The highly fragmented nature of the Arts & Collectibles ecosystem means that achieving transformation in the industry must not be done with disruption, rather with a collective effort by stakeholders from all corners of the market.

For this reason, we’ve built Codex for broad collaboration. As an open-source blockchain protocol, Codex encourages developers to build upon the protocol and expects that many users will interact with The Codex asset registry through a broad array of applications and partner integrations. In this post, we’re announcing several partnerships and opportunities to collaborate. We’ll follow up with more detailed posts about each exciting new partner.

Each Codex Record, which represents a unique asset using a token, gains provenance as it interacts with different stakeholders. This helps secure the value over time. Since provenance is the primary monetary value-driver for the A&C asset class, those who have made significant investments in fine arts and collectibles will be highly motivated to have a title for each valuable asset.

Stakeholders who will contribute provenance information for assets with a Codex Title include:

Auction Houses, Galleries, and Dealers: The Codex provides a highly efficient means of tracking inventory and consignments enabling secure and provable transfer of provenance documentation as part of a transaction. The Codex can also help intermediaries source specific works for their clients if previously sold, protect vendors against dealing in inauthentic works and can be used in title-deposit escrow smart contracts to facilitate faster transmission and a reduction in non-performing bidders.

Today, the first dApp built by Codex, Biddable, is integrated with LiveAuctioneers to facilitate cryptocurrency transactions for online auctions, and other notable partnerships with auction house software providers include Auction Mobility.

Collectors and Investors: The Codex empowers collectors and investors to purchase A&C with greater confidence in the integrity of works enabling faster transactions, more fluid cross-border movement, and, over time, a reduction in the costs associated with owning A&C (e.g., insurance). The Codex will provide infrastructure for the development of inventory and wealth management applications.

Having an efficient title registry enables alternative models such as fractional ownership, for which Codex has partnered with Maecenas. Additionally, Codex partner Feral Horses offers an online marketplace where individuals can purchase “shares” of select artworks.

Artists, their Estates, and Foundations: Applications built on The Codex could provide an efficient means of cataloguing and archiving work for artists which will deter the creation of fakes and forgeries and may prevent manipulation of an artist’s market. An artist or his/her estate would be able to build a catalogue raisonée on The Codex. Applications of The Codex could also enable easier tracking of resale royalty payments which may be due to artists but frequently remain unpaid.

At Codex, we’ve worked with cutting-edge artists who contributed and launched the Foundation for Art & Blockchain, which provides funding for education, events, art and artists engaging with blockchain. Our first Charitable Art Auction at the Ethereal Summit was featured in The New York Times, “Who Spends $140,000 on a CryptoKitty?”.

Asset-backed Lenders: Today, a large market exists in loans secured by A&C. Owners seek out these loans for many reasons. The Codex will support art lending since it will allow lenders to be more confident that they can confirm valuations, authenticity, and title. With Codex partner Luxury Asset Capital, a leader in the online alternative lending market, one can receive a one-click quote for an asset-backed loan.

Insurers: A large market currently exists for insuring A&C, both from damage at home and in transit. A Codex-based application could enable owners to quickly and easily obtain quotes and purchase insurance on items they own, as well as update premiums based on changing prices of their holdings. Insurance inspection, administration and underwriting costs could be decreased by using The Codex to track possession during transit, verify insurance valuations and administer claims.

Storage and Logistics: Art storage and logistics is a multi-billion dollar industry which still relies heavily on paper records and outdated systems. Applications could be built on The Codex to allow management of items for storage and logistics with ease.

With our partner The Clarion List, finding a trusted service for shipping (as well as many other services listed here) is easy.

Appraisers: As the Codex Protocol is built upon by the community, it could support an application that enables buyers to post bounties for appraisals of a Codex Title which are earned by verifying the authenticity and value of the piece. Appraisers would build a reputation in the application for their appraisals.

ValueMyStuff, a Codex partner, owners of valuable assets can request a virtual appraisal from the leading network of experts.

Museums: A&C is often bequeathed to museums for immediate tax deductions. This can be complex and expensive to structure, but could be made simple and accessible if template contracts were used with a multi-owner title system on The Codex.

Additionally, one question we’re asked is “how do you link the tangible asset with an intangible ERC-721 Token?” For those who seek this link, we have partnered with Dust, which uses inexpensive diamond dust to imprint a crystalline fingerprint on physical items that is invisible to the naked eye but can be scanned with an iPhone to verifiably link physical items with digital records like Codex titles.

The A&C Asset Class is estimated to be worth USD 2 Trillion. At Codex, we believe there is tremendous room for growth as investing in tangible, fine artworks and collectibles becomes more accessible, and the value of each piece is better understood. By bringing trust and efficiency to the marketplace, Codex Protocol will ensure more buyers acquire the objects they desire, more sellers receive a fair value for their items, and more intermediaries grow their revenue.

To learn more about Codex initiatives, download our white paper. To inquire about partnerships and developing dApps using the Codex Protocol, please contact us via Telegram or Twitter.

by: Adrienne Burke-Moran, Codex

CodexProtocol

Codex Protocol is a decentralized registry for unique assets, beginning with the $2 Trillion Art & Collectibles asset class. Supported by a large industry consortium, The Codex stores ownership and provenance while ensuring privacy for collectors.

Thanks to Jessy from the block

Codex Protocol News

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Codex is the leading decentralized registry for the $2 trillion arts & collectibles ("A&C") ecosystem. Our Publication: https://medium.com/codexprotocol/latest

CodexProtocol

Codex Protocol is a decentralized registry for unique assets, beginning with the $2 Trillion Art & Collectibles asset class. Supported by a large industry consortium, The Codex stores ownership and provenance while ensuring privacy for collectors.

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