While different Blockchain projects have been trying to facilitate various industries and traditional processes as they continue to evolve, one of these industries, the Arts and Collectibles industry has been largely ignored. Arts and Collectibles is an industry that is worth more than the entire cryptocurrency market with a valuation of $2 trillion. Codex is trying to modernize traditional processes in the Arts and Collectibles industry.
The problem with the existing Arts and Collectibles industry is the number of frauds they face. For example, the original paintings by artists like Michelangelo or Picasso are extremely valuable. But replicas of original paintings are often sold by scam artists, posing them as originals, taking money out of the pockets of naive buyers. As an art item’s authenticity cannot be tracked by just anyone, it is hard to confirm the true ownership of the asset.
The A&C industry and its stakeholders believe there is a severe need for a registry which can utilize the decentralization features of the Blockchain technology. Decentralization is necessary because many entities in the industry are uncomfortable to share their information with a centralized registry. The presence of the registry will tackle key points like provenance.
What Is Codex?
Codex Protocol positions itself as a registry for Arts and Collectibles that works on the decentralization model. Codex has earned support from A&C industry and hence has received the backing of many strong players in the industry. Auction houses, e-commerce platforms, IT companies and many businesses in more than 50 locations worldwide have gathered to support Codex.
Codex tries to counter the existing processes of A&C industry through the tracking and verification of every asset in the A&C industry. Users are able to have their hands on a variety of protocols including fractional ownership, bidding, asset-backed lending and many others. Moreover, Codex attempts to minimize the fraudulent activities as well as lessen the transactional charges.
Every Art and Collectible items will have a separate record on the Blockchain where it can be traded easily while also tracking the item’s ownership history as it goes from one place to another. Since Blockchain is immutable and cannot be edited, thus it is extremely hard for criminals and scam artists to engage in art frauds.
A record of an asset in the Codex Protocol will include two key details. Firstly, all the history of the owners of an asset can be seen from the creation of the record to date. Secondly, there will be other details like the documentation of the asset and other data like an asset’s dealing with different services in the A&C industry.
Like all the standard cryptocurrencies, Codex too uses a token known as CodexCoin. The token is used for payment by stakeholders for the creation, update and transfer of asset records. Additionally, the token is also used for rewarding purposes .i.e. auction houses and appraisers who validate assets in Codex are rewarded with CodexCoin.
Moreover, there are discounting offers for those who store the token for an extended period of time. Furthermore, CodexCoin’s possession for an extended period of time grants the ability to owners to advance the protocol in the future.
Beneficiaries of the Codex Protocol
Brokers in the industry can benefit through Codex as it will be easier to detect fraudulent assets while also staying away from shady buyers and sellers.
Collectors and investors will be able to easily find Arts and Collectibles saving time and other resources.
One of the biggest victims of thefts in the industry is an artist. With Codex, their works can be recorded on the Blockchain and thus cannot be duplicated or stolen.
Through Codex, art lending will be encouraged as lenders will be able to shrug off worries through the transparency of the Blockchain.
Codex also enables the stakeholders to buy insurance for their items. Via Codex, insurers can get relief as they will be able to administer and examine the insurance of assets.
Storage and Logistics
The planning, management, storage and logistics of the A&C industry are the prevalent problems where Codex can step in to help locate and track items.
Appraisers can guarantee the validity of an item and create their reputation on the platform.
Arts and Collectibles are often granted to museums because of tax complexities. With Codex’s record system museums can benefit through template contracts.
Codex is an interesting project, however, its seamless adoption with the real world A&C industry on a large scale is a difficult prospect and the onus falls on Codex’s team to do it.
Find more about Codex Protocol here
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