Lodrocoin is a centralized cryptocurrency backed by art. The art backing Lodrocoin is designed and created in such a way that it is a critical component for Lodrocoin transactions. This is achieved using a proof-of-art-ownership protocol revolving around a centralized cryptographic ledger and controlled by an e-mail-based transaction manager.
Since the art is a key component in Lodrocoin transactions, the only way to take ownership of the cryptocurrency is by getting ownership of the art. The art is used to facilitate transactions in the cryptocurrency and to give Lodrocoin inherit value. By design Lodrocoin transactions maintain a record of the ownership of the art in the centralized ledger. The overall result of the whole system is that the cryptocurrency-backed art maintains its own ledger history of its owners which is its chain of ownership. Lodrocoin-backed art has a perpetual built-in provenance that guarantees it as the original, real artwork.
Since Lodrocoin is backed by art it really derives all of its value from the worth of the art backing it. This means that Lodrocoin-backed art is first-and-foremost quality art. The art has two components that ensure Lodrocoin transactions will work correctly:
A starting hash. This is a unique alphanumeric string stamped onto the art. The starting hash matches the art to a corresponding set of entries on the ledger.
An artist signature and other unique marks. The other unique marks can be a series number, imperfections during the printing process, or other visible markings that verify the authenticity of the art during transactions.
The amount of Lodrocoin backing a piece of art is a function of the art’s size. The larger the piece the more Lodrocoin back the art. The first Lodrocoin-backed series has a ratio of 1 Lodrocoin for a 4”x6” art and 10 Lodrocoin for an 8”x10” art.
Anyone with a Lodrocoin-backed artwork can transact in Lodrocoin using no custom hardware or software.
To get Lodrocoin into your name do the following:
- Send an email to firstname.lastname@example.org with a photograph of the artwork in the body of the email or as an attachment to the email. The subject line of the email must be of the following format: “STARTINGHASH – NEWOWNERSNAME”. NEWOWNERSNAME is the name of the new person/organization/entity that now owns the Lodrocoin. It can be any name or message you want, but it will be converted to uppercase alphanumeric characters in the ledger.
- The starting hash and artist’s signature must be clearly visible in the emailed photo.
- The image must be a new photograph of the artwork not previously used in a transaction. To enforce this the image will get hashed during the transaction and the new photograph of the artwork must uniquely hash to a different hash than all previous pictures for that serial. This prevents people from reusing a saved picture after selling the artwork and thus solves the “double spending” problem.
To give or spend Lodrocoin do the following:
- Give the other party ownership of the art and they can put the Lodrocoin into their name using the above protocol.
The Lodrocoin ledger is the central authority for ownership of Lodrocoin. The existence of a Lodrocoin is recorded on the ledger along with the current owner of the Lodrocoin. Since Lodrocoin transactions require the backing artwork, the artwork itself essentially functions like a wallet and no software wallet is needed. The combination of the ledger and physical artwork verifies ownership on its own.
The ledger is split into a section for each Lodrocoin issued. The first line of the section is the current owner of the Lodrocoin. The second line of the section is the starting hash from the Lodrocoin-backed artwork followed by the amount of Lodrocoin in parenthese. All other lines in the section are added through Lodrocoin transactions. They are added using an algorithm designed to maintain the integrity of the ledger (if any point in the ledger was modified or incorrect at any point in the future it would be noticeable) and the usefulness of the ledger (it provides an accurate chain-of-ownership for the artwork and Lodrocoin).
Every time a transaction is made using Lodrocoin the ledger gets a new line added documenting the transaction and the new ownership of the Lodrocoin is recorded. The name of the owner does not have to be a real name. It can be an anonymous string of random characters, short message, or any other short alphanumeric string. The new owner of the coin decides what identifier they want to use for themselves when taking ownership of the coin during the transaction.
The hash for one line in the ledger is created by concatenating the following three things in this order:
- The starting hash if this is the first line in the ledger. A hash of the previous line in the ledger otherwise.
- A hash of the starting hash if this is the first line in the ledger. A hash of the image file from the transaction email otherwise.
- Uppercase, alphanumeric name or message from the subject line of the transaction email.
The current full ledger is always available for anyone to view.View it here.
This paper has outlined in great detail the premises and methods behind the Lodrocoin cryptocurrency. Lodrocoin and the art backing it are a symbiotic marriage of art and cryptographic ledgers. It is a functioning cryptocurrency that simultaneously proves the provenance of a piece of art.