Secure Contingency-Action Token Processing for Life Insurance
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Solution Overview
Problem
Global enterprise operations face challenges in communicating, manipulating, and enhancing data related to financial affairs, including refreshing asset bases, unlocking untapped asset value, and rapidly retitling new or re-spun assets, which are exacerbated by the increasing velocity and volume of data communication.
Innovation Solution
A communication system that supports secure digital asset representation reconfiguration and reassignment through a method involving a legacy system, augmentation systems, conversion and transactional servers, and control servers to determine desired financial attributes, facilitate acquisition of augmenting asset bundles, and enhance the financial system by manipulating and reassigning assets using blockchain-encoded rived longevity-contingent instruments.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If traditional asset management systems are used, then existing financial operations can be maintained, but the system cannot efficiently handle increasing data velocity and volume for asset reconfiguration
Solution Approach 1:
The patent segments the asset representation into discrete digital tokens that can be independently manipulated, transferred, and reconfigured. This tokenization approach enables parallel processing of multiple asset operations simultaneously, dramatically increasing reconfiguration speed without proportionally increasing system complexity.
Solution Approach 2:
The patent introduces a blockchain-based intermediary layer that mediates asset transactions and reconfigurations. This intermediary provides a standardized protocol for asset representation and transfer, enabling efficient processing of complex asset operations without requiring direct integration between all system components.
2Reliability
If secure asset reassignment is implemented, then financial security is improved, but processing time and operational complexity increase
Solution Approach 1:
The patent implements preliminary verification of asset ownership and transfer authorization before initiating the actual asset transfer. Digital signatures and cryptographic proofs are prepared in advance, allowing the actual asset reassignment to execute rapidly once verification is complete, thus maintaining security while reducing overall processing time.
Solution Approach 2:
The patent replaces traditional mechanical security verification processes with cryptographic methods. Digital signatures, hash functions, and blockchain consensus mechanisms provide secure verification that operates at the speed of data processing rather than the speed of manual or mechanical verification, significantly reducing processing time while enhancing security.
3Reliability
If blockchain technology is used for asset representation, then security and traceability are enhanced, but system complexity and computational requirements increase
Solution Approach 1:
The patent creates simplified digital representations (tokens) of complex blockchain assets. These tokens replicate the essential security and traceability properties of blockchain technology while being much simpler to manipulate, transfer, and integrate into existing financial systems, effectively copying the beneficial properties without the full complexity.
Solution Approach 2:
The patent designs a universal token standard that can represent multiple types of financial assets (securities, commodities, currencies) within a single system framework. This multi-functional approach allows the system to handle diverse asset classes without requiring separate complex infrastructure for each asset type, reducing overall system complexity.
Data Source
AI summary
A method executed by a computing device includes selecting a contingency-action token (CAT) of an object distributed ledger that meets minimum CAT requirements. The method further includes facilitating taking control of the selected CAT of a blockchain of the object distributed ledger using a securely passing process and determining that a triggered outcome is valid. The method further includes updating the CAT to indicate resolution of a life insurance investment utilization to produce an updated CAT. The method further includes causing generation of a new block affiliated with the updated CAT via the blockchain of the object distributed ledger using the securely passing process, where the new block includes the updated CAT.