Blockchain makes entrance into the world of fine arts

San-Francisco startup launched a project for tracing and verifying the origins of art pieces and collectibles
28 February 2018   1125

Codex initiated a blockchain-backed system for trace and verification of the provenance for the market of arts, collectibles, antique and jewelry. The provenance is a crucial point in the operations with such items, as it directly affects the resulting price. It is also a very tedious and ungrateful process that involves sifting through countless number of certificates and receipts often leading to a dead-end. This state of things makes it easier for forgers to sell fake items of luxury.

Introducing a decentralized ledger in the area will allow an instant and real-time recording and tracing of the pieces of art, thus greatly simplifying the proof of provenance with details of the identity of an object, its chain of ownerships and most importantly - its authenticity. Aside from that, transactions are anonymous so that rich collectors may keep their identity a secret and yield a successful deal. The blockchain approach will cut the middlemen and the risk that goes with one person possessing critical information.

On February. 27 Codex announced a $5 mln investment from a hedge fund Pantera Capital with its portfolio made out of different blockchain projects.

Collectors have always balked at disclosing their assets to a central authority. Now, with the blockchain, they can prove ownership without compromising privacy. This will enable art and collectibles to flourish as a financial asset class,  resulting in a larger, better, and fairer market for collectors, intermediaries and artisans.

 

Mark Lurie

CEO, Codex

Another significant project of Codex is an application for bidding at auctions. The project's name is Biddable, and it allows all those who have a cryptocurrency fund to participate in auctions. With an item sold, its history gets instantly updated, artwork gets uploaded into the blockchain and a record is created so that other potential buyers can search for it easily in the future.

Experts Ask China Don't be in Rush For Own Crypto

Ex deputy chairman of the Bank of China said the CB should take part in the development of international regulation of crypto assets firstly
27 January 2020   125

China should strengthen cooperation with other countries to regulate the cryptocurrency industry, and not accelerate the development of its own digital currency, experts say. It is reported by the South China Morning Post.

So, the former deputy chairman of the People’s Bank of China, Zhu Min, noted that the central bank, which is developing a digital yuan in many ways as Facebook’s Libra response, should first of all take part in the development of international regulation of such assets.

Ba Shusong, chief China economist for the Hong Kong stock exchange, also believes that monitoring digital currencies requires a system that is controlled from different angles, as they have the potential to change the global financial system.

You would need to first improve the regulatory framework for [financial] technology. There is a need for global cooperation for an alternative regulatory framework.

 

Ba Shusong

Chief China economist for the Hong Kong stock exchange

 

Many fear that the popularity of Libra could strengthen the dominant role of the US dollar. At the same time, Deutsche Bank analysts believe that the digital yuan will undermine the primacy of the dollar in the global financial market.

Hiromi Yamaoka, the ex-head of the Bank of Japan supervisor of payment and settlement systems, also emphasized that the upcoming launch of Libra has caused competition among central banks seeking to make their currencies and services more attractive.

Something like Libra would make transactions costs much cheaper. Major central banks need to appeal that they, too, are making efforts to make settlement more efficient with better use of digital technology.

 

Hiromi Yamaoka

Former head of the Bank of Japan’s (BOJ) division overseeing payment and settlement systems