Private Credit Settlement Ledger for Fractional Asset Compliance
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Solution Overview
Problem
Existing systems for investing in real assets, such as real estate, require large initial and ongoing financial sums and involve complex compliance with securities regulations, limiting individual investor participation and efficiency.
Innovation Solution
A transaction platform with semi-redundant ledgers that facilitate the creation and trading of digital securities representing fractional interests in real assets, using synchronized public and private ledgers to maintain transaction records while ensuring anonymity and compliance, and automate capitalization table updates.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If digital securities representing fractional interests in real assets are traded on a traditional platform, then accessibility for retail investors is improved, but compliance complexity and regulatory burden increase
Solution Approach 1:
A blockchain-based intermediary platform is introduced between retail investors and real assets. This platform tokenizes real assets into digital securities and manages compliance automatically through smart contracts, reducing the regulatory burden on individual investors while maintaining accessibility.
Solution Approach 2:
The system implements automated compliance verification and transaction validation through smart contracts that self-execute based on predefined regulatory rules. This self-service mechanism reduces manual compliance oversight while enabling retail investor participation in previously restricted investment opportunities.
2Reliability
If synchronized semi-redundant ledgers are used to maintain transaction records, then transaction integrity is improved, but system complexity increases
Solution Approach 1:
The system implements different types of ledgers with specialized functions: permissionless ledgers for public transparency and permissioned ledgers for private transaction details. Each ledger type is optimized for its specific purpose, maintaining transaction integrity while managing complexity through functional differentiation.
Solution Approach 2:
The ledger system is segmented into multiple independent but synchronized components. Each ledger operates semi-independently with defined synchronization protocols, allowing the system to maintain high reliability through redundancy while managing complexity through modular architecture.
3Productivity
If automated validation and settlement services are implemented, then processing efficiency is improved, but computational resource requirements increase
Solution Approach 1:
The system performs preliminary validation of transactions against compliance rules and asset parameters before settlement execution. Smart contracts pre-verify transaction validity, reducing the computational burden during actual settlement processing and improving overall efficiency.
Solution Approach 2:
The automated validation system implements feedback loops where transaction outcomes are verified and recorded on ledgers, which then feed back into the validation process. This continuous feedback mechanism improves processing efficiency by learning from past transactions while managing computational resources through optimized validation algorithms.
Data Source
AI summary
In certain aspects of the disclosure, a computer-implemented method includes receiving an initial order based on a user input. The method includes mapping out correct steps from the initial order to settlement. The method includes validating instructions at each step. The method includes recording data pertaining to permit the settlement of the transaction.