Inside the most used protocol for real-world product tokenization

Digital product passports. NFTs. Tokens. At Arianee, they all boil down to only one thing: bringing real, durable products on-chain. Away from the frenzy of market speculation, we at Arianee have been diligently leveraging the unique properties of blockchain and web3 technology to tokenize real-world products for heritage brands since 2018.

In this article, we will explore the What, Why, and How of Arianee. We'll detail the business challenges we address, the scope of our infrastructure, and the extent of our adoption. 

Why bring real-world products on-chain?

Converting a product into a digital format is not new. However, tokenization, which transforms products into native components of the web, is fundamentally changing digital ownership. 

What tokenization is bringing to the table:

• Enhanced Product Data Management: Facilitates seamless transfer and updating of product data across stakeholders, ensuring brands stay involved throughout the product lifecycle.
• Auditability and Compliance: Enables transparent proof of product upkeeping and reuse to regulators and stakeholders, supporting sustainability efforts and reducing taxation impacts.
• New Circular Business Models: Creates new economic models centered on product circulation and high-value services (read our position paper here)
• Customer Engagement and Data Sovereignty: Distributing tokens as digital passports fosters continuous customer-brand relationships. This sovereign data infrastructure empowers users and brands with full control over their data, shifting to zero-party data. (read our position paper here)

Real-world projects on Arianee

Why Arianee for real-world product tokenization?

Open-source standards as a core value

The open-source standard for creating NFTs is ERC-721, conceived by William Entriken (who later became an advisor to Arianee). Its versatility is evident in applications like Digital Product Passports.

Arianee Protocol: Enriched features on top of standards

While ERC721 is foundational, it offers limited features. To address this, Arianee developed the Arianee Protocol, a set of smart contracts deployed on blockchain technology. This protocol allows brands to issue verifiable and dynamic Digital Product Passports.

The Arianee Protocol supports multiple blockchains and uses a decentralized verification mechanism, eliminating the need for a central authority and ensuring higher uptime and data integrity. It is fully open-source, transparent, and auditable, allowing open access to the data state.

Blockchain abstraction with Arianee Enterprise solutions

• NFT Management Platform: Create and update Digital Product Passports (DPPs), tokenize assets, communicate with holders, and gain insights from zero-party data.
• Wallets: Custody Gateway API to manage custody solutions, abstract Wallet Providers, and facilitate on-chain transaction signatures and wallet access.
• Webhooks to CRM: Connect DPP data to any service, allowing brands to subscribe to blockchain event streams and enhance customer engagement and services.

Capabilities across product lifecycle stages

1. Pre-sales

• Create DPPs at SKU and Serial Number Level: These digital passports are live with clients, enabling detailed tracking and management of products even before they are sold​.
• URL Routing Management: This feature allows the creation of a DPP URL before the actual data is available, facilitating the pairing of physical data carriers such as QR codes or NFC chips.
• Batch Publishing: Arianee supports the publication of DPPs on a production basis, either individually or in batches, allowing for efficient management of product data at scale​.

2. During Sales

• Dynamic Product Pages: Arianee provides customizable interfaces for customers to visualize their digital product passports before collecting them post-purchase. This feature ensures compliance with regulations and enhances the customer experience by offering a preview of the product's utilities.
• Custodial and Non-Custodial Wallets: Custodial wallets are managed by brands, while non-custodial wallets are user-managed. Custodial wallets are particularly user-friendly and integrate easily into the client's environment for simple management.

3. Post-purchase

• Retroactive Publishing: Clients can request DPPs for products sold in the past, ensuring that even older items can benefit from digital tracking and engagement
• Engagement Tools: Direct messaging and push notifications for maintenance reminders, new product drops, and event invitations.
• Rich Media Integration: Incorporating AR/VR, video, and 3D visualization within DPPs.
• Token-Gated Experiences: Offering exclusive content and services based on DPP ownership.

Integration with Third-Party Services

• Insurance Providers: Integrating with insurance companies to offer tailored protection plans.
• CRM Solutions: Integration with CRM systems like Salesforce allows brands to leverage ownership data for customer segmentation and targeted marketing campaigns
• Second-Hand Marketplaces: Arianee has developed features like Brand Connect and Transfer Permit to facilitate one-click resale processes, promoting circular economy practices by enabling easy transfer and verification of ownership on platforms like eBay

Additional Features

• Real-time Data Analytics: Integration with Google Cloud Platform and other analytics tools provides brands with insights into the performance and engagement of their digital assets
• Non-transferable Tokens (Soulbound Tokens): These tokens, which cannot be transferred, are used for specific applications like membership tokens, ensuring that certain digital assets remain bound to the original owner​
• End-user Authentication: Before claiming a DPP, end-users must authenticate themselves, enhancing security and ensuring that digital assets are only accessed by authorized individuals.
• Metadata Updates Post-Minting: Allowing updates to DPPs even after they are minted.

Dive into our documentation here.

The opportunities for Arianee Protocol 

Interoperability and ecosystem expansion

As blockchain technology evolves, increased interoperability and the rise of dApps will drive further adoption of products on-chain. Arianee's commitment to open-source development ensures it can adapt to these advancements seamlessly. Arianee’s exploration of new blockchain technologies, such as rollups, promises to deliver improved scalability and security, critical for handling increased transaction volumes and complex asset management needs​​.

Circularity

The growing demand for transparency and sustainability in business practices also aligns with Arianee’s strengths. Brands and consumers alike are seeking solutions that provide verifiable, tamper-proof records of asset provenance and lifecycle events. Arianee’s robust infrastructure, combined with its strategic partnerships and continuous innovation, positions it as a key player in the future of real-world products on blockchain.

Regulatory and Compliance Enhancements

As regulatory bodies worldwide push for greater transparency and accountability, Arianee’s DPPs can become a standard for compliance. The ability to provide detailed and immutable records of an asset’s lifecycle will be crucial for adhering to new regulations, especially in the European Union.

The implementation of Digital Product Passports under the European Green Deal will drive demand for solutions. Brands will need to demonstrate the sustainability and ethical sourcing of their products, which Arianee’s platform can facilitate by providing transparent and verifiable records.