Blockchain Licensing Tokens for Flexible Usage Management
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Solution Overview
Problem
Current application licensing models are inflexible, requiring licenses per user and limiting concurrent usage, making it difficult for organizations to manage fluid workforces and for vendors to track usage data, which hinders cross-selling and upselling opportunities.
Innovation Solution
Implementing a blockchain-based system using licensing tokens (BlueKeys) that allows for flexible licensing by enabling token floating across users and time, allowing usage validation and tracking, and enabling granular license usage monitoring.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If traditional per-user licensing is used, then license control is simplified, but flexibility and usage optimization are reduced
Solution Approach 1:
The patent segments the licensing system into distinct components: licensing tokens (BlueKeys) that represent individual license units, a blockchain ledger that tracks token distribution, and smart contracts that enforce licensing rules. This segmentation allows flexible license management while maintaining system control through modular architecture.
Solution Approach 2:
The patent introduces licensing tokens as an intermediary between the licensing authority and end users. These tokens serve as a neutral medium that enables flexible license allocation, transfer, and tracking without requiring direct complex interactions between all system participants, thus improving flexibility while managing complexity.
2Adaptability or versatility
If licenses are tied to specific users, then usage tracking is straightforward, but workforce fluidity and sharing are limited
Solution Approach 1:
The patent creates universal licensing tokens that can be used across multiple users and applications. Each BlueKey token represents a license that can be transferred between users, shared across applications, and tracked centrally on the blockchain, enabling workforce fluidity while maintaining comprehensive usage data through the immutable ledger.
Solution Approach 2:
The blockchain-based licensing system implements continuous feedback by automatically tracking and recording every license issuance, transfer, and usage event on the distributed ledger. This provides real-time visibility into license utilization patterns, enabling organizations to optimize allocation while maintaining workforce flexibility.
3Productivity
If vendors restrict usage data access, then security is maintained, but cross-selling and upselling opportunities are reduced
Solution Approach 1:
The blockchain acts as a trusted intermediary that enables secure data sharing between vendors and customers. The immutable ledger allows vendors to access verified usage data for business development purposes while maintaining security through cryptographic protection and decentralized verification, eliminating the need for trusted centralized data access.
Solution Approach 2:
The licensing system enables automatic usage tracking and reporting through smart contracts that self-execute and record transactions on the blockchain. This self-service mechanism provides vendors with access to usage data for identifying cross-selling opportunities without requiring manual data sharing or compromising security through centralized access points.
Data Source
AI summary
A system and method for using blockchain for flexible application licensing are presented. A licensing token, from a pool of licensing tokens, is provided using a transactional database based on blockchain protocols for using an application. Usage of each application may be validated according to the one or more licensing tokens using the transactional database.