Some may think that now, in the advanced and highly digitalised times we are living in, our everyday activities should be performed at a faster pace, right? We use the internet to shop, we pay utilities and bills online, we even study and communicate using technology; most of us rarely see or use paper documents. However, not all markets have been improved so that processes can run smoother and quicker. For example, even now, in 2018, it’s extremely difficult to buy a work of art or a collectable.
Art and collectables (A&C) is a two trillion dollar asset class - why is it such a vast and growing investment market? Because it is comprised of a multitude of assets, ranging from jewellery, wine, watches, to classic cars and arts. Estimates show now that investors allocate as much as 6% of their net worth to this market.
Picture this for a change - you are thinking of acquiring an astonishing sculpture or a classic watch that suits your style; but how and where do you find that item? How can you figure out what is the correct price? How do you know if it is the exact thing it is being promoted as? Is it genuine? How can you buy it? Only by taking part in an auction? These four steps are of major importance: research, value attribution, authenticity check, bidding. And after all, if it goes well, how can you manage to find a way to prove your ownership of that item and maintain the same resale value (for the next buyer)?
So, without any signs of doubts, this has proven on so many occasions to be an extremely hard process.
Provence is the history of a such an item and the main value driver in the art and collectables market. All of the issues we mentioned earlier could be resolved by using a simple title registry, right? However, until now, this market has refused to use such a system, due to privacy expectations that cannot be met through such a solution.
The answer, again, might be hidden in the blockchain technology - a platform built on such a foundation can provide a decentralised title registry that keeps all provenance information and, at the same time, manages to maintain privacy for all current and previous owners.
Presenting the Codex Protocol
A new decentralised title registry for A&C, aiming to be used by the entire industry. Its multiple roles include: supporting third-party applications for insurers, asset-backed lenders, galleries, artists and online marketplaces.
For the registry to be accessed and allow the modification of titles, users need a particular utility token. This cost is inversely proportional to the token stake within each application, by its users. The first app designed on Codex is currently under development, to encourage and promote the adoption of this protocol; known as Biddaple, this solution enables users to spend cryptocurrency at auctions and also to bid anonymously.
To learn more about the integration of this software solution, feel free to visit https://codexprotocol.com/.