Unprecedented levels of interest in special digital assets have been sparked by the NFT collections’ spectacular climb to fame. A year ago, million-dollar auctions of digital artwork and apes made non-fungible tokens the talk of the town. The look and functionality of NFT collections have changed from the CryptoPunks collection to the Bored Ape Yacht Club.
In the middle of the ongoing advancements in the field of NFTs, a new token standard dubbed Tangible Backed Tokens (PBT) has been introduced by Chiru Labs, the company behind the well-known Azuki NFT project, to allow for the ownership of physical objects on-chain.
How does it work?
A real object is connected to a digital token on the Ethereum blockchain via PBT, a new open-source token standard. It functions just like a non-fungible chip (NFC), except it has superior traceability and is distributed.
BEAN chips, also known as Blockchain Enabled Authentication Network Chips, will be used in the PBT’s initial deployment, according to information shared by Azuki through Twitter. An asymmetric key pair is self-generated by a physical cryptography device.
“Scan to own” is a feature created by the union of the PBT and the BEAN Chip. The PBT will be issued or electronically transferred to the user’s wallet when they scan the chip with their smartphone.
“Scanning the chip with your phone allows for the PBT to be minted or digitally transferred to the owner’s wallet. This allows the current owner of a physical item to also own the PBT, which verifiably authenticates the item and ties the item to a digital token in the wallet of their choosing,” the Azuki team explained.
What is the aim?
The PBT’s primary goal is to make decentralized authentication possible using a totally on-chain, non-centralized server. Additionally, it will make it easier to trace the whole ownership history of tangible objects.
The controversy around the Project
As usual, there were conflicting responses to Azuki’s news on Crypto Twitter. Some cryptocurrency fans had the opinion that the technology wasn’t very novel and wasn’t all that pleasing.
Sales and Trading Volume
On October 21st, the team released a batch of nine golden skateboards with PBTs. Based on the legend of the Azuki, these exclusive skateboards have a 24-carat gold finish.
Since the news of its introduction, the Azuki PBT project has risen to the top of OpenSea’s 24-hour trading volume rankings.
Advantages of PBT
The advantages of Azuki’s physically-backed token would be the last point made in the introduction. Some of the anticipated use cases for physically backed tokens have so far proven promise. By scanning them and keeping track of the ownership history of real assets, PBTs can provide decentralized authentication for physical objects. No organization will have the exclusive ability to authenticate or verify ownership of objects, according to Azuki, since everyone is free to do so and to develop experiences on top of this technology. Additionally, physically backed tokens might aid in the creation of fresh, engaging digital experiences for customers who purchase real goods. PBT owners, according to the project managers, may create a collection that includes both digital and actual stuff, exchange authenticated goods, or take part in genuine quests.
References: chirulabs and crypto.news
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