Issuance & verification examples

Below we describe a few real-life examples of how Tosi’s asset issuance and verification works.

Carbon credit

1. An on-chain marketplace or issuance platform for carbon credits enables the issuance of carbon credits into the blockchain, similarly to current NFT marketplaces.

2. The marketplace or issuer runs its own token database which is connected to Tosi via API. The marketplace or issuer is called a publisher. It also stakes TOSI tokens as a proof of commitment to transparency.

3. A carbon credit project wants to sell its carbon credits in the on-chain marketplace. As the project issues the carbon credits to the marketplace, it is prompted to verify its project and identity via domain verification and social media account verification.

4. Once the publisher's account is verified, it fills in key information of the asset to the marketplace’s database or as token metadata on specified blockchain. The key information includes:

   • Digital signature of the issuer

   • Digital signature of the certifier (certification agency)

   • Carbon credit certification number

   • Carbon credit certification database

   • Project certification documents

   • Coordinates of the project

   • Satellite images taken and timestamped from each phase of the project

5. Once the data has been filled into the marketplace or at issuance, Tosi verifies the data and checks that:

   • Carbon credit is issued with a correct signature

   • Certifier signature is correct

   • Signatures proving the authenticity of the other data is correct

   • Carbon credit certification number is correct, and no duplicates exists in the database

   • The data is available

6. Carbon credit token is now ready to be issued as verification data has been inputted and data has been verified to be correct.

7. Once the carbon credit token is resold on-chain, the new buyer can input the address of the carbon credit token into TosiScan and get verification results:

   • Is this token issued by original publisher

   • Is the token certification document signed by correct certification agency

   • Does the satellite and other certification data match with the dates and location of the project

   The verification check can be done also by the marketplace on behalf of the buyer.

Physical gold bars by Lohko

Lohko is a digital gold platform where you can buy, sell and transfer gold ownership. Lohko also supports issuance of the gold NFTs into Ethereum-based blockchains. The physical gold is stored in a Singapore-based custodian’s custody and is fully insured. The custody maintains its own gold bar registry where anyone can check the serial numbers of the gold stored in custody.

Lohko has issued several gold bars and NFTs into the Ethereum blockchain. Some of the bars are issued to Opensea. The Lohko Gold NFT comes with the Mattereum contract, which states the legal rights of the owner of the NFT.

The problem with Lohko NFTs is that in case there would be a large amount of Lohko NFTs issued in various on-chain marketplaces, there would be also lots of fake Lohko NFTs. Someone could just make the same look and feel fake Lohko gold NFT without backing of any real physical gold asset. In blockchain, assets move freely and are platform independent. Someone could start selling fake Lohko Gold bars for example on Rarible marketplace, and buyers would have difficulties to verify if there actually is real gold backing the NFT.

Both Opensea and Rarible verify issuer accounts with Twitter DMs; they do not verify if the issuer has legal rights to the brand, or to the assets issued. Scamming and phishing is highly possible and highly likely with the current ways of verification.

TosiScan provides a reliable way for NFT asset buyers to be sure that they are buying an verified asset. It also provides marketplaces like Opeasea a verification module so that they can provide a more extensive issuer and asset verification.

Process for Gold NFT issuance with Tosi verification module works as follows:

1. Lohko issues an GOLD NFT. The NFT's metadata has:

   • Legal contract stating the legal rights of the NFT (IPFS file)

   • Link to Lohko’s gold asset registry (off-chain)

2. Next, Lohko uses the Tosi issuance dashboard. The issuing process requires issuer to:

   • Verify the main issuer (Lohko) with signing keys, domain, social media account or KYC proof

   • Provide a legal contract (e.g. Mattereum contract) stating the right of the NFT owner

   • Link to primary asset registry (Lohko’s gold asset registry)

   • Link to secondary asset registry (Custodian), which confirms that the primary asset registry data matches with registry data signed by the custodian

3. As the GOLD NFT is being issued, the related data will be stored in the registry of the marketplace and the GOLD NFT will be tradeable on any platform.

Now let’s have a look what happens when someone sells the GOLD NFT on another platform, for example on Binance NFT platform:

1. Buyer sees the Lohko GOLD NFT on Binance NFT platform, and would be interested buying it, but he is not sure if there is a real gold bar backing the NFT. He can see from the metadata of the NFT that there is a legal contract and other documents, but all of those documents could be fake.

2. The buyer decides to check that the GOLD NFT is real with TosiScan. He inputs the URL of the asset from Binance NFT marketplace to Tosiscan.

3. TosiScan makes a query to Tosi chain, which is connected to the Opensea registry via an API. TosiScan checks each address provided against the issuing registry and provides the result:

   • Is the asset issued by original verified issuer Lohko

   • Is the asset in the same blockchain as the asset being purchased

   • Is the asset currently on the blockchain the user is trying to buy the asset

   • Are the contracts and other documents same as in the registry

The buyer can now be sure that the GOLD NFT is original and was issued by Lohko, and that the agreements and other supporting documents are original.