DESAT stands for Decentralized Storage and Asset Tokenization, and it represents a paradigm shift in how physical assets are stored, tracked, and accessed.
Abstract
DESAT is a groundbreaking network that combines physical asset storage with blockchain technology. It involves storage providers operating physical locations where tangible assets are digitized as non-fungible tokens (NFTs) on the Ethereum blockchain. This innovative approach ensures that only NFT holders can redeem the underlying physical asset.
Digitizing Physical Assets
The core of DESAT's solution lies in the process of digitizing physical assets. By creating digital tokens that represent the ownership rights of the physical assets, DeSAT bridges the gap between the physical and digital worlds. This process guarantees secure ownership and provides the benefits of a digital token, essentially making owning the digital asset equivalent to owning the physical one.
DESAT addresses the critical issue of preventing multiple titles for the same physical asset. To achieve this, the physical asset is placed "in stasis" during the digitization process, removing it from the physical possessor's control. The DESAT Network ensures the secure isolation of the physical asset until it's redeemed through a DESAT Token, marking the process of de-digitization.
DESAT issues non-fungible tokens using the Physical Asset Redemption standard format, an extension of ERC-721, on the Ethereum blockchain. This approach allows seamless integration with various Ethereum-based applications and ensures that legal ownership details are embedded directly in the digital token.
Decentralized & Open Network
The DESAT Network is designed to be decentralized and open to anyone interested in participating. Unlike centralized solutions, the DESAT Network is built on a proof-of-stake blockchain model, similar to Ethereum. This decentralized structure eliminates single points of failure and encourages widespread adoption.
Digital Economic Model
DESAT adopts a digital proof-of-stake (POS) blockchain model, similar to Ethereum's, even though it deals with physical storage locations. Storage providers acquire DSAT tokens and stake them on the network to make their capacity available for asset storage. DSAT serves as both the native network currency and the means to pay network fees, creating a robust market for buyers and sellers.
Network Structure
Member: Legal entities that operate storage locations.
Jurisdiction: Represents the legal territory of asset ownership.
Location: Physical storage facilities complying with jurisdiction-specific agreements.
Wallet: Ethereum blockchain wallets for DESAT interactions.
Depositor: Wallets authorized to deposit physical assets.
DSAT Token: The network's native token for activities.
DSATA Tokens: ERC-721 NFTs representing securely stored assets.
Governance
DESAT operates with a governance structure comprising the DESAT Foundation and the DESAT Community. The foundation expands the network and ecosystem through grants and incentives, while the community, including Members, Depositors, and token holders, actively participates in network governance.
Problems Solved
- Creation of digital tokens representing legally guaranteed redemption of physical assets.
- Prevention of simultaneous access to digital tokens and physical assets.
- Streamlined business model for storage providers with the network as the sole customer.
- Scalability and reduced risk through a network owned by participants.
- Cross-blockchain support by an authoritative network.
- Opportunity for additional roles, such as on-chain insurance providers and authenticators.