A Physical Backed Token (PBT) is a crypto token that represents a physical asset on the blockchain. PBTs are the result of the tokenization of a physical asset, being one of the most promising kinds of tokens in web3.
But, first of all, what is asset tokenization?
Asset tokenization is the process by which an issuer (e.g. fashion brand or creator) creates digital tokens on a blockchain, which represent either digital or physical assets (e.g. garments). Blockchain guarantees that once you buy tokens representing an asset, no single authority can erase or change your ownership, your ownership of that asset remains entirely immutable.
So, in this context, PBTs are one kind of token, that are a result of the tokenization of a physical asset.
Bircle is a marketplace for Physical + Digital Fashion. PBTs are made up of tangible garments that also have digital value. Each of the includes:
- NFC chips,
- 3D digital twins,
A chip attached to the tangible garment allows users to directly access the digital benefits just by touching with their phone.
Unlike previous models where digital assets and tokens could be separated from the physical garment after minting, PBTs differ in using on-chain tracking of NFT ownership and authentication for a physical asset using NFC chips. This makes it impossible for the token to be separated from the physical asset, securing full ownership and a safe transaction.
It’s time to discover new worlds
Consumer’s experience is boosted with PBTs: from unlocking digital experiences to accessing real-life events, the benefits are endless. PBT presents a new perspective for brands, creators and fashion lovers to record their experiences.