LIVEAUCTIONEERS ADDS BLOCKCHAIN PROVENANCE

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V21 2018 INDEX E-SYLUM ARCHIVE

The E-Sylum: Volume 21, Number 5, February 4, 2018, Article 25

To me, the blockchain distributed ledger is the more interesting part of cryptocurrencies like Bitcoin. LiveAuctioneers is adding it to their platform. I wonder if they'll be able to apply it to coins? -Editor

LiveAuctioneers, the world’s leading online marketplace for auctions of collectibles, antiques and fine art, today announced its participation in the Codex Consortium, which supports the Codex Protocol, a decentralized title registry for the $2 trillion arts & collectibles (A&C) asset class that brings provenance onto the blockchain. LiveAuctioneers has committed to adopting Codex Protocol, its native token, and its first product, Biddable, the day the protocol is launched. In the short term, Biddable will make bidding easier for LiveAuctioneers’ audience of 12 million users, enable bidding with cryptocurrency, and bring an influx of cryptowealth to auction houses. Over the long term, Codex will create a larger and more trusted art and collectibles market that will benefit LiveAuctioneers’ auction-house partners.

As part of the Codex Consortium, LiveAuctioneers will be working closely with the Codex team and integrating the protocol into its online marketplace. Codex’s first application, Biddable, will make it possible to register for auctions instantly by leaving a cryptocurrency deposit and to pay for won items in cryptocurrency. Today, auction houses lose substantial revenue to bidders who renege on items they win. Because of this, many auction houses require extensive financial disclosures from potential bidders just to participate. With Biddable, anyone can bid easily without invasive financial disclosures.

“We are thrilled to be one of the first members of the Codex Consortium and to bring Biddable to our users. At LiveAuctioneers we pride ourselves in being the first to help auction-house partners grow sales with innovative technology solutions,” said Phil Michaelson, president of LiveAuctioneers. “While we have been recognized in the industry for our customer service, there are major frictions in the bidding experience. Registering for auctions can be hard, especially for foreign bidders and those with anonymous wealth.

Provenance, the identification of previous owners of an artifact, conflicts with the goal of providing anonymity for buyers. But the blockchain does provide a permanent public record, even if some parties are identified only by number.

Payments in cryptocurrencies are problematic because they lack some of the key criteria for media of exchange. As we've seen in recent weeks, they are a qustionable store of value when prices can soar or fall by huge measures in short time periods.

I expect we'll see adoption of blockchain for provenance first in the ancient coin market, due to the laws surrounding cultural property - dealers and collectors alike want solid provenances to bolster their case that their coins have not been illegally looted or smuggled.

Thoughts and comments are appreciated. Is this a glimpse of the future, or just another diversion? -Editor

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