Bitbon in the Economic and Legal Field

 “Digital asset” is a method patented by SIMCORD LLC that envisions the ability to manage property through access to this property, including to control its use through a social network and conduct accounting of its use in the system based on distributed ledger[i] technology (blockchain[i]). Property right to a “digital asset as the method of property management” is registered for SIMCORD LLC in various utility model patents in a number of countries. Everything stated above has written proof on the following websites: https://www.simcord.com, https://www.bitbon.space/. Thus, the Bitbon[i] digital asset[i] is the realization by SIMCORD LLC of its property right to its patented method of property management.

The Bitbon digital asset is access to the Bitbon System social network of economic relations based on the distributed ledger technology (blockchain)[i], and Bitbon units[i] are access (right of access) to the mentioned social network, which contains a certain scope of access.

The following points are key for describing the features of the Bitbon digital asset in the economic and legal field:

1. Bitbon digital asset as an object of legal relations

Bitbon digital asset in its form is a component of a software product in the form of a code for activation of the IT Service of the Bitbon System[i], which according to civil law is considered as software.

This software was created by SIMCORD LLC in accordance with the international ISO 9001:2015 standard in research and development in the field of development and production of high-load blockchain-based software solutions as part of the infrastructure[i] of the Bitbon System social network of economic relations based on the distributed ledger technology (blockchain). 

According to civil law, software is an object of intellectual property. Intellectual property rights belong to SIMCORD LLC.

An object of intellectual property for the purposes of accounting in accordance with the International Financial Reporting Standards (IAS 38) is defined as an intangible asset (IA).

Bitbon digital asset by its content is the Bitbon Protocol information resource[i] kept on the balance sheet of SIMCORD LLC. This information resource is derivative of the nonmonetary asset “Asset of the Bitbon System Infrastructure — Simcord” as noncurrent property owned by SIMCORD LLC.

For the purposes of accounting in accordance with the International Financial Reporting Standards (IAS 38), an information resource is defined as an intangible asset (IA). Thus, SIMCORD LLC is the producer of a product, Bitbon digital asset, which is an intangible asset by its specification.

2. Bitbon digital asset units

Bitbon unit is a method for managing, as well as controlling and accounting of property transferred for use to Participants[i] in the Bitbon System social network of economic relations based on the distributed ledger technology (blockchain). A Bitbon unit is access to the functionality of the Bitbon System Social Network, which has an exchange value and is an element of all transactions on circulation of digital assets of Users[i] in this social network. SIMCORD LLC issued 100,000,000 Bitbon units, which corresponds to 100% of the scope of access to the Bitbon System social network of economic relations based on the distributed ledger technology (blockchain). Additional issue of Bitbon is impossible.

Bitbon unit in its form is a software element that according to civil law is an object of intellectual property right. Intellectual property rights belong to SIMCORD LLC.

An object of intellectual property right for the purposes of accounting in accordance with the International Financial Reporting Standards (IAS 38) is defined as an intangible asset (IA).

Bitbon unit by its content is access (right of access) to the nonmonetary asset “Asset of the Bitbon System Infrastructure — Simcord” kept on the balance sheet of SIMCORD LLC as noncurrent property owned by SIMCORD LLC, and access to the Bitbon Protocol information resource kept on the balance sheet of SIMCORD LLC.

For the purposes of accounting in accordance with the International Financial Reporting Standards (IAS 38), an information resource is defined as an intangible asset (IA).

3. Regulation of legal relations the object of which is Bitbon digital asset

The Bitbon System Social Network allows its Users to build relations within the regulations of the law of obligations, namely by means of contracts based on blockchain (as a modern improved accounting system) in the form of digital asset protocols[i], which are an information resource[i], the final document of the asset[i] digitization procedure, which determines certain attributes and properties of a digital asset, terms and conditions of its creation and circulation in the Bitbon System Social Network, as well as the procedure for executing the digital asset protocol. Meanwhile, the Bitbon digital asset, being an intangible asset (IA), is an instrument for implementing accounting in the Bitbon System. That is due to the fact that the Bitbon digital asset has an exchange value for equivalent exchange of other digital assets in the Bitbon System Social Network and other types of activity in the Bitbon System Social Network. Thus, as a result of operation of the Bitbon System Social Network, legal relations arise, which are realized in digital space and fall under the category of obligations with full record of their content (rights and duties) in a distributed ledger (blockchain).

Thus, relations that arise when realizing property right to the Bitbon digital asset are subject to regulation by the norms of the law of obligations1, which ensures circulation of the Bitbon digital asset in the legal field. This approach is due to the fact that the Bitbon digital asset, being an information resource, contains all information about rights, duties and responsibilities of parties on fulfillment of mutual obligations and information about the creator of the Bitbon digital asset and circulates in blockchain in the form of a unique identifier. In turn, the law of obligations is a subbranch of civil law that is part of the structure of national legal systems and essentially establishes regulatory requirements for the movement of values[i].

Meanwhile, the Bitbon Protocol information resource and the Bitbon digital asset as its component (access to the services of the Bitbon System) are the regulators of legal relations between Bitbon System Participants, where the Bitbon digital asset is the object, and its owners are the subjects. Thus, we can state that the Bitbon digital asset is a confirmation of the right of its owner to mutual use of a value — Bitbon Protocol information resource. In turn, the existence of a value as the foundation for the Bitbon digital asset is determined by the fundamental principle of operation of the Bitbon System, Right to the right[i], which allows Bitbon System Users to operate their right to the information resource derivative of the right to a value, while the value itself remains in possession of its owner.

The use of the Bitbon digital asset as a regulator of relations in the Bitbon System Social Network does not contradict the principles of law and current legislative norms of legal systems, which allows establishing the Bitbon digital asset in the international legal field. This ensures the ability to simplify the mechanisms of business and civil circulation due to the use of the Bitbon digital asset as an intangible asset (IA) and does not require adopting a field-specific legislation aimed at regulating relations between subjects that arise when using the Bitbon digital asset.

You can learn more about the legal nature of the Bitbon System Social Network by following this link:  https://www.bitbon.space/en/bitbon-legal-nature

1 Law of obligations is a branch of civil law, the norms of which regulate relations in the field of circulation of values (products, services, works, etc.). Unlike property right, which determines the fact of property belonging to certain persons, the law of obligations mediates the movement of values.