Product Protocol , A new home for asset management

INTRODUCTION

Product Protocol is simply an open source protocol for asset, transaction confirmation and record management implemented as a decentralized application for asset data exchange and recording. The Product Protocol aims to unite the business world of real and digital assets with the blockchain system through the real sector economy tokenization. It is a Protocol that forms a digital ecosystem for real economy enterprises which includes the stages of verification, digitalization, comprehensive evaluation, asset status monitoring, asset ownership identification and asset tokenization as it allows for the trading of tokenized assets as it allows trading of tokenized assets.

RELEVANCE
SHARES: Tokenization which is the principle on which the Product Protocol is founded allows the split of ownership of assets into shares, creating crowd funding campaigns as It also offers new sources for investment and cash.
GUARANTEE OF ORIGIN: Paper based accounting and verifying of the origin of products was almost impossible and digital accounting also came with the problem of falsification but only the use of cryptography can appropriately verify and confirm the credibility of transaction history.
DEBT MANAGEMENT: Product Protocol based services, individuals and enterprises get the opportunity to conduct ownership and obligation netting as the homogenous data is stored in chronological order in a group of events making the debt market more open and attractive to a huge number of new players while simplifying and fostering a financially positive relationship between creditors and debtors.
TOKENISATION OF ASSETS: The Tokenization of assets and open source tokenization framework provides new mechanisms and processes for risk evaluation and management as high degree of accuracy, availability and consistency of information about the condition of real assets will form the basis of new products and services for banks and insurance companies.

WORKING PRINCIPLE
The core of the Product Protocol is laid on the use of Cryptography (digital signature) for data protection on every step of its process. This makes use of digital identification and implementation of the public key infrastructure executed with tested hash functions and digital signatures. To ensure faster services and transactions, the Product Protocol performs real time accounting with smart cards which represents programmed logics on the platform which executes the process of asset accounting as the smart cards are used to improve business system automation through precondition, inputs and eventual statement security ethrough cryptography and decentralized consensus. The Product Protocol uses the Proof of Asset Algorithm which provides real time verification of asset’s digital identity and confirmation of data authenticity. In the algorithm, a digital copy of an asset is created relative to the original copy of the real world asset through open Application Programming Interface and Internet of Things technologies to ensure complete and reliable digital identity of each unit of asset. In the implementation of the protocol and the system in general, the tokenization platform plays several roles which includes Validator, Auditor, Custodian, Issuer, and Administrator.

UNIQUE CHARACTERISTICS
CONSISTENCY AND TRANSPARENCY: All the information and data used during asset digitization, tokenization and transaction monitoring would be transferred securely using cryptography and the widespread blockchain technology. Users will get unrestricted access to the real time asset information from monitoring systems.
SEPARATION OF FUNCTIONS: To eliminate conflict of interests and collusive tendencies of the users, functions will be decentralized and separated with PPO token escrow personalized for each user.
FUNCTIONAL OWNERSHIP: This helps to widen the client base and create new business approaches, while maintaining the asset data integrity in inherited systems.
PRIVACY: The Product Protocol seeks to maintain privacy through the planned implementation of the most sophisticated cryptographic methods while allowing users focus on the application level of real asset tokenization and their management.

BOTTLENECKS
The Product Protocol requires digital identification which provides non repudiation performed by the Public Key infrastructure in which the users are provided with a couple of cryptographic keys and an app to use but most users do not really comprehend internet security hence it usually takes time for users to understand the system’s operation.

CONCLUSIONS
The Product Protocol is a revised and tested protocol designed for enterprises who wish to cash in on the tokenization and blockchain technology as it gradually builds the next generation of accounting system. It provides role based access control, multi signature and decentralized system of decision making in which fraud risks are eliminated. With efficient fund and token allocation formula it aims to help enterprises (with focus on SMEs) surmounts the major problems of information asymmetry and asset’s illiquidity faced in the fiat money dominated real sector economy.