later. I'm a collector. I see it. I love this painting I'm going to buy, I pay for it and you send me the, the money goes into escrow.. You send me the art pieces. Send me the picture behind you. I open up the package, point [00:07:00] my phone to it. Take a picture and upload it to Open Art Source..

Our AI looks at both images. It looks at the picture. The artist took, Looks at the picture that the collector took. Makes a comparison and tells you if it's the same piece or not. If it is the same piece, the money automatically goes out of escrow, You, the artist gets paid. And me as the collector, I'm getting the NFT from your wallet,, and then if the moves, tell me a wallet to my wallet, and then I have the actual piece, the physical piece, and the NFT that corresponds to it.

It's like a two factor authentication to life, both pieces. So both pieces are true. They were verified in the beginning. And then if I sell it again, five years from now, Something happens. Okay. The pictures that will be taken along the way will be compared. They, I will know this is the same piece of art.

The NFT will move. This way, the [00:08:00] blockchain will have the transaction history. People can look at really, really easy type of analytics data to see what happened to the price of the piece happen. You know, how many times it was bought, but they've been to the artists plastic in general is the pricing of his or her art.

Increases or decreases and how it is, eh, looking at the market compared to other artists in the same genre, et cetera. So what we are creating apart from having those NFT's move around and create data. Is will be actually doing the data layer for the art market. Providing collectors, dealers, and gallery owners, all the people who are active in the art market way to look at art in a quantifiable way and make data-driven investment decision.

We making art and investment [00:09:00] vehicle for retail investors. 

Jake: Hmm. I wanna, I want to rehash what you just said. Cause when, when I saw your demo day video, for some reason, I, I didn't fully get it, and it could have been because you followed MoonRay, which was a hard follow, but a very strong if they blew it out of the water.

And so to go from a, a super interactive video game to, uh, an art kind of like marketplace and AI engine. Uh, didn't quite catch me at the time, but whenever he watched it to prepare for this interview, the simplicity of what you guys are building, but also how powerful it is., I think it's incredible for being able to unlock the, it was always just talking about the creator economy and how these platforms, especially like online, uh, are just taking our value and you're bringing that to the, to the physical world and.

Yeah. So the idea that you can just [00:10:00] paint something and then snap a picture and list it. And then when it sells, they receive it, confirm it with AI and then it transfers to NFT. And the digital ownership is.

It's, it's, there's not that many steps to it, although there's a ton of backend work going on, but it's crazy that something like this hasn't existed already. Like it's, it's so simple, but it's incredibly profound. 

Ilan: Thank you for saying that. And I know that Rodrigo's a hard act to follow. I noticed that. I mean I think, so this technology that we developed is unique and actually the Stacks Foundation and the Chainlink gave us a hundred thousand dollars to continue developing it and create an AI Oracle that we [00:11:00] allow companies that have AI in the business model to actually connect an AI model, which is completely dynamic to a smart contract, which is completely static.

So. If you have the business and you're still hobbyist to AI as part of what they do, we wouldn't be able to use this open source software to actually connect the AI, to the blockchain and create powerful stuff. Not only in art, but in many, many other. Well, my world, they, so I think having the AI, and it's not one AI, it's a pipeline of AI's that do a bunch of stuff.

When they look at an image and then compares it to another one, it's a complex mechanism a while doing, doing that. It's provides a layer that doesn't exist right now in crypto world. Like right now there's a bunch of companies who are doing similar stuff, [00:12:00] but by attaching QR codes to a piece of art, so you scan the QR code and then you can see the blockchain data, which is extremely sexy.

I love to see it every time I see it. And it's great to watch it. I think it's great for investors to look at it as it looks. Just very cool, but all those pieces of material, it is, uh, in 20, 30, 40 years, they're not going to work just because we get one out by whatever and, and they will start to basically create errors in the blockchain, which are immutable, you cannot correct those errors after that. Also, all the companies that are selling those solutions don't really make those QR Codes.

, they've been manufactured in China too. Now because of Covid was so much disruption in supply chain, but now they're making them in India and there's a company in Germany that makes them in the factories [00:13:00] to make millions of those every year.

But every industrial manufactoring process you're going to have errors, and the minute some of those arrows get released and start generating erroneous data on the blockchain, whatever company uses that, they're done. Okay. Nobody's going to use the technology anymore. Nobody's going to do anything with it. So we didn't want to leave the fate of a company in the hand of the third party manufacturer to control the verification process.

And by using AI, this very unique process, that we developed. We actually can do that and we can continue to improve and train the AI and make it more and more accurate all the time. and actually given this AI for free. Meaning people use it. You don't have to sell on Open Art Source to use the AI.. You can use it.

Then you can get the verification from whatever I want to get. I think this is something that, again, the 99% of artists didn't [00:14:00] have until now, providing not a new thing that can help artists create this provenance the beginning of the provenance and then managing it afterwards and this something that will have an effect on the overall market, their ability to market their, their wares and the ability of collectors to actually collect and make art investment liquid.

Jake: I don't really understand or know the art world that well, but it seems like an entrenched world, uh, to say the least when, when you're talking about AI provenance, have you, is there pushback from the established players of its legitimacy, how much it could be trusted, that kind of thing?

Ilan: So, I would say that I'm expecting that. I didn't get it yet. I mean, Actually I [00:15:00] spoke to companies which are AI companies and they were quite impressed with what we do. Now, I think, you know, The art world. As far as I research, I'm not the only one in Open Art Source. The research was a bunch of us who look the data.

The art world is the last global opaque market of it. It's the last one. Everything is in the world. I can probably tell you how much the t-shirt you're wearing costs. I can tell you how much is a gallon of milk or milk in Lagos. How much is a gallon of petrol in China? I mean, I can tell you everything is out there, you look for it and you find that everything is transparent.

Art? No, 76% of the transactions a year are private. So no data whatsoever. The last 24%, uh, public auctions think public auction, public pricing, of course, but now yes, the auction is public. And if you go to the auction, you're going to know the [00:16:00] price, but then they don't publish it. They take the whole pricing data, put it in a database and you've got to pay a subscription to access pricing.

Most people don't do it. It's expensive. And it's really geared towards gallery owners, dealers, et cetera, or very serious collectors. The art market is $65 billion a year. And it's artificially small because there's a small group of people. And I think in the whole world, I don't think it's more than 10,000 people.

They keep the market closed so they can make all that money. And it works. It's really easy. No data. You cant find anything yourself. Not very people have master's degree in art history. They don't know what a rembrandt should look like, what you do, et cetera. So the way it works is this, do you want to buy it now?

You haven't, you know, you want to buy a Picasso, you love Picasso. You think it's a good investment. You go to a gallery in New York, which is the epicenter of art commerce in the world. It's New York city. You come to [00:17:00] New York, You go to the gallery, Here's a million dollars,. I want to buy this thing. 

Oh, it's great. So who are you? Who is your father? What do you do? How much money do you have in the bank? Do you have a collection? What's in your collection? What did you buy this year? Did you ever sell anything? And if you answer those questions, truthfully, there's about 99% that are not going to sell to you. And they're going to tell you, we cant sell to you in that seat.

So it's not, that they need them with any, they want your million dollars, but they're really afraid because they don't know you that maybe you lose all your money. You have to sell the Picasso for significant half a million or more. And this will hurt the market in the future. So they don't want to sell to you. They want to sell to the extremely rich.

They want to sell to the moment I say to the Lourve they want to sell, to Beyonce, that her buying a Picasso it will make the whole Picasso market go crazy. But for regular people, you get it. You have to get an art [00:18:00] consultant and pay for it. And this person's going to make the connections with the gallery vouch for you.

For obviously you pay this person and then most people might or might not sell to you. Probably they will sell to you, but without being an insider, any very few people can be insiders. You not then be able to buy. So the market is really geared only, only open for the super rich super famous.

And so it's $65 billion a year, that's it. But if you open it up and every Joe Smoe like the two of us. Can this go and buy something because they like it, or because they think it's a good investment and they don't have to have all those gatekeepers along the way to stop him from doing that. You get a much bigger market twist, much more liquid.

You have much, many more transactions, even if you know. Okay. So he sold it for less. Okay. It happens. I don't think it's such a bad thing. I think it's better that more people participate and we actually [00:19:00] get to know the true value of things. And I believe in democracy, you know, we are democratizing the art market, letting people participate.

So I think a lot of the big players are going to hate us. All right. I'm fine. I am not that worried about it. I think. The collectors will force them to use us. And I'll tell you why, because even if, you know, you were so lucky that they sold you, the Picasso. You give them a million dollars. They give you Picasso and five years later Picasso it doesn't cost one millions, but it costs six, you know, for whatever reason it appreciated. Nobody's going to buy from you because they're not going to believe you. That is not the fake. You will have to give it to the same gallery who you bought it from. And they will sell it for you. And for that service, you need to give them 50% of the proceeds. So as an investor, it is a tough cookie to have, because even if you're successful with you, if you understand, if you have a good [00:20:00] sense for what's going to appreciate, you know, what's a good investment when you want to sell it, when we want to actually make it liquid, you have to give 50% of the way just for the right to sell it.

And I'm saying with the AI combination and blockchain, You dont need them. People will believe you because they have, you know, you have the token, you have the art it's been verified. We see what happened to it. Okay. I can buy it. I do not have this participant in the middle who takes 50% commission.

I'm sorry. And I think the galleries are important and by no means I want to take them out of the market. I do not want to, I want to work with them. I think that seeing art being in the art in the same room is an experience that is very strong for most people. And we want to preserve it. We want to enhance it does not want to kill it in any way, but I think the art market is moving quickly towards.

I would say blockchain world. And right now [00:21:00] galleries and dealers, those are not technology companies. They are not going to do what we do. They need an on-ramp to the blockchain and we are this on-ramp. And right now we are the only one maybe in the future, maybe I'm sure there will be more, but we are the only ones.

So I think that they should want to work with us to actually get all those new collectors and all those new people who, they love lover because it seems that everybody loves art, they want to invest in art, through NFTs. And here's an opportunity to do it, to get quality arts while doing something that you understand in life.

Cause you're young and new in blockchain and cryto. Anyway. 

Jake: The idea of the, that opaqueness in the market. It's something you saw in the car market and at a smaller scale back in the day where there was an asymmetry of information between the dealer and the buyer, and they would constantly over leverage their position.

And that's how everyone got this vibe that I'm just getting screwed. Like I'm [00:22:00] not going to, I don't even know what I don't know. So everything they say, I don't trust. And it's that same thing here where like, there's a feeling that artificially trying to keep the market a certain way. Versus if you just give me all the data, I can make an informed decision and then everyone comes to the market with more because you trust it.

You can come in and put more and more money into it. And it actually expands the economy in aggregate. 

Ilan: I think it's a good example. I think we've got another bill is not going to be like Etrade. Before Etrade when, I mean, you were very young,

you needed to have a broker real broker ,it was a man or a woman who would make a phone call to when you tell them, okay, I want to buy this. No, no I have this opportunity. This stock is great, buy that because they will get the commission to push the other stuff, but then you persuaded them to buy whatever you want. They bought it for you.

And we waited like two, three days and the transaction would go through and then they would call to say, Hey, you got, I don't know, a thousand stocks, will I be in whatever you bought, whatever. And then you [00:23:00] pay them a large commission and said, thank you. And investing was really the, you know, it was really for rich table.

It was not really for an E-Trade king. This was even before smartphones and it was a browser. And you went to the browser and you just traded, you just traded, you bought stock. You didn't need anybody to tell you whatever. And the number of trade exploded, we have data. It's exploded, just a huge wave of new investor.

First-time investors coming in and buying and selling and making money and losing money. And it all good. Everybody liked it at the end and all of the brokerages that have. flesh and blood people started to have apps websites because they wanted to cash in on. So I think after we do it, everybody will do it.

I think. So there will be many, many people try. I think doing the AI is not so easy. It's not going to be that easy for them to do that, but in general there will be other, so it's the same. [00:24:00] But the growth of the market and the democratization of the market that everybody can play is something that the art market, it has been like that for hundreds of years.

And it's very resistant to, I think a lot of companies strategy. I don't think they have what we have. And I think that collectors will insist of having an NFT associated with the other device. They can set it up to that on their own and because collectors will demand it, then dealers, and galleries and auction houses will have to have a technology like that.

And they're more than welcome to work with us. 

Jake: We've talked about authentication. We've talked about provenance, we've talked about the marketplace layer. We talked about the data layer. But there's one that I haven't heard you talk about yet, which is the royalties, which I think is it's one of those things that really [00:25:00] can bring a lot of people into it and unlock the creator economy in a big way to be able to benefit from the art, not just on that one, like front sale, but trickle in.

Can you talk a little bit about how, how that's working or how you think about royalties for the artist? 

Ilan: So thank you for asking that. So the art market is right now is $65 billion a year. Most of the money is being made in secondary sales, which means that others gets very, I mean, that's something he or she does something creates a really good gallery owner and really good dealer with a good eye buys it for whatever. And then resells it sometime later for much more than that. This is not your main. The dealer buys it for $10,000. Three years later, they sell 4 million. The artist still sees nothing out of it actually in every other type of creative profession, there are, well, it's not, if you're an actor, you're going to get worse.

It's going to get residuals. If you are a, [00:26:00] an author, then every time you sell a book, you get something. If you're a musician, the stream, your music, you get some art, nothing. So we are giving artists 5%. Secondary tertiary lifetime royalties on their on the work. Every time it sells on Open Art Source and it's automatic, we don't have to do anything.

The system where the contract has been such a way that if the same thing is sold again, the artist will get the royalty to the wallet and. That's it. I mean, they don't have to do anything else. So if it sells, if they sell it for 40,000, then it sells for 10,000 and then it sells four 50 or four, 500,000.

And this is a really big thing for artists and I spoke to hundreds and I spoke to people in different age groups, different price points, and different [00:27:00] types of art, all of them, a hundred percent of the artists, wanted the royalty. 100%percent and they all know that it's extremely unfair.

Now they just have no choice. There's so much that they, and I know that the other number, because we were a really small campaign running where we ask artists, if they want to join Open Art Source and get royalties and all that. So we have more than 2000 artists waiting join, sending us email, asking us, when are you going to start?

I think that art is going to come in waves. And put their thing in and try to bring the community with them. People follow them, the people who collect them, people who loves them. And as a collector, I think you want to support the artists you want to, you want to do it. You like what they do. You want to support them.

Royalties is actually coming from Open Art source, not from the seller. We [00:28:00] giving it from our commission on the trade. So as I said, or you don't get something say, oh, you want it for a hundred, but you need to get $5 to do that six, because it says. We give up some of our commission to actually give to the artists.

So I think that there will be many artists who will come, who will want to come. And I think there will, at a certain point, you know, put pressure on the dealers and the people who represent them and all the agents to actually put as much as possible of their output, artistic output on a blockchain

To make sure that they will get those relatives later. So I think we will become the blockchain of art. I think we will have the most art on our blockchain, the most artists on the thing we're can get great quality of art, but I'm not trying to be the arbitrary. What's good. And what's not, if it's art, Hey, come and come in and sell here.

Jake: I think that's, I think [00:29:00] that's massive. I think. People living off of their royalty income on Open Art Source in a very short time. It's, it's a super big idea. Okay. So we've talked about your, your product, which is incredible, but I'd be remiss if we didn't talk about the Arties. So can you, could, could you break down what is the Arties for us?

Because everyone is hyped about it. We can't wait, what is the Arties? 

Ilan: We wanted to create the collection and sell it to the public as part of our fundraising process. And we were lucky enough to meet with an artist who created the concept of Artie. 

So Artie is the cutest robot that you've ever met in your life. And, you know, I've shown Arties to people in this topicalization lack of zoom. So you show them the Artie and then you look at the face and 100% of the people's [00:30:00] smile when they see an Artie. And I show them different ones and we have many, so every time I show them different.

All look at it and they say they can't stop smiling. It is the cutest thing that you've ever seen. So what is it? And, and, you know, I thought about it. What, what is an Artie? I figured it out. It took me some time to do it. So I think every collection has some kind of a. It's something that stands behind it and makes people want to belong to certain clubs.

Look at the, the bored apes, the yacht club. So all of the apes are great and they have many, many expressions, but all of the expressions are slightly bored than even they smile, any expression there is this kind of hint of boredom, in to it and they live in the yacht club so their 1%'ers.

In real world. You know, you've got to buy a Ferrari, really expensive,, or you're going to have a Fendi bag and then really big Rolex.and big jewelry. All of that must be to not do. But if you have, the [00:31:00] Yacht Club ape, and put it as avatar, Youre part of a club with people who are in the 1% are online and then also make the investment because of the.

I would say most successful collection and the amazing and marketing. So the price of the apes really went up and the community is very active and, and they point they're not making games and all that stuff. And amazing experiment in actually bringing in a theater and very successful in, I learned a lot by looking at what they do.

If you look at that, say they're not the natural teaching, so they're not the beach in their nights, then it is at their Knights and they're drunk. They like to drink the large sport sport and, and, and I'm a man and I love sports. I want to be a part of it. You know, if I buy an knight, then I'm a man's man. And I was in the middle ages.

I would fighting battles and all that. And here I don't have to just buy it and I can. And I'm that? And I'm a man's man and I'm part of this men's [00:32:00] men club. And then we're going to all go to those events and bet on sports. And I love it. It's great. And this is my team and the ArtiesI think because . People, when they see them, they cannot stop smiling.

I think. It's the bring you to the state. When you were a little kid, then you started seeing Mickey mouse from some first time you couldnt stop smiling. It's the cutest thing. So it's this really feeling of childish happiness that it brings in here. It's like being in the sunshine and. I think the people who are into the collection, we want to be a better lead like that.

That can optimistic. Then if you want to be happy, the like art, they don't want to be a part of this world and the artists there's them, the ticket to it to come belong. Here's your community come and be in it. And to actually encourage people to understand that that there's a lot of benefits of having an [00:33:00] Artie.

To begin you've got to vote in our community.. So when we develop the software and move forward and create many, many other things in your conduct and your vote is going to be counted and then then considered as influence. The second thing is as we hope to raise enough money by selling the Arties to the public, and then they finish writing the software when launching it in June 2022.

Well, at that time, we'll actually release a token. It's called the Open Art token, which will be the token for the community. And we'll be like, you can think about the token, like the oil in the engine to make sure that everything runs smoothly automatic. It just left the royalties. It's only one part of the token facility, many, many other things that they will do.

So if you have an ID, you actually get to participate in the private sale of the token for anybody else. So the 10% this time. And I believe that the going will have value. I believe that the artists will have value and they, whatever market afterwards, but it's definitely keeping an optic [00:34:00] will give you the ability to get our critical list.

And also the many events in various rights. If you're an artist, and have an Artie, then some artists will get no commission. Some people get militia for years and we produced commission and it basically. Help you actually transact and make more money just by being in a community and participating, some people were going to have a much of events starting next year, and then they're going to be extremely fun.

I'm hoping that COVID will be at a certain point over and we can do those things, not on zoom, but there will be parties and there will be costumes and there will be many other activities . That fun Arties like, Be your Artie. Be your Artie, Come as your Artie. And let's have fun together. We're building a community.

It is the easiest way to belong is having an Artie [00:35:00] that is sitting down with a price split, have done all the expensive. Most people can afford one. And you know, in, we just started a discord 10 days ago, I think, or 11 days. And we have more than 2000 people in it. And we have, uh, almost a thousand people on the waiting list at this point, wanting to buy Arties.

So I think that an Artie it is being part of our community, this club, I want to think that there will be people who want to go on this amazing journey. 

Jake: It caught me there a day when I was thinking about how you guys are doing the Arties and you have Sigle doing the Explorer Guild, and it's this, it's almost this new frontier where you don't have to go to an investor to get money.

If you don't want to and give up a portion of a company or dilute and you don't have to go the Kickstarter or. Crowdfunding route where you kind of like you pitch, you give them a promise. They give you money up [00:36:00] front, but there's some risk on the person that isn't going to happen as it doesn't.

This is like, it's kind of like crowdfunding, but you also gain a collectible that has value and you gain a community that can make you feel included. It's like this it's this perfect amalgamation of aligned incentives to, you can build what you want to build, but. The end user gets something immediately, besides the fact that they're going to help you build this amazing product.

Ilan: I prefer to do it this way and it's good this way. I am going to working really hard. All of us working really hard to make the Arties succeed. I think that will. And the, after that, I don't think we're going to go to VCs. I think we're going to go to the community and do.

Okay. This way, crowdfunding thing is needed, then definitely the token, we will have inspires process. We know that there's a lot of interest in it, but I want Open Art Source to be in a way. [00:37:00] Almost led by the community to kind of get a lot of input and let people know that, that part of it. And they matter and we listen to these and what I'm going to do.

And I belief is that there were enough people in the world because again, nobody hates art. I mean the risk people have a compassion towards it, even if they don't really collect it on that, they know that it's something that it's good for them. So I, my hope is that we can get all the funding that we need to the artists and the bank, and then the token sale.

And then Open Art Source is going to be very successful. It will generate a revenue generator, create new technologies, do it just the beginning. Here we have technologies and ways. To make art really liquid and investible asset. That regular people, no, the chosen one regular people, democracy [00:38:00] actually can use and deploy in the life for fun and profit.

Jake: I love it. Is there a release date for . The artist yet? 

Or is that still 

Ilan: So the third of November is the private sale and the 10th of November is a public sale.

There is a link to the Arties website, and I think there is, then people can join the wait list as soon as possible. 10th is the date. And on this day, I believe I more all or most of the Arties will be sold.

Jake: Man, we covered a lot. I love what you guys are building. Is there anything that we didn't cover that you want to talk about? 

Ilan: Yeah, I want to, so let's say you buy an Aldi.

Okay. And then the prices ofArties for whatever reason. They go up. So you have an Artie that is worth much more than what you paid for. You can actually use this Artie [00:39:00] as collatoral in DeFi Alex, go, Alex, go is . Another company in our accelerator and we are building a way together with Alex to actually use Artie in DeFi.

Transaction. So you can put an Artie around and then you can gain in Stacks or other tokens that will support. The other thing is that we expect to use Stacks. Stacks is a very, very unique type of ecosystem. I think it's very smart than sophisticated. When we start Open Art Source the whole pricing mechanism that we will create will be actually built on stacks.

We give artists the ability to have the market decide what the price of the Arties. Right now it's the other dealer, or the artist says, okay, I'll send it to you for that. But actually there is a way to [00:40:00] do, to find what the price is by using a mechanism to stacks. And you can see exactly what's people are willing to pay.

This is how stacks actually right now determines the price of their token. We want to actually integrate really strong into the PoX mechanism and actually give people transacting art the ability to find the right price for what they're buying or selling through using a similar mechanism. So we're working on that, that it's still a long way to go.

I mean, we have definitely to raise my periods and now put that the market to begin with and then improve upon it. But it isn't a roadmap to do that. And for all the people who like stacks, who I'm hoping listening to your route, then we intent to basically them stuck. We don't integrate them. Into the blockchain and use [00:41:00] all the benefits that are out there.

Not just okay. I to do it here, no looking through it here and making this such a way we can using everything that energy offers and allows artists collectively to get fair pricing for the artwork. 

Jake: I love it. You almost made me want to become an artist to, so I could use your service.

Where can people find you to learn more as we close this out? 

Ilan: So I think right now, the best website to go to is Arties.io. Everything about the Arties and gives you links. Put links to Openartsource.io. You can check out what we do. There's a lot of content. There are other blogs, videos, podcasts, interviews.

I think it's interesting. And it tells you a lot about the people behind . There's like nine [00:42:00] people around me. Who've been working for more than a year for free. I mean, we give away equity in the company to our team and they believe in what we do and willing to give the knowledge for the. For this project, because we all strongly believe that it's the right thing to do, and it's a good project and it's going to be successful.

So I urge you to look at Openartsource.io and about the team. If you have any questions, Hit us on the quarter for all my emails, ilan@openartsource.io and answer email. I assure you, 

Jake: beautiful Ilan. I love what you guys are building.

I appreciate you taking the time. Uh, I'm definitely going to be buying an Artie and supporting you guys.. So good luck and everything you guys are building, man. 

Ilan: Thank you so much. And thank you for . It was great talking to you really. I really enjoyed it