Diversity of investments is rule 101 for traditional financial advisors and whilst there are counter-arguments, cryptocurrency holders could do worse than copy this mantra.
If holding physical precious metals, garaging classic cars or owning priceless pieces of art is not an option then diversifying into tokenised assets as an alternative maybe an attractive option for some.
To do this confidently, though, buyers must first trust the information they are given about any item. Which brings us back to provenance and explains why Codex Protocol is well-placed to capitalise on the new tokenised economy of artwork and antiques.
Competition in the space is growing but as yet there is no clear leader. For example, Verisart has been offering limited certification services since 2015 but has been on the receiving end of recent negative publicity, and the forthcoming Allpublicart ICO has similar intentions to Codex Protocol but has yet to launch. Additionally, none of the competitors are yet displaying the MVP, dApps or array of supporting outlets that Codex Protocol have.
Provided that it engages well with its news partners, Codex Protocol should be fast out of the gate to build upon early successes and establish a firm presence upon the sector.
To paraphrase the company’s roadmap, the longer term forecast is harder to determine. Much will depend on factors outside of Codex’s control, such as how the physical identification of artefacts and masterpieces is received and how this correlates to a decentralised provenance register.
RFID chips as well synthetic DNA are making rapid strides and linking those initiatives with a separate blockchain ledger could either hinder or accelerate adoption for Codex.
Either way, the Codex Protocol proposition represents substantial improvement on the status-quo and there is certainly enough substance here to warrant interest in the project.
