Blockchain Token Linking for Luxury Goods Traceability
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Existing methods for managing rights associated with luxury goods, such as timepieces and jewelry, struggle to ensure traceability and authenticity once the products are on the market, as documentation relies on voluntary participation from owners.
Innovation Solution
A method utilizing blockchain protocols to create digital tokens for ownership and access rights, linked by a smart contract, ensuring that ownership rights on one token cannot be transferred without corresponding rights on another token, thereby maintaining traceability and authenticity.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If a register is maintained manually relying on voluntary participation from owners, then the system is simple to operate, but traceability and authenticity cannot be guaranteed once the product is on the market
Solution Approach 1:
The patent introduces a blockchain-based intermediary system that automatically records and verifies ownership transfers and access rights. The blockchain acts as a neutral mediator between object owners and the register, ensuring traceability and authenticity without requiring voluntary participation from owners. Each transaction is immutably recorded on the blockchain, providing reliable traceability while the automated nature of the system manages the complexity.
Solution Approach 2:
The system enables self-service through automated blockchain validation and smart contract execution. When ownership transfers or access rights are granted, the blockchain automatically updates the register without human intervention. This self-service mechanism ensures traceability and authenticity are maintained automatically, resolving the contradiction between reliability and operational simplicity.
2Adaptability or versatility
If multiple digital tokens are created for different rights (ownership and access), then rights management becomes more comprehensive, but the system complexity increases
Solution Approach 1:
The patent segments rights into distinct digital tokens: ownership tokens and access right tokens. Each token type serves a specific function, allowing comprehensive rights management. The segmentation is managed through smart contracts that automatically link these tokens to the same object, reducing the perceived complexity by providing clear separation of concerns while maintaining comprehensive control.
Solution Approach 2:
The patent merges multiple tokens (ownership and access rights) through smart contracts that link them to the same object identifier. This merging ensures that rights are managed cohesively - for example, transferring ownership automatically transfers associated access rights. The smart contract acts as a unifying mechanism that manages the complexity of multiple tokens while providing versatile rights management.
3Reliability
If smart contracts are used to link rights on digital tokens, then transferability control is improved, but the automation extent increases system complexity
Solution Approach 1:
The smart contracts implement feedback mechanisms that automatically monitor and control token transfers. When an ownership token is transferred, the contract automatically updates access right tokens and verifies the transfer conditions. This feedback loop ensures reliable transferability control while the automated nature of the contract manages the complexity of coordination between multiple tokens.
Solution Approach 2:
The smart contracts perform preliminary actions by pre-defining transfer rules and conditions before actual transfers occur. The contracts are programmed with logic that automatically enforces rights management policies, ensuring reliable control over token transfers. This preliminary configuration approach manages complexity by establishing clear rules upfront rather than managing complex real-time coordination.
Data Source
AI summary
The method for managing rights associated with an object (1), such as a timepiece (1) or an item of jewellery, includes creating a first digital token associated with a first right, in particular the right of ownership, to the object, the first digital token being stored and authenticated using a first blockchain protocol; creating a second digital token, in particular a non-fungible digital token, associated with a second right, in particular a right of access to digital content, in particular multimedia content, associated with the object, the second digital token being stored and authenticated using a second blockchain protocol: creating a smart contract binding the rights to the first and second digital tokens such that the right of ownership to one of the first and second digital tokens cannot be transferred without the right of ownership to the other of the first and second digital tokens.