The Boson Protocol, a project that seeks to connect the real world of physical trade with smart contracts, announced a successful $ 350,000 investment round on Monday.
The project creates “building blocks for next-generation dCommerce applications” by providing a way to redeem blockchain tokens for their true physical counterpart.
The project received an oversized investment round led by Outlier Ventures, along with Ocean Protocols Trent McConaughey and others. The company said the funding will be used primarily to cover operating costs and establish an effective pilot project.
Justin Bannon, founder of the project, told Cointelegraph that Boson’s goal is “to provide decentralized trading with the least amount of arbitrage, like the DEX of physical assets”.
The solution, built on Ethereum, is based on unchangeable token coupons, which can be described as a requirement for the underlying product. NFT is a two-way barrier between buyer and seller that seeks to ensure the orderly exchange of physical goods. “Mediation, arbitration, and summons are automated in a fast-paced game as incentive rewards reduce the need for human arbitration over time, enabling progressive decentralization,” Bannon added.
The benefit case Banon described is a loyalty-based loyalty program, in which the system allows you to “pay rewards like tickets or shirts directly to your wallet.”
The Boson protocol goes beyond DeFi’s traditional focus on financial markets. When asked if it could be used as a DeFi bridge for economic central platforms, Banon replied that “This is likely one of the many uses in which Boson may be useful, but it is not the main objective of Boson.” However, the project is designed so that it can be combined with other protocols in the DeFi room:
“Boson’s most important connectivity feature is to connect the physical world to DeFi, allowing users to purchase physical goods and services directly through a smart contract without permission.”
Boson’s uncertain exchange mechanism, as explained in the white paper, involves complex interactions between different parties in many different scenarios. Monetary incentives are required to increase the number of successful transactions that require more money than traditional blocking.
This mechanism appears to have the same advantages and disadvantages as tBTC, which is a hopeless bridge mechanism between Bitcoin and Ethereum. The project has often been criticized for being much more complex than centralized solutions like Wrapped Bitcoin (WBTC), but this appears to be driven by a desire to keep it completely unreliable.