Smart Contract Supply Modification for Stable Value Digital Assets
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Solution Overview
Problem
Current blockchain technology lacks adequate solutions for modifying the supply of stable value digital asset tokens, which are tied to underlying blockchain technology.
Innovation Solution
A system, method, and program product that utilize stable value digital asset tokens pegged to fiat currencies, allowing for the issuance, management, and modification of their supply using smart contracts on established blockchains like Ethereum or Bitcoin, enabling trusted entities to issue, administer, and redeem these tokens while maintaining fiat collateralization.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If blockchain technology is used to issue and manage stable value digital asset tokens, then transparency and security are improved, but the ability to modify token supply is limited
Solution Approach 1:
The patent implements dynamic token supply modification through smart contracts that can adjust the total supply of stable value digital asset tokens based on collateral value changes. The system transitions from static blockchain supply to dynamic supply that automatically responds to market conditions and collateral fluctuations, resolving the contradiction between security and flexibility.
Solution Approach 2:
The patent introduces smart contracts as intermediaries between the blockchain ledger and token supply management. These smart contracts act as mediators that execute supply modification logic based on predetermined conditions, enabling flexible supply adjustment while maintaining the security and transparency of the underlying blockchain technology.
2Productivity
If smart contracts are implemented to manage token supply, then automation and efficiency are improved, but system complexity increases
Solution Approach 1:
The patent segments the token management system into distinct smart contract modules: collateral management contracts, token issuance contracts, and supply adjustment contracts. Each module handles specific functions independently, improving automation efficiency while making the overall complex system more manageable through functional decomposition.
Solution Approach 2:
The patent creates universal smart contract templates that can be deployed across different blockchain networks and token types. These multi-functional contracts handle various operations (issuance, redemption, supply adjustment) through standardized interfaces, reducing the need for custom complex contracts for each specific use case.
Data Source
AI summary
The present invention generally relates to a method, system and program product for modifying a supply of stable value digital asset tokens tied to a blockchain.