Using blockchain to track the provenance is a great use of the technology but how does it work in practice..?
What is provenance?
Provenance as it relates to a collectible is a record of its history of ownership and events. It helps owners and buyers to assess risk associated with an item. These risks include authenticity risk, pricing risk, condition risk and title risk.
Things that can be included as part of provenance documentation:
- Original receipts
- Handwritten notes or inscriptions (plaques, sewn-in tags, notes on backs of paintings)
- Photographs, often showing item with original owner or with a well-known person (politicians, musicians, artists, actors, etc.).
- Gift documentation (especially a note from a famous person giving the gift)
- Certificates of Authenticity
- A complete list of owners
- Auction records
- Recorded in a home inventory: Mentioned in a will or a diary or a visitor’s written account; some kind a bill of sale or sales receipt
How does provenance work with the blockchain
Firstly let’s divide provenance in two. Forward looking and backward looking. Using Codex, or any other blockchain tool will treat forward and backward looking provenance differently.
When an item already has a Codex Record, forward looking provenance events, such as a sale or exhibition can be easily recorded at the time they take place. When an item is sold, the Codex Record can be transferred from the seller to the buyer. This is documented as a blockchain transaction and becomes part of the provenance. If either of these accounts is a verified account, this will also show up on the item’s provenance.
For backward looking provenance however this information cannot be recorded contemporaneously. Does this mean there is no value in recording backward looking provenance on a blockchain? No! All provenance information is valuable — it helps us, as owners or buyers of an item, to understand the identity and history of an item. Sadly, provenance information can very easily be lost or damaged — recording them using Codex can help protect that information and ensure it is retained for the future.
Secondly, it is important to remember that provenance can change. As academic and scientific practices change and as new information comes to light, sometimes the provenance of an item will change too. This is very common — a painting previously attributed to one artist may then be attributed to another. That doesn’t mean though that this information should be disregarded. The fact that there is a change in provenance is helpful information too!
Other great resources for learning more about how to research and record provenance:
- Lofty — guides on provenance and documenting items including how to photograph paintings, rugs, ceramics etc… — super useful!
- International Foundation for Art Research — Provenance Guide
- Antiques dealers association — The problem with provenance and what we can do about it
- Get your shit together — Documentation for artists
There have been major updates to Codex Records that makes documenting provenance even easier. With new privacy controls and new features like uploading audio files, video files, pdfs and additional images make a Codex Record the most comprehensive way to store provenance of any asset on the blockchain. Learn more about new updates to Codex Records in this article.
Try documenting an item in your collection using Codex Records now! Visit the Codex Viewer.
For a limited time, sign up using the Simple Login feature and you’ll receive 50 free CODX that you can use toward documenting provenance on Codex Records. Use the CODX to create, transfer and modify Records.
Codex is the leading decentralized asset registry for the $2 trillion arts & collectibles (“A&C”) ecosystem, which includes art, fine wine, collectible cars, antiques, decorative arts, coins, watches, jewelry, and more. Powered by the CodexCoin native token, the Codex Protocol is open source, allowing third-party players in the A&C ecosystem to build applications and utilize the title system. Codex’s landmark application, Biddable, is a title-escrow system built on the Codex Protocol, which solves long-standing challenges in auctions: non-performing bidders, lack of privacy and bidder access. The Codex Protocol and CodexCoin will be adopted as the only cryptocurrency by The Codex Consortium, a group of major stakeholders in the A&C space who facilitate over $6 Billion in sales to millions of bidders across tens of thousands of auctions from 5,000 auction houses in over 50 countries.