PRüF brings Trustless interoperability to tokenized assets
PRüF is the decentralized low or no-code solution for brands and artists to tokenize and create verifiably authentic assets on the blockchain. With advanced features, rich media storage, and future-proof upgradeability, PRüF assets are designed for permanence — offering an exceptional value proposition to end users.
Some of the essential features of the PRüF protocol include verified Nodes and the Common Contract Infrastructure, which gives on-chain guarantees about the integrity of the data that tokens encapsulate. These guarantees are critical to trustless interoperability. Platform interoperability, in turn, opens up the door to a vibrant ecosystem of independent suppliers of tokenized assets. Each independent platform is free to innovate but operates within the DAO-managed ecosystem to prevent bad actors from proliferating.
By utilizing a Common Contract Infrastructure, all platforms using PRüF enjoy the same set of on-chain trustless features, making asset interoperability simple. Since platforms can trust the protocol, not each other, they can be as sure of the security guarantees for foreign assets as they are of their own. In addition, Node operators can permit or deny other tokens access to their platform through a trustless, on-chain permissioning system.
In contrast, legacy tokens typically comply with NFT standards externally but must be audited by an experienced team to understand their actual on-chain guarantees, vulnerabilities, and value.
In contrast, the PRüF contract infrastructure is quantified; all tokens minted with a PRüF node are compliant and standardized within a fixed but extensible set of restrictions and backward compatible to ERC721.
Two exciting use-cases for tokenized assets that require broad trustless interoperability to thrive as an ecosystem are Tokenized Defi and Metaverse or in-game objects.
DeFi (decentralized finance, if you have been in a coma for the last two years) has seen explosive growth since it first started to gain traction in 2020. At $880million as of October 2021, expert investors expect to see a 5–10x growth in the segment over the next few years. Practically nonexistent before early 2020, DeFi promises to drive revolutionary changes in the finance sector and finally bring access to the engines of wealth to societies worldwide.
As DeFi matures, the need to package and simplify diversified offerings is growing. Utilizing proven methods of packaging different investment classes together, tokenized tranching promises to fill this need and become an essential tool in the next generation of DeFi products.
Designed from the start for tokenizing digital and physical assets, the PRüF protocol is perfect for creating tokenized tranche offerings. By utilizing token and balance wrapping, A PRüF asset can contain ERC20 Balances, 721 compliant tokens, other PRüF assets, and other types of on-chain or off-chain instruments.
Since a PRüF asset can contain tokenized loans, token-collateralized debt, or other instruments, complex structured investments are unified into one easy-to-manage token.
The PRüF protocol includes decentralized mechanisms to accommodate changes in external protocols and systems, so the assets produced with PRüF are future-proof and upgradeable — making PRüF the premier on-chain tranching protocol.
Because of the way that tranches are accessed in PRüF, it is non-trivial (though not impossible) to determine the contents of a PRüF Tranche unless you hold the token in question. Additionally, PRüF tranches are indistinguishable from any other PRüF NFT asset, so holding assets in this way allows the movement of arbitrary-sized blocks of wrapped assets without any significant footprint, improving privacy.
In summary, tokenizing instruments in PRüF provides a broad path with a simple on-ramp for Defi projects that want to focus on their functionality rather than the tokenization or interoperability of their offerings.
Another compelling use case that cannot diversify without broad, trustless interoperability is tokenized Metaverse or in-game objects. These objects must be able to work on various platforms in different virtual spaces, and at the same time, have the permanence and integrity that will give them enduring real-world value.
PRüF meets both of these requirements with the Common Contract Infrastructure. Using the CCI, standards-compliant metaverse objects on one platform can be transported to and used in others, laying the groundwork for a diverse, vibrant, and prosperous ecosystem of platforms, creators, and users. In addition, because platforms can grant or revoke permissions to tokens minted by specific creators, incompatible or non-compliant assets will be prevented from gaining traction, aligning incentives for standards compliance.
With incentive alignments arising from trustless interoperability and DAO-regulated minting Nodes, PRüF positions itself as the premier protocol for projects and platforms that wish to be able to fully participate in the coming wave of NFT-Fi and Metaverse VR games and environments.