Examples of How to Use the Bitbon System

(Description from patent No. PCT/UA2017/000050 “The Method of Management of Property Rights to Assets and the System for Its Implementation”)

The method of management of property rights to Assets has been successfully implemented in the Bitbon System[1], which includes a network of hardware-software complexes containing the Blockchain, data on nominal value, Bitbon System User[2] identifiers, data on transaction history, exact time module, transaction processing module, publication module:

Blockchain (contains data on the Accounts[3] of Bitbon System Users, as well as the Bitbon Public Contract, evaluation of nominal value of property rights to Assets).

Ledger object identifier generator (a separate device with the ability to interact with the exact time module using cryptographic algorithms for data processing).

Exact time module (provides synchronization with the network-wide time of the hardware-software complexes network, which differs from the global time due to the speed corrections of the signal propagation across the network segments between the hardware-software complexes).

Transaction processing module (processes a request to form a record on the transfer or redistribution of property rights to Assets in the Blockchain).

Validation module (allows verifying the correctness of the evaluation results of property rights to Assets, the Bitbon Public Contract, nominal value, Bitbon System User identifiers).

User terminal (a hardware-software complex used to create the Bitbon Public Contract, as well as an instruction to transfer property rights to Assets).

Publication module (a pool of hardware-software complexes combined with each other in the network for the purpose of publishing records in the Blockchain).

Let us consider concrete examples of the practical use of the Bitbon System described in patent PCT/UA2017/000050 “The Method of Management of Property Rights to Assets and the System for Its Implementation”.

Evaluation, Accounting and Control of Assets Using Bitbon

To evaluate, keep records and control Assets, the Bitbon System User should issue Bitbons (see Example 1).

Exemple 2

The Bitbon Public Contract specifies that Bitbon is created solely for evaluation, accounting and control, so its transfer will not lead to the transfer of property rights to Assets.

In accordance with the evaluation procedure, User’s Assets are presented as a hierarchy or a set of departments, each of which is evaluated by one or more indicators. An Account is created for each department-indicator pair. Based on the evaluation results, when creating Bitbons for each Account, the Bitbon owner using the terminal generates a request to transfer Bitbon nominal value in proportion to the evaluation of Assets to this Account.

Next, the generated request is sent to the transaction processing module, which processes the request on the validation module. If the validation fails, a message of Bitbon transfer error is sent to the User. If the request is validated, the transaction processing module receives an identifier of Bitbon record from the ledger object identifier generator. The transaction processing module receives the correct date and time of recording from the exact time module. The generated request is transmitted to the publication module, which publishes a record containing nominal value of adjustable Bitbons and the evaluation results in the Blockchain.

After a certain period of time according to the evaluation procedure indicated in the Bitbon Public Contract, the User evaluates the current state of Assets. As a result of this evaluation, the difference between the evaluation of this department according to this indicator and the current Bitbon nominal value is determined in the corresponding Account. Then, the User (Bitbon owner) generates a request to adjust Bitbon nominal value in this Account by transferring a part of Bitbons from/to this Account.

At any time, the Bitbon System Users can receive the whole sequence of changes of Bitbon nominal value in the Accounts, which are recorded over any period of Bitbon existence with the help of specialized software or with the help of Open Source software using public standard interfaces from the Blockchain.

Materials of the article Bitbon System As a Separate Independent Asset largely explain the interaction principle of the Bitbon System components.

1 Bitbon System means an integral decentralized system based on the Blockchain technology, which is basically a platform for implementing Contributing under the terms and conditions of Bitbon Public Contracts of various projects and managing legal relations between the Bitbon System Users, the key component of which is Bitbon.

Bitbon System means an integral decentralized system based on the Blockchain technology, which is basically a platform for implementing Contributing under the terms and conditions of Bitbon Public Contracts of various projects and managing legal relations between the Bitbon System Users, the key component of which is Bitbon.

2 Bitbon System User means a Bitbon System Participant who uses Bitbons and/or Projectbons to conduct his/her activity in the Bitbon System.

Bitbon System User means a Bitbon System Participant who uses Bitbons and/or Projectbons to conduct his/her activity in the Bitbon System.

3 Account means a collection of user data necessary for his/her authentication and for providing access to his/her personal details, settings and the system functionality.

Account means a collection of user data necessary for his/her authentication and for providing access to his/her personal details, settings and the system functionality.

Additional information

In most cases our patents and trademarks are registered through WIPO (World Intellectual Property Organization). For more detailed information, please visit the website of the World Intellectual Property Organization (WIPO).

The inventions are patented through the international patent system РСТ (Patent Cooperation Treaty), which helps applicants to patent their inventions in many countries by means of the Patent Cooperation Treaty (PCT). Thus, by filing an international patent application under the PCT, an applicant can provide protection to his/her invention in 152 РСТ Contracting States.

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In order to make the information maximum convenient, where it was possible, we placed links directly to the resources of the organizations of the countries in which the patent had been obtained. When patenting inventions under the PCT, in most cases, the information can be found on the World Intellectual Property Organization website.