SALT BLOCKCHAIN INC. (20240265442). BLOCKCHAIN ORACLE FOR MANAGING LOANS COLLATERALIZED BY DIGITAL ASSETS simplified abstract
Contents
BLOCKCHAIN ORACLE FOR MANAGING LOANS COLLATERALIZED BY DIGITAL ASSETS
Organization Name
Inventor(s)
Gregory Lloyd Bell of Denver CO (US)
Matthew Hill of Centennial CO (US)
Shawn Owen of Westminster CO (US)
BLOCKCHAIN ORACLE FOR MANAGING LOANS COLLATERALIZED BY DIGITAL ASSETS - A simplified explanation of the abstract
This abstract first appeared for US patent application 20240265442 titled 'BLOCKCHAIN ORACLE FOR MANAGING LOANS COLLATERALIZED BY DIGITAL ASSETS
Simplified Explanation: The patent application describes a blockchain oracle that manages loans collateralized by a digital asset. The oracle monitors the loan terms, including the digital asset collateral held in a multisig wallet. If collateral requirements are not met, the oracle can issue warnings to participants and initiate liquidation of the collateral.
Key Features and Innovation:
- Management of loans collateralized by digital assets
- Use of a blockchain oracle to monitor loan terms and collateral
- Initiation of liquidation process if collateral requirements are not met
- Utilization of multisig wallets for secure storage of digital asset collateral
- Real-time updates on loan status and collateral information
Potential Applications: The technology can be applied in:
- Peer-to-peer lending platforms
- Decentralized finance (DeFi) systems
- Asset-backed lending markets
Problems Solved: The technology addresses:
- Risk management in loan collateralization
- Automation of margin call and liquidation processes
- Secure storage of digital assets in multisig wallets
Benefits:
- Increased transparency in loan agreements
- Mitigation of counterparty risk
- Efficient management of collateralized loans
Commercial Applications: Title: Blockchain Oracle for Collateralized Loans This technology can be utilized in:
- Financial institutions offering digital asset-backed loans
- Cryptocurrency exchanges providing margin trading services
- Investment firms managing digital asset portfolios
Prior Art: Readers can explore prior art related to blockchain oracles, loan collateralization, and DeFi systems in academic journals, patent databases, and industry publications.
Frequently Updated Research: Stay informed about the latest developments in blockchain oracles, loan collateralization technologies, and DeFi innovations through industry conferences, research papers, and online forums.
Questions about Blockchain Oracle for Collateralized Loans: 1. How does the blockchain oracle ensure the security of the digital asset collateral? 2. What are the potential risks associated with using a blockchain oracle for managing collateralized loans?
Original Abstract Submitted
a blockchain oracle manages loans collateralized by a digital asset. lenders and borrowers agree to loan terms that include digital asset collateral held in a multisig wallet for which various parties hold private keys. if collateral requirements are not met by the loan such as when a loan-to-value ratio satisfies a margin call condition, the oracle may transmit warnings to loan participants and may initiate liquidation of the digital asset collateral to remove the margin call condition. the oracle may exist on a blockchain initialized with loan agreement information. the oracle may determine whether margin call and liquidation conditions are satisfied by updating an internal state by obtaining and/or receiving information regarding the status of the loan, the digital asset collateral, and liquidation locations on-chain, by receiving status transactions, and/or by requesting the information directly.
