Chiru Labs, creators of the popular Azuki NFT project, has launched a new token standard called Physical Backed Tokens (PBT) to enable on-chain ownership of physical items.
PBT is a new open-source token standard that ties a physical item to a digital token on the Ethereum blockchain. It works just like a non-fungible chip (NFC) but with better traceability in a decentralized manner.
Azuki revealed via Twitter that the first implementation of the PBT will use a BEAN chip, short for Blockchain Enabled Authentication Network Chip. It is a physical cryptographic chip that self-generates an asymmetric key pair.
The combination of the PBT and the BEAN Chip gives birth to a feature called “scan to own.” When a user scans the chip with their mobile phone, the PBT will be minted or digitally transferred to their wallet.
“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.
The main aim of the PBT is to enable decentralized authentication with a completely on-chain and non-centralized server. It will also aid the tracking of the full ownership lineage of physical items.
According to Azuki, no entity will have the sole authority to authenticate or verify ownership of items, as everyone is free to authenticate, verify, and build experiences on top of this technology.
Azuki also noted that PBTs can unlock a potential use case for physical goods to create digital experiences, which will in turn create a new generation of storytelling and experiences. The project handlers believe PBT holders can build a collection that captures both the digital and physical, trade authenticated items, or participate in real-life quests.
As usual, Azuki’s announcement was received with mixed reactions on Crypto Twitter. Not all crypto enthusiasts were impressed, with some suggesting that the technology wasn’t necessarily new.
Along with the announcement, Chiru revealed that the team is planning to drop a series of nine golden skateboards with PBTs on October 21st. These unique skateboards will be based on the Azuki lore and will come plated in 24-carat gold.
Meanwhile, the Azuki PBT project became number one on OpenSea’s 24-hour trading volume rankings since the news of its launch.
However, no further details have been provided as per the pricing or whether the drop will be available to the public or not.