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Codex Protocol

The Codex Protocol is designed as a property title registry tailored for all A&C object. A Codex Title is designed to preserve the evidence of ownership of a peace. Specifically, a Codex Title includes records of the ownership and transmission history of the item since the Codex Title was instantiated and hashes of related documentation.

Rating: 3.6

Official contacts
Location: N/A
Web-resources:   Whitepaper Website
Social networks: N/A
Product source tracking: N/A
Details Description Risks Full analysis Team

Detailed review

Stage of product development
It is not clear if any of the product are now in Beta version or MVP.


Token description
ICO date
24.07.2018 - 30.07.2018
Token price
N/A
Platform
Ethereum
Blockchain
Ethereum ERC-20
Token distribution date
N/A
Consensus method
Proof-of-Work(PoW)
Escrow
N/A
ICO currencies
ETH
Bounty camping
N/A
Markets
N/A
Token functions
BidDex will be used to make transactions on Codex Titles.
Risks
MARKET

Codex isn’t the first to see the benefits of blockchain in the art world. Verisart is a Los Angeles-based startup founded by the former CEO of Saatchi Online and Sedition Art, that launched in 2015. Verisart’s mobile app uses the bitcoin blockchain to let artists, collectors and dealers verify provenance in real time. Artchain.info is another startup using blockchain to generate certificates of authenticity. In this field, it is also worth noticing Everledger, Ascribe, Blockai, and Monegraph. The further steps of product development(i.e. after launching Biddable and Sellable) are not clear from WP.

PRODUCT

It is not clear how the registration of A&C items with history of ownership will be conducted. Even though the team explains how they will address the risk of linking physical items to digital records, this question still has to be considered.

BUSINESS MODEL
FINANCES

It is worth noticing that the company will issue two tokens: one is ERC-20 compliant and the second is ERC720-compliant i.e. the second token is non-fungible. Now, there is no information regarding hard/soft cap, expenses distribution, etc.

TEAM
Full analysis
Market

The art & antiques world market is estimated around $2tn and is growing as a mean of investment, according to Deloitte 2017 report. The prices in most of the market categories will double in the next 10 years, according to Knight Frank report. According to Reuters, annual losses due to fake art sales are estimated around $5B. Codex isn’t the first to see the benefits of blockchain in the art world. Verisart is a Los Angeles-based startup founded by the former CEO of Saatchi Online and Sedition Art, that launched in 2015. Verisart’s mobile app uses the bitcoin blockchain to let artists, collectors and dealers verify provenance in real time. Artchain.info is another startup using blockchain to generate certificates of authenticity. In this field, it is also worth noticing Everledger, Ascribe, Blockai, and Monegraph.

Product

It is not clear if any of the product are now in Beta version or MVP. The main problem that Codex aims to address is to create a toolf for provenance of artworks. One of the tools Codex is developing named Biddable - a deposit-escrow system wherein a cryptocurrency deposit is escrowed from the buyer with a smaller corresponding stake from the seller. This enables bidders to prove their intention to pay while maintaining their privacy and keeps sellers honest as well. Sellable is intended to help collectors find and buy the items they desire even if they are not currently for sale. It will do so by mirroring the ad hoc way sourcing off-market items is done today. It is designed to help intermediaries like auction houses and dealers, not disintermediate them.

Business model

The Codex will be used by application developers and individuals to create and modify Codex Titles (create, read, update, delete operations, also known as CRUD operations). This may include instantiation, transfer of ownership, transfer of possession, addition of supporting documentation (e.g. photos or appraisals), adding a lien, or any other modification. Making modifications requires a fee paid in BidDex, with different fees associated with different types of modifications. For example, adding a lien on a registered item may cost more than a transfer of title operation. Biddable’s planned revenue model is transaction fees, payable in BidDex." Biddable's costs will include the fees to create and modify titles on The Codex. As a profit-maximizing entity, Biddable will seek to minimize its costs. To that end, Biddable plans to require auction houses to leave an initial BidDex stake before they can accept bidder registrations. Sellable will earn on so-called "finder's fees" that will be paid in BidDex by collectors making an offer to find a piece of art in the system.

Finances

Recently, Codex raised 5M USD from Pantera Capital. Codex will issue two tokens: BidDex and Codex Title. BidDex is an ERC-20 compliant token that is used to make transactions on Codex Titles. Codex Titles tokens will be modeled as NFT tokens as specified in ERC-721. Now, there is no information regarding hard/soft cap, expenses distribution, etc.

Team

The team has strong experience in all relevant fields for the project development. Previously, CEO of Codex founded and sold a marketplace for fine art & antiques that still operates and has 240K visits, according to SimilarWeb. Other team members worked previously at Sotheby's bidding venue and Microsoft. The team also has advisors from relevant fields: cryptocurrencies, arts & collectibles, and consumer internet.

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