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knowa collectibles

Here at the Knowa Collector Blog, we pride ourselves in bringing you the latest news about the Knowa Ecosystem. Whether you're a seasoned collector or just getting started, we provide insights and perspectives that will help you grow in your knowledge and appreciation of Knowa Collectibles.



The collectibles marketplace is evolving with advances in technology happening at a rapid pace. Real-time information systems, global internet connectivity, and cutting-edge sensors allow tracing collectibles ownership from creation to end of life. Knowa Collectibles include the Ownership Chain: an immutable digital certificate of authenticity and title that lives with an object from the moment of inception until it ceases to exist. Knowa records each of our collectible objects into our Ownership Chain. These objects combine tangible value in physical form with the ownership security of a digital ledger.
Alice wants to sell her Black Lotus card for $10,000.00. Bob wants to buy a Black Lotus card and is willing to pay up to $10,000.00 for one. Alice is in California. Bob is in New York. Alice posts an ad on Craigslist offering her card for sale. Bob sees the ad and responds. Alice wants payment up front. Bob wasn't born yesterday. The deal fails because Bob doesn't trust Alice and Alice doesn't trust Bob. Trust is a matter of reputation. Reputation is a key element of commerce.What if a service with an impeccable reputation would hold the card in trust until Alice received payment and then deliver the card to Bob after payment was confirmed, or vice versa? Like a Trusted Third Party. Or a Central Authority. Now, what if Alice sold on eBay and Bob bought there. eBay provides "buyer protection" and "seller protection" guarantees. These are valuable guarantees for both the buyer and seller because they introduce trust mechanisms into the commerce stream. In this scenario, Bob pays eBay, then eBay instructs Alice to proceed with shipment, which Alice does because she trusts eBay to hold her money in trust. Isn't that the way Web 2.0 works? Yes, it is. And it works great. Who needs Web 3.0 in this case?The point is: sometimes commerce requires an intermediary or middleman. Cypherpunks love to talk about "trustless" systems and disintermediation and cutting out the evil middle man, which sounds great when shouted from the ivory tower. It doesn't work in the real world. Are we wrong? HOME
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 of 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 across borders in case of war or risk of confiscation.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.
Possession is 9/10ths of the Law. This court ruling from the early 20th century touches personal property rights and a 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, the court held that Floyd Hatfield was 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.NFTs, where an nft contract or "title" is inserted into some distributed ledger, has this "possession" problem. Whosoever possesses the 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 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?