A new token standard dubbed Physical 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.
A real object is connected to a digital token on the Ethereum blockchain via PBT, a new open-source token standard. It functions exactly like a non-fungible chip (NFC), but 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 implementation, according to information shared by Azuki via Twitter. An asymmetric key pair is self-generated by a physical cryptography chip.
"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 a phone can transfer digitally the Physical Backed Tokens to the owner's wallet. The PBT verifiably authenticates the physical item and links it to a digital token in the user's preferred wallet, enabling the current owner of a physical item to also possess the PBT, according to the Azuki team.
The Physical Backed Tokens primary goal is to make decentralized authentication possible with an entirely on-chain, decentralized server. It will also make it easier to trace the complete ownership history of tangible objects.
No organization will have the exclusive ability to authenticate or verify ownership of objects, according to Azuki, as everyone is free to do so and to build experiences on top of this technology.
Azuki also mentioned the possibility of using physical things to produce digital experiences through PBTs, which will in turn lead to the development of new forms of storytelling and experiences. Physical Backed Tokens owners, according to the project managers, can create a collection that includes both digital and actual stuff, exchange authenticated goods, or take part in genuine quests.
A set of nine golden skateboards with PBTs will be released on October 21st, according to information provided by Chiru along with the announcement. Based on the legend of the Azuki, these special skateboards will have 24-carat gold plating.
Since the news of its introduction, the Azuki Physical Backed Tokens project has risen to the top of OpenSea's 24-hour trading volume rankings.
However, no other information has been given on the cost or whether the price cut will be open to the general public.