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 Projectbon 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 Projectbon Public Contract, nominal value, Bitbon System User identifiers).

User terminal (a hardware-software complex used to create the Projectbon 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”.

Fundraising for Project Implementation

To raise funds for the project implementation using Bitbon, User 1 (project initiator) should issue Bitbons (see Example 1).

The Projectbon Public Contract specifies the purpose of fundraising as well as rules and conditions for using funds and their accounting.

User 1 places an offer to sell created Bitbons on the exchange. User 2, willing to transfer his/her funds for the project implementation, purchases the desired Bitbon nominal value on the exchange.

The exchange sends a request to transfer Bitbons from User Account 1 to User Account 2 using the transaction processing module, which processes the request on the validation module. If the validation fails, a Bitbon transfer error notification is given. 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.

Then, the generated request is transmitted to the publication module, which publishes a record on the Bitbon transfer with the specified nominal value from User Account 1 to User Account 2 in the Blockchain.

The exchange receives confirmation of the transaction execution from the transaction processing module and transfers funds from User 2 to User 1.

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 Projectbon 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.

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.

Additional information

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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.