Contingent Asset Ledger With Authenticity-Based Risk Validation
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Solution Overview
Problem
Existing computer systems lack efficient methods for representing and managing contingent assets, particularly in transactions where asset valuation is subject to contingencies, such as liabilities that may be fulfilled at a later date, leading to uncertainties in risk assessment and transaction processes.
Innovation Solution
A computing system that utilizes environment sensors to gather data, authenticates contingent assets, determines risk levels, negotiates listings, and facilitates transactions through a blockchain-based system, enabling secure and transparent management of contingent assets from creation to settlement.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If traditional asset representation methods are used for contingent assets, then the system structure remains simple, but transaction risks and valuation uncertainties increase
Solution Approach 1:
The patent introduces a contingency manager as an intermediary component that mediates between the asset representation and the blockchain system. This manager handles the complex contingency logic and risk assessment, allowing the core system to remain relatively simple while achieving reliable transaction risk assessment through the specialized intermediary layer.
Solution Approach 2:
The patent segments the contingent asset representation into distinct components: the base asset data, the contingency conditions, and the risk assessment layer. This segmentation allows each component to be managed independently, improving reliability of risk assessment without requiring complete system redesign.
2Reliability
If comprehensive risk assessment is implemented for contingent assets, then transaction certainty improves, but processing time and system complexity increase
Solution Approach 1:
The patent performs preliminary risk assessment and contingency validation when the contingent asset is first created and listed. By conducting risk assessment upfront rather than during each transaction, the system achieves high transaction certainty without repeating complex processing for every subsequent transaction, thus reducing time loss.
Solution Approach 2:
The system implements feedback mechanisms where risk assessment results are stored and reused for subsequent transactions involving the same contingent asset. This feedback approach maintains high transaction certainty while avoiding redundant processing, as the system can reference previously established risk profiles and contingency validations.
3Reliability
If blockchain-based representation is used for contingent assets, then transfer security and transparency improve, but system complexity and implementation difficulty increase
Solution Approach 1:
The contingency manager serves as an intermediary that handles the complex blockchain interactions for contingent assets. It manages the integration between the contingent asset data model and the blockchain system, ensuring secure and transparent transfers while isolating the complexity from the core asset management functions.
Solution Approach 2:
The patent uses digital representations and data models that copy the essential features of contingent assets into the blockchain system. Rather than implementing the full complexity of real-world contingent asset management directly on blockchain, the system creates simplified digital copies that capture the necessary security and transparency properties while reducing implementation complexity.
Data Source
AI summary
A method includes an object owner computing entity issuing a digital record representing a contingent asset to a marketplace computing entity that identifies an asset authenticity computing entity. The method further includes the asset authenticity computing entity generating an authenticity indicator associated with the contingent asset and the marketplace computing entity determining that the authenticity indicator is the same as a lifecycle status indictor of the digital record. The method further includes the marketplace computing entity generating a smart contract to indicate availability of the contingent asset to include available terms and the authenticity indicator and obtaining a portion of a copy of an object distributed ledger. The method further includes the marketplace computing entity causing inclusion of a next block on the object distributed ledger that includes the smart contract to represent the contingent asset.