Azuki Announces The Launch Of Physical Backed Token On Blockchain

Popular non-fungible token (NFT) collection Azuki has launched a new Physically Backed Token (PBT) that links physical goods to a digital token on the Ethereum blockchain. According to the company’s announcement, it will allow creators and brands to create a next-generation experience for their communities.

The creator of Azuki, Chiru Labs, confirmed the launch of the PBT, an open-source token that provides easy connectivity between physical items and digital tokens.

An Improvement On Previous Digital Ownership Models

In previous digital ownership models, collectors who buy digital tokes linked to physical items usually have them separated after minting. This makes it not an ideal form of digital ownership of physical items.

This is because the NFT cannot proxy as the physical item since the current system regards the real-world items and the NFT as two different pieces. As a result, the NFT of the real-world item and the physical object is traded on two different marketplaces.

Another problem with the current scenario is that the physical item needs proper verification from a recognized authority to prove its genuineness.

But Azuki has stepped in to provide solutions to these problems through on-chain ownership and a decentralized authentication system.

The physical items are embedded with a “BEAN” chip that stands as verification for ownership of the NFT. Also, the PBT will be used to track the ownership lineage of the item in a completely decentralized manner.

This way, the buyer of the NFT will require to “scan-to-own” an item if the owner of the physical item decides to gift or sell them.

Azuki To Create Digital Experience With Physical Goods

After scanning the item, the PBT will be easily transferred to the new owner. This new method has improved the ownership structure of digital assets and how they link to their physical items.

Azuki says with the PBT, they have unlocked the use of physical goods to create digital experiences in today’s world. “A new generation of storytelling and experiences begins today,” the firm noted.

The PBT also helps to connect the assigned physical item to its NFT via the physical lifecycle of the item. It enables a broader range of possibilities when it comes to real-life activities and other IRL activations.