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Home Latest News Defi A new DeFi project could let smart contracts buy physical goods

A new DeFi project could let smart contracts buy physical goods

The DeFi project is creating "building blocks for next-gen dCommerce apps" by providing a means to set up a blockchain token for their physical counterparts in the real world.

On Monday, 2 November 2020, the Boson Protocol announced a successful $350,000 investment round aimed at linking the current physical trading world to smart contracts.

According to Cointelegraph.com the project received an oversubscribed investment round led by Outlier Ventures, joined by Ocean Protocol’s Trent McConaghy and others. The funding will be used primarily for operational costs and building a working pilot, the company said. 

Justin Banon, the project’s founder, told Cointelegraph that the purpose of Boson is “enabling decentralized commerce with minimal arbitration, like a DEX for physical assets.”

The approach, built on Ethereum, relies on non-fungible token vouchers which can be interpreted as a claim to the underlying commodity. The NFT is a two-way escrow between the buyer and the seller, which aims to ensure that the actual good is traded in an orderly fashion. “Mediation, arbitration and reversal are automated in a dynamic game where incentive rewards decrease the need for human arbitration over time, allowing for progressive decentralization,” Banon added.

The Boson Protocol does not rely traditionally on DeFi’s capital markets. When asked if it would be used to act as a DeFi bridge to central financial networks, Banon answered that “This is potentially one of the many use cases where Boson could be useful, but this is not Boson’s primary purpose.”The trustless mechanism of Boson exchange involves complex interactions in many different contexts. as illustrated in its White Paper. Monetary rewards are needed to increase the amount of profitable purchases that need more funds than a traditional escrow.

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