Cryptographically Signed DAO Contracts Without Blockchain Consensus
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Solution Overview
Problem
Existing decentralized autonomous organizations (DAOs) and token systems face challenges in integrating legal contracts with smart contracts, requiring global consensus mechanisms, and lack interoperability and transparency, making them incompatible with traditional legal frameworks and environmentally unsustainable.
Innovation Solution
Implement an interoperable agent-based organization (IABO) using cryptographically signed contracts in JSON-LD format, managed by software agents, which are self-validating and non-repudiable, and recorded on decentralized audit trails without relying on blockchain consensus algorithms, allowing for human-readable and legally enforceable agreements.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Extent of automation
If blockchain consensus algorithms are used to establish DAOs and smart contracts, then decentralized governance and automation are achieved, but energy consumption increases and environmental sustainability deteriorates
Solution Approach 1:
The patent extracts the essential function of consensus (validating and recording agreements) from the energy-intensive blockchain consensus mechanism. It separates the consensus function from the ledger maintenance function, allowing agreements to be validated through cryptographic signatures without requiring global consensus algorithms like proof-of-work or proof-of-stake, thereby dramatically reducing energy consumption while maintaining decentralized governance
Solution Approach 2:
The patent introduces an intermediary layer of cryptographically signed agreements that act as mediators between parties. Instead of requiring direct blockchain consensus for every interaction, signed agreements serve as trusted intermediaries that encode governance rules and automate execution, reducing the need for energy-intensive consensus operations while preserving decentralized control
2Reliability
If traditional legal contracts are integrated with smart contracts, then legal enforceability is achieved, but system complexity increases and interoperability deteriorates
Solution Approach 1:
The patent creates a universal agreement framework using JSON-LD format that can simultaneously serve as both a legally enforceable contract and a machine-executable smart contract. The standardized structure with defined contexts and vocabulary allows the same document to be interpreted by both legal systems and computational systems, eliminating the need for separate legal and technical contract layers and reducing overall system complexity
Solution Approach 2:
The patent changes the parameter of contract representation from separate formats (legal text and code) to a unified structured format (JSON-LD). This parameter change allows the contract to maintain human-readable legal language while incorporating machine-interpretable structures, enabling both legal enforceability and automated execution without increasing complexity
3Reliability
If cryptographic signatures are used to validate contracts, then non-repudiation and transparency are achieved, but integration with traditional financial systems becomes difficult
Solution Approach 1:
The patent uses JSON-LD structured agreements as intermediaries that bridge cryptographic validation and traditional financial systems. The standardized format with defined contexts acts as a translator layer, allowing cryptographically signed agreements to be interpreted and executed by traditional financial infrastructure without requiring deep integration of blockchain-specific protocols
Solution Approach 2:
The patent segments the contract validation process into distinct layers: cryptographic signature validation, JSON-LD structure verification, and business logic execution. This segmentation allows each layer to be handled independently, with the cryptographic layer providing non-repudiation while the structured data layer enables compatibility with traditional systems through standardized interfaces
Data Source
AI summary
A method for facilitating decentralized autonomous organizations (DAOs) includes, using one or more computer processors, receiving, from each of a plurality of parties, one or more inputs. Based on the inputs a contract is established between and among the parties providing governance for a DAO. A hash of the contract is generated. Cryptographic signatures are added to the hash from each party, establishing a cryptographically signed hash validating a finalized contract, the cryptographically signed hash including the hash and the cryptographic signatures. The cryptographically signed hash is provided to each of the parties. The finalized contract or an additional contract may allow the parties to purchase and sell tokens associated with the DAO using software agents. Apparatuses for facilitating DAOs are configured for performing the methods. In implementations the contract facilitates ownership and exchange of one or more nonfungible tokens (NFTs) instead of or in addition to governing a DAO.