Right to the Right Principle
The Right to the right[i] principle is know-how of Simcord Company and the basis for ensuring the Bitbon System’s[i] functioning.
Based on the functions laid down in the Bitbon System, the System is a platform for the circulation of digital assets[i], i.e. the Bitbon System Users[i] can own, use and manage digital assets in accordance with the terms and conditions specified in respective Digital Asset Protocols[i]. At the same time, one of the advantages of the Bitbon System is the ability of the Bitbon System User to safely operate digital assets without intermediaries and money. The special value[i] of the Bitbon System digital assets[i] lies in their backing by assets[i], which is formed through the Asset Digitization Procedure[i] as well as the Right to the right principle laid down in the Bitbon System.
Right to the right means the basic principle laid down in the Bitbon System that allows the Bitbon System Users to operate the right to an information resource[i], which is derivative of the right[i] to a value, where the value itself remains in possession of its owner.
The mechanism of the Right to the right principle is launched as a result of the creation of a digital asset by the Bitbon System User through the Asset Digitization Procedure. In the process of completing this procedure, the Bitbon System User independently creates an acceptable list of claims for his/her own asset and determines the conditions for exercising the claim right by the owner of a digital asset. So, a digital asset can express the claim right to the property, ownership right, right to use and other types of rights.
The list of claims and conditions for the implementation of the claim right are specified in the Protocol of a specific digital asset, which also contains the terms and conditions of use of the digital asset, all the rights and obligations of the parties to these relations (the owner of the asset and the owner of the digital asset), means of their backing, as well as a description of the asset and measures for preserving it for the period of existence of its unique digital copy in the Bitbon System.
Thus, a digital asset is a form of expressing the mutual rights and obligations of the owner of the asset and the owner of the digital asset. The transfer of any digital asset between the Bitbon System Users can occur a countless number of times until the owner of the digital asset exercises his/her right, and the creator of the digital asset fulfills his/her obligations. When transferring a digital asset, its new owner acquires the right to claim from the owner of the asset backing this digital asset to fulfill the obligations established by the Protocol of such a digital asset. When transferring any part of a digital asset, all rights of the previous owner are transferred to its new owner in proportion to the transferred part.
The above-mentioned information allows us to draw the following conclusion: if a digital asset is equal to the claim right, then not the assets themselves circulate in the Bitbon System, but the transferable claim right of the owner of the digital asset to the owner of the asset to fulfill the obligations, which are established by the owner of the asset and are derivative of the right to the asset under the terms and conditions recorded in the Protocol of such a digital asset.
Relations regarding the exercise of the claim right go beyond the scope of, and are carried out outside, the Bitbon System. In the event that a claim right stipulated by a Protocol of a specific digital asset is exercised, such a Protocol is considered fully executed, and the digital asset is excluded from the Register of Digital Assets[i] of the Bitbon System.
An innovative method of using information by means of the Asset Digitization Procedure and the Right to the right principle promotes the development of an emerging market of information resources, products and services based on distributed ledger technologies.