Abstract

A tokenized marketplace emerges as a bastion of free market principles, eliminating barriers to entry, market inefficiencies, and financializing the economic landscape. The tokenization of real-world assets could lead to a fundamental shift in how we do our day-to-day purchases. To achieve this, a standardization of items must be mandated for sellers' products and their delivery methods. The financial advents that have come with blockchain technology allow for items with little value to be traded, comparable to what we see with microtransactions. Representing items, sometimes physical on the metaspace comes with disconnects akin to game theory scenarios, where an individual's rationality can lead to suboptimal communal outcomes. We propose a solution to this by utilizing the blockchain to audit users by giving their peers a token incentive to complete this audit in question.

1. Why Tokenize?

Tokenized assets bend the rules in ways unseen in our current commerce ecosystem. Digital provenance allows for individuals to create their own collectible items, set a limited total count, and distribute them to willing buyers. Discouraging counterfeits and each item having a visible history helps enable creators to do more with less risk. If a vendor sold one thousand low cost products, and wanted to ensure uniqueness, a mass minting of inexpensive compressed assets while utilizing the Solana blockchain for USDC transfers would allow for a scalable, trustful implementation of this.

2. Why Standardize?

Standardization of items allow for production efficiency, market efficiency, and consumer confidence. Many items can be standardized and homogenized then put on a singular line to be traded, helping defeat informational barriers between platforms and brands. Utilizing flat rate shipping options alongside these standardized products allows for individuals across the country to have the similar experiences when purchasing the same asset. This asset standardization can be currently observed within the pharmaceutical industry, where generic items are sold to consumers at lower costs and are easily mass produced.

3. Why Incentivize?

Incentivization to decentralize information and trust will allow users to collectively validate truths about assets, helping mitigate the erosion of trust by malicious individuals acting in their own interest. Users may record videos and have others vote on the reliability of the video to receive rewards. It is also required for both sell and buy side users to come up with a common description for each item, allowing for the democratization of item information, increasing accuracy and lowering bias. A clear flaw with the standardization of items is the fact that vendors could easily and in fact would be essentially incentivized to negatively deviate from the average and cut quality while still producing the same product. A way to defend against this is decentralized audits where users could earn rewards for auditing a specific seller in a product line.