Digital Asset Self-Custody Storage With Smart Contract Verification
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Solution Overview
Problem
Conventional digital asset storage systems rely on custodians, leading to legal complexities, delays, and risks of asset loss or unrecoverability, and lack user-centric, secure, and accessible storage solutions.
Innovation Solution
A system that enables self-depositing and storing digital assets using a processor-based platform with modules for user registration, identity verification, smart contracts, and secure vault storage, minimizing custodian involvement and ensuring user ownership and accessibility.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If conventional digital asset storage systems use custodians to oversee storage and retrieval, then legal requirements and contractual frameworks are established, but this results in delays in data storage and increases the risk of asset loss or unrecoverability
Solution Approach 1:
The patent extracts the custodian role entirely from the digital asset storage system, replacing it with a self-custody model where users directly control their assets through cryptographic keys and smart contracts. This eliminates the intermediary that causes delays while maintaining security through decentralized protocols.
Solution Approach 2:
The system implements self-service storage where users independently manage their digital assets without custodian intervention. Automated smart contracts handle verification and transfer, enabling users to store and retrieve assets immediately without waiting for custodian processing or contractual negotiations.
2Reliability
If custodians are used to manage digital assets, then contractual agreements can be established, but this creates legal complexities and potential bankruptcy risks that may make assets unrecoverable
Solution Approach 1:
The patent removes the custodian intermediary entirely, replacing legal contracts with cryptographic proofs and smart contract enforcement. This extracts the source of legal complexity while maintaining asset recoverability through immutable blockchain records and automated verification protocols.
Solution Approach 2:
The system replaces the mechanical/legal system of custodians and contracts with a cryptographic and automated system. Smart contracts encode rights and obligations directly in code, eliminating the need for legal interpretation and reducing complexity while improving reliability through automated enforcement.
3Productivity
If digital assets are pooled together from multiple entities like a bank, then storage efficiency is improved, but this generates further risks and delays for the party requiring storage
Solution Approach 1:
The patent segments digital assets into individually addressable units with dedicated cryptographic controls. Instead of pooling assets together where risks are shared and mixed, each asset maintains its own security envelope and verification path, allowing efficient storage while isolating risks to individual assets rather than the entire pool.
Data Source
AI summary
Systems for securely self-depositing and storing digital assets. One such system May include a processor disposed in connection with a memory having computer-readable instructions stored thereon and configured to execute a storage system. The storage system itself may comprise an initiation module, a verification module, a bailee module, a contracting module, a vault module, and a withdrawal module. The verification module may comprise a whitelisting submodule. The processor may be configured to execute a storage system via a software application configured to be executed on a memory of a client device, the software application operative to: register a user; verify the identity of the user; receive at least one digital asset; execute at least one smart contract between the user and the custodian; store the at least one digital asset according to the at least one smart contract; and return the at least one digital asset to the user.