# How DEXPIRY works?

When selling an individual item, the merchant (*Token Issuer*) connects the sold product with the DEXPIRY number (product category and model) via the DEXPIRY application and enters the duration of the commercial warranty expressed in number of months.

By digitally signing upon confirmation of the assignment of the appropriate DEXPIRY number and the duration of the warranty, the merchant initiates the creation of a DEXPIRY (ERC-721 non-fungible) token on the Blockchain, which represents the sold item and is assigned a unique Token ID.

The created DEXPIRY token thus becomes a permanent record on the Blockchain and, in addition to the Token ID, contains the digital signature of the point of sale (place of purchase), the time of token creation (time of purchase) and the duration of the warranty of the sold item expressed in number of months.

The merchant then confirms the entry of other relevant information about the sold product in the DEXPIRY application for exercising warranty rights. This information is recorded in a database available to users of the DEXPIRY application depending on their authorization level.

The buyer of the product in question then receives an authorization code from the merchant to take ownership of the DEXPIRY token identified by a unique Token ID.

The token is downloaded by scanning the QR code and confirming the transaction in the DEXPIRY application, after which the user of the application (*Basic User*) has insight into the details of the purchased product and the possibility of monitoring the status of the downloaded DEXPIRY guarantee token.

The merchant (*Token Issuer*) retains the ability to track DEXPIRY tokens that represent guarantees for products sold in his store.

Only users with authorization level *Administrator* and *Regulator/Arbiter* have the ability to monitor all tokens in circulation

To exercise warranty rights, the buyer (*Basic User*) presents to the seller (*Token Issuer*), through the DEXPIRY application, cryptographic proof of possession of the corresponding DEXPIRY token.

In the event of a dispute related to the exercise of warranty rights, the user may request authorization through the application to initiate formal arbitration. Once the *Administrator* grants approval, the dispute is resolved in coordination with the *Regulator/Arbitrator*, who is granted access to the relevant communication within the system.


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