Practically every day we see new projects in the world of cryptocurrencies, all with the hope of unseating the almighty Bitcoin from the first place of preferences. This time comes to the fore a project called Boson Protocol, which is a peer-to-peer (P2P) platform designed to allow users to exchange digital values for products, services or anything in the real world, through a tokenized economy open to all, by automating the problem of digital to physical redemption.
They will achieve this by using NFT (Non-Fungible Tokens) encoded with game theory. The principle behind this platform is to create the fundamental infrastructure for the emerging decentralized trading ecosystem, empowering builders and partners to reinvent trading as we know it.
The ecosystem is intended to break away from centralized coordinators dedicated to building monopolies and replace them with a style of trading that is programmable and more equitable for all network participants.
To be more adjusted with reality Boson Protocol is the fundamental primitive that most projects intend to realize in a decentralized web by applying a verifiably secure end-to-end system to conduct real-world business transactions and record reliable data from these transactions on the blockchain.
Powerful e-commerce platforms have captured the market. These monolithic intermediaries extract value in excess. That is their prime directive.
While first-generation decentralized trading platforms have demonstrated the technical feasibility of displacing centralized platforms, they have yet to address all consumer needs and therefore have not seen significant consumer adoption.
Unless we can solve this problem: we face the prospect of total capture of commerce and its supply chain by a few extractive monopolies.
To avoid this situation, Bozon Protocol enables the coordination of trade between buyers and sellers in a decentralized and autonomous manner, minimizing value capture and the need for arbitrage, while allowing buyers and sellers to monetize their trade data in an equitable manner and prevent centralized entities from hoarding their data.
And is that now the coordination of trade transactions also requires centralized market intermediaries or decentralized arbitrators to manage the mediation of disputes and reversal of transactions. This adds cost, trust and friction, which limits the scope and reduces the efficiency of trade.
Another problem with centralized market intermediaries is that data collected from trade transactions is accumulated and used to strengthen the absence of market competitiveness. This jeopardizes the interests of the consumer, other companies and even governments.
With Bozon Protocol aims to reduce these problems to non-existent by connecting smart contracts to real-world commerce and its data. By doing so, they eliminate middlemen, minimize arbitrage and rent extraction. Making dCommerce simple for people, organizations and machines to transact seamlessly.
According to the developers of Boson Protocol the problem described above is solved through the redemption of digital to physical by symbolizing the commitment of a Buyer and a Seller of interest to exchange digital value for a real-world thing at a later date.
Commitments are made by depositing digital value into an escrow contract within a stateful non-fungible commitment token. These commitments can be thought of as futures contracts for a thing, programmed within NFT commitment tokens.
Having custody of a commitment token grants the holder the right to redeem the token for a particular thing in an automated, reliable and secure manner, as well as the right to transfer the token by transferring the commitment token from a cryptographic wallet like any other NFT.
Commitment tokens are governed by the core Boson mechanism, which is a type of sequential game in which the buyer and seller make deposits in advance. The rules of the game and the final deposit transfer scheme are designed in such a way that they coordinate transactions and incentivize parties to behave fairly
With Bozon Protocol aims to reduce these problems to nonexistent by connecting smart contracts to real-world trading and data. In doing so, they eliminate middlemen, minimize arbitrage and rent extraction. Making dCommerce simple for people, organizations and machines to transact seamlessly.
According to the developers of Boson Protocol the problem described above is solved through the redemption of digital to physical by symbolizing the commitment of a Buyer and a Seller of interest to exchange digital value for a real-world thing at a later date.
Commitments are made by depositing digital value into an escrow contract within a stateful non-fungible commitment token. These commitments can be thought of as futures contracts for a thing, programmed within NFT commitment tokens.
Having custody of a commitment token grants the holder the right to redeem the token for a particular thing in an automated, reliable and secure manner, as well as the right to transfer the token by transferring the commitment token from a cryptographic wallet like any other NFT.
Commitment tokens are governed by the core Boson mechanism, which is a type of sequential game in which the buyer and seller make deposits in advance. The rules of the game and the final deposit transfer scheme are designed in such a way that they coordinate transactions and incentivize parties to behave fairly
Boson Protocol will allow smart contracts to exchange physical assets without any human intervention. Everything will be fully automated, which means that they will programmatically handle expirations, complaints and redemptions.
With this platform you can be 100% sure that you will never pay and then not receive the item. They will achieve this by using NFT's, which flow through a closed loop system, the latter being one of the firm's big differentiators. For now, NFT's are starting to gain mainstream attention, but their functionality has been limited to games or digital art.
Similarly Boson Protocol tokenizes future commitments for transactions. These futures contracts are represented as NFT tokens, with status governed by a novel exchange mechanism.
The Boson mechanism, which is based on a two-sided deposit structure, is analyzed as a dynamic game that evolves while allowing its participants to build reputation. This exchange mechanism is what enables smart contracts to exchange digital value for physical products and services, while eliminating intermediaries and minimizing the cost and friction of arbitrage.
Boson also enables customer demographics, satisfaction and preference data to be monetized in an equitable manner through an Ocean Protocol Web3 data marketplace.
The BOSON token is the lifeblood of the entire ecosystem. All actions on the platform will require BOSON at some level, plus value will accrue through transactions and data utilization, but what will drive even more value are the participation mechanisms and token burns, which they plan to implement. Also Boson will use the proceeds to repurchase and burn BOSON from the open market, on an ongoing basis.
It is important to note that the information presented here should not be considered as a form of investment advice or recommendation to the community.
