Right to the Right Principle

The nature of the Bitbon System[i] is based on the fundamental principle, Right to the right[i], which allows a Bitbon System User[i] to operate property or personal non-property right by means of digital asset units[i]. When operating property right by means of digital asset units, the actual property is outside of the Bitbon System, namely in possession of the owner of such property, the Bitbon System User, for the entire period of digital asset circulation[i].

The Bitbon System infrastructure[i] allows the Bitbon System Community to modernize the process of realizing social relations in order to implement equal and transparent relations in various international legal systems using decentralized digital registration of property and personal non-property rights in the Bitbon System. In the Bitbon System, registration of such rights takes place by means of creation of their own digital assets by Users and subsequent management of property and personal non-property rights through circulation of digital assets[i] in accordance with the terms and conditions specified in digital asset protocols[i].

The mechanism of the Right to the right principle is launched once a digital asset is created by a Bitbon System User following the completion of the digital asset creation procedure[i]. Over the course of the stage-by-stage completion of the digital asset creation procedure by a User, initial asset data[i], original asset data[i] and distributed ledger token data[i] are determined, and the digital asset protocol and the digital asset itself are registered in the Bitbon System.

While completing this procedure, a Bitbon System User independently creates the method for managing his/her property (digital asset), which consists of access to property (initial asset data), control of this management method in the Bitbon System Social Network[i] (original asset data) and accounting in the distributed ledger token accounting system (distributed ledger token data). The correlation between initial asset data, original asset data and distributed ledger token data allows implementing the method for managing property when owners of units of this digital asset use the property. In addition, the instrument for managing property in the form of a digital asset unit as a product is an intangible asset by its specification (IA, in accordance with the International Financial Reporting Standards (IAS 38)) and can be an independent object of legal relations in the Bitbon System understandable for tax services and financial authorities of states.

When digital asset units are transferred, a certain scope of the right of access to property and access to the digital asset information resource[i] are transferred, which contains information laid down by the owner of the initial asset regarding the set of rights to the initial asset and information on obligations of the initial asset owner.

The Right to the right principle laid down in the Bitbon System contributes to modernization of social relations through development of an information and technological mechanism for ensuring trust between parties to such relations through the use of Bitbon System digital assets[i].