Digital Asset Modeling with Consent Functions
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Solution Overview
Problem
Existing closed, centrally administered ledgers for digital assets, obligations, and transactions are opaque, error-prone, and lack comprehensive protection for financial institutions, leading to oversight challenges and potential fraud, which has deterred institutional investors from adopting distributed ledger systems.
Innovation Solution
The implementation of a digital asset modeling system using the Digital Asset Modeling Language (DAML) that includes await and agree functions for consent-based disposition and agreement recording, along with an append-only ledger for storing results, providing flexibility and transparency in digital asset transactions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If a distributed digital ledger system is implemented, then transparency and security of digital asset transactions are improved, but device complexity and difficulty of operation increase
Solution Approach 1:
The patent introduces an intermediary layer (the digital asset modeling system with await and agree functions) that sits between the complex distributed ledger technology and the users/institutions. This intermediary abstracts the complexity by providing high-level constructs for consent-based operations, while still leveraging the transparency and security benefits of the underlying distributed ledger system.
Solution Approach 2:
The system segments the complex distributed ledger functionality into manageable components: asset modeling, await functions for conditional operations, agree functions for consent management, and append-only ledger for recording. This segmentation makes the system more operable by breaking down the complexity into distinct, understandable parts.
2Adaptability or versatility
If consent-based await and agree functions are implemented, then flexibility and institutional protection are improved, but device complexity increases
Solution Approach 1:
The await and agree functions introduce dynamic, state-based control to the system. Assets can be placed in await states with multiple possible outcomes, and agree functions dynamically manage consent requirements. This dynamic approach provides flexibility for different institutional needs while maintaining a relatively simple core model built on standard distributed ledger operations.
Data Source
AI summary
A system and method are provided for modeling and interpreting a modeled digital asset and its evolution with respect to the rights of a plurality of parties, the method comprising: executing an await function instance no more than once using one of at least one choice defined therein for disposition of the digital asset with respect to the rights of at least one of the plurality of parties, said await function instance incorporated upon the consent of the affected parties to fulfil a configured function instance associated with the at least one choice; executing an agree function instance that requires the consent of at least one of the plurality of parties to execute; and storing the results of the executed function instances in an append-only ledger.