Boson Protocol together with its DApp is solving one of the fundamental problems of Web3, which is: how to mediate trade transactions when an asset is sold in the real world via smart contracts without a centralized intermediary.
What is Boson Protocol?
First of all, Boson Protocol is a decentralized oracle actuator, as it allows different blockchains to execute real-world transactions quickly and securely.
In addition, it is developed as a universal settlement layer for all types of trade. This allows trade transactions to be executed effectively as agreed by the parties and in a reliable, automated and efficient manner.
On the other hand, Boson Protocol is also a liquid digital marketplace for anything. This means that by tokenizing real-world assets as NFTs, the protocol creates a liquid, globally searchable digital marketplace for things.
In other words, this is achieved through the issuance of exchangeable non-fungible tokens, which allows users to exchange and manage physical and digital assets in a decentralized manner and without centralized intermediaries. In addition, the global search for “things” is related to the fact that this platform provides the possibility for users to search and find any type of asset all over the world. Consequently, these actions will increase market liquidity and, at the same time, improve accessibility to them.
How Boson Protocol’s central exchange mechanism works for fair trade transactions with NFTs
The basic mechanism of Boson Protocol allows a fair and trustworthy exchange thanks to commercial transactions through the central exchange mechanism, since it belongs to the key protocol subsystem.
To better understand, a clear example is when a seller creates an offer for a product or service that is off the blockchain, and makes an optional deposit in the form of ERC-20 tokens or a native token such as Ether. In turn, the buyer commits to that offering by paying the offering price and receives their redeemable NFT, known in the Boson protocol as “rNFTwhich can be used to redeem the product or service for a defined period of time.
Finally, the protocol processes the exchange and as a result, the buyer will receive the agreed product or service and the seller will be able to withdraw the funds requested in the offer.
It is worth clarifying that if the protocol detects that something did not go as planned, it will take care of the situation and reimburse the loss in accordance with the offer. This generates that neither of the two parties that are negotiating have any intention of acting disloyally towards the other party.
Below, I will review the main features of the Boson Protocol in order to understand how this platform works, which seeks to revolutionize commerce with decentralized solutions for the secure management of digital and physical assets through the technology provided by non-fungible tokens.
Redeemable NFTs or rNFTs
Redeemable NFTs or rNFTs comes from the name Redeemable, and is an NFT smart contract that offers redemption functionalities with the features similar to those of an ERC-721 (the most widely used standard for NFTs). The objective of this module is to manage the lifecycle of the rNFT from the moment a buyer commits to the product or services until they physically purchase and redeem it.
This feature is responsible for bundling an NFT with an asset that is off-chain and allows the correct exchange of a phygital item for fungible assets on the chain, which can be ERC-20 tokens or native tokens such as Ether.
Dispute Resolution Module
The Dispute Resolution module is another smart contract that allows processing disputes that may arise during the exchange process. This module manages the exchange path once the rNFT is exchanged and is designed with a mechanic called “Game Theory”, which is responsible for minimizing third party dispute resolution and incentivizing both buyer and seller to mutually agree on the offer.
The last most important feature of this protocol is the token-controlled module. This is another smart contact that is responsible for assigning access control conditions to one or a group of offers.
One of the conditions for only certain buyers to have access to them is to have a specific NFT, a minimum number of fungible tokens, or a combination of both.
Boson Protocol is currently working on a business model that is at the forefront of blockchain innovation, offering solutions to the fundamental problems that arose alongside Web3. By creating a global, liquid digital marketplace for things, Boson has the potential to be one of the most important projects as it combines different technologies such as blockchain, fungible tokens and non-fungible tokens, but also eliminates the need for centralized intermediaries in commercial transactions.
Consequently, Boson Protocol reduces costs and improves the efficiency of e-commerce, as it also, works through oracles that respond to different actions outside the blockchain.
In addition, this project will not only benefit companies looking to operate more profitably on the Web3, but also consumers who are looking for safer and more transparent shopping.
Finally, Boson Protocol is developed under the approach of a sustainability and decentralization that excites and promises above all, to obtain a fairer and more equitable future for all users of online commerce.
NFTexpress wishes to make it clear that all opinions and financial information contained in this website are for informational and educational purposes only and should not be construed as investment recommendations. It is important for readers to understand that all investments involve certain risks and should conduct their own research before making any financial decisions. NFTexpress is committed to providing accurate and up-to-date information, but is not responsible for the financial decisions made by users.
Written by Rodrigo Catalan (TW: @RodrigoCatalanB) for NFT Express.