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 , , 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
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.
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
So the BankEx Foundation in the protocol has the
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
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-
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
“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
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
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
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
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
found on the community page https://github.com/
Open Source Protocol 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
formulation of the direction of technological
development and establishing interaction with
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 &
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
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
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
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
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:
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
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
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
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
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
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.
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
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
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
formula determining the importance of concluded
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
Example of Asset Initialization
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
Logically and technically this is the most difficult step
of the Smart Asset Ñaterpillar. It’s where the magic
trading rules are set for the chosen type of
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
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.