Chiru Labs is excited to introduce the Physical Backed Token (or “PBT”), an open source token standard which ties a physical item to a digital token on the Ethereum blockchain. PBT enables brands and creators to create next-generation storytelling and experiences for their communities. Developers can begin building with PBT today at pbt.io.

The PBT Standard

Creating a digital token which represents a physical item isn’t new, but keeping the token linked with the item throughout the item’s lifecycle is still a challenge. The PBT standard is a solution which enables decentralized authentication and tracking of the full ownership lineage of physical items, all completely-chain and without a centralized server. This introduces trustless authentication. No entity has singular rights to authenticate or verify ownership of items - everyone is free to authenticate, verify, and build experiences on top of this technology. The repo is open sourced and the EIP submission is already in progress.

The Bean Chip

We worked with Kong to create the Blockchain Enabled Authentication Network Chip ("BEAN Chip"), a physical cryptographic chip that self-generates an asymmetric key pair. PBT enables the hardware to create a new experience we like to call “scan-to-own”.

Scan-to-own

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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.

From owner-to-owner

If the physical item gets sold or gifted to a new owner, the subsequent owner can then scan-to-own the same physical item, which transfers the PBT from the previous owner to the new owner in a decentralized manner.

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Use cases

We’re excited to see PBT used for these initial use cases and beyond:

  • Decentralized authentication of goods: Authenticate a physical item by simply scanning it with your phone.
  • Tracking ownership lineage of physical goods: Verifiably prove the past and current owners of the item, enabling brands to build product experiences for their audiences.
  • Using physical products to create digital experiences: Owning a digital token can unlock physical drops, and now owning a physical product can unlock digital experiences.

Building a digital & physical world together

PBT sets the foundation for new experiences and storytelling. As a holder, you can build a collection that captures both the digital and physical worlds, trade authenticated items, or participate in real life quests. We can’t wait for you to see what we’ve been building on top of PBT. This is just the tip of the iceberg for the new types of experiences that are possible through this standard.

We welcome developers to check out the open standard and create their own implementations at pbt.io. Web3 uniquely enables next-generational storytelling, and we’re excited to build these stories together with the community.