BankEx Proof-of-Asset Protocol



  • Game Theory Behind the Proofof- Asset Protocol

    Game Theory1 is a branch of mathematical economics focusing on the outcomes of conflicts between players, and the optimality of their strategies. Game theory is one of the prime fundamental directions in economics. 11 scientists specializing in game theory have received the Nobel Memorial Prize in Economic Sciences, including John Nash [4], [5], responsible for introducing one of the key concepts in game theory, known as the Nash equilibrium. It is a state in which a single player cannot benefit by changing strategy while the other players keep their set of chosen strategies unchanged. Analysis carried out according to game theory indicates that the global financial market is currently trapped in the sub-optimal equilibrium of the prisoner’s dilemma. This dilemma is a fundamental problem of game theory, illustrating how players will sometimes fail to cooperate even if it was in their best interest. We see that players in financial markets distrust each other and keep overpaying for an inefficient set of various ratings, scores and audits, although these are frequently wrong (as with the Enron scandal and the subprime mortgage crisis). This inefficiency leads to high costs and often losses, which in turn raise the cost of capital and lead to a lack of access to capital for decentralized small businesses or borrowers. Another issue derived from this dilemma is the obstructing cost of deployment to the public market. If this barrier is removed, then the market itself is cable to evaluate every asset based on the collective wisdom of all trading participants, as the increase in volume of transparent and authentic trade operations provides more information that can be used by the market to verify the assets. We offer a solution  the Proof-of-Asset Protocol, the point of which is an instant audit of the asset. Now every investor is aware of the status of his investments in non-public companies and assets. Equipped with this tool, the market will force certain

    businesses to change (lawyers, accounting, auditors, and in separate cases banks and collectors). What is our plan? We will begin by modernizing the mechanisms of assigning and validating ratings, as the cash flow recorded on the blockchain using the Proof-of- Asset protocol is transparent, understandable, as well as much faster and cheaper. In essence, the asset’s state is being constantly monitored by the logic of smart-contracts. In turn, the increased amount of information on economical operations and their authenticity grant new opportunities for the development of an economical AI, building sufficiently precise artificial intelligence systems for risk evaluation, making the cost of such calculations approach zero. This would enable the creation of a competitive market of economical AI working for the good of modern society.

    BankEx enables new sources of capital for real assets with publicly auditable decentralized banking

    Light Paper:https://bankex.com/en/lightpap...

    White Paper:https://bankex.com/en/whitepap...

    BankEx is listed in the Top 50 fintech startups of the world as Decentralized Banking SaaS Exchange : View Liast:

    Initial Smart Asset Offering (ISAO)

    BankEx Foundation BankEx Foundation is a non-commercial selfregulated organization with a community the members of which are engaged in work and development of smart contracts for new Smart Assets and Product Instances created with its participation. It includes blockchain technology experts, programmers as well as product providers and product experts. The BankEx Foundation as a non-profit organization is an important element of the BankEx Protocol ecosystem, which allows coordination of the actions of various other elements of the system.


    Asset Supplier

    We must note here that while other sections of The Smart White Paper BankEx describe processes and technologies in various states of readiness but existing in the real world, this section is going to present the model of a concept not yet existing in the world, but aimed at solving issues. When creating prototypes of various Smart Assets at the BankEx Lab we have encountered a situation where many business owners from various countries started coming to us, wishing to tokenize their assets via the ICO procedure. Our vision of tokenization, which we have already discussed in this White Paper earlier, concludes that issuing your own coin is a poor solution for assets belonging to the real sector of economy where rocket science technologies don’t exist. Nonetheless, the necessity and even inevitability of the tokenization of their assets in the future are obvious. We suggested the procedure of Smart Asset emission to these clients, some of the resulting Originators were accepted by the BankEx Lab as pilot designs. These assets will be prepared for the Initial Smart Asset Offering (ISAO) in the Proof-of- Asset Protocol ecosystem. But we turned down the majority of them. How do we see the possibility of providing these businesses with the option to tokenize, regardless of the centralized initiator-company of the Smart Asset? The BankEx team assumes the Market will form more and more such requests as time passes. These requests will come from owners of businesses or assets, meaning Originators with No token Asset. The BankEx Lab is receiving such requests now, but subsequently they will be addressed to multiple Product Owners in the ecosystem. Those requests that the Product Owners can tokenize they will process, creating Product Instances. Of course, they will also turn down many incoming requests. The reason is not so important at this point. Such requests for tokenization of a new type of assets are directed by acting Product Owners to the BankEx Foundation (Figure 10). Now let’s examine the schematic to see how the BankEx Foundation coordinates actions: Asset Community  as the request for creation of a Smart Asset came from the Market, there  is clearly an individual or group of individuals

    who are pioneers and enthusiasts of this product. These are the people the BankEx Foundation forms a product community from for the creation of a new type of Smart Asset. This product community then takes over the business development of the aforementioned Smart Asset. The initiator of the request for such a Smart Asset Type may become the founder of said Asset Community. Such communities are also needed by the ecosystem for two more important functions - product expertise and providing Proof-of-Asset evidence in the event of Smart Deal disputes. It’s important that in the Asset Community we do not require identification of all the members  they take part in the ecosystem only with their knowledge and experience.

    Foundation Community  this is a community
    of programmers and business developers, who
    are fans of the decentralized Blockchain Service
    Architecture. They are the people responsible
    for creating the world-changing chains of Smart
    Contracts for various No token Assets.
    New Smart Asset Type  is a program code fully
    ready for initiation. As we see on the schematic
    the Asset Community, Foundation Community
    and the BankEx Lab with participation from
    third party experts takes part in the creation
    of this code. The quality of the code is guaranteed
    by the BankEx Smart Asset Certification
    Center.
    So the BankEx Foundation in the protocol has the
    following characteristics:
     role: community built around the protocol;
     function: creation of new types of Smart Assets
    and the development of the protocol that will
    be in-demand by the community, as well as the
    growth of the community that is going to use
    the protocol.

    BankEx Crypto-FIAT Depository

    One of the existing and not yet solved issues in asset
    tokenization is the impossibility for legally significant
    organizations to purchase tokens. There is a long series
    of details relevant for different locations.
    Let us pause on the most important and define
    their common features.
    First, banks and organizations are able to invest
    into companies, using stocks and equities. In banks,
    classical funds and large financial groups there are
    special departments that invest into corporate securities
    and other financial instruments on stock exchanges.
    These departments are able to invest into
    securities, but lack the ability to invest into cryptographic
    coins and tokens, as they have no common
    tools for that.
    Second, banks and organizations must place purchased
    assets on their balance upon investment, for
    that they require legally relevant documents that confirm
    purchase of the asset. Token purchase provides
    no such documents.
    Third, banks and organizations lack the technology
    to follow their existing security regulations when
    storing cryptoassets. As we all know, should the private
    key be compromised, that would be enough to
    lose access to the crypto wallet, and it doesn’t matter
    what amount is stored on the wallet, if a malignant
    party obtains the private key it can vanish in an instance.
    Banks are unable, or rather they cannot permit
    assets to be stored with such security parameters.
    In the BankEx ecosystem solution of these problems
    is handled by the BankEx Crypto-FIAT Depository.
    This is a legal organization and a technology
    for cryptoasset storage. The Crypto-FIAT Depository
    works as any classical depository with the
    only difference being that it grants its classical clients
    the ability to store cryptoassets.
    We see this as the Depository forming a legal
    agreement with a bank or organization to give the
    Depository permission to store clients’ cryptoassets.
    After that the client registers a wallet in the Depository
    for the cryptoassets he requires. If it’s an ERC20
    token then an Ethereum Wallet is registered. After
    that the client does not receive the private key to the
    wallet - instead it’s instantly conserved in the depository’s
    storage until the client closes the account. The
    client receives a regular depository receipt in return
    for his cryptoasset.
    The technology to store coins and tokens in the
    Crypto-FIAT Depository allows a client to conduct
    operations with cryptoassets on his balance, and
    what’s more important, it lets him do this in a way
    that he’s used to. He sees these cryptocurrencies in
    the same way he would see classical assets. This is
    the very technology that FIAT and Crypto markets
    are waiting for.

    BankEx Co-investment Fund “Co-
    Fund”
    The word “investment” in the title of this section does
    not imply that BankEx plans to make investment its
    business. The BankEx Co-investment Fund is first
    and foremost an instrument to provide support the
    BankEx Foundation and the Asset Community in creation
    of new types of Smart Assets.
    To understand the mission of “Co-Fund” in the
    BankEx ecosystem we must once again address the
    present reality of the investment market. Initialization
    of a new Smart Asset Token is based on cryptography
    algorithms and smart contract formulas and
    cryptography algorithms cannot include FIAT currencies.
    The solution to this issue was detailed in the
    previous section.
    “Co-Fund” is a solution to the next issue, namely
    the creation of a bridge, an instrument between
    banks, classical funds and the procedure of initial token
    emission, Initial Smart Asset Offering (ISAO).
    The “Co-Fund” capital structure consists 10% of
    BankEx Lab capital with the remaining 90% saturated
    by partner banks. These banks are also part of
    the fund as Limited Partners (Figure 11).
    Such a scheme of new Smart Asset funding, or, in
    other words, funding of new fintech products, is the
    result of an almost two year long journey of BankEx
    in the field of financial technologies. It is worth repeating
    that BankEx is an independent fintech lab
    with no participation in the capital of any large banks
    or funds. We therefore know full well how difficult it
    may be for banks to invest into new fintech products,
    and how much more difficult it is for young fintech
    companies to receive financing from banks.
    The above scheme fully solves this issue with the
    bank making an investment into a fund it can comprehend,
    using a legally acceptable depository, while
    the young companies creating Smart Assets interact
    through the friendly BankEx Foundation, making
    no direct contact with the bureaucratic systems
    of banks.

    Initial Smart Asset Offering (ISAO)

    Initial Smart Asset Offering (ISAO)  is the initial
    Smart Asset offer with the goal of tokenizing financial
    assets or real economy sector assets in the form
    of emission and sale of Smart Asset Tokens to buyers.
    An ISAO can only be carried out with an asset
    present, in other words either a functioning or
    planned cash flow. A technological startup or RnD
    cannot be tokenized via the ISAO procedure.
    On the schematic (Figure 10) we can see the request
    for an ISAO comes from an Originator, i.e.
    owner of a financial or manufacturing asset. This
    Originator does not need to create the tokenization
    technology – instead the best programmers from various
    teams coordinated by the BankEx Foundation
    compete for its creation.
    It would be fair to state that a first-time Originator
    with the desire to create a new type of Smart
    Asset and an Originator initiating an Initial Smart
    Asset Offering can be one and the same person, which
    is what we are striving for. But at the same time this
    schematic does not permit centralization of the program
    solution, as the Originator neither influences
    the actual writing of the Smart Asset code, nor controls
    the programmers, the Originator is only able to
    take part in the development via product expertise
    using the Asset Community mechanism.
    In the BankEx Proof-of-Asset Protocol ecosystem
    the following can take part in the initial purchase of
    Smart Asset Tokens on a technological level:
     buyers originating from the market;
     banks and classical funds via the BankEx CF
    Depository and “Co-Fund” systems;
     members of the product community interested
    in development of assets of this particular type.
    If the buyer originates from the market or the Asset
    Community and he needs to make a purchase using
    FIAT currencies, he has the ability to do that via
    the Crypto-FIAT Depository. If the buyer wants to
    make a purchase using ETH  he can do so directly.
    The buyer of Smart Asset Tokens  in terms
    of entities present in the Proof-of-Asset Protocol, as
    outlined in the previous chapter  takes the role of
    the Supplier.

    Open Source: Smart Asset Core
    BankEx Foundation presents a platform for collaborative
    work with an open source code, created to
    promote technologies in the banking and financial
    sectors.
    An Open Source approach to development based
    on collaborative use of software can ensure transparency,
    stability and support needed to implement
    blockchain technologies. The main task of organizations
    is the development of a global cooperation and
    support of leaders and entrepreneurs in the field of
    finances, banking, Internet of Things and decentralized
    technologies.
    We welcome all who take part in the developer
    community of the Smart Asset Protocol regardless of
    membership status. Additional information on the
    technical details and methods of collaboration can be


    ISAO Structure

    found on the community page https://github.com/
    BankEx.
    Open Source Protocol  Smart Asset Core
    (https://github.com/BankEx/smart-asset-core)
    is the base structure to tokenize and securitize assets.
    It contains all the necessary modules for integration
    of third party information providers and tools for
    writing specialized smart contracts.
    Open Source Proposal:
     development of the blockchain community in
    order to support the Proof-of-Asset Protocol;
     establishing partner connections and their subsequent
    technical support;
     formulation of the direction of technological
    development and establishing interaction with
    Product Providers;
     creation of the protocol’s core architecture with
    subsequent increase of functionality by involving
    specialists from the open source community;
     ensuring protocol security, including by means
    of involving third party white hat hackers &
    developers;
     organization of a tight cooperation with solutions
    of other open source communities, such
    as the Consensus Foundation, Ethereum Foundation,
    Symphony Foundation, Hyperledger
    Open Source Finance part:
     tech support for partners;
     bounty program for developers (expenses) 
    guarantee of security.

    BankEx Proof-of-Asset Protocol

    Registration data & product data
    The our first step in researching the liquidity protocol
    is data. BankEx as a classical fintech company is
    well aware how many different existing banking systems
    there are, many with an architecture that was
    established many years ago.
    That’s why in order to build the protocol technology
    we have begun our research from scratch, rather
    than basing it off of any existing IT infrasctructure
    of a bank. This may be an unexpected decision to
    some IT specialists of the banking segment, but we
    have decided to separate all the information we work
    with during initialization of Smart Assets into just
    two parts: registration data and product data. We
    see no reason to overcomplicate this.

    Registration data  data that allows the identification
    of a client. Modern registration data contains
    an intrinsic fundamental controversy. On the one
    hand, internet platforms have evolved to the highest
    level of simplification for this data - most of them
    request nothing but a client’s e-mail upon initial registration.
    On the other hand, in order to work with
    financial information in global economy, it is necessary
    to receive the most extensive registration data
    from the client - this is a matter of public security.
    In the blockchain network technology there is,
    in essence, only one vitally important identification,
    which is the address of one’s wallet. As we are building
    the financial asset tokenization protocol, we find
    this information insufficient. Here is our solution.
    The registration data that allows client identification
    is taken beyond the tokenization cycle. When a
    Smart Asset is created on the Ethereum blockchain,
    we retain the technological capability to perform tokenization
    using only the Ethereum Wallet number,
    but at the same time we also create a connection between
    the Ethereum Wallet used in tokenization and
    the other registration data using the BankEx KYC
    Adapter. This is imperative as different banks may
    have completely different assortments of client registration
    data and, what’s more important, these are
    personal details that are protected in many countries.
    It would be unwise to create a Smart Asset reliant on
    them.
    On a technological level the Proof-of-Asset Protocol
    allows the BankEx KYC Adapter to be integrated
    with any KYC provider functioning in the country.
    BankEx has a subsidiary with a working product of
    this type. This is not rocket science. All we can say is
    we are followers of the technology of client identification
    via blockchain-stored hash, received from client
    data initially verified by a reliable source.
    The most important consequence of the decision
    to take registration data beyond the tokenization cycle
    using the BankEx KYC Adapter, is that various
    Originators, including banks, can now be integrated
    more comprehensively and with minimal effort. The
    Originator defines identification parameters and the
    Proof-of-Asset Protocol adjusts to suit those parameters,
    creating a link between client data and the
    Smart Asset blockchain wallet.
    What about the data that goes into the Smart Asset?
    That’s product data - an arrangement of data
    necessary to tokenize the client’s asset, with parameters
    and contents defined exclusively by the Product
    Owner separately for every Smart Asset Type.
    On the schematic you can see, along with the protocol
    entities you have already become familiarized
    with, that the Product segment includes blocks that
    define product data for both the Originator and the
    Supplier.
    The quantity and types of product data fields are
    not limited in any way  it is decided entirely by
    the Smart Contract logic necessary for a particular
    Product Instance.
    As a brief summary, the ecosystem of the protocol
    generally allows for various other registration data 
    the principle of work with them is always going to
    remain unchanged, they are technically impossible to
    store in a Smart Asset. In any event where any entity
    needs to be identified, the process of identification itself
    is always going to be beyond the logical cycle
    of the Smart Contracts included in the Smart Asset.
    The protocol only interacts with such data on the
    level of confirmed or unconfirmed registration data
    hashes that come from external oracles.
    The only possible exception to this rule is when
    the Smart Asset Proof-of-Asset Protocol is fully realized
    on the Microsoft Azure Bank API server within
    the bank’s security network.

    Creating a Smart Asset

    As we have already discussed the Blockchain Service
    Architecture allows formation of various chains
    of smart contracts based on the protocol. Let’s examine
    the order in which a typical Smart Asset is
    created.
    We see five desired logical steps in the Proof-of-
    Asset Protocol to be able to call a token a Smart
    Asset (Figure 12). These steps are:
     initial contract;
     validation;
     audit;
     legal;
     proposal.
    We first initialize the contract, selecting a type
    of Smart Asset. The Smart Asset’s type determines
    product data required for the token and the logic by
    which that data is processed. Next the Originator
    fills in General Information, which can happen both
    manually and automatically. Data entered by the
    Originator is what we presently call digitalization.
    The information is there, but its value is unknown as
    the filled in forms have no function and, more importantly,
    have no validity - we have no way of knowing
    if that information is genuine. The next step is Validation.
    This is where Smart Contracts are executed
    that validate the information entered by the client
    using various trusted sources. These can include Internet
    of Things Sensors, Eternal Oracle, Crawlers

    Proof-of-Asset Protocol

    and others. It is crucial that the contract is saturated
    with data from sources independent from the
    Originator, which allows for an accurate assessment
    of the authenticity of General Information provided.
    Next the result is audited, always by an outside
    party. This is the part of tokenization where a 3rd
    party gets involved. Primarily this is BankEx, comparing
    hash totals of the current Smart Asset code
    with certification data from the BankEx Foundation.
    Only a verified SACC code can get the BankEx Verifed
    mark. These can also be accounting services or
    any other services that can check the process of tokenization
    based on Smart Asset logic.
    It is also important that at this point classical
    offchain organizations can also get involved, if that
    is supported by the issuing conditions of the Smart
    Asset.
    Legal is the step where every Product Instance
    can set up legal conditions specifically required for
    both it and the country where it’s located. This is
    also where the Smart Assets intended for global liquidity
    establish the norms of governmental and customs
    regulations. The Blockchain Service Architecture
    allows any existing legal regulations to be written
    into Smart logic. If the government of your country
    demands that you must receive an official document
    from the town hall for your asset, then you
    do just that. You head to the town hall, receive the
    official document, scan it and add it into the Smart
    Asset with your signature or that of a certifying officer.
    After the government implements tokenization
    to their algorithms you can simply change the
    one corresponding Smart Contract included in your
    Smart Asset.
    Proposal  Smart Contracts that fix the base
    price of a Smart Asset and define the type of operation
    that will be performed with the taken asset on
    the Smart Asset Exchange. From a stock exchange
    perspective, the result of this step is the creation of
    a bid. From a blockchain perspective  the issuing
    of a token.

    Smart Asset Ñaterpillar

    The BankEx team named this tokenization principle
    the Smart Asset Caterpillar, although it was not our
    first choice of name. It was picked up when we realized
    that in order to achieve true value of a Smart
    Asset, which means proving that it is ensured by an
    actual asset, it was imperative that smart contracts
    in the chain were to flow from one to another in an
    uninterrupted sequence. If you were to cut an earthworm
    in half, its parts will survive for a time. But
    if a caterpillar is cut in half or even if it loses any
    segment of its body  it dies. This principle is true
    for the Smart Contract chain in a Smart Asset. If
    you interrupt the chain or either of the links becomes
    invalid then the Smart Asset formula will result in
    a value of zero for the asset. Any link of the Smart
    Asset Ñaterpillar being insufficiently validated would
    have a detrimental effect on the resulting value of the
    entire Smart Asset.

    A second important consequence of the Smart Asset
    Caterpillar tokenization principle is that every significant
    step on the chain that affects the Smart Asset’s
    value is recorded on the blockchain. You enter
    your General Information during step one and press
    next - the Blockchain Service Architecture asks if you
    wish to record your commitment on the blockchain
    (Figure 13), after which you will receive details of
    the transaction on blockchain (Figure 14).
    This is not just digitization  it is tokenization,
    an imprint of your commitment and, the further along
    the Smart Asset Caterpillar you are, the more valid
    your commitment is to other members of the ecosystem.
    It’s worth noting here that the BankEx Proof-of-
    Asset Protocol technology supports several technical
    solutions for the recording of the aforementioned imprints
    on the blockchain, including industry-specific
    know-how.

    Initial contract

    The exact way in which every contract is initialized is
    defined by the Product Owner when calculating the
    Product Instance (Figure 15). Let us note several
    significant steps for the majority of Smart Assets.
    First, initialization will require the registration
    data of the Originator End Client, and as we operate
    in the technological stack of the blockchain network,
    we have agreed not to store registration data  we
    must receive a Wallet address. For the demo version
    of our product we used a web interface with the
    Metamask Ethereum Wallet plugin (Figure 16):
    With this iteration the Ethereum wallet address
    is automatically taken from the plugin. In other iterations
    or on other blockchains this may work differently.
    Why do we need a wallet address? By using it
    we receive the ability to perform client identification
    through the BankEx KYC Adapter or any other KYC
    provider. Additionally, the demo shows it’s possible
    to request an optional field as well, such as an e-mail.
    Second, when initializing the contract data is entered
    into General Information fields. General information
    is entered either manually by the client or
    automatically, but its accuracy is decided only by the
    person inputting it. It would be fair to state that tokenization
    does not rely on accuracy of the General
    Information entered. We take it as it is, whereas the
    authenticity required for the Smart Asset is going to
    be determined by the logic of subsequent contracts
    in the chain. It’s interesting that not all true information
    may actually be required by the Smart Asset,
    and an Originator End client who doesn’t know how
    to determine a code’s Solidity may not even know
    how important the fields he is filling in are. When
    the BankEx team hears talk about the need for each
    and every person in the future to have programming
    skills, we immediately recall our Smart Asset Caterpillar.
    Third, in the General Information block of the
    demo we show that information fields may be of any
    type, depending on the habits of a programmer. A
    type-bar, a file, a catalogue, digits  any type of field
    at all.
    Fourth, part of the General Information block’s
    function may be carried outside the blockchain logic
    and outside the logic of external oracles, instead being
    based on the UI alone. Our RnD showed that
    the simplest but sometimes necessary function of the
    logic, such as checking hash totals in specific fields
    can easily be diverted to web-based or any other programming
    logic used in a particular Product Instance.
    The results of the Initial contract steps are:
     creation of a Smart Asset entity;
     assigning the Smart Asset with a unique ID for
    subsequent connection IoT and Oracle;
     may involve the creation of a legal Soft Commitment;
     a data record on the blockchain.

    Validation

    The Validation step (Figure 17) of a Smart Asset is
    the most fascinating for Research and Development,
    this is where various means and methods for the validation
    of the General Information can be built.
    Let us define the following terms.
    Internet of Things (IoT) will be the main condition
    for the validation of Smart Contracts, and this
    will come much sooner than we can imagine. Very
    soon our world will become filled with myriads of various
    sensors and transmitters for smart contracts, just
    as it has already become filled with smartphones and
    surveillance cameras.
    IoT Sensors can come in any number of different
    combinations. BankEx is not an IoT company, and
    yet our lab already has more than 50 different sensors
    with different purposes. In the demo application we
    used three of them - an accelerometer, a location pin
    and a photo camera that any smartphone is equipped
    with. Let us remind you here that cell phones are already
    used as tools for payment.
    Many companies today are trying to create Smart
    sensors, outfitted with an internal logic, but the decisive
    potential is definitely held in a combination of
    IoT Sensors and the logic of Smart Assets.

    Step 1  Asset Initialization

    Step 2  Asset Validation

    The second element are External Oracles,
    which are the obvious choice for data validation today,
    and which are used by many companies worldwide.
    You can check a person’s information using his
    Pass ID or request information on an organization
    using its Registration Number. You can request information
    on rates and constants being developed by
    public organizations or institutes. Or you can simply
    perform crawling of information from a chosen website.
    Everything you need for your Product Instance.
    Using External Oracles it’s possible to implement
    almost any logic you could need on the Ethereum
    blockchain even today, it’s not complicated.
    Use of the oracle technology to examine images
    or videos captured by IoT sensors deserves additional
    mention. Soon enough you will not have to pay for
    the recognition of your car license plate. The Smart
    Contract would be able to send a fine from your bank
    account on its own.
    Smart Asset creation logic may include any number
    of External Oracles and each calculation will have
    its price, but even today there are technical solutions
    which allow them to be cheapened on the Ethereum
    blockchain. It would be safe to assume that in the
    future there will likely be even more such solutions
    available.
    Internal checks are simplest logical flags or hash
    totals that nonetheless may greatly impact the price
    of a Smart Asset, for instance a flag showing whether
    or not there is a supporting document uploaded along
    with the request to the Microsoft Azure cloud.
    The results of the Validation step are:
     additional information input into the Smart Asset
    entity;
     formula determining the importance of concluded
    validation;
     operation saved on blockchain

    Audit & Legal

    In terms of technical implementation, interaction
    with third party audit organizations, jurisprudence
    or government is also dedicated to an External Oracle.
    We initially called this section Global Delivery
    Conditions because in order to make an asset as liquid
    as possible, it must achieve global liquidity. It
    is similar to Amazon.com in the field of digitized
    goods. Global liquidity of various assets is our future,
    now the most important task is the embedding
    of the Smart Asset ecosystem into existing national
    legislation and state regulations.
    We are often told that the implementation of
    Smart Assets is extremely complicated due to the impossibility
    of giving them legal significance. It’s true





    Initial Contract




    Example of Asset Initialization





    Validation Step

    that it’s a complicated task, but offchain legal conditions
    are not at all difficult to write into the chain of
    Smart Asset contracts, even if one of the Smart Contracts
    requires action to be taken offchain or even
    offline. Does something need to be done and then
    marked with a tick? Good - we include this condition
    into the logic of the Smart Asset’s function and
    mark it with the tick, then the Smart Asset becomes
    valid and, consequently, gains value.
    Obviously, the implementation of Smart Contracts
    is only a matter of time for any efficient nation,
    since the volume of inefficiencies in any large organization,
    including nations, is enormous. It is both beneficial
    and sensible. Once a nation’s work conditions
    are modernized, you need only update your contract
    chain to the latest Product Instance. In fact, if you
    are the Originator, you won’t even have to do that 
    it will be done by the BankEx Foundation.
    Cost of delivery estimation and automatic customs
    tax of the exported asset based on data from
    the location sensor could also occur during this block.
    Which, we may add, opens the way for export/import
    of cash flow associated with various types of assets
    between nations.

     Proposal

    Logically and technically this is the most difficult step
    of the Smart Asset Ñaterpillar. It’s where the magic
    happens:
     trading rules are set for the chosen type of
    Smart Asset;
     asset authenticity rate is calculated;
     the asset’s base price is calculated;
     the asset’s intended use is specified;
     Hard Commitment parameters are set;
     cash flow distribution is defined according to
    Smart Deal.
    Actually everything is much simpler, with complicated
    deals that we make in the offchain world becoming
    significantly easier once they are given an algorithm
    with the Smart Asset logic. You can find this
    out yourself by simply breaking down any deal that
    interests you to its basic elements. Now do the same
    thing again while also removing human error and you
    get a Smart Deal (Figure 18).
    The result of this step is the issuing of a token and
    formation of a bid for the Smart Asset Exchange.

    Links:


    website:https://bankex.com/en/

    Github:https://github.com/BankEx

    Telegram:https://t.me/bankex

    Facebook:https://www.facebook.com/BankE...

    Blog:https://blog.bankex.org/

    Slack:https://join.slack.com/t/banke...

    Twitter:https://twitter.com/BankExProt...


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