I am trying to understand how to trace a manufacturing process using token compositions, but unsure if it is a good approach.
- Entity A produces flour
- Entity B produces bread
Within a smart contract we tokenize the goods, so this means that we will produce some ERC-20 BreadToken(s) if the input is valid (in this case, it must be FlourToken)
This means that any flour batch can be used as a input to satisfy the contract.
In the real world, I might prefer to use a specific batch of flour before it expires, and I want to make sure this is tracked. This means that input needs to be a non fungible token (it still rapresents flour but have additional information like expiration date attached off-chain).
By looking at ERC-721 https://eips.ethereum.org/EIPS/eip-721 what I understood is that the smart contract should output nfts that share the same ERC721Metadata. In this case each Flour batch is identified by an nft having the same ERC721Metadata as the others, and the smart contract will output individual bread nfts.
Are there better options out there? I understand this doesn't scale well due to the cost related to number of nfts to be minted