Public Gold Register Using Blockchain for Secure Ownership Transfer
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Solution Overview
Problem
Current methods for owning, storing, and trading physical gold and other precious metals face significant risks and complexities, including authenticity verification, security, storage, and compliance with international regulations, making it difficult for individuals and institutions to manage and transfer these assets safely and efficiently.
Innovation Solution
A system utilizing secure storage facilities, blockchain technology, and a public register to certify, track, and transfer precious metals, ensuring quality verification, secure movement, and compliance with regulations, allowing for seamless international transactions and ownership documentation.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If physical gold is stored in a bank or secure facility, then security and protection from theft is improved, but complexity of withdrawal and transportation increases
Solution Approach 1:
The patent creates digital copies (tokens) representing physical gold assets. These tokens can be transferred electronically without physical movement of gold, simplifying withdrawal and transportation while maintaining security through controlled access to the underlying physical assets.
Solution Approach 2:
The patent introduces a digital platform and tokenization system as an intermediary between physical gold storage and ownership transfer. This intermediary layer enables seamless transactions and withdrawals without direct physical handling, reducing complexity while maintaining security through the intermediary's control mechanisms.
2Adaptability or versatility
If physical gold is transported internationally, then ownership transfer capability is improved, but compliance with regulations and security risks increase
Solution Approach 1:
The patent uses digital tokens as copies representing physical gold, enabling international ownership transfer through electronic transactions. This eliminates the need for physical transportation and associated regulatory compliance, while maintaining full ownership transfer capability through the digital platform.
Solution Approach 2:
The patent replaces the mechanical system of physical gold transportation with an electronic digital token transfer system. This substitution eliminates compliance with transportation regulations and security risks associated with physical movement, while maintaining ownership transfer functionality through digital means.
3Difficulty of detecting and measuring
If physical gold authenticity is verified manually, then detection capability is improved, but time and complexity of verification increase
Solution Approach 1:
The patent creates digital tokens with embedded verification data representing physical gold assets. These digital copies contain all necessary authentication information, enabling instant verification without manual inspection of physical gold, thus reducing verification time while maintaining detection capability.
Solution Approach 2:
The patent performs authentication and verification actions in advance when the digital token is created and registered in the system. This preliminary verification eliminates the need for time-consuming manual authentication during transactions, as the digital token already contains verified authenticity information.
Data Source
AI summary
A Secure Environment Public Register (SEPR) provides a method and system that allows precious metals in the shape of bar(s) or units to be certified, specially numbered to provide exact linkage to an owner, allow secure movement of precious metals between secure facilities, and though Blockchain allow secure transfer of ownership between individuals and organizations. The SEPR allows gold and other precious metals to be easily held and traded in commerce with all the advantages of holding precious metals. The SEPR system allows exact audits of the metal bars on hand and avoids over-selling units since each bar is serialized and ownership is documented in a public register.