Secure Token Contingent Asset Risk Valuation
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Solution Overview
Problem
Existing computer systems lack an efficient method for risk analysis and valuation of contingent assets, which are liabilities that become obligations only if certain conditions are met.
Innovation Solution
A computing system that utilizes a blockchain-based framework to assess and update the risk level of contingent assets, facilitating their listing, sale, and payment processes by integrating risk analysis with smart contracts and non-fungible tokens.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Measurement precision
If traditional asset valuation methods are used for contingent assets, then the process is simpler, but the accuracy and reliability of risk assessment deteriorates
Solution Approach 1:
The patent segments the contingent asset valuation process into distinct components: creating digital representations of contingent assets, establishing risk parameters, generating secure tokens with embedded risk levels, and updating tokens as conditions change. This segmentation allows for precise risk assessment through systematic analysis of individual factors while maintaining manageable system complexity through modular processing.
Solution Approach 2:
The patent introduces secure tokens as intermediary objects that mediate between the contingent asset conditions and the valuation process. These tokens encapsulate risk parameters and asset information, serving as a bridge that enables accurate risk assessment without requiring direct complex analysis of all underlying asset conditions at each valuation point.
2Reliability
If blockchain technology is integrated for risk analysis, then transparency and security improve, but system complexity and computational requirements worsen
Solution Approach 1:
The patent creates secure tokens that serve multiple functions simultaneously: they represent the contingent asset, encode risk parameters, enable transferability, and provide audit trails through blockchain integration. This multi-functionality reduces the need for separate systems for each function, thereby improving reliability while managing overall system complexity through consolidation.
Solution Approach 2:
The patent creates digital representations (copies) of contingent assets in the form of secure tokens on the blockchain. These token copies capture the essential risk parameters and asset information without requiring the actual asset to be physically moved or complex real-time monitoring of the original asset, thereby enhancing security and transparency while controlling computational requirements.
3Measurement precision
If continuous risk monitoring and token updates are implemented, then valuation accuracy improves, but processing time and computational resources worsen
Solution Approach 1:
The patent implements periodic updates of secure tokens based on changes in asset conditions or passage of time, rather than continuous monitoring. The system can be configured to update tokens at specific intervals or when predetermined conditions are met, maintaining valuation accuracy through regular updates while avoiding the excessive processing time and computational resources that would result from continuous real-time monitoring.
Data Source
AI summary
A method executed by a computing entity includes obtaining a transaction token representing a first pending transaction associated with a transaction item and establishing a set of required public benefit asset information for subsequent acquisition of a set of public benefit credit assets based on the first pending transaction. The method further includes identifying, using a securely passing process, a secure first token on an object distributed ledger representing the set of public benefit credit assets based on the set of required public benefit asset information. The method further includes establishing, in accordance with the securely passing process, control over the secure first token representing the set of public benefit credit assets to produce an updated secure first token, where only a device possessing control over the secure first token may modify the secure first token.