The Advantages Of Applying Blockchain Technology In The Product Protocol Project

7 min readAug 19, 2019

INTRODUCTION

Blockchain growing at breakneck speed in many industries and not only in finance, it provides incredible applications that could benefit all walks of life. When it comes to ownership, with the advancements in smart contracts, security tokens came into existence with the single goal of establishing themselves as the solution for real-time digital assets transfers within legal boundaries. Today the implementation of blockchain technology is almost totally confined to cryptocurrencies and exchange token speculation, while the real economy sector is cut off from innovative solutions because of their difficult development and integration into the well-established market participants relationship system. From a legal standpoint a tokenization platform is a typical owners registry, with no fundamental distinctions from a traditional centralized accounting system or paperwork. If a user has an account on one of these platforms with tokens on its balance, they can be able to prove ownership of the corresponding assets. A distinguishing feature of the tokenization platforms is the implementation of the mechanisms, that provide verification of the transaction history. It also provides such data processing features as accessibility, non-repudiation, reliability and authenticity. Tokenization platforms meet the needs of the users, who operate on the “trust, but verify” basis. Tokenization implies managing accounts via the cryptographic keys, which leads to direct account management instead of simple command execution.

What is Product Protocol

On this occasion I will explain about Product Protocol. Product Protocol is an open protocol for uniting real-world assets and digital assets with blockchain through economic sector tokenization. Product Protocol enables businesses to significantly shorten development time, reduce risk, cut costs for developing blockchain solutions, and take advantage of ready-to-use platforms to sell goods and services. Product Protocol includes the stages of verification, digitization, evaluation, monitoring of asset status, identification of asset ownership, and tokenization of assets.

Product Protocol is focused on growing a platform that permits an entrepreneur to tokenize their assets and raise finances for scaling businesses on Product Protocol can scale similarly than ever before. A familiar token for the tokenization of any assets permits you to right away create a virtual asset and a decentralized market will allow human beings from all over the globe to purchase it.

PRODUCT PROTOCOL MISSION

Product Protocol functions with the mission to unite actual worlds and virtual belongings with the arena of blockchain technology via real sector financial system tokenization. And other things Product Protocol’s vision is to provide an open protocol to a wide audience of business owners.

Advantages and Benefits of tokenization

Tokenization is the process of moving assets into digital space. Token issued alongside one or some other asset will become a new form of asset in the digital space. Any asset class can be tokenized, liquid or it can be converted to fiat money, securities, bonds, motors, gadget, real estate and others. Illiquid asset possession tokenization has the same monetary impact as securitization. This implies that illiquid asset transforms right into a liquid one, and enables raising funds on the open market.

Tokenization creates additional advantages and benefits in regards to digitalization:

• Decentralized asset information access separation system;

• Asset liquidity increase;

• Investment appeal increase;

• Accounting system overall cost decrease;

• Separate ownership for different kinds of rights to assets;

• Simplicity of sale and purchase of assets;

• Inalterability of asset and related market participants data;

• Data encryption and unauthorized access protection;

• A secure way to manage transaction history and administrative actions;

Flexible customization and automation of business logic via smart contracts.

Liquidity

Liquidity is a path to turn an asset into money via selling it quickly for its market price. Better liquidity makes asset buying/selling easier. Many studies suggest that low liquidity sometimes signifies asset undervaluation.

TRANSFORMABLE AREAS OF BUSINESSES

Earning the trust of your clients have never been easy, especially in the world of real life business relations without contracts. Companies require a way to receive complete trust of their clients for their accounting system. The solution for this problem is a blockchain-based system, where clients are able to prove (even in court) that certain things actually happened. How can someone unequivocally prove that the end user license agreement has been read and the “ACCEPT” button has been pressed? These cases also require confirmation of:

• Specific conditions has been accepted.

• Account balance is the result of proper work.

• There were no changes to the transaction history.

The total amount of traded assets is consistent with the amount issued.

Product Protocol Tokenization Principles

Product Protocol team will present to the marketplace a flexible token and tokenization standard, based on the principles of decentralization and audit function separation, assessment and monitoring, provision of actual-time proven asset and ownership facts accessibility and transparency.

Benefits Of Using Product Protocol Asset

Digitalization is the process of transferring assets and transactions into digital space. The advantages of using the Product Protocol are as follows:

Private Asset Management | Individuals
Debt and Obligation Management | Banks, Individuals, Companies
Raising Finance | Micro-, Small and Medium Businesses
Risk Management | Banks, Leasing and Insurance Companies
Toxic Asset Management | Banks, MFIs and Insurance Companies
Asset and Cost-Effectiveness Management | Corporations
Open Protocol Tokenization Framework | Integrators and Developers

Product Protocol Description

Product Protocol is an open source protocol for asset confirmation, record, and control. The Product Protocol team will provide application developers a secured and flexible blockchain platform, and network uniting rules and regulations to create new applications. Product Protocol is an open, versatile, verifiable decentralized application standard for relevant asset statistics exchange.

The protocol is focused on keeping privacy via implementation of cryptographic methods. Product Protocol allows consumer to focus on application level and quickly create applications for real asset tokenization and their control. To reduce threat of fraud and conspiracy numerous entities have to take action. Consequently, there are several roles tokenization platform has to play and they include;

Validator
Auditor
Custodian
Issuer
Administrator
Corporate user

Product Platform Description

Product Protocol Platform gives individuals and corporations ability to satisfy a vitally important want — to earn money. Product Protocol Platform includes;

• Decentralization

• Smart ID

• DAsset & Digital Token

• Decentralized Product Exchange (DPE)

• Decentralized Marketplace

• Token-Curated Registries

• TCR Incentive system

• Voting

Product Protocol Agreement (PPA)

How does PPA work?

Platform user should buy a share of lots at the decentralized platform to get virtual token for a volume of the manufacturer’s product. The user can auction the lot at internal Exchange or promote it in the market. You can also switch the token back to the platform through Product Protocol Agreement program, where the platform itself buys tokens for a fixed price and ensures profitability.

Blockchain feature list

• Decentralized database storage with integrity checks and malicious interference detection. Each person can easily check adjustments in the blockchain and verify saved records is unchanged

• Blockchain supports micro transactions and has its own mechanisms for saving them, optimized by time and storage memory size.

• User API contains all vital logic for front-end use.

• Users can encrypt their information and keep it in the blockchain

• The consensus is primarily based on the hybrid of the BFT and DPOS algorithms.

• Blockchain lets in processing over 30.000 transactions per second through the network.

Web-wallet permits users to see their stability and transaction records, operate debts / send information to the blockchain.

Blockchain applications

• Database backup and system healing. Prevent data loss and malicious changes.

• Abilities for a user’s integrity assessments.

• Using operations with micro transactions.

• User information saved in binary format in the blockchain database.

A multi-token system with multi-signature data and transactions

Architecture

The Product Protocol project is created for marketers and enterprises, who wish to take benefit of tokenization and blockchain technology. PP can also be applied to construct the subsequent technology of accounting systems. Differences from other platforms

Role-based Access Control & Multi-signature

• Network user access rights identification in accordance with the rules

Objective based approach to addressing critical user actions within the system

• Signature rules determination to eliminate fraud risks

Use of multi-signatures for decentralized decision-making

Compliance Framework

PPO Escrow
Funds deposit, transfer and withdrawal limit management for rule compliance and system security
Objective-based approach for user role change
GDPR compiles personal data autonomous storage and guarantees integrity
Direct user-administrator communication for problem resolution

Funds Management Kit