Blockchain Contingent Asset Tokenization via Smart Contracts
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Solution Overview
Problem
Current computer systems lack an efficient method for securely and transparently managing contingent assets throughout their lifecycle, particularly in valuing and transferring contingent assets, which are liabilities that become noncontingent upon satisfaction of specific conditions, leading to uncertainties in risk assessment and payment facilitation.
Innovation Solution
A computing system utilizing a blockchain-based framework to create, manage, and transfer contingent assets, where a smart contract and non-fungible tokens are used to represent asset ownership and payment obligations, ensuring transparent and secure transactions by recording all transactions and updates on a distributed ledger.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If traditional asset management systems are used to manage contingent assets, then the system structure is simple, but security and transparency of transactions are insufficient
Solution Approach 1:
The patent introduces a blockchain-based intermediary layer that mediates contingent asset transactions. The blockchain network acts as a trusted third party, recording all transactions immutably and providing transparent verification without requiring complex centralized trust mechanisms. This resolves the contradiction by enhancing security and transparency through the blockchain intermediary while maintaining relatively simple participant interfaces.
Solution Approach 2:
The patent creates digital copies of contingent assets in the form of tokens on the blockchain. These token representations replicate the essential attributes and transfer rights of the underlying assets, enabling secure and transparent tracking of asset lifecycle events. The copying approach enhances reliability through immutable digital records while keeping the physical asset management relatively simple.
2Reliability
If blockchain-based framework is implemented to manage contingent assets, then security and transparency are enhanced, but system complexity increases
Solution Approach 1:
The patent implements a universal blockchain framework that handles multiple contingent asset types and transaction scenarios through a single standardized system. The smart contract templates and token structures are designed to be multi-functional, accommodating diverse asset classes (receivables, inventory, equipment) while maintaining consistent security and transparency mechanisms. This reduces the effective complexity by avoiding the need for separate specialized systems for different asset types.
Solution Approach 2:
The patent utilizes configurable parameters within the blockchain framework to adapt to different contingent asset scenarios. By changing parameters such as token metadata, smart contract conditions, and transaction rules rather than restructuring the entire system, the framework maintains security and transparency while managing complexity through parameterization rather than structural complexity.
3Productivity
If smart contracts and non-fungible tokens are used to represent asset ownership, then payment facilitation is improved, but implementation complexity increases
Solution Approach 1:
The patent implements smart contracts with pre-defined payment conditions and token structures before contingent asset transactions occur. The smart contracts contain pre-programmed logic for payment triggering based on contingency events, eliminating the need for complex manual payment processing and verification during actual transactions. This preliminary structuring improves payment efficiency while containing implementation complexity through upfront configuration.
Solution Approach 2:
The patent enables the contingent asset system to serve itself through automated smart contract execution and token transfer mechanisms. When contingency conditions are met, the smart contracts automatically trigger payment processes and update ownership records without requiring complex external intervention. This self-service capability improves payment productivity while reducing the complexity of external coordination and manual processes.
Data Source
AI summary
A method includes a computing entity issuing to an asset authenticity computing entity a request to select and authenticate a digital record that represents an available public benefit credit asset based on a digital record representing a hypothetical public benefit credit asset to produce a selected public benefit credit asset. The method further includes determining that authenticity information associated with the selected public benefit credit asset indicates that the selected public benefit credit asset matches the hypothetical public benefit credit asset. The method further includes generating a smart contract to indicate availability of the selected public benefit credit asset and obtaining a copy of an object distributed ledger. The method further includes causing inclusion of a next block on the object distributed ledger that includes the smart contract to represent the selected public benefit credit asset.