2  The Solution

Artalytics Solves Key Market Challenges

Abstract

This chapter introduces Artalytics as a comprehensive solution addressing the key challenges identified in the digital art market. It outlines how Artalytics’ advanced technologies—like the proprietary PixelSense engine, blockchain-backed Certificates of Authenticity, and interactive digital galleries—authenticate artworks, provide valuable analytical insights, and enhance the overall marketability of digital art. By showcasing these innovations, the chapter illustrates Artalytics’ unique value proposition and how it empowers artists, instills confidence in collectors, and creates new opportunities for investors seeking to capitalize on a rapidly evolving market.

Introduction

In response to the market challenges outlined in Chapter 1, Artalytics offers a comprehensive platform that addresses the critical challenges in the digital art market, empowering artists and instilling confidence in collectors.

Table 1: Artalytics Competitive Value Proposition
Comprehensive Authentication Artalytics ensures originality & authenticity, providing immutable proof via blockchain-backed COAs.
Proprietary Metrics & Insights Introduces measurable data for traditionally subjective aspects of art, enhancing valuation accuracy.
Innovative Digital Galleries Engages buyers with interactive galleries, increasing artwork appeal and marketability.
Unified Digital Art Ecosystem Centralizes the digital art market, improving efficiency, trust, and scalability.

At the heart of these solutions is PixelSense, our proprietary engine that authenticates, analyzes, and preserves crucial data for each artwork.

Comprehensive Authentication

Artalytics provides a robust and comprehensive authentication via a proprietary technology called PixelSense.

What is PixelSense?

PixelSense is a backend engine designed to analyze digital canvas metadata, generate insights, and embed IP protections. Its primary role is to authenticate and analyze digital artworks at a deep, file-based level.

The Digital Canvas File

The artwork’s digital canvas file enables a range of platform capabilities. For example, by requiring creators to upload their native canvas files rather than mere JPEGs or low-res copies exported from the canvas, PixelSense is able to certify the art as an original human creation, attributed to a verified artist.

How it relates to Artalytics?

The Artalytics Platform surfaces the data extracted, verified, and analyzed by PixelSense, ensuring a seamless interface for artists, collectors, and institutions (shown in Figure 1). The analysis performed by PixelSense enables the following (via the platform’s frontend UI):

  1. Personalized Digital Galleries
    Artalytics.app hosts artwork galleries, displaying curated insights, creator information, and artwork metrics.
  2. Comprehensive Artwork Data
    Verification details, COAs, and authorized marketplaces (e.g., for NFT editions or physical prints) are centralized on each gallery page.
  3. Advanced Analytics and Insights
    Timelapse replays overlaid with real-time analysis provide an academic view into the artist’s methods and techniques.
Figure 1: Value Generated with PixelSense
An illustration of the value generated for a digital artwork uploaded and authenticated with the Artalytics platform
From Authentication to Valuation

Insights and proprietary metrics surfaced for an artwork are critical for determining artwork valuation– satisfying a demand of younger and newer artwork collectors increasingly motivated by financial returns associated with artwork investing1.

Next, we’ll dive into how PixelSense works, the records that are created during the authentication process, followed by an overview of the Artalytics issued Certificates of Authenticity.

How PixelSense Works

PixelSense executes the following core functions when an artwork is uploaded:

  1. Authenticates originality and verifies human authorship
  2. Perserves verified creator info, aleviating metadata loss (Chapter 1.2)
  3. Generates blockchain backed COA issued by Artalytics (fig 2)
  4. Embeds permanent IP protections within all artwork assets (see fig 4)
  5. Aggregates verified data to the Artalytics Platform for presentation and access

Certificates of Authenticity

For every authenticated artwork, PixelSense generates a Certificate of Authenticity (COA) that is:

  • Blockchain-Backed tamper-proof records ensure provenance.
  • Available publicly on Certificates.Art and linked to the artwork’s gallery on Artalytics.app.
  • A comprehensive presentation of verification details, creator information, and artwork metrics, and more.

Let’s take a look at a real certificate generated by the platform.

Figure 2: Artalytics Issued COA
A diagram providing an overview of the information presented in general sections of an Artalytics issued COA.

Every COA includes a QR code that links directly to the artwork’s gallery on Artalytics.app, ensuring easy access to verified details for buyers, collectors, or institutions.

Figure 3: Value of the Artist’s Signature

In this section we demonstrated how Artalytics is able to address the urgent and critical market need for comprehensive authentication. Next, we’ll build on how we utilize this to deliver a unified platform that serves as the single source of truth for an authenticated artwork.

Unified Platform

The Artalytics Platform is the Single Source of Truth for all verified information related to an artwork, including:

  • Authentication and provenance verified by PixelSense.
  • Advanced artwork metrics and analytics.
  • Securely stored assets linked to the original creator.
Tip

Figure 1 illustrates how Artalytics serves the entire digital artwork ecosystem as a single source of truth, while Section A demonstrates the critical need for Artalytics as the foundation of trust in a transaction between an Artist and a Collector.

Why This Matters

Existing platforms fail to address the fragmented nature of the digital art ecosystem. Artalytics solves this by consolidating all verified data into a single, accessible interface. As illustrated by Figure 4, even if an unauthorized NFT is minted on OpenSea or similar platforms, Artalytics’ embedded IP protections ensures:

  • The original creator is identified.
  • The sale is flagged as unauthorized.
  • Buyers are able to redirect2 to Artalytics for trusted details.
Figure 4: Embedded Artwork IP Protections
A diagram describing the various pieces of information that is embedded in all digital artwork assets for authenticated artwork on the Artalytics platform

Next, we’ll discuss the proprietary metrics and insights surfaced by Artalytics– a core component of our unified platform and one that addresses how collectors value digital art, both emotionally as well as financially.

Proprietary Metrics

Artalytics transforms subjective aspects of art into measurable data across three core categories:

Time & Effort

Quantifies the energy and dedication invested by the artist, highlighting commitment.

Skill & Artistry

Reflects technical mastery and execution quality of the creative process.

Complexity & Detail

Measures intricacy and richness, offering insights into depth and sophistication.

These metrics are crucial for understanding the time and skill behind the piece, providing collectors and institutions with a trusted basis for valuation or museum curation

Figure 5 demonstrates how Artalytics enable us breakdown the creative process for an artists’ realistic portrait drawing into three distinct phases of drawing, illustrating the value of insights generated by Artalytics.

 

Figure 5: Analyzing Creativity with Artalytics

In addition to metrics and insights, the Artalytics platform has demonstrated the ability to utilize a digital canvas file to build highly engaging, innovative, and interactive digital experiences– discussed next, followed by why these experiences are increasingly important as AI-generated content continues to proliferate uncontrollably.

Interactive Experiences

Artalytics’ galleries combine insights and interactive features to enhance engagement. Examples of experiences provided by the platform include:

  • Analytical Timelapse Replays
    Interactive videos overlaid with real-time charts that showcase the artist’s process (Figure 1).
  • Phygital Integration
    High-resolution prints and displays connect digital ownership to tangible experiences.
  • Educational Content
    Timelapse replays and analytics support art education by providing rich, contextual data (Figure 5).

Collector Desire for Innovative Experiences

According to a survey published by Gold (2023), Collectors are equally interested in digital-to-physical integration and virtual gallery showcasing, with each aspect accounting for 50% of their preferences, suggesting a desire for a more holistic experience. They clearly do not want to choose between digital and IRL presentation, preferring a seamless presentation that encompasses multiple display options. So, we will certainly observe more bridging of physical and digital realms, referred to as phygital, fostering integrated and immersive artistic experiences.

Example Use Case

A hyper-realistic portrait artist uploads their work to Artalytics. PixelSense authenticates the canvas and issues a COA. Using timelapse replays and metrics, the artist engages collectors by showcasing their intricate creative process, increasing both interest and sales.

Addressing Emotional and Financial Value

As discussed in Chapter 1.5, the demand for trusted identification of human created vs AI generated artwork, as well as the overwhelming preference for an emotional connection to the artist is only increasing as AI content proliferates dramatically.

Only 16% believe AI art can match the value of human-made pieces. (Hiscox 2024).

The following table summarizes how Artalytics directly addresses key motivations of digital art collectors as identified by recent market research (Gold 2023).

Table 2: Collector Motivations Addressed by Artalytics
Motivation How Artalytics Meets This Need
Proof of Ownership Blockchain-backed COAs ensure immutable provenance and verifiable authenticity.
Direct Artist Relationships Features like interactive galleries and messaging foster collector engagement.
Curation & Context Timelapse replays and contextual insights add depth to the buyer experience.
Ease of Payment USD-based transactions eliminate crypto volatility, appealing to traditional collectors.
Community & Engagement Exclusive content and AMA chats build stronger connections between artists and collectors.

Through next generation experiences only possible with digital artwork, Artalytics meets the expectations of collectors seeking authenticity and emotional resonance; while blockchain-backed COAs ensure collectors trust the provenance of each piece, securing investment potential in digital artwork.

Up Next

With these innovative solutions, Artalytics is poised to capture significant market share in the rapidly growing digital art market. Armed with these robust solutions, we now turn to the market’s size, growth trajectory, and investment potential in the next chapter.

  1. Deloitte (2023)↩︎

  2. Because the original file contains embedded IP data, any attempt to mint it on an external marketplace can be flagged or traced back to the rightful creator.↩︎