Temporary Asset Unit Control via Blockchain Smart Contracts
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Solution Overview
Problem
Current blockchain technology lacks efficient mechanisms for distributing temporary control of discrete units of an asset, leading to inefficiencies and functional limitations in asset transfer and lease processes.
Innovation Solution
Utilizing blockchain technology to tokenize assets into smaller units, enabling secure, instant, and cost-effective lease transactions through decentralized ledgers, allowing seamless execution on various electronic devices and compliance with securities laws, with smart contracts managing asset distribution and value modulation.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If blockchain technology is used to distribute temporary control of discrete units, then transaction security and accessibility are improved, but device complexity and technological restrictions increase
Solution Approach 1:
The patent segments assets into discrete units or tokens that can be individually controlled and transferred on the blockchain. This segmentation allows temporary control of specific units without transferring full asset ownership, resolving the contradiction by enabling secure transactions while maintaining manageable complexity through modular asset representation
Solution Approach 2:
The patent introduces smart contracts as intermediary mechanisms that automatically enforce lease terms and control asset access. These self-executing contracts act as mediators between parties, providing security through automated verification while reducing the need for complex manual verification processes
2Ease of operation
If traditional asset transfer processes are used, then process simplicity is maintained, but time consumption and paperwork increase
Solution Approach 1:
The patent implements self-service mechanisms through smart contracts that automatically execute lease agreements, transfer control of asset units, and enforce terms without manual intervention. This automation maintains simplicity for users while dramatically reducing time consumption by eliminating manual paperwork and verification steps
Solution Approach 2:
The patent uses preliminary action by pre-programming all lease terms, conditions, and execution logic into smart contracts before deployment. This preliminary configuration enables instant execution of transactions without requiring subsequent manual processing, reducing time consumption while keeping the user interface simple
3Adaptability or versatility
If asset control is transferred temporarily to multiple entities, then financial accessibility is improved, but control management complexity increases
Solution Approach 1:
By dividing assets into discrete units, the patent enables multiple entities to hold and control different units simultaneously. Each unit can be independently leased or transferred, improving financial accessibility while the modular structure keeps control management manageable through clear, unit-based tracking
Solution Approach 2:
The patent implements dynamic control where smart contracts automatically adjust access rights and control permissions based on lease terms and conditions. This dynamic management allows flexible temporary control to multiple entities while the automated system handles complexity, keeping the user experience simple
Data Source
AI summary
Described herein are various embodiments of methods and systems for distributing temporary control of an asset. For example, a method can include receiving an indication of an execution of a transfer of temporary control between a granting entity and a receiving entity of a unit of an asset comprising a plurality of units. Transaction data comprising a duration of the temporary control of the unit can be received and recorded in a distributed ledger of a blockchain network. Logic and rules corresponding to conditions of transfer of the temporary control of the unit of the asset can be identified. The method can include receiving a granting entity authentication key and determining whether the transaction data meet the logic and the rules of the conditions of transfer.