Limits of ownership-centric markets

A hardware sale with a closed service contract does not create a liquid market for tasks. Opaque SLAs hinder price discovery and utilization. Without open settlement, small operators cannot credibly market capacity or obtain finance against future cash flows

Consensus primitives

Proof-of-Work prices energy [1]; Proof-of-Stake prices collateral and punishment risk [2]. Neither binds ledger updates to physical actions. Oracles bridge off-chain facts [3], but few define adversarially testable schemas for trajectory-bound, sensor-rich evidence. Morph uses Ethereum for final settlement [2], oracle attestations, and on-chain governance

Need for Proof-of-Physical-Work

PoPW must:

1. Bind job-specific actions to cryptographic commitments.

2. Support third-party re-evaluation and challenges.

3. Allow deterministic resolution with transparent incentives.

4. Preserve privacy through commitments and selective disclosure.

We assume untrusted networks, partial hardware compromise, and rational adversaries with bounded budgets.