8. Conclusion

We have proposed a system for the digital trade of ownership rights of physical items without relying on trust. We used the innovative technology of NFTs provided by Ethereum, and built on top of the transparency and decentralization of blockchain to connect the blockchain network to the real world. By combining the power of the established US legal system and blockchain, we have created the concept of Contractually Bound Non-Fungible Tokens, or NFTs which can legally obligate parties to carry out certain actions depending on its state. We have provided solutions to publicly store digital signatures of legally binding contracts on the blockchain to be used as digital receipts, while maintaining the privacy of users’ contact information. Although having a guardian company hold the physical items creates a lack of decentralization in certain aspects, decentralization is a feature that is used to replace trust, and we believe that the incentives created by the legally obligating power of the Phynite Protocol can serve that purpose as well.

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