What is it?
Physical Backed Tokens (PBTs) are a new type of token linked to physical items using encrypted blockchain-enabled chips. This technology allows verifiable ownership of real-world objects in the digital world, bridging Web2 and Web3 like never before.
Why itβs trending:
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Introduced by projects like Azuki
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Huge potential for fashion, collectibles, and logistics
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Enables βsmartβ physical assets that can be owned and traded on-chain
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Integration with NFC and IoT devices
Risks:
β High entry barrier (hardware costs)
β Security of physical chips
β Some assets are difficult to tokenize effectively
Conclusion:
PBTs represent the next evolution of tokenization β not just digital, but physical. As Web3 expands, expect more real-world assets to gain blockchain identities and value.