NFT project Azuki launches Physical Backed Token

Anime-inspired nonfungible token (NFT) project Azuki has released a Physical Backed Token (PBT) – an open source token standard that links a physical object to a digital token on the Ethereum blockchain.

Azuki shared on his Twitter account that the first implementation of PBT will use the BEAN Chip; a physical cryptographic chip that self-generates an asymmetric key pair. The combination of the PBT and the BEAN chip introduces a feature the project calls “scan to own”.

Introducing the Physical Backed Token (PBT): an open source token standard that links a physical object to a digital token on the Ethereum blockchain. pic.twitter.com/iXavmJR5xv

— Azuki (@AzukiOfficial) 17 October 2022

According to the information shared by the Azuki team:

“Scanning the chip with the phone allows the PBT to be embossed or digitally transferred to the owner’s wallet. This allows the current owner of a physical item to also own the PBT, which verifies the item and links the item to a digital token in the wallet of their choice.”

PBT intends to enable decentralized authentication and tracing of the entire line of ownership of physical items, all completely on-chain and without a centralized server, making it a reliable authentication. According to Azuki, no entity will have the sole right to authenticate or verify ownership of items. Everyone is free to authenticate, verify and build experiences on top of this technology.

Azuki believes that PBTs will unlock the use of physical goods to create digital experiences and thus create a new generation of storytelling and experiences. According to the project, holders can build a collection that captures both the digital and physical, trade authenticated items or participate in real-world missions.

Related: Azuki Founder Under Fire

Azuki’s announcement of PBT was met with mixed reactions on Crypto Twitter. Not all crypto enthusiasts were impressed, with some suggesting the technology wasn’t necessarily new. Twitter user @W3Meysam shared:

Translation: @AzukiOfficial uses readily available NFC chip technology and links it to an ERC-721 token. But fancy marketing language. #pbt https://t.co/KX8P71VFhN

— Meysam (@W3Meysam) 18 October 2022

Since the news of Azuki’s launch of a physically backed token, the project has become number one on OpenSea’s 24-hour trading volume ranking.