Proof-of-provenance is a protocol developed by Digix to track the movement of physical assets (gold in the case of DGX) through the change of hands, from the bullion supplier to the custodial vault in a transparent and cryptographically secure manner.
PoP addresses the issue of proving the existence of the physical asset, the authenticity of its ownership and the security of its storage in the custodial vault. It does this by verifying transactions on the blockchain and uploading real world documentations onto IPFS and the blockchain.
The proof of where something previously came from helps assure buyers of the validity of an object, piece of monetary value, etc... Recording and validating asset details such as previous ownership and location over its lifetime is the goal with proof of provenance. Blockchains are capable of maintaining these details and can use proof of provenance to benefit manufacturers, customers, and regulations to assure that parts or whole assets are quality assets.
Digix’s Whitepaper: The Gold Standard in CryptoAssets
Anthony C. Eufemio, Kai C. Chng, & Shaun Djie