Blockchain technology functions as a distributed ledger and as a result, it is immutable, transparent, and censor-free. These qualities reduce fraud in many industries and practices.
The art world, in particular, can benefit from blockchain’s qualities. The blockchain can authenticate high-value work. Additionally, these days, Portion is using the blockchain to create a global auction house. Investors funded Portion with $5.5 and the platform is using the funds to give creators, collectors, and bidders with an authentic and safe means of exchanging cryptocurrency for high-value goods. Keep in mind, this is nothing close to a blockchain-powered eBay.
According to Peter Engleman, Portion’s co-founder,
“Portion is very much focused on the higher end of the market. The platform to launch in a few months will cater directly to notable artists. The future state of Portion will expand to include physical goods as we continue to develop mechanisms that provably link a physical good with its Blockchain Certificate. The Blockchain Certificate is a unique token standard that verifies authenticity and initiatives the record of provenance for future transferences.”
These days, many individuals participate in online auctions experience non-payment or non-delivery, which costs participants over $138 million per year. These are just two forms of auction fraud- there are many more that are at issue.
With the blockchain, goods can be certified and payments protected. Every transaction registered with Portion is facilitated by the technology and it creates transparency concerning ownership and final prices. Further, by accepting just cryptocurrency, Portion can validate proof of funds in real time – so users who bid can only do so if they have the funds in place. At the end of the auction, funds are kept in smart contracts and released when the winner receives possession of the goods.
Engleman has commented on the types of goods that will appear on Portion.
“Portion is launching a platform for artists to create crypto art and crypto collectibles. Focusing on respected artists in the community, Portion will cater to its community of users by offering high-quality work from these renowned creatives and creators. In the future, Portion will work with these same artists and creators to offer physical good from creator to consumer.”
The platform has a three-step process in place to ensure the authenticity of goods and that they are properly represented as well. Partners grant authentication and users are interviewed and provide references to ensure their credibility before they can create blockchain certificates.
Although the policy is stringent, Engleman mentions that it will not harm scalability.
“After crypto art and crypto collectibles, Portion will scale outward to include other arts and collectible verdicts. But working with brands directly, who initiate the provenance of luxury goods, Portion limits the future needs for re-authentication. Goods outside Portion’s registry will utilize the network of authenticators worldwide. By initially focusing on creator-to-consumer, it is simple to scale on Portion’s platform. However, ensuring quality is more important than purely the volume of transactions.”
Engleman also mentioned its vision for Portion’s future.
“Portion will launch [its] first platform within the next few months. Imagine a marketplace specifically for digital impressions of art that fluctuate in real time as users buy and sell. As cryptocurrency enthusiasts continue to find new means of diversifying into new and exciting assets, crypto hart has become a top contender. Portion will then strategically enter the physical goods pace connecting creators to collectors.”