North Carolina Patent of the Month – August 2023
In today’s rapidly evolving financial landscape, the realm of investment and securities is undergoing a transformative shift, thanks to innovative technologies like blockchain. Imagine a system that revolutionizes the way transactions of tokenized securities are carried out during a tokenized securities offering. Equity Shift, Inc. is achieving just that. Their recently patented blockchain technology offers a new approach to transferable equity.
At its core, this inventive system harnesses the power of blockchain and seamlessly integrates it with the intricacies of tokenized securities. The setup comprises user devices, a server computer owned by a tokenized securities offering entity, and a securities token platform – all interconnected within a robust network.
The process begins with the server computer’s ability to create and deploy tokenized securities contracts on the blockchain-based securities token platform. These contracts, a cornerstone of the system, are meticulously designed to enable secure and immutable recording of transactions on the blockchain ledger.
The system uses proxy contracts to facilitate the seamless transfer of ownership from one party to another using distinct identifiers. This mechanism, combined with escrow contracts, allows for encrypted ownership information to transition smoothly from old to new owners.
The system incorporates proxy contracts that can be suspended, resumed, or terminated as needed, adding an extra layer of flexibility. Not stopping there, this inventive approach extends into the realm of voting contracts. Holders of tokenized securities can now engage with the issuing entity through a voting contract, influencing decisions and shaping the future direction.
Perhaps the most exciting facet of this system is the way it democratizes investment. It enables at least one accredited investor to partake in tokenized securities offerings. The entire process is streamlined, from verification through to acquisition. Accreditation agencies are integrated into the process, ensuring regulatory compliance and creating a trustworthy environment for investors.
Are you developing new technology for an existing application? Did you know your development work could be eligible for the R&D Tax Credit and you can receive up to 14% back on your expenses? Even if your development isn’t successful your work may still qualify for R&D credits (i.e. you don’t need to have a patent to qualify). To find out more, please contact a Swanson Reed R&D Specialist today or check out our free online eligibility test.
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