Codex Protocol is a decentralized registry for unique assets backed by an industry consortium representing 5,000 auction houses. Codex is initially focused on the $2 trillion Art & Collectibles asset class (art, wine, jewelry, watches, collectible cars, etc.), where the need for a registry is greatest because no centralized title registry exists. For unique assets, provenance (the identity, chain of ownership, and other metadata about an item) is fundamental to value. Verifying this critical information is a constant challenge that creates costly friction in the ecosystem.
The Codex Protocol registry solves this problem by recording, verifying, and securely storing important information about each item. With this information, Codex users can easily access a variety of applications and services like asset-backed lending, insurance, fractional ownership, bidding, escrow and more. The first application lets you use cryptocurrency to buy over $6 Billion of merchandise from auction houses. Many other applications have already been announced including a bidding application, through which the first purchase was of a CryptoKitty for the highest price ever achieved.
With a widely adopted registry, we expect lower transaction costs and less fraud could grow annual transaction value by hundreds of billions of dollars and simplified financial products like lending and fractionalization could increase the value of the asset class by over $1 Trillion. In doing so, it will benefit existing market stakeholders and intermediaries, not disrupt them.