Distributed Database Timed Asset Transfer
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Solution Overview
Problem
Current transaction mechanisms, such as time price differentials and legal remedies, incur friction costs due to risks of non-payment and default, which are not effectively addressed by existing technologies.
Innovation Solution
The development of distributed database systems, specifically using cryptographically signed data to replicate and transfer ownership of assets on a temporal or conditional axis, enabling the creation of timed and conditional assets that eliminate default risks and reduce friction costs.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If time price differential is used to address non-payment risk, then vendor risk compensation is improved, but transaction cost increases
Solution Approach 1:
The patent segments the payment obligation into two distinct timed assets: one representing the present value to be transferred immediately, and another representing the future value to be transferred after the credit period. This segmentation eliminates the need for interest premiums while maintaining clear ownership definitions and payment timing, thereby reducing transaction costs while preserving vendor risk compensation through the timed asset structure.
2Reliability
If legal mechanisms are used to address non-payment risk, then vendor remedy is improved, but friction cost increases
Solution Approach 1:
The patent replaces the mechanical/legal system of contracts and court remedies with a cryptographic/digital system. Timed assets are created and transferred using cryptographic signatures and distributed ledger technology, which automatically enforces payment terms without requiring legal intervention. This substitution eliminates friction costs associated with legal mechanisms while maintaining vendor remedies through the immutable record and automatic execution capabilities of the timed asset system.
3Ease of operation
If traditional payment mechanisms are used, then transaction simplicity is maintained, but default risk remains
Solution Approach 1:
The patent applies preliminary action by creating timed assets that are pre-programmed with specific transfer conditions and timestamps before the transaction is executed. The timed assets are created in advance with clear definitions of when and how transfers should occur, eliminating the need for complex contracts and reducing default risk while maintaining transaction simplicity. The preliminary creation of timed assets ensures that payment obligations are automatically enforced without requiring additional operational complexity.
Data Source
AI summary
Data representing ownership of a traditional asset of a first party having a predefined monetary value stored at a first party network node is replicated to a plurality of other party network nodes, including a second party network node, communicably coupled to the first party network node and to one another. Entry of data is received at the first party network node that represents a partition by the first party of the asset of the first party on a non-value axis into at least two non-overlapping assets and a transfer of ownership of one of those two assets to the second party. The data representing the partition of the non-value axis and transfer of ownership of one of the two non-overlapping assets to the second party is replicated to the plurality of other party nodes, including the second party network node.