Shipping and storage costs are expensive when we trade physical assets like gold, silver, fine wines, art and even vintage cars. Some assets have insurance cost, heavy taxes and tighter regulations in different countries. So, what if we can buy and sell NFTs representing these physical assets while these real-world assets sit safely at a secured vault or warehouse?
Anyone can trade real NFTs globally while the actual assets are kept by the original dealers (such as banks, gold dealers, wineries, art dealers). These dealers also become custodians of the real assets and make a commission from each trade of the NFTs which also covers their storage costs.
What it does
We're building an NFT marketplace like OpenSea but to trade NFTs that are linked to physical assets. Each NFT is linked to the real asset via its serial number or barcode number. The tokens also contain metadata that contains more info about the asset such as photos, description, type, brand, purity, manufactured year, location, custodian ID and more, all stored in JSON files.
If they choose to, the NFT owners can eventually redeem the actual assets at the custodians' premises by showing their wallets containing the NFT as proof of ownership.
The beauty of this project is the ability to earn from trading real-world assets via NFTs without the exorbitant shipping, storage, tax and regulatory costs.
Examples of use cases
- Global users trading NFTs of gold coins, bars and ingots stored in Estonia and Singapore because of the lack of sales tax (VAT) for precious metals in those countries.
- Global wine lovers investing in French fine wines housed in industrial-grade wine cellars in France. Wines require a special storage environment to maintain their quality.
- Global vintage car collectors buying and trading NFTs linked to these antique cars while able to book for a drive when they are at the overseas' car storage facility.
- Overseas art collectors buy paintings from art dealers in Paris and display them at the dealer's art galleries.
- Popular collectibles websites like StockX (40m visits per month) could turn their collectibles into NFTs on our marketplace.
Retail investors or asset traders who wish to gain economically from the appreciation of their asset value.
More info in our pitch deck.
How we built it
- We used Avalanche Fuji testnet with AVAX test tokens. We can port to FreeTON blockchain and utilize Everscale tokens.
Challenges we ran into
Our first prototype built in December 2021 was made from old-fashion WordPress because we're entrepreneurs by day, part-time coders by night. For this hackathon, we learned React to build a brand new MVP. We improved on our smart contract design and added more attributes (via metadata) to the token of the NFT asset.
We aim to get validation for this project by winning this competition and propel us to launch this service in the first quarter of 2022.