Tokenized Proof-of-Position E-commerce System
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Solution Overview
Problem
E-commerce systems face challenges in maintaining cash flow, securing funding for production, and marketing items, with issues such as fake reviews and difficulties in getting full refunds, and traditional lending processes are antiquated and not well-suited for micro-funding or micro-projects.
Innovation Solution
A distributed and decentralized blockchain e-commerce system using tokenized proof-of-position (TPP) that creates smart contracts for escrow, allowing for transparent and secure funding, marketing, and refund processes, where all parties hold digital positions that can be traded or sold, facilitating crowd-sourced funding and marketing through non-fungible tokens.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If traditional lending processes are used for funding, then funding can be secured, but the processes are antiquated and not suitable for micro-funding or micro-projects
Solution Approach 1:
The patent segments the funding process into micro-transactions through tokenization, where each token represents a fractional investment position. This allows traditional lending mechanisms to be broken down into smaller, more flexible units suitable for micro-funding while maintaining the overall structure of risk assessment and repayment.
Solution Approach 2:
The patent implements nested smart contracts where multiple levels of contracts are embedded within each other. The first smart contract handles the lending agreement, while nested second smart contracts manage individual token positions and repayments. This nested structure enables complex micro-funding operations within a unified framework.
2Reliability
If escrow is used to secure funds, then trust is improved, but substantial sums of money are locked up for pre-ordered items
Solution Approach 1:
The patent segments the escrow period into multiple tranches through tokenized positions. Instead of locking up the entire sum indefinitely, funds are released in scheduled installments corresponding to different token redemption events. This segmentation maintains security while progressively releasing funds, reducing the overall time funds remain locked.
Solution Approach 2:
The patent transforms the static escrow arrangement into a dynamic system where token positions can be actively traded, transferred, or redeemed at different stages. This dynamic approach allows funds to be released based on actual token position changes rather than fixed time schedules, optimizing both security and liquidity.
3Loss of information
If review sites are used to address trust issues, then some transparency is provided, but fake reviews remain a problem and they do not assist in funding project development
Solution Approach 1:
The patent introduces blockchain technology as an intermediary that creates an immutable, transparent record of all transactions and token positions. This intermediary layer provides verifiable transparency without relying on user-generated reviews, as the blockchain itself serves as the trusted record-keeping mechanism that all parties can verify independently.
Solution Approach 2:
The patent replaces the mechanical system of human review verification with an automated cryptographic verification system. Instead of relying on human judgment to detect fake reviews, the system uses blockchain's inherent cryptographic security and smart contract automation to verify the authenticity and provenance of all transactions, eliminating the need for manual review moderation.
4Reliability
If a decentralized blockchain system is implemented, then transparency and security are improved, but the system complexity increases
Solution Approach 1:
The patent creates a universal smart contract framework that handles multiple functions through a single integrated system. The first smart contract serves as a parent contract that orchestrates multiple second smart contracts, each handling specific functions like token issuance, trading, and redemption. This universal approach consolidates complexity into a reusable framework rather than requiring separate complex systems for each function.
Solution Approach 2:
The patent introduces a centralized tokenization service as an intermediary that manages the creation and coordination of multiple smart contracts. This intermediary layer simplifies the user experience by handling the complexity of contract deployment and coordination, while still leveraging the transparency and security benefits of the decentralized blockchain infrastructure.
Data Source
AI summary
Described is a distributed e-commerce system using a tokenized proof-of-position (TPP) that operates within a blockchain. The blockchain includes a plurality of nodes that, in the aggregate, allow for operation of an e-commerce store through smart contracts that issue customer, funder, and affiliate TPPs. An item ordered is represented as a TPP in combination with a smart contract that holds the customer's funds in an escrow until the customer's TPP is canceled or redeemed for the product. Funders can provide liquidity to a store, if needed, to produce the product for the consumer for a return on their investment paid directly from the funds in escrow when the customer TPP is redeemed. Separately, affiliates can market the product and receive a TPP representing their commission on the sale. Redemption of the respective TPP results in shipment of the product, payment of the funder's investment, or payment of the affiliate commission.