Data-Backed Token (DTB)

A Data Backed Token is a Dynamic NFT that has its own data.

Owl Protocol allows you to deploy NFTs that can store important data on-chain in a flexible compressed format, that can be easily read and understood by others, as well as modified in a permissioned manner.

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Why store data on-chain?

We believe that certain types of data have executable value, which can be used by other smart contracts or dApps to enable previously inaccessible possibilities for control flow, logic, or utilities.

For example, a membership pass NFT can track an user's engagement, status, tier, and points level on-chain, which makes it easier for partners to integrate extra rewards for the most active users, or target specific audience.

Key Specifications of our Data Standard

  1. Common Smart Contract Interface
    All NFTs that are deployed with the data feature have the same contract interface, regardless of how much data is stored. This ensures that the smart contracts can always be accessed in the same manner, and all future software that is developed.
  2. Robust Off-Chain Data Schema
    Data types and the schema are stored off-chain, primarily on IPFS, or another decentralized storage network. Off-chain data schemas are preferred because they can be more descriptive, gas-efficient, and easier to read than a complex smart contract with multiple esoteric variables and methods.
  3. Extendable Data
    Our dynamic NFT data schema maps data to specific binary offsets and data lengths within a single data construct that is similar to MsgPack. This schema can be updated as long as the permissions are not revoked.

Common Use Cases

  1. Membership Passes and Loyalty Programs
    One of the most common use cases, a loyalty/membership pass can store crucial data on the ownerโ€™s engagement, and track how long the pass has been held, which is significant in many scenarios. This data can be combined with Soulbound Tokens (SBTs) to even better track and reward the most loyal members.
  2. Gaming and Metaverses
    Creating interoperable assets that are properly balanced between different gaming economies is hard enough without worrying about communication and interpreting data between exponentially more ecosystems. Owl Protocolโ€™s smart contracts, data standards, and cross-chain infrastructure allow game developers to focus on the user experience, while ensuring that future tools and software will always be backwards compatible.
  3. Real-World NFTs or Asset Backed NFTs
    Real world data provided by oracles can be mapped to specific data fields in a dynamic NFT, which can then automatically update the on-chain data. This opens a wide range of use cases that rely on triggering logic based on external data
  4. Decentralized Finance (DeFi)
    Real world data provided by oracles can be mapped to specific data fields in a dynamic NFT, which can then automatically update the on-chain data. This opens a wide range of use cases that rely on triggering logic based on external data.