Model Evolution Workflow With Feedback Threshold Publishing
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Solution Overview
Problem
Existing systems lack an efficient and compliant platform for creating and trading digital securities representing real assets, such as real estate, while maintaining transaction privacy and compliance with securities regulations.
Innovation Solution
A transaction platform with semi-redundant ledgers that synchronize automatically, allowing for the creation and trading of digital securities, maintaining a private record of personally identifiable information and a public or private blockchain record without disclosing PII, and facilitating fractional ownership through smart contracts.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If digital securities are created and traded on a blockchain platform, then investment opportunities for retail investors are unlocked and trading efficiency is improved, but transaction privacy and compliance with securities regulations become difficult to maintain
Solution Approach 1:
The system segments the blockchain ledger into two distinct components: a public ledger that records transaction hashes and asset transfers, and a private ledger that stores personally identifiable information (PII) and compliance data. This segmentation allows the public ledger to maintain high trading efficiency and transparency, while the private ledger ensures regulatory compliance and privacy protection by isolating sensitive information.
Solution Approach 2:
The patent introduces an intermediary validation service that acts as a mediator between the blockchain network and regulatory requirements. This service validates transactions against securities regulations, performs KYC/AML checks, and ensures compliance without disrupting the efficiency of the blockchain trading process. The intermediary layer bridges the gap between decentralized trading and centralized regulatory oversight.
2Loss of information
If personally identifiable information is stored on a public blockchain, then transaction transparency is improved, but privacy protection deteriorates
Solution Approach 1:
The system divides the ledger into public and private segments. The public ledger stores only transaction hashes, asset identifiers, and transfer information without PII, maintaining transparency while protecting privacy. The private ledger stores all personally identifiable information, compliance data, and sensitive transaction details, accessible only to authorized parties. This segmentation resolves the contradiction by ensuring that transparency and privacy serve different purposes in different parts of the system.
Solution Approach 2:
The patent extracts personally identifiable information from the public blockchain ledger and places it in a separate private storage system. This extraction removes the harmful element (privacy exposure) from the transparent public ledger, allowing the public ledger to maintain full transparency for transaction verification without compromising individual privacy. The PII is taken out and stored separately with restricted access.
3Reliability
If manual compliance verification processes are used, then regulatory adherence is improved, but operational complexity and time consumption increase
Solution Approach 1:
The system implements self-service compliance verification through automated validation services that perform KYC (Know Your Customer), AML (Anti-Money Laundering), and securities regulation checks automatically. The blockchain smart contracts self-verify transaction compliance based on pre-programmed regulatory rules, eliminating the need for manual compliance officer review for each transaction. This automation maintains high regulatory adherence while significantly reducing operational complexity and processing time.
Solution Approach 2:
The patent incorporates feedback mechanisms where the validation service continuously monitors blockchain transactions and automatically adjusts compliance verification based on detected patterns and risk assessments. The system provides real-time feedback on transaction compliance status, enabling automated decision-making and reducing manual intervention. This feedback loop maintains regulatory adherence through continuous monitoring while simplifying operations through automation.
Data Source
AI summary
In certain aspects of the disclosure, a computer-implemented method includes receiving a selection of a model from a plurality of models running on an ecosystem. The method includes receiving annotated datasets with correct examples and incorrect examples. The method includes training, responsive to receiving the annotated datasets, the model based on the annotated datasets. The method includes running the model based on the training. The method includes receiving a feedback score of results from running the model based on the annotated datasets. The method includes iteratively running, until the feedback score is above a predetermined threshold, the model responsive to user evaluation of the results from running the model based on the annotated datasets. The method includes publishing the model responsive to the feedback score being above the predetermined threshold.