Secure Identifier Integration with Dual Ledgers for Tokenized Real Estate
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Solution Overview
Problem
Existing platforms for trading digital securities representing real assets face challenges in maintaining transaction privacy and efficiency, particularly in complying with securities regulations and managing capitalization tables manually.
Innovation Solution
A transaction platform with semi-redundant ledgers that synchronize automatically, including a primary ledger for confidential data and a secondary ledger for public record, enabling anonymous trading of tokenized real estate assets while maintaining compliance and automating capitalization table updates.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Loss of information
If a single public ledger is used for trading digital securities, then transparency and public record are improved, but transaction privacy and confidentiality deteriorate
Solution Approach 1:
The patent divides the ledger system into two separate ledgers: a public ledger for transparent recording of transactions and a private ledger for confidential storage of personally identifiable information (PII). This segmentation allows the system to simultaneously achieve transaction transparency and privacy protection by storing different types of data in appropriate locations - transaction hashes and asset transfers on the public ledger, while buyer/seller identities remain on the private ledger.
2Productivity
If manual capitalization table management is used, then flexibility and customization are improved, but efficiency and productivity deteriorate
Solution Approach 1:
The patent implements an automated capitalization table system that self-updates through smart contract integration. When transactions occur on the platform, the system automatically detects these transactions and updates the capitalization table without requiring manual intervention. This self-service approach dramatically improves productivity by eliminating repetitive manual updates while the systematic automation manages the complexity through standardized processes.
3Reliability
If centralized transaction management is used, then control and security are improved, but scalability and network distribution deteriorate
Solution Approach 1:
The patent employs a nested architecture where a centralized transfer agent system operates within the broader decentralized blockchain network. The transfer agent provides centralized control for security-critical functions like PII management and capitalization table maintenance, while the blockchain layer provides decentralized scalability for transaction processing. This nested structure allows the system to leverage both centralized security and decentralized scalability simultaneously.
Data Source
AI summary
In certain aspects of the disclosure, a computer-implemented method includes creating a wallet for asset tokens and creating an account for a first user upon completion of user onboarding validation. The method includes associating the account with one of an individual and a business entity. The method includes initiating one of know-your-customer (KYC) for the individual and know-your-business (KYB) for the business entity. The method includes enabling the first user to access and make transactions using the wallet.