Digital Asset Provenance Tags for Low-Cost Title Verification
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Solution Overview
Problem
Existing systems face challenges in verifying the authenticity and provenance of assets, especially for lower-value goods, leading to potential losses from counterfeit items and inefficiencies in title transfer processes.
Innovation Solution
A distributed ledger system using decentralized ledger technology and pegged sidechains to store hashed metadata or smart contracts, tracking asset provenance through digital asset provenance tags that include unique identifiers, authentication information, and ownership history, ensuring secure and transparent title transfer.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If conventional due diligence methods (appraisal and title search) are used to verify asset authenticity and ownership, then verification reliability is improved, but transaction cost increases significantly
Solution Approach 1:
The patent creates a digital copy (token) representing the asset on the blockchain, which contains all verification information. Instead of performing expensive physical appraisals and title searches, the system verifies the digital token's authenticity and ownership history on the blockchain, dramatically reducing verification costs while maintaining reliability.
Solution Approach 2:
The system performs verification actions in advance by recording asset provenance, authentication information, and ownership history in the blockchain before the transaction occurs. This preliminary recording eliminates the need for costly due diligence at the time of transaction, as all verification data is already available on the distributed ledger.
2Measurement precision
If conventional verification methods are applied to all assets, then authentication accuracy is improved, but scalability deteriorates
Solution Approach 1:
The patent replaces manual verification processes (mechanical systems involving human appraisers and title searchers) with automated blockchain-based verification. The distributed ledger automatically validates asset authenticity and ownership through cryptographic proofs, maintaining high authentication accuracy while enabling scalable automation across numerous transactions.
Solution Approach 2:
The blockchain system provides a universal verification mechanism that can handle diverse asset types (physical goods, digital assets, real estate) through a single platform. The same blockchain infrastructure and smart contract mechanisms serve multiple verification functions, achieving both high authentication accuracy and broad scalability across different asset classes.
3Object-affected harmful factors
If detailed asset provenance tracking is implemented, then counterfeiting prevention is improved, but system complexity increases
Solution Approach 1:
The blockchain acts as an intermediary layer between the physical asset and the verification system. Instead of directly tracking complex physical asset histories, the system records simplified but sufficient provenance data (authentication info, ownership chain) in the blockchain. This intermediary representation prevents counterfeiting through cryptographic verification while keeping the system manageable through standardized data structures.
Data Source
AI summary
Medium, method and system for a distributed ledger system for recording asset provenance and titling information. The distributed ledger may store information that can be used to tie a particular digital asset provenance tag to an associated asset such as a serial number or other identifying indicia. The digital asset provenance tag may further store information regarding the provenance of the asset in question, including the history of the production and previous ownership of the asset. Thus, a prospective purchaser of the asset can confirm that the asset is what it is purported to be and that the seller is actually the owner of the asset prior to purchase.