Patent ID: 11893626
Assignee: STICHTING IP-OVERSIGHT
Field: IT methods for management (Electrical engineering)
Classification: CPC G  H | IPC G  H

Claim 17:
18. A method for creating a token, comprising:
providing a blockchain on a distributed ledger operating according to distributed consensus, storing parameters of a smart contract in a distributed database;
providing a communication port configured to interface with an automated communication network for communications between a plurality of intercommunicating automated cryptographic hardware processors;
receiving a pledge of a physical productive asset from an originator;
tokenizing the asset, to generate a plurality of semi-fungible tokens of a class, each of the plurality of semi-fungible tokens representing a fractional non-possessory security interest in the physical productive asset, subject to the smart contract executing on a distributed virtual machine on the distributed ledger, the security interest being associated with a security agreement which requires a return of a semi-fungible token of the class, or a payment of compensation from a portion of a production of the productive asset after a latency, and if the latency expires without the payment being made, token holders of unreturned semi-fungible tokens of the plurality of tokens have a right to execute on the security interest to possess the productive asset and operate the asset to produce the production;
issuing a respective semi-fungible token to a token holder by communicating information through the automated communication network;
recording ownership of the semi-fungible token by the token holder on the blockchain by performing a distributed consensus operation using the plurality of intercommunicating automated cryptographic hardware processors;
automatically monitoring, with the smart contract, whether the respective semi-fungible token remains outstanding and whether the payment has been made before the latency expires, wherein the smart contract executing on the distributed virtual machine on the distributed ledger is configured to record a message on the distributed ledger representing an authorization to execute on the security interest to authorize a transfer of possession of the productive asset to the token holders.