Proof of Reserve (PoR) Audit Reports

Blockchain is a digital ledger kept in decentralized, multiple copies, where data is recorded in blocks connected by chains in chronological order, mathematically encrypted and recorded in an immutable, secure, transparent and distributed manner.

RWA, or "Real World Asset," is a transformative concept within the blockchain and cryptocurrency ecosystem. It refers to the process of tokenizing real-world physical or financial assets, bringing them into the digital realm on blockchain platforms. These assets can range from real estate, bonds, and stocks to commodities like gold, oil, agricultural products, and even collectible items with intrinsic value.

In the blockchain technology, a coin represents a crypto coin i.e. digital version of cash. Crypto coin is defined as a digital financial asset created by computer without needing a centralized authority like a bank or government. Coin refers to a digital currency existing on a blockchain like the Bitcoin, Ethereum, and Solana blockchain networks.

Crypto currencies created on an existing blockchain network as opposed to its own blockchain network are called tokens. For example Bitcoin, Ether and Solana are crypto currencies created on their own blockchain networks named Bitcoin, Ethereum and Solana respectively, but tokens are crypto currencies created in a certain format on any existing blockchain network like Ethereum, not on its own blockchain network.

An product-backed token is a digital currency using the blockchain technology. However, it is backed by a physical asset. In other words, it is a digital claim of right on a physical asset.

Cropto Tokens are a digital currency based on agricultural commodities and created by using the blockchain technology. Before creating each Cropto Token in digital medium using the blockchain technology, an agricultural product is acquired from a reliable market using the formula 1 kg = 1 Token against that Token and is stored in a reliable, secure and audited warehouse. That Cropto Token is issued after the physical product is acquired. Stable coins like Tether, USDT and USDC are one step forward in terms of reliability in crypto currency markets, because they are crypto currencies created against such physical collateral as US$ reserve, government bond or other financial instruments and are indexed to the US$.  In summary, Cropto is similar to such crypto currencies as Tether and USDC because all of them are asset-backed.

Market price of a Cropto Token is determined in relation with the price of the physical agricultural commodity acquired before creating it, and changes depending on the increase of the price of that commodity. Furthermore, international agricultural commodity prices may change depending on certain events on the basis of country or region. Therefore, market prices of Cropto Tokens are directly formed in relation with the prices of the physical agricultural commodities which back them.