Overview

The Foolproof Token (FPT) system represents a novel approach in decentralized user management (DUM). This section provides an in-depth overview of the FPT system, elaborating on its core components and functionalities. At its heart, the FPT is built with smart contract infrastructure, utilizing Ethereum-based tokens to facilitate secure and efficient management of user permissions and assets.

FPTs are an enablement layer. They are not the underlying asset. They are meant to reallocate control to the correct participant in order to provide the moderation and flexibility to participate in a financially equitable way in web3.

FPTs are not financial assets, they cannot be bought or sold.

They are a representation of the original asset, easily secured, with extensible functionality to support the development of community, relationships, and financially sound business models on the blockchain in a compliant manner.

The system is designed with a focus on flexibility, allowing for seamless integration with decentralized applications (dApps) and platforms that are built with ERC standards, and low friction integration to traditional web apps that are utilizing DUM. By leveraging the Ethereum blockchain's robust and transparent architecture, the FPT system ensures the highest standards of security and decentralization, making it an ideal solution for organizations aiming to align with SOC2 compliance while capitalizing on the benefits and data that come with blockchain technology.

This overview will delve into the technical aspects of the FPT system, detailing its operational mechanisms, the role of ERC standards in its functionality, and the advantages it offers in terms of security, scalability, and user experience.

Detailed System Description

The FPT smart contract incorporates ERC-1967 standards. This is to enable upgradeability and provide the ability for Foolproof Labs to mitigate risks introduced into the contract through feature enhancements. The nature of the FPT does not allow impact to the sponsor contract (contract FPT is referencing through ownerOf function), preventing unauthorized access or manipulation to the sponsor contract and its respective assets, which gives Foolproof Labs confidence in their choice of using proxy smart contracts while still maintaining security through the cryptography of blockchain.

This integration signifies Foolproof Labs' commitment to adaptability and future-proofing in its solutions. The FPT smart contract, as a result of utilizing the ERC-1976 standard, facilitates the management and deployment of smart contracts in a flexible and scalable manner, ensuring that the system remains robust against evolving technological advancements and standards in blockchain technology.

The FPT works much like a shadow, or hologram. The owner of the shadow is in control. The shadow is definitively attached to its owner. If the owner walks across the street, the shadow walks with it. This is because the FPT is controlled, above all, by the sponsor contract. Every token on the sponsor smart contract is also represented with a separate FPT, defined by the ownerOf function.

For example, wallet A owns NFT 001.

A FPT contract is deployed.

• Wallet A now owns NFT 001 and the corresponding FPT 001.
• The owner of the company behind the FPT and sponsor token would adjust their token gates to look for the new FPT contract address instead of the sponsor token address. This enables the secure element of a FPT.
• Wallet A can now assign FPT 001 to their hot wallet (wallet B) and use it for secure access to the token gate.
• If wallet A transfers NFT 001 to wallet B, FPT 001 also goes to wallet B, because the FPT understands that it is in the hands of the owner of the sponsor token, in this case, NFT 001.
• If wallet A sells NFT 001 to wallet C, FPT 001 now assigned and controlled by wallet C.

The FPT cannot be separated from the control of the owner of the NFT that sponsored it. A FPT is always in the control of the wallet that owns the NFT. That wallet is allowed to send and recall the FPT but it can never be sold or stolen.