PrüF Helps Extend Real-world Assets’ Life Cycle Through NFT Technology
Tokenization of real-world assets is an industry that keeps growing and evolving. Bringing real-world assets into the cryptocurrency and blockchain fold will usher in new use cases, services, and products. PRüF aims to introduce a convenient solution and introduce asset provenance with the help of blockchain technology.
The Appeal of Real-World Assets
Industry segments such as non-fungible tokens and decentralized finance are popular among cryptocurrency enthusiasts. For those who do not own any crypto assets, they remain largely inaccessible. A solution is needed to bridge the gap between the crypto world and the real world. One cannot ignore the potential for trillions of dollars in liquidity and broader mainstream adoption of crypto assets.
Several efforts are underway to bridge this gap between the two worlds. With the help of asset tokenization, any real-world asset can be introduced to the world of blockchain and cryptocurrency. However, finding the right solutions can be a bit tricky, even though most providers are relatively transparent about how they go about their business. It all comes down to granting users complete ownership of their digital asset representing a real-world item.
Asset provenance platforms are likely to gain momentum in this space. They are the next iteration of tokenized assets. While anyone can tokenize products on the blockchain, there is never a guarantee of authenticity. For example, buying a fake or copied artwork would result in financial loss unless new solutions are created to counter those aspects.
PrüF May Have The Solution
One of the asset provenance platforms getting some attention is PRüF. The project's vision is simple: create private and provable tokenized assets on the blockchain. That approach will prevent loss and theft while also adding more legitimacy to the tokenized asset. Moreover, this approach can help recycle assets to extend their life cycle, as the concept does not just apply to the acquisition of raw material and current consumption.
Any manufacturer can tap into PRüF's technology stack to create non-fungible tokens linked to their brand identity. The NFT can then track and record the life cycle of the product or even its components on the blockchain. Consumers have shown an increased interest in learning about the origins of products and how they are manufactured and transported. PRüF will enhance this approach through transparent technology. Once an item is bought by someone [else], the NFT will change ownership automatically and continue to document the life cycle.
Even if an item is stolen, the legitimate owner can still prove ownership via the non-fungible token. Selling such items without the NFT will immediately confirm there is no true ownership of the item. Additionally, items can be marked as stolen on the blockchain to dissuade potential buyers. Through PRüF, one can even create a bounty for lost or stolen goods being returned to the rightful owner. There are many opportunities to add value to products with asset provenance.
As more consumers want to know the origin and whereabouts of products they buy, there are opportunities for blockchain service providers. The approach by PRüF shows how easy it can be to track an item back to raw materials and their origin until its life cycle comes to an end. Moreover, the technology introduces a "failsafe" system for lost or stolen goods, as it is straightforward to prove ownership of the goods. Of course, documents are easy to duplicate or forge, but an NFT is immutable and indisputable - and with next generation protocols like PRüF, it can be traced directly back to the manufacturer.
The recycling aspect of asset provenance is an intriguing addition. Assets are discarded or no longer find uses after a while. However, anyone can use the accompanying non-fungible token to give a discarded item a new life or even identify product components and look for ways to re-use its parts or materials. The growing focus on saving our environment will require monumental efforts, including stepping up the recycling game.