Stable Value Digital Assets for Blockchain Payment and Supply Control
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Solution Overview
Problem
Current blockchain technology lacks adequate solutions for making payments (interest, dividends, royalties) and modifying the supply of stable value digital assets tied to a blockchain network.
Innovation Solution
A system and method for issuing and managing stable value digital assets (SVCoin) collateralized by fiat currency, using smart contracts and a trusted entity, to facilitate payments and supply modifications on a blockchain.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If blockchain technology is used to issue digital assets, then decentralization and security are improved, but the ability to make payments (interest, dividends, royalties) and modify supply is insufficient
Solution Approach 1:
The patent introduces a smart contract as an intermediary layer between the blockchain and the digital asset issuance system. This smart contract enables payment distributions (interest, dividends, royalties) and supply modifications while maintaining the decentralized security of the blockchain. The intermediary handles the complex payment logic and supply management that native blockchain technology lacks.
2Adaptability or versatility
If stable value digital assets are issued on blockchain, then decentralization is improved, but payment mechanisms and supply management become complex
Solution Approach 1:
The smart contract is designed as a universal platform that handles multiple functions including payment distributions (interest, dividends, royalties), supply modifications, and asset management. By consolidating these diverse functions into a single multi-functional contract, the system achieves decentralization without proportionally increasing complexity.
Solution Approach 2:
The patent utilizes configurable parameters within the smart contract to manage different aspects of digital asset issuance. By changing parameters such as payment rates, distribution schedules, and supply limits, the system can adapt to different requirements without modifying the underlying complex infrastructure, thus managing complexity through parameterization.
Data Source
AI summary
The present invention generally relates to the use of stable value digital assets and/or fiat-backed digital assets as cryptocurrencies that can be linked to other digital assets using blockchain technology and/or through a peer-to-peer network. In embodiments, the present invention relates to specific applications of non-fungible digital assets tied to a peer-to-peer network, such as a blockchain network.