Provenance Workflow

Tokenizing and Appraising You Work

The Asset Provenance Token (PROVENIR)

Provenir means ‘to originate’, to stem (from) to arise (from). The Platform will have the facility to issue unique ‘Provenance’ Tokens for each art piece registered on the Blockchain in order to uniquely identify art and prevent forgery and misuse. This token confirms (a) identity of the asset, (b) identity of creator, (c) authenticity of the Artwork and attributes and (d) location and condition of the art. This token will remain on the Blockchain forever (Toujours) irrespective of how much it is shared, sold or who the current owner of that artwork is. No matter who owns the art or its permissions (derivative works), the artist (creator) and the art attributes will always remain unchanged and immutable due to its unique encrypted ‘Provenir Token’.

The ownership of this token can be viewed on the Blockchain as an ownership proof of that asset. The Ethereum powered blockchain will broadcast the ownership rights globally. A user holding the ownership of the PROVENIR will be the owner of the underlying art asset and will have all ownership rights and privileges linked to that particular art asset. These ownership rights are not just limited to art asset sale/lease rights. The owner of the PROVENIR can create as many Provenir Derivative Tokens (PDT’s) for that specific asset as they see fit. The PDTs can be created for print / duplication sale rights, display rights, permission to sell rights (as required by galleries, agents and art dealers) or many other uses depending on the purpose and use.

The PROVENIR token (verified art asset token) will include the necessary assurances such as who created the art, when it was created, where it was created, who owns it, who purchased it, when and where it was purchased, condition at last purchase, listed flaws, price of last purchase, and where applicable, how many copies / prints are in circulation. A network of experts spread globally that can be relied upon to maintain and develop personal relationships with local artists is a vital part of this assurance model. These experts will be able to do the vetting and ensure quality through visual inspections when required. The rules will require posting a video and photographs with Artist interviews, if necessary. Furthermore, the rating system implemented in the ‘Reputation module’ will keep the experts honest and fair.

Users and partner entities participating on the platform will keep the tokens circulated by using and exchanging the tokens for services, rewards, and bonuses on the Platform. Beside visitors, the entities that will participate mainly in the token economy are as follows:

· Artist: The creator of the Art

· Owner: The current owner of the Art (can be same as the Artist)

· Buyer: The prospective buyer of the Art

· Seller: The Seller of the Art

· Experts: Qualified participant in the system who are designated to verify, attest, determine, and investigate provenance. Experts will be rewarded for the quality of their work. Any user can apply to become an ‘expert’ if sufficient voters approve of their virtuoso and special knowledge of or interest in works of art / curios.

· Advisory council: Representatives of museums, galleries or other organizations (i.e. art institutes) who are recognized as experts in art.

· Arbiter: a participant who can solve disputes and earns rewards; each transaction will have its own randomly selected arbiters.

· Print Shop: an approved print shop / laboratory which prints art copies, posters, photos and such.

· Framing Shop: an approved framing business

· Museum: list of museums

· Gallery: the approved list of galleries. (museums can have several galleries)

· Dealer: the approved list of independent dealers who buy/sell art.

· Insurance Agent: the approved list of art insurance companies

· Shipping Agent: qualified shipping and delivery services

· Storage Company: company that has specialized Art Storage services

The details of the PROVENIR depend on the Asset type. For example, in the first phase we will focus on Fine Art (Paintings and Sculptures) Asset Type. The attributes for this type are:

· Asset title	· Art Medium
· Asset type (painting, sculpture, print etc.)	· Art Movement, Era, Style
· Artist's Blockchain address	· Art Subject
· Asset Creation Date	· Asset Blockchain address
· Edition (if Limited edition)	· Current Owner Blockchain Address
· Orientation	· Current Location of Asset
· Dimensions

In future phases, the Artist/owner can select from additional ‘Art Types’ such as photography where the Provenir token will reflect the relevant attributes that apply to photography. The PROVENIR represents a Physical Art asset, or a Digital Art asset (such as a photograph) and links it to the Blockchain. In essence, the creation of a PROVENIR converts the Fine Art Asset into a ‘Smart Property’. The selling price of the Provenir token reflects the selling price of the underlying asset. The token will be available for sale once the current art owner sets its status to ‘For Sale’ with a valid price. The token is bought, sold, leased, loaned, auctioned, insured, and pledged like any other asset using a smart contract with embedded conditions that can be basic or complex, depending on terms agreed between buyer and seller. Payment can be made with any of the popular crypto-currencies or fiat money. The currency exchange features on the Platform will assist in conversion of currencies according to the needs of the seller and buyer using real-time exchange rates.

Initially, the Platform will have features for a PROVENIR token to be owned by one individual or entity. In future releases, a PROVENIR can have multiple owners with a percentage share in the token. We believe that ‘Shares in Artwork' should not be restricted to masterpieces and should allow investors to invest in a ‘share’ of any art they believe is valuable and has potential for future profits. The ‘Smart Contracts’ governing sales and conditions for SIA option will include storage, insurance and audits as integral part of the ‘Shares in Art’ investment model. With this concept, Art can be converted into smaller digitized financial units that can be bought and sold with ease. Blockchain technology will allow investors, collectors and owners to exchange shares in any Art instantly, similar to shares in a company traded on the stock exchange.

For highly valued art, there are many companies that provide special purpose ‘safe’ art storage facilities. The high security vaults can operate as galleries whereby dedicated rooms are allocated for viewing purposes. These storage facilities typically reside within international designated areas near international airports so that the valuables kept in storage do not attract local tax when they are transacted, thus making it attractive to investors. The designated areas are called ‘Freeport’s / free zones’. Examples of such facilities are Le Freeport in Singapore, Freeport’s in Geneva, Luxembourg, Shanghai, and New York. We envision that with rise in the Fine Art markets, addition Freeport’s will be created in other cities across the world. We will ensure access for investors and their nominated guests to visit their collections stored in these facilities.