Bitcoin Community,
As a collector I'd like to use Bitcoins to protect rare artwork from fraud. Would simply creating a wallet for each piece and allocating a certain amount of bitcoins be enough to prevent fraud? The digital wallet would be given to the new owner. I would keep a copy to validate it.
Not sure how you planned to give the wallet to the new owner and keep a copy. But if both individuals are expected to have a copy of the private key(s), this might indicate a design flaw.
It's my understanding the wallets are appended into the block chain and should be able to be traced to it's original transaction?
Future scenario - If a heir to the artwork took the bitcoin wallet and transacted the bitcoins not knowing what it was for would the first wallet info exist in the blockchain or would it no longer show? I may hide a special checksum on the artwork to give some level of traceability.
If the first transaction has been included in a block, it will be stored on every full node forever.
I see no merit in binding some amount of bitcoin to the transaction if the only required effect is to store data on the blockchain that must not be manipulated later on.
The important things to think about would be what information is required in order to detect fraud later on, and what information may not be posted publicly.