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Herewith are presented thoughts and topics from the Master Branch. The Knowa Blog — Visit this page often, please, to be updated about the world of Knowa.

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Possession is 9/10ths of the Law

01.08.2022
Posted by Knowa
Jackson Hole
This old proverb touches on the problem we have observed with NFTs in general and digital art in particular. How do we "possess" an object that does not exist in reality?

In the famous feud between the Hatfields and the McCoys, Floyd Hatfield was found to be the rightful owner of the pig the McCoys claimed was theirs because, 1) he possessed the pig, 2) the McCoys could not prove the pig belonged to them.

Physical NFT, where an nft contract or "title" is inserted into some distributed ledger has this "possession" problem. Whosoever possesses the physical object may truly be the rightful owner...unless clear title by some other person can prove otherwise. An nft contract is not a clear title unless it also holds other data too, in our humble opinion.

Our work in creating the Knowa Objects involves the creation of physical objects that are both titled and authenticated by a record in a trusted ledger. But we keep returning to the moral dilemma of having a centralized trusted authority providing checksum authentication and ownership transfer services. At the point where we admit these services are vital, we no longer have an NFT use case — unless the nft is a smart contract that both holds authentication data and ownership cryptography?

This is our current area of investigation and thus far progress is stable.

Art and Collectibles as Stores of Value

01.04.2022
Posted by Knowa
Charlotte
One of the most important attributes of (physical, real) art and collectibles is their use as a store of value. Because they are real, they are known as "tangible assets" and have legal protections under property rights law. Also, again because they are real, they can be hidden and transported. Preferably, they occupy a small amount of space and do not appear to be a significant value. These are a couple of the attributes of the best collectibles: small size, "unknown" value.

If some persons do not trust fiat currency and governmental control of fungible assets, then perhaps they may seek to hold objects of tremendous value that occupy a very small space. Why else would someone pay millions of dollars for a baseball card or rare coin...or rare stamp? It is because these objects can be transported without much trace being left behind.

It has been said that during the 1930s in nazi Germany, some Jews escaped with their wealth intact by sewing rare postage stamps into their clothing. They were able to escape without paying the 90% exit tax nazi Germany imposed on migrating Jews (in the USA, the exit tax is "only" 50%). When these people arrived at their new homeland, they sold the rare stamps to a trustworthy dealer and began life anew.

One of the difficulties we see with Bitcoin and Digital Art assets specifically is traceability. If something is recorded in a database (or blockchain if you prefer) then it can be tracked and confiscated...FULL STOP. There is no way around this, as many investors in Bitcoin are learning. The United States government just passed a law, effective as of January 1, 2022, that requires all crypto wallet businesses (Coinbase, Crypto.com, et al) to report via a 1099 form, to the U.S. government, all transactions exceeding $600 USD.

So much for de-fi.

If you want to store and hide wealth, buy physical objects having high value, possibility of value growth, and the attribute of transportability. Be sure to verify a secondary market for the objects, and that a large and growing network of "market makers" (i.e. collectors and dealers) exists.

St. Basil’s Sermon to the Rich

01.02.2022
Posted by Knowa
Location: Washington
Take your extra pair of shoes, and give it to the shoeless. Take your extra shirt, and give it to the person who is shirtless.

Who is Knowa?

01.01.2022
Posted by Knowa
Huntsville
I was born in a small village, in a small hut. As a family, we lived in many towns. We moved often. I learned to love traveling to new places and making new friends.

As a child, I spent much of my time outdoors. I grew to love the beauty in nature. I found peace in nature's beauty. I vowed always to search for beauty. I vowed always to try to help people and to never hurt them.

I left home at an early age and struck out on my home. I had talent as a musician, and at first planned to make my way through life playing music. But, I was also entrepreneurial, and discovered I derived much fulfillment in finding things others found beautiful. I developed a business selling things to collectors. I was 18 years old when I began in business, selling things through so-called 'mail order'. The business was very successful, so much so that ten years later I bought a large home in the wealthiest part of town.

As the business grew, I began searching for others who were like me. I found amazing collections of beautiful objects and brought them to market.

And then came the Internet. This changed everything. No longer did I have to print and mail colorful paper catalogs. Now, collectors could be reached by the magic of the world wide web. I registered the domain name knowa.com in 1998.

And so here I am today, still in the same business, still on the hunt for treasure. I hope you enjoy the Beautiful Things Knowa will bring to you in the future.

The Scent Algorithm

13.01.2022
Knowa
Nashville
Did you know that fragrances, or the chemical structure of them, can be patented? I learned this many years ago when working in the perfume industry.

The exact chemistry of Chanel No. 5 or any other expensive perfume is a secret, as protected as the formula to Coca-Cola.