Physical NFT’s are non-fungible tokens which act as the “digital twins” for a physical device. These physical NFTs are called “OBITs”
An OBIT NFT is basically a digital certificate of ownership. It’s simply a way of stating, and verifying, who is the owner of any digital asset, such as a piece of art, or a laptop. This makes it easy for someone to verify ownership; making it easy to buy and sell.
OBITs are self-sovereign and convey legal rights. You don’t need permission nor authority from anyone to create or store them. OBITs are legally defined as assets, considered as property.
Each OBIT resides at a unique cryptographic address which is an algorithmically created identifier based on the devices’ serial number and other human-readable immutable information found on the device.
All the data associated with a physical device, including service records, ownership history, proofs of end-of-life asset disposition events, and IOT endpoints, must be checked and proven and stored as files somewhere.
OBADA hosts the NFT data in a permissioned decentralized NFT registry called the OBIT NFT Data Registry.
The OBIT NFT Registry is like a card catalog. It tells you where the books are located and when they are borrowed, but the library cards and the books themselves reside separately.
The OBIT Registry is not “owned” by anyone. There is no company and no central authority. It’s operated by the OBADA DAO, a Wyoming DAO LLC, a decentralized autonomous organization.
DAO members run the nodes, vote on all platform changes, and set all platform fees and rewards. The DAO is an open organization. Any actor in the asset disposition ecosystem can participate by making a financial investment to stake a node. Platform fees and rewards are collected and distributed nightly back to the DAO members as “profit”. Rewards are issued as “dividend yield”.
Platform payments between the DAO members and other actors in the system are enabled by a form of “platform credits” known as OBD. While the OBIT Registry is a purpose-built utility chain, the OBD token is an ERC-20 ethereum token. Using ethereum for the financial layer not only adds the trust of a public ledger, but it also also enables ethereum DeFI (decentralized finance) primitives to be developed into vertical applications, such as collateralizing physical assets for lending and finance.
The OBIT Registry and OBADA Standard were created by a coalition of stakeholders from the IT asset disposition (ITAD) industry. Built into the functionality of the OBD utility token is the ability for ITADs to sell end-of life on-chain chain-of-custody services, such as data destruction, reuse, and recycling proofs.
The OBD Utility Token combined with the DAO enables OBADA to use DeFI concepts for financing.
- DAO members can “stake” in investment in the system by purchasing and “locking up” OBD tokens, in exchange for a share of the system profits and rewards (dividends).
- End-users (and industry actors) can earn a return on their end-of-life assets by staking OBITs; attaching OBD to an OBIT to enable chain-of-custody reporting. The amount staked is returned with interest when the asset is properly processed at end-of-life (as measured by asset disposition ecosystem KPIs (key performance indicators).
- DAO staking is the mechanism of financing development of the system. Early DAO members receive more OBD for their stake than later members.
- Along with platform fee revenue, the purchase and lockup of OBD for OBIT staking is an ongoing economic method for financing and incentiving the system.
The OBIT NFT Registry is layer-1 independent, a completely deterministic data model based on physical identifiers. Industry (asset disposition) actors can use the registry natively “at cost”.
But the “outside world” (end-users) is moving toward ERC-721 as the standard for transfering and storing NFTs. ERC-721 allows the use of standard wallets and trade on decentralized marketplaces.
Because the OBIT NFT Registry is layer-1 independent, an OBIT NFT can be “wrapped” into ethereum as an ERC-721 compatible token and made available to the general public.
In this context, the OBIT Registry would be considered a “side chain” to ethereum. However any layer-1 blockchain could be used. This makes the OBIT physical NFT is a foundational infrastructure component for any supply chain blockchain or L1 solution.
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- Rewards for staking OBD
In effect, the OBIT Registry and OBD token create a single decentralized application, a sort-of “ecosystem as a service” for the entire recycling ecosystem.