Let’s take the currently popular example of music licensing. Because of digital downloads and video streaming, actual sales are a mystery to the musician himself. So, the musician makes conclusions about sales based on his trust in information about the sales amounts of his works. If the rights to a musical piece are tokenized, authors will receive their share of the proceeds, which will be established electronically. And so, musicians believe and hope that the proceeds from tracks or albums are correctly calculated and transferred to them. It is worth noting that licensing requires a lot of paperwork in addition to basic human trust. The tokenization of musical rights would provide many possibilities, and not only for musicians. If musical rights were recorded on the blockchain, the many participants in the creation of a musical track would own their electronic shares. Ideally, every listen to a musical track would require unlocking and payment, which in turn would be transferred to the shareholders. The shareholders would then subsequently be able to convert their shares into other investments — a car, a house etc.
But what can be done with the tokenization of assets like cars or houses? Here, things become slightly more complicated because a car can be stolen, a house can burn down. However, the BANKEX Proof-of-Asset protocol helps solve this problem.
The BANKEX Proof-of-Asset Protocol is modular in structure. The final module, Deal, is responsible for the legal side of the transaction. Deal consists of a chain of smart contracts for the payment and transfer of legal rights to an asset. The smart contracts implementing the legal transfer of rights to an asset will differ depending on the country of purchase of the asset. The legal block Deal may contain various smart contracts depending on the national jurisdiction
Thanks to the modular structure, any change in legislation requires changing only the part of the smart contract that is subject to the change, without a need to amend the entire protocol.
30 Jan 2018