Blockchain Shared Value Added Note (SAN) System

Blockchain Shared Value Added Note (SAN) System

Mainly describes a system for creating and distributing cryptographically secure digital tokens through blockchain technology, which represent equity in assets (such as real estate), especially equity corresponding to loan agreements. The following is a summary of the key points of the document:

Blockchain SAN System Overview:

System Architecture: The system includes a transaction portal, smart contracts, wallet management engine, digital market components, etc., which are used to collect and manage information about loan agreements or token trading agreements.

Cryptographic Tokens: The system generates and distributes cryptographically secure digital tokens through blockchain, which represent equity in assets (such as real estate).

Smart Contracts and Verification:

Smart Contract Function: The system uses smart contracts to automatically verify asset values ​​and conduct asset value assessments based on non-blockchain information sources (such as real estate value databases).

Asset Verification: Verify asset values ​​through third-party verification agencies (such as Oracle smart contracts) to ensure that loans meet preset standards.

Token Generation and Distribution:

Token Generation: Generate a corresponding number of tokens through smart contracts based on the asset value and loan amount in the loan agreement.

Distribution Mechanism: Tokens are distributed to buyers based on their investment amounts and preset rules, and transaction information is recorded on the blockchain at the same time.

Token Trading and Storage:

Hosted Wallet: The system uses a programmable custodial wallet to issue tokens to buyers after meeting specific regulatory standards.

Token Circulation: Tokens are traded on the digital market to ensure transparency and traceability.

Price Adjustment and Dynamic Management:

Price Dynamic Adjustment: The system dynamically adjusts the token price based on asset appreciation and the number of retired tokens to maintain market balance.

Qualified Value and Cash Value: The token price is based on the qualified asset value and the system's available cash value to ensure the stability of the token's intrinsic value.

Regulatory Compliance and Audit:

Compliance: The system has built-in compliance protocols to ensure that token transactions comply with regulatory requirements, such as Anti-Money Laundering (AML) and Know Your Customer (KYC) standards.

Audit Function: Provides an audit component to record and display transaction information for review by regulators, investors and auditing agencies.

User Interface and Interaction:

Multi-user Portal: The system provides dedicated portals for different users (such as initiators, agents, administrators, and market makers) to enable interaction and information management.

Authentication: Ensure user identity security and enhance system security through multi-factor authentication.

Technical Implementation and Platform Support:

Platform as a Service (PaaS) and Software as a Service (SaaS): The system supports multiple implementations, including being provided as a Platform as a Service and Software as a Service.

Blockchain Network: The system runs on a blockchain network (such as Ethereum), using virtual machines and smart contracts to execute transactions and logic.

What are the core functions of the blockchain SAN system?

The core functions of the blockchain SAN system are to create, distribute, manage and trade cryptographically secure digital tokens through blockchain technology and smart contracts. These tokens represent equity in specific assets (such as real estate), especially equity corresponding to loan agreements. The system includes transaction portals, smart contracts, wallet management engines, digital market components, etc., which realize the whole process from loan agreement information collection, asset value verification, token generation and allocation to transaction supervision and audit.

What role do smart contracts play in the SAN system?

Smart contracts play a key role in the SAN system. They are responsible for automatically verifying asset value, generating tokens based on preset rules, managing token allocation and transactions, etc. Smart contracts are executed through the blockchain network, ensuring the transparency, security and immutability of transactions. In particular, they are able to conduct asset value assessments based on non-blockchain information sources (such as asset value data provided by Oracle) and execute corresponding contract terms based on the assessment results.

How are token prices adjusted dynamically in the SAN system?

The token prices in the SAN system maintain market balance through a dynamic adjustment mechanism. Specifically, the token price is determined based on the ratio of the qualified asset value (QV) and the system's available cash value (QC), i.e., the h value, and is adjusted as the asset value increases and the number of retired tokens changes. When the asset value increases or the number of retired tokens decreases, the h value will increase accordingly, thereby pushing up the token price; vice versa. This dynamic adjustment mechanism ensures the stability of the intrinsic value of the token and the market attractiveness.

How does the SAN system ensure compliance and audit functions?

The SAN system ensures compliance and transparency of transactions through built-in compliance protocols and audit components. The compliance protocol requires that all transactions comply with regulatory requirements, such as anti-money laundering (AML) and know your customer (KYC) standards, and is enforced through smart contracts. At the same time, the audit component records and displays all transaction information for review by regulators, investors and audit agencies. Together, these measures form a strong compliance and audit framework for the SAN system, which enhances the trust and reliability of the system.

How do users interact through the SAN system?

Users interact and manage information through the multi-user portals provided by the SAN system. These portals include the initiator portal, agent portal, administrator portal, and market maker portal, providing dedicated interfaces and functions for different users. Users can upload loan agreement information, verify asset value, purchase tokens, participate in transactions, etc. through the portal. At the same time, the system uses a multi-authentication mechanism to ensure user identity security, enhancing the security of the entire system.