NFT top dogs Azuki have announced the launch of their latest innovation – the “Physical Backed Token.” The Azuki PBT will allow users on-chain ownership of real-life items. So, what is the Physical Backed Token? And how is it different from previous ‘phygital‘ ownership models? Let’s find out below!
What Is The Azuki PBT?
Simply put, the Azuki Physical Backed Token is an open-source token standard that connects ownership of physical items to their digital counterparts on the Ethereum blockchain. In previous models of digital ownership, when collectors buy digital tokens representing physical items, the two are often separated after minting.
According to their EIP, the existing framework for digital ownership of physical items have two problems:
- The NFT cannot proxy as the physical item. The current scenario treats the NFT and the real-world item as two separate pieces. In this case, NFT of the real-world item is traded on digital marketplaces separate from the physical object.
- The second problem is that the physical item requires verification from a trusted authority to prove its authenticity. For example, buying sneakers on StockX via trusted sellers.
The Azuki PBT solves these problems via decentralized authentication and on-chain ownership tracking. The physical items come with a ‘BEAN’ chip attached to them that verifies the NFT ownership. Moreover, the PBT standard will also be able to track the ownership lineage of the item in a completely decentralized way.
In the same way, if the owner of the physical item chooses to sell or gift the item to a new owner, the buyer would only need to “scan-to-own” the item. Once scanned, the PBT transfers from the previous owner to the new owner of the item! With the PBT, Azuki has put in place an improvement to the phygital standards of today. In their words “With PBTs, we’re unlocking the use of physical goods to create digital experiences. A new generation of storytelling and experiences begins today.”
How Do PBTs Help Creators?
It comes as no surprise that the team responsible for the gas-efficient ERC-721A standard has once again found pioneering trails in the new era of storytelling. The PBTs allow creators and brands to build a truly next-generation experience for their communities.
The PBT also helps link the assigned physical item to its NFT throughout the physical lifecycle of the item. As holders of PBT-backed items, collectors can now actively participate in immersive physical and digital experiences. This allows for a wider range of possibilities as far as real life quests and other IRL activations go.
Kong designed the hardware for the Blockchain Enabled Authentication Network (BEAN) Chip used in the PBT items. Simply scan the chip with your phone. Then, either mint the PBT, or transfer it to a new wallet. In their launch announcement, Azuki stated that this is still just “the tip of the iceberg for the new types of experiences that are possible through this standard.” Additionally, Azuki has invited developers and builders to check the PBT standard and create new implementations.
To celebrate the launch, Azuki has announced nine Golden Skateboards as the first tangible, fully on-chain items. The skateboards boast 24K gold plated outer layers and are the first of many PBT-backed items from Azuki. Grab them when they launch on October 21st!