😌Confidence in the Secondary Market

Tokenizing RWAs enables authenticity verification on the blockchain. This increases confidence in the secondary market, as buyers will experience a reduced threat of fraud and counterfeits. SHOPX will integrate NFC chips into each RWA, linking the physical product to its corresponding NFT.

Verifying an item’s authenticity will be as easy as a quick smartphone scan. The item's product, owner, and history will all match simultaneously. Paper certificates can be made difficult to copy, but they can be copied. There is no way to truly trace a product’s history other than word of mouth and trust.

But finding a product that began at a warehouse, traded hands three times, and ended in the hands of John Doe, and then going to John Doe’s house and scanning his product to find that it is indeed the same NFT you have been tracking will remove all doubt of authenticity. This powerful utility can be used in a flash. One scan is all it takes for guaranteed certainty.

This will obviate the need for verification companies like The Real Real or other third-party verification services. Those fees saved will be passed along to the buyers. The forgery industry will be severely crippled, as forging an NFT is impossible. There may still be ways to trick individuals, but the market as a whole will feel the relief.

Confidence in the secondary market will also help renew the flow of goods. Resellers will be able to quickly stock their shelves with authentic, pre-owned items without worry. It is not convenient for the average person to safely navigate a secondary market teeming with fakes. It does happen, but at a great cost of time and resources. The ability to find the desired items quickly and verify them even more quickly will likely lead to an even greater explosion in the current thrifting trend.

Finally, it is important to focus this utility on luxury items, high-end goods, and art. Combining authenticity verification with purchase history will help expensive products retain their value. The original and subsequent purchase prices will be recorded on the blockchain, providing a transparent and immutable ledger that enhances the item's credibility and desirability in secondary markets. This transparency reassures buyers of the item's legitimacy and helps maintain or increase its value over time by documenting its provenance and ownership history.