A system and a method for liquidation of distributed illiquid assets with decentralized artificial intelligence

Abstract

A system (100) for liquidation of illiquid assets is disclosed The system includes a processing subsystem (102) which includes a verification module (108) verifies authenticity of a user and an asset of the user, a digital passbook module (112) generates a digital passbook in a blockchain (114), a token module (116) generates and deposit a non-fungible token in the digital passbook, an estimation module (118) estimates a collective score of credit scores and the asset of the user (110), an insurance community module (122) notifies a plurality of insurance community members about application of the asset and enable to pledge a staked value by voting, an invest community module (124) receives an investment by buying insured liquidity tokens. A trust community module (126) provides fixed ratio of initial token prices between trust community, the invest community, or a floating token price. A non-repayment module (128) analyses a cause of non-repayment.

Description

[0001] A SYSTEM AND A METHOD FOR LIQUIDATION OF DISTRIBUTED ILLIQUID ASSETS WITH DECENTRALIZED ARTIFICIAL INTELLIGENCE

[0002] EARLIEST PRIORITY DATE

[0003] This Application claims priority from a Complete patent application filed in India having Patent Application No. 202341078774 filed on 20th day of November 2023 and titled A SYSTEM AND A METHOD FOR LIQUIDATION OF DISTRIBUTED ILLIQUID ASSETS WITH DECENTRALIZED ARTIFICIAL INTELLIGENCE

[0004] FIELD OF INVENTION

[0005] Embodiments of a present disclosure relate to the field of validation, valuation of assets, and more particularly to a system and a method for liquidation of distributed illiquid assets with decentralized artificial intelligence.

[0006] BACKGROUND

[0007] An illiquid asset is an asset that cannot be quickly or easily converted into cash for a fair market value such as shares, private company interest, derivative assets, non- marketable illiquid securities, inventory, patent, real estate, bonds, luxury goods, digital appliances, utility items, furniture, intangible assets, capital assets, company with inadequate funds to debt obligations, arts, antiques, stocks traded on over the counter markets, debt instruments, commodity, stocks, office supplies, security, and the like. Illiquid assets in society are owned by different people separated by distance, geography, country, rules and regulations. So, they are scattered assets. Illiquid assets are mostly personal belongings, luxury goods, utility items, it is not limited to this but also includes all types of illiquid assets. The recession of 2008 was by-product of keeping illiquid asset as collateral for loan. Low federal rate caused increased adoption of mortgage loan (Illiquid asset) with home / real estate as collateral. Increased adoption caused flooding of real estate in market which caused decrease in value of real estate. So decreased value of mortgage caused banks huge loss at time of liquidation. Increased frequency of default in repayment cause Banks to collapse. Owner who bought home loan also lost amount.

[0008] There are institutional services for rent, sale of relatively stable illiquid assets like shares, real estate, bonds. Another well-known method consists of lease or rental of assets. This model takes possession of assets, also unexpected delay in lease or rent. Provision of loan is limited to above mentioned assets only. Illiquid assets are scattered assets, but institutional service is regional in nature. Regional restriction of their service cause gap in reaching adequate demand and it may cause devaluation of asset. They are bounded with rules, regulations, lot of paper works, high processing fees. Liquidity is provided by banks or high interest financial institutions, act with no decentralisation, trust less mechanism or community participation. Lack of community participation cause gap in demand and inadequate valuation of assets. There are platforms for sale, auction of personal illiquid assets. There are platforms for rent of illiquid assets at regional level. These are centralized platform with middlemen. Centralised platforms are affected by provision of liquidity only for limited type of assets. Provision of liquidity is for limited type of assets with transfer or possession of ownership by third party. Centralised platform faces regional restriction in providing service. Often inadequate valuation leads to less valuation. Centralised platform posts mostly sale auction of these assets with unspecified timeline. This is unsuitable for asset owner who only needs emergency liquidity without middlemen commission without transfer of ownership or possession.

[0009] Currently, the existing system of keeping illiquid asset like real estate as collateral and providing liquidity requires reform. Normally illiquid asset is kept as collateral for liquidity. Illiquid asset has unstable value, it requires unpredictable time for liquidity, cross border investment liquidity is difficult due to rules and regulations, also geopolitics can vastly affect value of illiquid asset like real estate as they are largely restricted by regional rules and regulations. Also, current system includes fractional ownership of assets asset management. It consists of tokenisation of assets, limited to real estate. For buyer there is no full privilege of buying assets. For asset owner getting back ownership from all these token buyers is a mammoth process. Tokenization of assets may be done based on blockchain based tokenisation of assets cannot convert physical “personal objects” to digital platform. Problems include -to confirm cross border authenticity of object of an asset owner, find future demand of object, also value of many assets is in the utility which cannot be utilised by blockchain based tokenisation of assets. Some efforts have been for major commodity like gold, real estate. Vast majority of physical assets which remain decentralised need advanced Al-community. Current blockchain based tokenisation of assets does not have proper legal compliance in state of liquidation of company.

[0010] Banks may not accept non marketable illiquid assets, intangible assets, derivative, commodity, utility items and personal belonging as collateral. Instead, Banks may offer non-collateral high interest personal loan. Asset owner is forced to a situation to take non collateral loan at high interest rate while he owns pile of illiquid asset. High interest loan means high equated monthly instalment (EMI), which unbalances debt payment and remaining income. The asset owner may be forced to take new loan to pay current high EMI. The asset owner sets into vicious cycle of debt trap. Gradually much of income gradually becomes just enough for pay check.

[0011] Illiquid asset is not the right one to keep as collateral. Traditional methods include sale of an asset from owner to asset buyer. Low demand of illiquid asset results in great loss while selling asset. Unexpected delay in selling asset. Once sold, asset owner no longer can use asset. Other than financial loss, owner is unable to use it in future, illiquid assets we focus are often personal belongings and utility items. So, it causes psychological trauma to sell belongings. So, it does not match requirement of asset owner.

[0012] There is a need for taking traction based insured loan which is advanced form of collateral loan with his illiquid assets leveraged by artificial intelligence to break vicious cycle of debt trap. There is problem with providing validity to assets since cryptocurrency itself is unregulated and hence lack validity. Tokenisation is based on cryptocurrency tokens which is volatile. There is no backing value for crypto tokens, also there is no real-world usage for cryptocurrency, Rug pull activity is quite common in crypto space. Also, a nonfungible token share is a common problem of tokenisation of assets.

[0013] Liquidity in present invention by insurance community and invest community is based on staking mechanism to bring stability in community Ecosystem involve leverage decentralised AL community for liquidation. Here illiquid asset is used as traction and insured value act as liquid asset, liquid asset act as collateral. It is justifiable because value of illiquid asset changes rapidly to market situations, so illiquid asset is converted to liquid asset, liquid asset act as traction to secure collective insured value which act as collateral. So, in adverse market situations insured value stabilises illiquid asset value. Unlike institutional loans, asset is not kept as collateral because owner does not like to do current sale of object or its future sale especially personal belonging.

[0014] Hence, there is a need a system and a method for liquidation of distributed illiquid assets with decentralized artificial intelligence which addresses the aforementioned issues.

[0015] OBJECTIVE OF THE INVENTION

[0016] Another objective of the present invention is to bypass the Bank and credit score system with illiquid asset-based valuation scoring and collateral loan on illiquid assets without keeping asset as collateral, instead illiquid assets are converted to liquid asset. Illiquid asset cause traction and acquired insurance amount act as liquid asset and hence collateral, so liquid insured value act as collateral for liquidity. Liquidity act as collateral without transfer of ownership or possession of assets.

[0017] Yet, an objective of the present invention is to validate, valuate and convert scattered illiquid asset to liquid digital asset by using Al model-based validation method. Further, an objective of the present invention is to provide a system and a method to convert scattered physical assets to digital assets to infuse into metaverse.

[0018] Furthermore, an object of the present invention is to provide the system that solves a buyer commitment issues and guarantee insurance to asset price in future by providing insurance.

[0019] Furthermore, an objective of the present invention is to provide a blockchain based system that has off chain legal agreement which is infused into blockchain.

[0020] BRIEF DESCRIPTION

[0021] In accordance with one embodiment of the disclosure a system for liquidation of distributed illiquid assets with decentralized artificial intelligence is provided. The system includes a processing subsystem is hosted on a server and configured to execute on a network to control bidirectional communications among a plurality of modules wherein the plurality of modules. The plurality of modules includes a verification module, a digital passbook module, a token module, an estimation module, an insurance community module, an invest community module, a trust community module, and a non-repayment module. The verification module is configured to verify an authenticity of a user via a plurality of user verification techniques. The plurality of user verification techniques includes at least one of a proxy fraud detection technique, a social media verification technique, and a video verification, document tamper detection technique. The verification module is also configured to verify the asset of the user using a plurality of asset verification techniques. The plurality of asset verification techniques includes at least one of an initial price of product, a live artificial intelligence visual image processing technique, a document tamper identification technique, a geographical trend in purchase, and a purchase history. The digital passbook module is operatively connected to the verification module and configured to generate a digital passbook in a blockchain upon authenticating the user. The verification module is also configured to display collective assets of the user for public view. Further, the verification module is configured to display a trust score of an illiquid asset and a collective amount limit for public view. The token module is operatively connected to the digital passbook module and the verification module. The token module is configured to generate a non-fungible token for the illiquid asset. The token module is also configured to deposit the non-fungible token in the digital passbook of the user upon the verification of asset. Further, the token module is configured to keep the non-fungible token in the escrow mode when owner applies for liquidity in a non-fungible token bank. The non-fungible token is a blockchain-based token representing a unique asset. The estimation module is operatively connected to the token module and configured to estimate a collective score and the asset of the user using an artificial intelligence model. The insurance community module is operatively connected to the estimation module and a token module. The insurance community module is configured to notify a plurality of insurance community members upon application of the asset for liquidity by the user. The insurance community module is also configured to enable the plurality of insurance community members to pledge a staked value to insured value by voting. Further, the insurance community module is configured to determine a final insured amount investment by adding the invested value of each interested insurance community member. Furthermore, the insurance community module is configured to determine the number of tokens issued to a plurality of communities using the artificial intelligence model. The invest community module is operatively connected to an insurance community module and the token module. The invest community module is configured to receive an investment from a invest community by buying liquidity tokens allotted insured by insurance community module. The invest community module is also configured to receive investment under an insured value by buying tokens allotted to invest community. The trust community module is operatively connected with the insurance community module. The trust community module is configured to provide a fixed ratio between initial price of a trust community and the invest community token using the artificial intelligence model. The trust community module is also configured to fix ratio using the artificial intelligence model upon calculating at least one of a repay capacity, a demand of asset, a pay check for asset owner. Further, the trust community module is configured purchase an individual token price by voting final liquidity price by the trust community for a floating token price. The non-repayment module is operatively connected with the trust community module and the invest community module. The non-repayment module is configured to analyse a condition and a cause of non-repayment. The cause of non-repayment is at least one of low income, high loan, a bottle neck in crisis. The non-repayment module is also configured to provide a plurality of options for temporary bottleneck situations, wherein the temporary bottleneck situations includes at least one of a reloan of current asset, keeping asset in physical escrow to raise insured value after the asset inspection by the insurance community. Further, the non-repayment module is configured to enable the user to submit additional illiquid assets if a loan amount is below the declared maximum collective score limit and apply for liquidity upon verifying additional illiquid assets. Furthermore, the non-repayment module is configured to enable the user to apply for liquidation of asset if the bottle neck is permanent and declining.

[0022] In accordance with another embodiment, a method for liquidation of distributed illiquid assets with decentralized artificial intelligence is provided. The method includes verifying, by a verification module of a processing subsystem, an authenticity of a user via a plurality of user verification techniques. The plurality of user verification techniques includes at least one of a proxy fraud detection technique, a social media verification technique, and a video verification technique. The method also includes verifying, by the verification module of the processing subsystem, the asset of the user using a plurality of asset verification techniques. The plurality of asset verification techniques includes at least one of an initial price of product, a live artificial intelligence visual image processing technique, a document tamper identification technique, a geographical trend in purchase, and a purchase history. Further, the method includes generating, by a digital passbook of the processing subsystem, a digital passbook in a blockchain upon authenticating the use. Furthermore, the method includes displaying, by the digital passbook of the processing subsystem, collective asset of the user for public view. Furthermore, the method includes displaying, by the digital passbook of the processing subsystem, a trust score and a collective amount limit for public view. Furthermore, the method includes generating, by the token module of the processing subsystem, a non- fungible token for an illiquid asset. Furthermore, the method includes depositing, by the token module of the processing subsystem, the non-fungible token in the digital passbook of the user upon the verification of asset. Furthermore, the method includes depositing, the non-fungible token in the escrow mode in a non-fungible token bank from digital pass book when asset owner applies for liquidity, wherein the non-fungible token is a blockchain-based token representing a unique asset. Furthermore, the method includes estimating, by an estimation module of the processing subsystem, a collective score of a credit score and the asset of the user using an artificial intelligence model. Furthermore, the method includes notifying, by an insurance community module of the processing subsystem, a plurality of insurance community members upon application of the asset for liquidity by the user. Furthermore, the method includes enabling, by the insurance community module of the processing subsystem, the plurality of insurance community members to pledge a staked value to insured value by voting. Furthermore, the method includes determining, by the insurance community module of the processing subsystem, a final insured value by adding the invested value of each interested insurance community member. Multiplier of insured amount is used as insured value; multiplier factor is decided by insurance community module after assessing collective asset value and trust score. Furthermore, the method includes determining, by the insurance community module of the processing subsystem, the number of liquidity tokens issued to a plurality of communities using the artificial intelligence model. Furthermore, the method includes receiving, by an invest community module of the processing subsystem, an investment from an invest community by buying liquidity tokens. The Liquidity tokens issued to the invest community are insured by the insurance community. Furthermore, the method includes receiving, by the invest community module of the processing subsystem, investment under an insured value by buying liquidity tokens allotted to invest community. Furthermore, the method includes providing, by a trust community module of the processing subsystem, a fixed ratio between initial price of a trust community and the invest community tokens under a fixed price token model using the artificial intelligence model. Furthermore, the method includes fixing, by the trust community module the processing subsystem, ratio using the artificial intelligence model upon calculating at least one of a repay capacity, a demand of asset, a pay check for asset owner. Furthermore, the method includes purchasing, by the trust community module of the processing subsystem, an individual token price by voting final liquidity price by the trust community for a floating token price. Furthermore, the method includes analysing, by a non-repayment module of the processing subsystem, a condition and a cause of non-repayment, wherein the cause of non-repayment is at least one of low income, high loan, a bottle neck in crisis. Furthermore, the method includes providing, by the non-repayment module of the processing subsystem, a plurality of options for temporary bottleneck situations. The temporary bottleneck situations include at least one of a reloan of current asset, keeping asset in physical escrow to raise insured value after the asset inspection by the insurance community. Furthermore, the method includes enabling, by the non-repayment module of the processing subsystem, the user to submit additional illiquid assets if a loan amount is below the declared maximum collective score limit and apply for liquidity upon verifying additional illiquid assets. Furthermore, the method includes enabling, by the non-repayment module of the processing subsystem, the user to apply for liquidation of asset if the bottle neck is permanent and declining.

[0023] To further clarify the advantages and features of the present disclosure, a more particular description of the disclosure will follow by reference to specific embodiments thereof, which are illustrated in the appended figures. It is to be appreciated that these figures depict only typical embodiments of the disclosure and are therefore not to be considered limiting in scope. The disclosure will be described and explained with additional specificity and detail with the appended figures.

[0024] BRIEF DESCRIPTION OF THE DRAWINGS The disclosure will be described and explained with additional specificity and detail with the accompanying figures in which:

[0025] FIG. 1 is a block diagram representing a system for liquidation of illiquid assets in accordance with an embodiment of the present disclosure;

[0026] FIG. 2 is a block diagram an exemplary embodiment for the system for liquidation of illiquid assets of FIG. 1 in accordance with an embodiment of the present disclosure;

[0027] FIG. 3 is a flow chart representing steps involved in the floating price mechanism of FIG. 1 in accordance with an embodiment of the present disclosure;

[0028] FIG. 4 is a flowchart representing steps involved in a process of keeping assets in a non-fungible token bank of FIG. 1 in accordance with an embodiment of the present disclosure;

[0029] FIG. 5 is a flowchart representing steps involved in a process of payment of loan of illiquid assets of FIG. 1 in accordance with an embodiment of the present disclosure;

[0030] FIG. 6 is flowchart representing steps involved in a workflow of the system for liquidation of illiquid assets of FIG. 1 in accordance with an embodiment of the present disclosure;

[0031] FIG. 7 is a block diagram of a computer or a server for a system for liquidation of illiquid assets of field in accordance with an embodiment of the present disclosure in accordance with an embodiment of the present disclosure;

[0032] FIG. 8a is a flow chart representing steps involved in a method for liquidating the illiquid assets in accordance with an embodiment of the present disclosure; and

[0033] FIG. 8b illustrates continued steps of the method of FIG. 8a in accordance with an embodiment of the present disclosure; and FIG. 8c illustrates continued steps of method of FIG. 8a and FIG. 8b in accordance with an embodiment of the present disclosure.

[0034] Further, those skilled in the art will appreciate that elements in the figures are illustrated for simplicity and may not have necessarily been drawn to scale. Furthermore, in terms of the construction of the device, one or more components of the device may have been represented in the figures by conventional symbols, and the figures may show only those specific details that are pertinent to understanding the embodiments of the present disclosure so as not to obscure the figures with details that will be readily apparent to those skilled in the art having the benefit of the description herein.

[0035] DETAILED DESCRIPTION

[0036] For the purpose of promoting an understanding of the principles of the disclosure, reference will now be made to the embodiment illustrated in the figures and specific language will be used to describe them. It will nevertheless be understood that no limitation of the scope of the disclosure is thereby intended. Such alterations and further modifications in the illustrated system, and such further applications of the principles of the disclosure as would normally occur to those skilled in the art are to be construed as being within the scope of the present disclosure.

[0037] The terms "comprises", "comprising", or any other variations thereof, are intended to cover a non-exclusive inclusion, such that a process or method that comprises a list of steps does not include only those steps but may include other steps not expressly listed or inherent to such a process or method. Similarly, one or more devices or sub-systems or elements or structures or components preceded by "comprises... a" does not, without more constraints, preclude the existence of other devices, sub-systems, elements, structures, components, additional devices, additional sub-systems, additional elements, additional structures, or additional components. Appearances of the phrase "in an embodiment", "in another embodiment" and similar language throughout this specification may, but not necessarily do, all refer to the same embodiment. Unless otherwise defined, all technical and scientific terms used herein have the same meaning as commonly understood by those skilled in the art to which this disclosure belongs. The system, methods, and examples provided herein are only illustrative and not intended to be limiting.

[0038] In the following specification and the claims, reference will be made to a number of terms, which shall be defined to have the following meanings. The singular forms “a”, “an”, and “the” include plural references unless the context clearly dictates otherwise.

[0039] Embodiments of the present disclosure relate to a system for liquidation of distributed illiquid assets with decentralized artificial intelligence. The system includes a processing subsystem is hosted on a server and configured to execute on a network to control bidirectional communications among a plurality of modules wherein the plurality of modules. The plurality of modules includes a verification module, a digital passbook module, a token module (NFT bank), an estimation module, an insurance community module, an invest community module, a trust community module, and a non-repayment module. The verification module is configured to verify an authenticity of a user via a plurality of user verification techniques. The plurality of user verification techniques includes at least one of a proxy fraud detection technique, a social media verification technique, and a video verification technique. The verification module is also configured to verify the asset of the user using a plurality of asset verification techniques. The plurality of asset verification techniques includes at least one of an initial price of product, a live artificial intelligence visual image processing technique, a document tamper identification technique, a geographical trend in purchase, and a purchase history. The digital passbook module is operatively connected to the verification module and configured to generate a digital passbook in a blockchain upon authenticating the user. The digital passbook module is also configured to display collective assets of the user for public view. Further, the digital passbook module is configured to display a trust score of an illiquid asset and a collective amount limit for public view. The token module is operatively connected to the digital passbook module and the verification module. The token module is configured to generate a non- fungible token for the illiquid asset. The token module is also configured to deposit the non-fungible token in the digital passbook of the user upon the verification of asset. Further, the token module is configured to keep the non-fungible token in the escrow mode in a non-fungible token bank upon applying for liquidity of asset. The non-fungible token is a blockchain-based token representing a unique asset. The estimation module is operatively connected to the token module and configured to estimate a collective score of a credit score and the asset of the user using an artificial intelligence model. The insurance community module is operatively connected to the estimation module and a token module. The insurance community module is configured to notify a plurality of insurance community members upon application of the asset for liquidity by the user. The insurance community module is also configured to enable the plurality of insurance community members to pledge a staked value to insured value by voting. Further, the insurance community module is configured to determine a final insured investment amount by adding the invested value of each interested insurance community member. Multiplier of final insured amount investment is used as insured value, multiplier factor is decided by insurance community module after assessing collective asset value and trust score Furthermore, the insurance community module is configured to determine the number of liquidity tokens issued to a plurality of communities using the artificial intelligence model. The invest community module is operatively connected to an insurance community module and the token module. The invest community module is configured to receive an investment from a invest community by buying the liquidity tokens. The invest community module is configured to receive investment under an insured value by buying tokens allotted to invest community. The trust community module is operatively connected with the insurance community module. Liquidity tokens issued to trust community are not insured. The trust community module is configured to provide a fixed ratio between initial price of a trust community and the invest community token price using the artificial intelligence model. The trust community module is also configured to fix ratio using the artificial intelligence model upon calculating at least one of a repay capacity, a demand of asset, a pay check for asset owner. Further, the trust community module is configured to purchase an individual token price by voting final liquidity price by the trust community for a floating token price, and the invest community module. The non-repayment module is configured to analyse a condition and a cause of nonrepayment. The cause of non-repayment is at least one of low income, high loan, a bottle neck in crisis. The non-repayment module is also configured to provide a plurality of options for temporary bottleneck situations, wherein the temporary bottleneck situations include at least one of a reloan of current asset, keeping asset in physical escrow to raise insured value after the asset inspection by the insurance community. Further, the non-repayment module is configured to enable the user to submit additional illiquid assets if a loan amount is below the declared maximum collective score limit and apply for liquidity upon verifying additional illiquid assets. Furthermore, the non-repayment module is configured to enable the user to apply for liquidation of asset if the bottle neck is permanent and declining.

[0040] FIG. 1 is a block diagram representing a system for liquidation of distributed illiquid assets with decentralized artificial intelligence in accordance with an embodiment of the present disclosure. The system (100) includes a processing subsystem (102), is hosted on a server (104) configured to execute on a network (106) to control bidirectional communications among a plurality of modules. In one embodiment, the server (104) may include a cloud server. In another embodiment, the server (104) may include a local server. In one embodiment, the network (106) may include a wired network such as a local area network (LAN). In another embodiment, the network (106) may include a wireless network such as Wi-Fi, Bluetooth, Zigbee, near-field communication (NFC), infrared communication (RFID), or the like. The plurality of modules includes a verification module (108), a digital passbook module (112), a token module or non-fungible token (NFT) bank) (116), an estimation module (118), an insurance community module (122), an invest community module (124), a trust community module (126), and a nonrepayment module (128). The verification module (108) is configured to verify an authenticity of a user (110) via a plurality of user verification techniques. The plurality of user verification techniques includes, but is not limited to, a proxy fraud detection technique, a social media verification technique, and a video verification technique.

[0041] The verification module (108) is also configured to verify one or more illiquid assets of the user (110) using a plurality of asset verification techniques. In one embodiment, the illiquid assets are the assets that cannot be quickly or easily converted into cash for their fair market value, for example ancient musical instruments, paintings, digital devices, utility items, luxury goods, personal belongings and the like. The plurality of asset verification techniques includes, but is not limited to, an initial price of product, a live artificial intelligence visual image processing technique, a document tamper identification technique, a geographical trend in purchase, and a purchase history.

[0042] The digital passbook module (112) is operatively connected to the verification module (108). The digital passbook module (112) is configured to generate a digital passbook in a blockchain (114) upon authenticating the user (110). The digital passbook module (112) is also configured to display the one or more illiquid assets of the user for public view. However, the credentials of the user are hidden from public view. In one embodiment, the detail of the digital passbook is hosted for public view in Web 3.0. Further, the digital passbook module (112) is configured to display a collective asset of the user, a trust score of an illiquid asset and a collective amount limit for public view. In one embodiment, the trust score is the overall measurement of the user’s credential satisfaction, based on all the service and location reviews, it is the trustworthiness of user. In one embodiment, the collective amount limit is the maximum limit for user to take loan using illiquid assets.

[0043] The token module (116) is operatively connected to the digital passbook module (112) and the verification module (108). In one embodiment, the token module (116) includes a non-fungible token bank (NFT bank). The token module (NFT bank) (116) is configured to generate a non-fungible token (NFT) for the one or more illiquid assets. Typically, the NFT represents the digital ownership of the one or more illiquid assets. The token module (116) is configured to also deposit the NFT in the digital passbook of the user upon the verification of one or more illiquid assets. In other words, the one or more illiquid assets are converted to digital identity in metaverse. In one embodiment, the system takes into account illiquid asset and link the illiquid assets with account of the user. So, there is linking of assets owned by the user with social media and thus linking of asset with metaverse, decentralised apps, finance activities, and the like. So along with presentation of social media, there is linking of assets which gives more authenticity to account user in metaverse. Because asset-based profile requires real world asset, its validation, valuation by Al - model (120) and building up of insured value. There is linking of asset with social media account to prevent duplication of assets. So, there is more of authenticity in metaverse compared to current systems, with proof of insured value or collective asset value.

[0044] In one embodiment, linking collective asset value to accounts to increase authenticity of user in in social media, metaverse, decentralised apps, finance activities. Collective asset value working as novel proof of work mechanism linking in authenticating person is not limited to just above-mentioned platforms. Prevent duplication of accounts in platforms by linking collective asset value and linking to blockchain (114). Collective asset value with insured value as main criteria for limiting extent of activity of user in social media, metaverse, decentralised apps, finance activities. Since insured value of assets act as collateral in performing activities in social media, metaverse, decentralised apps, finance activities. Using collective asset value and as the insured value and using insured liquid value as collateral value to illiquid asset is the suitable way of representation in metaverse.

[0045] Further, the digital passbook module (112) is configured to keep the non-fungible token in the escrow mode in a non-fungible token bank. The non-fungible token is a blockchain (114) -based token representing a unique asset. In one embodiment, the NFT is a unique digital identifier that is recorded on a blockchain (114) and is used to certify ownership and authenticity. The NFT may not be copied, substituted, or subdivided. In one embodiment, the blockchain (114) is a distributed database that maintains a continuously growing list of ordered records, called blocks. Blockchain (114) records information which is difficult to be changed, hacked, or manipulated.

[0046] The estimation module (118) is operatively connected to the token module (NFT bank) (116) and is configured to estimate a collective score of a credit score and the asset of the user (110) using an artificial intelligence model (120). The collective score is a sum of the total of illiquid assets that is converted into a score system. In order to calculate the score system, a plurality of parameters is analysed. Examples of the plurality of parameters includes, but is not limited to, type of illiquid asset, relative liquidity, damages, similar items in the market, spending nature of asset owner, purchase trends and authenticity of other illiquid assets.

[0047] The insurance community module (122) is operatively connected to the estimation module (118) and a token module (NFT bank) (116). The insurance community module (122) is configured to notify a plurality of insurance community members upon application of the asset for liquidity by the user (110). The insurance community module (122) is also configured to enable the plurality of insurance community members to pledge a staked value to insured value by voting. Further, the insurance community module (122) is configured to determine a final insured investment amount by adding the invested value of each interested insurance community member. Multiplier of final insured amount investment is used as insured value, multiplier factor is decided by insurance community module (122) after assessing collective asset value and trust score Furthermore, the insurance community module (122) is configured to determine the number of tokens issued to a plurality of communities using the artificial intelligence model (120). In one embodiment, the insurance community module (122) evaluates the value of the asset and declares the value of the insurance. The invest community module (124) is operatively connected to an insurance community module (122) and the token module (NFT bank) (116). The invest community module (124) is configured to receive an investment from a invest community by buying liquidity tokens. The invest community module (124) is also configured to receive investment under an insured value by buying tokens allotted to invest community.

[0048] In one embodiment, the investment community module (124) buys liquidity token up to the insured value based on the insurance coverage provided by the insurance community module (122).

[0049] The trust community module (126) is operatively connected with the insurance community module (122). The trust community (126) module is configured to provide a fixed ratio between initial price of a trust community and the invest community liquidity token using the artificial intelligence model (120). The trust community module (126) is also configured to fix ratio using the artificial intelligence model (120) upon calculating at least one of a repay capacity, a demand of asset, a pay check for asset owner. Further, the trust community module (126) is configured to provide a floating token price where higher a trust community member chooses the price of asset, higher will be token price and higher will be profited to token ratio and if trust community member chooses lower liquidity value, token price will be less, and profit will be also less. Further, the trust community module (126) is configured to enable the community members to decide a final liquidity price of the asset via voting.

[0050] A small portion of the illiquid tokens, herein referred to ‘trust community tokens’, are released to the trust community members. The price of the trust community tokens is not fixed; therefore, the final liquidity price of the asset is decided by the trust community. Consequently, the trust community members are allowed to contribute to a range so that the total amount will not exceed the future value calculated by the Al model. In one embodiment, consider the trust community module (126) with 15 tokens calculates a fixed ratio of price of liquidity tokens issued to invest and trust community. The trust community members analyse price of the asset, for example, if 10,000 is crowd funded and if the user thinks that the valuation of the asset may go above 10,000 (insured value), then the user may buy the trust community liquidity tokens (un insured). Whether trust community tokens to be fixed or floating is decided by artificial intelligence model.

[0051] In one embodiment, the insurance community module (122) may stake minimum amount to join insurance community. By vote and participation, the insurance community members pledge the staked amount to insure asset. Further, the insurance community module (122) is configured to determine a final insured investment amount by adding the invested value of each interested insurance community member. Multiplier of final insured amount investment is used as insured value; multiplier factor is decided by insurance community module after assessing collective asset value and trust score. It must be noted that more pledges during staking period indicates more profit for pledger. Further, a portion of interest charged goes to the insurance community.

[0052] The non-repayment module (128) is operatively connected with the trust community module (126) and the invest community module (124). The nonrepayment module (128) is configured to analyse a condition and a cause of nonrepayment, wherein the cause of non-repayment is at least one of low income, high loan, a bottle neck in crisis which can be temporary or permanent. The nonrepayment module (128) is also configured to provide a plurality of options for temporary bottleneck situations, wherein the temporary bottleneck situations include at least one of a reloan of current asset, keeping asset in physical escrow to raise insured value after the asset inspection by the insurance community. Further, the non-repayment module (128) is configured to enable the user to submit additional illiquid assets if a loan amount is below the declared maximum collective score limit and apply for liquidity upon verifying additional illiquid assets. Furthermore, the non-repayment module (128) is configured to enable the user to apply for liquidation of asset if the bottle neck is permanent and declining.

[0053] FIG. 2 is a block diagram an exemplary embodiment for the system for liquidation of illiquid assets of FIG. 1 in accordance with an embodiment of the present disclosure. The processing subsystem (102) includes the verification module (108), the digital passbook module (112), a token module (NFT bank) (116), an estimation module (118), an insurance community module (122), an invest community module (124), a trust community module (126), and a non-repayment module (128). In one embodiment, the verification module (108) is configured to upload photos and short video of an asset for verification. In one embodiment, the digital passbook module (112) is configured to generate a digital passbook based on zero knowledge proof concept of the blockchain (114). In one embodiment, the estimation module (118) is configured to find future estimated value of the asset using artificial intelligence model (120). In one embodiment, the insurance community module (122) is configured to receive an invested value for the asset from an interested insurance community member. In one embodiment, the insurance community module (122) is configured to perform following steps:

[0054] Analyse the authenticity of the asset, a future demand of the asset, average time required for liquidation of the asset and the authenticity of the documents of the asset.

[0055] Find future value of the asset, get insured value from secondary markets.

[0056] Provide insurance to the asset and calculate the total asset value.

[0057] Protect future value of asset. It also protects invest community amount including its interest.

[0058] In one embodiment, the non-repayment module (128) is configured to provide a plurality of options for the temporary bottleneck. In one embodiment, the processing subsystem (102) includes registration module (130) configured to register the user in the system and creating an account for the user (110). In one embodiment, the verification module (108) includes a physical asset verification of the illiquid assets by scanning uploaded videos of the asset with artificial intelligence model (120). The artificial intelligence model (120) verifies the asset using visual image processing, document tamper identification.

[0059] FIG. 3 is a flow chart (200) representing steps involved in the floating price mechanism of FIG. 1 in accordance with an embodiment of the present disclosure. In one embodiment, the floating price is a variable or adjustable rate, refers to any type of debt instrument, such as a loan, bond, mortgage, or credit, that does not have a fixed rate of interest over the life of the instrument. In one embodiment, the trust community is defined as organizations are designed to pool funds together to help fund projects in a community. In one embodiment, members of the trust community (202) decide the floating price (204) by analysing price of the asset (206). A user may choose high or low valuation (208). If the user as a seller chooses high valuations (210), then there may be higher token price, more liquidity, and more profit ratio (214). If the user as buyer selects low valuations (212), then there may be lower token price, low liquidity (216).

[0060] FIG. 4 is a flowchart (300) representing steps involved in a process of keeping assets in a non-fungible token bank of FIG. 1 in accordance with an embodiment of the present disclosure. Considering a non-limiting example, where a user registers in the system (100) by using the registration module (130). In one embodiment, the user (110) registers his / her contact number, mail Address (302). Then the user is verified by proxy fraud detection, social media verification. A purchase history of the user and a document tamper identification is performed. If the user wants a loan for his / her illiquid assets, the Al model (120) may put a maximum amount for the loan with a collective score. In one embodiment, the collective score is an objective form of a credit card score and it considers all types of assets possessed by the user, temporary or permanent neck bottle in future payment with Al model. A risk assessment with artificial intelligence model (120) with human intelligence backup is completed and a collective asset assessment is performed by using live Al visual image processing. A geographical trend in purchase is determined by using machine learning. The purchase history of the user is determined for suggesting the user similar products in future. A tampered documents identification (304) using the Al visual imaging. In one embodiment, one or more illiquid assets such as laptop is verified with non-fungible token (NFT) released by NFT bank to the user’s digital passbook (306). As the user wants the liquidity of his / her laptop, the user applies to NFT bank.

[0061] Considering that the Al model finds a future estimated value of the laptop as RS. 1,50,000 and the duration of the contract period is 2 years (308). Typically, the contract period is calculated to identify a bottleneck in payment using the Al model. A notification is sent to the insurance community of WEB3 platform (310). In one embodiment, WEB 3 platform is virtual platform where a group of people with shared ownership can meet. The community members vote and pledge their staked value to insured value. In one embodiment, 5 members and their total pledged value of Rs. 50,000, taking multiplier of 2 in this case after analysing trust score and collective asset value, 1,00,000 becomes the insured value. Rs. 85,000 is the principal amount Rs. 11,000 is the interest amount, Rs. 4000 is the insurance fee (312) total 1,00,000. Further, the insurance fee is insured.

[0062] After declaring the insured value, the Al model decides how many tokens to be issued to a trust and invest community. For the trust community the price may be a fixed price or floating price. High demand leads to high future growth objects which are usually given floating price trust community token. For the asset, 85 tokens may be issued with each token 1000, so total amount Rs. 85,000 (314). The illiquid asset may be more worth than Rs. 1,00,000 and the asset owner may get additional liquidity from the trust community (316).

[0063] In one embodiment, the asset owner is verified by artificial intelligence model with human intelligence back-up. After verification the digital passbook is issued in a private blockchain. The user account is created in the private blockchain. The NFT is issued by NFT bank and send to digital passbook. Physical asset verification is done by scanning uploaded videos with Al algorithm using visual image processing, document tamper identification. After verification of physical asset, NFT bank issues NFT, and the non-fungible token is sent to the digital passbook. When asset owner applies for liquidity then NFT is kept in escrow in NFT Bank. The NFT bank issue liquidity tokens and to the digital passbook.

[0064] In one embodiment, when the NFT is minted, the Al model finds future value from a plurality of secondary markets. The NFT then declares future value of the asset. The Insurance community members who have staked amount already may pledge by voting. The total pledged amount may become the insured value.

[0065] After creating account, the digital passbook is created in zero knowledge proof private blockchain. The collective score is analysed and an upper limit for the loan is fixed. The documents and images of the physical assets are uploaded in the system. With the help of Al visual imaging the tamper detection is performed to display digital identity and trust score of the asset.

[0066] Considering a non-limiting example, where 100 liquidity tokens are sent to the digital passbook. 15 tokens are sent to the trust community module, 85 tokens are sent to the investment community module, and a portion of interest is sent to the insurance community module.

[0067] FIG. 5 is a flowchart representing steps involved in a process of payment of loan of illiquid assets of FIG. 1 in accordance with an embodiment of the present disclosure. Consider a crisis wherein an asset owner (user) who cannot repay the full amount (502). Consequently, the crisis is analysed using an Al model to determine potential reasons and outcomes of the crisis for instance, low income, high EMI, duration of the crisis, possibility of the crisis being resolved or aggregated, possibility of a bottle neck and its impact and the like. Further, the Al model analyses the current amount with the maximum loan amount (502). Upon analysing, if there is a temporary dip in the income, then the bottleneck during the crisis would also be temporary (506). Alternatively, if there is a permanent dip in the income, then the bottleneck also declines (worsens) (508). This results in the liquidation of assets, if owner wishes to do so, liquidation of asset is the last option which at that point of time is still optional (514). If there is a permanent dip and the bottle neck worsening (508), then liquidation of asset (514) is done.

[0068] Liquidation of illiquid asset (514):

[0069] Insurance community compensates for loss of invested amount of invest community with profit. Then Illiquid asset is liquidated, if the asset owner has decline in income source, he / she does not want further financial obligations, he accepts to liquidate illiquid asset. Then asset is kept for sale after sending physical asset for escrow or digital agreement is made and asset is kept under custody of asset owner until asset is liquidated. If he took loan for 1,30,000 for future value of 1,50,000 and insured value of 1,00,000. Insurance community may cover l,00,000amount. 30,000 amount is for Trust community. If sale price is 1,40,000 then 1,00,000 may be paid to invest community, 30, 000 to trust community (20,000 is amount invested by Trust community and 30,000 at end of contract period). Remaining 10,000 may be given to asset owner. If recovery price is 1,10,000 then 96,000 may be sent to invest community 4,000 to insurance community and remaining 10,000 to trust community. Any deficit in payment to invest community is compensated by insurance community. Trust community amount is un insured. The NFT may be sent to null address, liquidity tokens will be recovered from community and send to null address.

[0070] Returning back to the temporary bottleneck in the crisis (506), the user may have additional assets (512) or may not have additional assets other than the laptop (510). In the case where the user has no other additional assets, then the user can apply for a reloan of his / her current assets or keep the asset in a physical escrow (516).

[0071] In other words, the temporary dip in income may be managed by applying for a reloan for the remaining income. For instance, if the asset owner paid Rs. 70,000 of due and remaining is Rs. 30,000, if income source dips during contract period. The asset owner may request the Al model to calculate to find bottle neck in payment, duration for which bottle neck exists. If dip is for short duration Al model may make reloan with more duration and less EMI for remaining due until anticipated duration of duration neck bottle is overcome.

[0072] Returning back to the scenario wherein the user has additional assets (512), then: keep additional assets in NFT bank.

[0073] If the loan amount is below the declared maximum loan limit (518), then by submitting and verifying other illiquid assets, the amount can be raised from Trust and invest community. The additional assets are verified and kept in digital escrow (522). Further, the collective limit may be increased and subsequently the same assets can be applied for liquidity. In one embodiment, when the loan amount is below the declared maximum loan limit, the amount is raised from the trust community and invest community by submitting and verifying the other illiquid assets.

[0074] On the other hand, if the loan limit reaches a maximum limit (520), then:

[0075] Keep additional assets in digital or physical escrow based on a lower score. A physical inspection is performed at this step (524).

[0076] After inspection there may be release of unrealized value (526). For example: if Rs 1,50,00 is current amount the user needs to pay 50,000. Therefore, the user requires an additional amount to pay the due immediately. Consequently, the additional assets are verified, and collective limit is raised to Rs 2,00,000. Now the user can apply for liquidity for added 50,000 worth of assets to pay due.

[0077] Rs. 1,50,000 is the future value of asset, amount taken so far is RS. 1,00,000. In one embodiment, the difference between amount raised and future value is unrealised value (50,000), if asset is sent for escrow either physical or digital escrow depending on trust score, using unrealised value as collateral, insurance community will inspect asset, raise its insured value. If Rs. 1,00,000 was the previous insured value, after inspection if eligible insured value will be raised to 1,50,000. 50,000 will be raised from invest community. Since asset is kept in escrow (physical or digital) and unrealised value is insurance covered. Unrealised value of asset act as collateral, collateral loan interest may be low so that financial neck bottle will be crossed.

[0078] FIG. 6 is a flow chart representing steps involved in a workflow of the system for liquidation of illiquid assets of FIG. 1 in accordance with an embodiment of the present disclosure. Considering a non-limiting example, where the user bought an illiquid asset for RS. 2 lakhs (602). After one year (in 2024) the user wishes to keep the illiquid asset for liquidity (604). A value of the illiquid asset is determined at the end of the contract period from secondary market using Al model (606). After one year the estimated price may be 1.5 lakhs (608). The members of the insurance community (610) pledge by staking. The total amount is taken as insurance value for example 50 thousand is total. The system declares maximum limit of the investment. The invest community (612) invests for example 1 lakh. If the trust community (614) thinks that the asset has more value, then the trust community buys trust community tokens. The token price is fixed (616) by the trust community. The fixed price is a fixed ratio between initial price of trust and invest community tokens. After fixing the token or floating price of the token is calculated by Artificial intelligence algorithm (618). In one embodiment, the token price is individualised in floating price, more the price at which token is bought, more is profit to buyer. If trust community member buys token by voting less final liquidity price, token price will be less, and profit ratio will be less.

[0079] FIG. 7 is a block diagram of a computer or a server for a system for liquidation of distributed illiquid assets with decentralized artificial intelligence in accordance with an embodiment of the present disclosure in accordance with an embodiment of the present disclosure. The server includes a processor(s) (702), and memory (706) operatively coupled to the bus (704). The processor(s) (702), as used herein, means any type of computational circuit, such as, but not limited to, a microprocessor, a microcontroller, a complex instruction set computing microprocessor, a reduced instruction set computing microprocessor, a very long instruction word microprocessor, an explicitly parallel instruction computing microprocessor, a digital signal processor, or any other type of processing circuit, or a combination thereof.

[0080] The bus (704) as used herein refers to be internal memory channels or computer network that is used to connect computer components and transfer data between them. The bus (704) includes a serial bus or a parallel bus, wherein the serial bus transmits data in a bit-serial format and the parallel bus transmits data across multiple wires. The bus (704) as used herein, may include but not limited to, a system bus, an internal bus, an external bus, an expansion bus, a frontside bus, a backside bus, and the like.

[0081] The memory (706) includes a plurality of subsystems and a plurality of modules stored in the form of an executable program which instructs the processor to the system illustrated in FIG. 1. The memory (706) is substantially similar for providing the system liquidation of illiquid assets of FIG.l. The memory (706) has submodules: modules a verification module (108), a digital passbook module (112), a token module (NFT bank) (116), an estimation module (118), an insurance community module (122), an invest community module (124), a trust community module (126), and a non-repayment module (128).

[0082] The verification module (108) is configured to verify an authenticity of a user (110) via a plurality of user verification techniques. The plurality of user verification techniques includes at least one of a proxy fraud detection technique, a social media verification technique, and a video verification technique.

[0083] The verification module (108) is also configured to verify the asset of the user (110) using a plurality of asset verification techniques. The plurality of asset verification techniques includes at least one of an initial price of product, a live artificial intelligence visual image processing technique, a document tamper identification technique, a geographical trend in purchase, and a purchase history;

[0084] The digital passbook module (112) is operatively connected to the verification module (108). The digital passbook module (112) is configured to generate a digital passbook in a blockchain (114) upon authenticating the user. The digital passbook module (112) is also configured to display collective asset of the user for public view. Further, the digital passbook module (112) is configured to display a trust score of an illiquid asset and a collective amount limit for public view.

[0085] The token module (NFT bank) (116) is operatively connected to the digital passbook module (112) and the verification module (108). The token module (116) is configured to generate a non-fungible token for the illiquid asset. The digital passbook module (112) is configured to also deposit the non-fungible token in the digital passbook of the user upon the verification of asset. Further, the digital passbook module (112) is configured to keep the non-fungible token in the escrow mode in a non-fungible token bank when asset owner applies for liquidity. The non- fungible token is a blockchain (114) based token representing a unique asset.

[0086] The estimation module (118) is operatively connected to the token module (116) and configured to estimate a collective score of a credit score and the asset of the user (110) using an artificial intelligence model (120).

[0087] The insurance community module (122) is operatively connected to the estimation module (118) and a token module (NFT bank) (116). The insurance community module (122) is configured to notify a plurality of insurance community members upon application of the asset for liquidity by the user (110). The insurance community module (122) is also configured to enable the plurality of insurance community members to pledge a staked value to insured value by voting. Further, the insurance community module (122) is configured to determine a final insured amount investment by adding the invested value of each interested insurance community member. Multiplier of final insured amount investment is used as insured value, multiplier factor is decided by insurance community module (122) after assessing collective asset value and trust score Furthermore, the insurance community module (122) is configured to determine the number of tokens issued to a plurality of communities using the artificial intelligence model (120).

[0088] The invest community module (124) operatively connected to an insurance community module (122) and the token module (116). The invest community module (124) is configured to receive an investment from a invest community by buying non-fungible tokens, in response to the invest community buying the tokens. The invest community module (124) is also configured to receive investment under an insured value by buying liquidity tokens allotted to invest community.

[0089] The trust community module (126) is operatively connected with the insurance community module (122). The trust community (126) module is configured to provide a fixed ratio between initial price of a trust community and the invest community token using the artificial intelligence model (120). The trust community (126) module is also configured to fix ratio using the artificial intelligence model (120) upon calculating at least one of a repay capacity, a demand of asset, a pay check for asset owner. Further, the trust community module (126) is configured to provide a floating token price where higher a trust community member chooses the price of asset, higher will be token price and higher will be profited to token ratio and vice versa, Further, the trust community (126) module is configured to enable the community members to decide a final liquidity price of the asset via voting.

[0090] The non-repayment module (128) is operatively connected with the trust community module (126) and the invest community module (124). The nonrepayment module (128) is configured to analyse a condition and a cause of nonrepayment, wherein the cause of non-repayment is at least one of low income, high loan, a bottle neck in crisis. The non-repayment module (128) is also configured to provide a plurality of options for temporary bottleneck situations, wherein the temporary bottleneck situations include at least one of a reloan of current asset, keeping asset in physical escrow to raise insured value after the asset inspection by the insurance community. Further, the non-repayment module (128) is configured to enable the user to submit additional illiquid assets if a loan amount is below the declared maximum collective score limit and apply for liquidity upon verifying additional illiquid assets. Furthermore, the non-repayment module (128) is configured to enable the user to apply for liquidation of asset if the bottle neck is permanent and declining.

[0091] Computer memory elements may include any suitable memory device(s) for storing data and executable program, such as read-only memory, random access memory, erasable programmable read-only memory, electrically erasable programmable read-only memory, hard drive, removable media drive for handling memory cards and the like. Embodiments of the present subject matter may be implemented in conjunction with program modules, including functions, procedures, data structures, and application programs, for performing tasks, or defining abstract data types or low-level hardware contexts. An executable program stored on any of the above-mentioned storage media may be executable by the processor(s) (702).

[0092] FIG. 8a is a flow chart representing steps involved in a method for liquidation of distributed illiquid assets with decentralized artificial intelligence in accordance with an embodiment of the present disclosure, FIG. 8b illustrates continued steps of the method of FIG. 8a in accordance with an embodiment of the present disclosure, and FIG. 8c illustrates continued steps of method of FIG. 8a and FIG. 8b in accordance with an embodiment of the present disclosure.

[0093] The method (800) involves an asset owner and a plurality of investment communities, such as a trust community, invest community and insurance community.

[0094] The method (800) includes verifying, by a verification module of a processing subsystem, an authenticity of a user via a plurality of user verification techniques, wherein the plurality of user verification techniques includes at least one of a proxy fraud detection technique, a social media verification technique, and a video verification technique in step (802). The method includes uploading photos and short video of an asset for verification. The method (800) also includes verifying, by the verification module of the processing subsystem, the asset of the user using a plurality of asset verification techniques, wherein the plurality of asset verification techniques includes at least one of an initial price of product, a live artificial intelligence visual image processing technique, a document tamper identification technique, a geographical trend in purchase, and a purchase history in step (804).

[0095] Further, the method (800) includes generating, by a digital passbook of the processing subsystem, a digital passbook in a blockchain upon authenticating the user in step (806). The method also includes generating a digital passbook based on zero knowledge proof concept of the blockchain.

[0096] Furthermore, the method (800) includes displaying, by the digital passbook of the processing subsystem, collective asset of the user for public view in step (808).

[0097] Furthermore, the method (800) includes displaying, by the digital passbook of the processing subsystem, a trust score and a collective amount limit for public view in step (810).

[0098] Furthermore, the method (800) includes generating, by the digital passbook of the processing subsystem, a non-fungible token for an illiquid asset in step (812). It must be noted that the price of the product is initially set by the user.

[0099] Furthermore, the method (800) includes depositing, by the digital passbook of the processing subsystem, the non-fungible token in the digital passbook of the user upon the verification of asset in step (814).

[0100] Furthermore, the method (800) includes keeping, by the digital passbook of the processing subsystem, the non-fungible token in the escrow mode in a non-fungible token bank, when asset owner applies for liquidity. Wherein the non-fungible token is a blockchain-based token representing a unique asset in step (816).

[0101] Furthermore, the method (800) includes estimating, by an estimation module of the processing subsystem, a collective score of a credit score and the asset of the user using an artificial intelligence model in step (818). The method also includes finding the future estimated value of the asset using artificial intelligence model.

[0102] Furthermore, the method (800) includes notifying, by an insurance community module of the processing subsystem, a plurality of insurance community members upon application of the asset for liquidity by the user (820). The method also includes receiving an insured value for the asset from an interested insurance community member.

[0103] Furthermore, the method (800) includes enabling, by the insurance community module of the processing subsystem, the plurality of insurance community members to pledge a staked value to insured value by voting in step (822).

[0104] Furthermore, the method (800) includes determining, by the insurance community module of the processing subsystem, a final insured value by adding the invested value of each interested insurance community member; (824)

[0105] Furthermore, the method (800) includes determining, by the insurance community module of the processing subsystem, the number of tokens issued to a plurality of communities using the artificial intelligence model in step (826).

[0106] Furthermore, the method (800) includes receiving, by the invest community module of the processing subsystem an investment from a invest community by buying the insured liquidity tokens in step (828).

[0107] Furthermore, the method (800) includes, receiving, by the invest community module of the processing subsystem, investment under an insured value by buying tokens allotted to invest community in step (830).

[0108] Furthermore, the method (800) includes providing, by a trust community module the processing subsystem, a fixed ratio between initial price of a trust community and the invest community token using the artificial intelligence model in step (832). Furthermore, the method (800) includes fixing, by the trust community module the processing subsystem, ratio using the artificial intelligence model upon calculating at least one of a repay capacity, a demand of asset, a pay check for asset owner in step (834).

[0109] Furthermore, the method (800) includes enabling, by the trust community module the processing subsystem, the community members to decide a final liquidity price of the asset via voting and buying individualised token price, in step (836).

[0110] Furthermore, the method (800) includes analysing, by a non-repayment module of the processing subsystem, a condition and a cause of non-repayment, wherein the cause of non-repayment is at least one of low income, high loan, a bottle neck in crisis in step (838). The method provides a plurality of options for the temporary bottleneck.

[0111] Furthermore, the method (800) includes providing, by the non-repayment module of the processing subsystem, a plurality of options for temporary bottleneck situations, wherein the temporary bottleneck situations include at least one of a reloan of current asset, keeping asset in physical escrow to raise insured value after the asset inspection by the insurance community in step (840).

[0112] Furthermore, the method (800) includes enabling, by the non-repayment module of the processing subsystem, the user to submit additional illiquid assets if a loan amount is below the declared maximum collective score limit and apply for liquidity upon verifying additional illiquid assets in step (842).

[0113] Furthermore, the method (800) includes enabling, by the non-repayment module of the processing subsystem, the user to apply for liquidation of asset if the bottle neck is permanent and declining in step (844).

[0114] The method also includes registering the user in the system and creating an account for the user. In one embodiment, verification module includes a physical asset verification by scanning uploaded videos with artificial intelligence model (120) using visual image processing, document tamper identification.

[0115] Various embodiments of the present disclosure provide a system and a method for liquidation of illiquid assets with low interest collateral loan on illiquid assets by using artificial intelligence (Al) communities. The system disclosed in the present disclosure bypasses the bank and credit score system without transfer of ownership or possession of assets. The Al model in the system disclosed in the present disclosure converts scattered illiquid asset to liquid digital asset. The converted liquid digital asset raises insurance amount. Insured amount is used as collateral and low interest collateral loan is provided by Al community bypassing banks. The verification module in system disclosed in the present disclosure provides security to the illiquid assets of the user.

[0116] While specific language has been used to describe the disclosure, any limitations arising on account of the same are not intended. As would be apparent to a person skilled in the art, various working modifications may be made to the method in order to implement the inventive concept as taught herein.

[0117] The figures and the foregoing description give examples of embodiments. Those skilled in the art will appreciate that one or more of the described elements may well be combined into a single functional element. Alternatively, certain elements may be split into multiple functional elements. Elements from one embodiment may be added to another embodiment. For example, the order of processes described herein may be changed and is not limited to the manner described herein. Moreover, the actions of any flow diagram need not be implemented in the order shown; nor do all of the acts need to be necessarily performed. Also, those acts that are not dependent on other acts may be performed in parallel with the other acts. The scope of embodiments is by no means limited by these specific examples.

Claims

I CLAIM:

1. A system (100) for liquidation of distributed illiquid assets with decentralized artificial intelligence comprising: characterized in that: a processing subsystem (102) hosted on a server (104), and configured to execute on a network (106) to control bidirectional communications among a plurality of modules wherein the plurality of modules comprises: a verification module (108) configured to: verify an authenticity of a user (110) via a plurality of user verification techniques, wherein the plurality of user verification techniques comprises at least one of a proxy fraud detection technique, a social media verification technique, and a video verification technique; and verify the asset of the user (110) using a plurality of asset verification techniques, wherein the plurality of asset verification techniques comprises at least one of an initial price of product, a live artificial intelligence visual image processing technique, a document tamper identification technique, a geographical trend in purchase, and a purchase history; a digital passbook module (112) operatively connected to the verification module (108) and configured to: generate a digital passbook in a blockchain (114) upon authenticating the user; display collective asset of the user (110) for public view; anddisplay a trust score of an illiquid asset and a collective amount limit for public view; a token module (116) operatively connected to the digital passbook module (112) and the verification module (108), wherein the token module (116) is configured to: generate a non-fungible token for the illiquid asset; and deposit the non-fungible token in the digital passbook of the user (110) upon the verification of asset; keep the non-fungible token in the escrow mode in a non- fungible token bank upon applying for liquidity, wherein the non- fungible token is a blockchain (114) -based token representing a unique asset; an estimation module (118) operatively connected to the token module (116) and configured to estimate a collective score of a credit score and the asset of the user (110) using an artificial intelligence model (120); an insurance community module (122) operatively connected to the estimation module (118) and a token module (116), wherein the insurance community module (122) is configured to: notify a plurality of insurance community members upon application of the asset for liquidity by the user (110); enable the plurality of insurance community members to pledge a staked value to insured value by voting; determine a final insured amount investment by adding the invested value of each interested insurance community member Multiplier of final insured amount investment is used as insured value, multiplier factor is decided by insurance community module(122) after assessing collective asset value and trust score and determine the number of tokens issued to a plurality of communities using the artificial intelligence model (120); an invest community module (124) operatively connected to an insurance community module (122) and the token module (116), wherein the invest community module (124) is configured to: receive investment from invest community by buying liquidity tokens allotted and insured by insurance community module (122); a trust community module (126) operatively connected with the insurance community module (122), wherein the trust community module (126) is configured to: provide a fixed ratio between initial price of a trust community token and the invest community token using the artificial intelligence model (120) for a fixed token price; fix ratio using the artificial intelligence model (120) upon calculating at least one of a repay capacity, a demand of asset, a pay check for asset owner; and purchase an individual token price by voting final liquidity price by the trust community for a floating token price; a non-repayment module (128) operatively connected with the trust community module (126) and the invest community module (124), wherein the non-repayment module (128) is configured to: analyse a condition and a cause of non-repayment, wherein the cause of non-repayment is at least one of low income, high loan, a bottle neck in crisis;provide a plurality of options for temporary bottleneck situations, wherein the temporary bottleneck situations comprise at least one of a reloan of current asset, keeping asset in physical escrow to raise insured value after the asset inspection by the insurance community; enable the user (110) to submit additional illiquid assets if a loan amount is below the declared maximum collective score limit and apply for liquidity upon verifying additional illiquid assets; and enable the user (110) to apply for liquidation of asset if the bottle neck is permanent and declining.

2. The system (100) as claimed in claim 1, wherein the verification module (108) is configured to upload photos and short video of an asset for verification.

3. The system (100) as claimed in claim 1, wherein the digital passbook module (112) is configured to generate a digital passbook based on zero knowledge proof concept of the blockchain (114).

4. The system (100) as claimed in claim 1, wherein the estimation module (118) is configured to find future estimated value of the asset using artificial intelligence model (120).

5. The system (100) as claimed in claim 1, wherein the insurance community module (122) is configured to receive an invested value for the asset from an interested insurance community member.

6. The system (100) as claimed in claim 1, wherein the non-repayment module (128) is configured to provide a plurality of options for the temporary bottleneck.

7. The system (100) as claimed in claim 1, wherein the processing subsystem (102) comprises registration module (130) configured to register the user (110) in the system and creating an account for the user (110).

8. The system (100) as claimed in claim 1, wherein the verification module (108) comprises a physical asset verification by scanning uploaded videos with artificial intelligence model (120) using visual image processing, document tamper identification.

9. The system (100) as claimed in claim 1, wherein the token module (116) comprises a non-fungible token bank.

10. A method (800) for liquidation of distributed illiquid assets with decentralized artificial intelligence comprising: characterized in that: verifying, by a verification module of a processing subsystem, an authenticity of a user via a plurality of user verification techniques, wherein the plurality of user verification techniques comprises at least one of a proxy fraud detection technique, a social media verification technique, and a video verification technique; (802) verifying, by the verification module of the processing subsystem, the asset of the user using a plurality of asset verification techniques, wherein the plurality of asset verification techniques comprises at least one of an initial price of product, a live artificial intelligence visual image processing technique, a document tamper identification technique, a geographical trend in purchase, and a purchase history; (804) generating, by a digital passbook of the processing subsystem, a digital passbook in a blockchain upon authenticating the user; (806)displaying, by the digital passbook of the processing subsystem, collective asset of the user for public view; (808) displaying, by the digital passbook of the processing subsystem, a trust score and a collective amount limit for public view; (810) generating, by the digital passbook of the processing subsystem, a non- fungible token for an illiquid asset; (812) depositing, by the digital passbook of the processing subsystem, the non- fungible token in the digital passbook of the user upon the verification of asset; (814) keeping, by the digital passbook of the processing subsystem, the non- fungible token in the escrow mode in a non-fungible token bank, wherein the non- fungible token is a blockchain-based token representing a unique asset; (816) estimating, by an estimation module of the processing subsystem, a collective score of a credit score and the asset of the user using an artificial intelligence model; (818) notifying, by an insurance community module of the processing subsystem, a plurality of insurance community members upon application of the asset for liquidity by the user; (820) enabling, by the insurance community module of the processing subsystem, the plurality of insurance community members to pledge a staked value to insured value by voting; (822) determining, by the insurance community module of the processing subsystem, a final insured value by adding the invested value of each interested insurance community member; (824)determining, by the insurance community module of the processing subsystem, the number of tokens issued to a plurality of communities using the artificial intelligence model; (826) receiving, by an invest community module of the processing subsystem, an investment from a invest community by buying the insured liquidity tokens; (828) receiving, by the invest community module of the processing subsystem, investment under an insured value by buying tokens allotted to invest community; (830) providing, by a trust community module of the processing subsystem, a fixed ratio between initial price of a trust community and the invest community tokens under a fixed price token model using the artificial intelligence model; (832) fixing, by the trust community module of the processing subsystem, ratio using the artificial intelligence model upon calculating at least one of a repay capacity, a demand of asset, a pay check for asset owner; (834) purchasing, by the trust community module of the processing subsystem, an individual token price by voting final liquidity price by the trust community for a floating token price; (836) analysing, by a non-repayment module of the processing subsystem, a condition and a cause of non-repayment, wherein the cause of non-repayment is at least one of low income, high loan, a bottle neck in crisis; (838) providing, by the non-repayment module of the processing subsystem, a plurality of options for temporary bottleneck situations, wherein the temporary bottleneck situations comprise at least one of a reloan of current asset, keeping asset in physical escrow to raise insured value after the asset inspection by the insurance community; (840)enabling, by the non-repayment module of the processing subsystem, the user to submit additional illiquid assets if a loan amount is below the declared maximum collective score limit and apply for liquidity upon verifying additional illiquid assets; (842) and enabling, by the non-repayment module of the processing subsystem, the user to apply for liquidation of asset if the bottle neck is permanent and declining.

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