| CPC G06Q 40/03 (2023.01) [G06Q 20/3825 (2013.01); G06Q 2220/00 (2013.01)] | 22 Claims |
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1. A method comprising:
receiving, by one or more processing devices, a request to initiate a loan process from a user device, the request indicating a collateral item of a borrower;
executing, by the one or more processing devices, a loan process smart contract instance that includes computer-readable instructions that are configured to manage a loan process in accordance with a loan process workflow, wherein the loan process smart contract instance is configured to execute the loan process workflow, wherein the loan process workflow includes:
instantiating an appraisal smart contract instance that includes computer readable instructions that are configured to facilitate an appraisal task that is performed by one or more appraisers to appraise the collateral item and to issue an appraisal notification upon confirming receipt of an appraisal report indicating an appraised value determined by the one or more appraisers;
initiating tokenization of the collateral item, wherein tokenization of the collateral item includes:
generating a virtual representation of the collateral item, wherein the virtual representation includes the appraised value and at least one of a description of the collateral item and one or more media contents that respectively depict at least a portion of the collateral item;
generating, by the one or more processing devices, a collateral token corresponding to the collateral item, the collateral token cryptographically linked to the virtual representation of the item, wherein the collateral token is a digital token that is stored on a distributed ledger and is redeemable for the collateral item; and
assigning the collateral token to a first user account of the borrower on the distributed ledger;
receiving a loan agreement notification indicating one or more loan term parameters of a loan agreement that was agreed to by a lender and the borrower, wherein the loan term parameters include a loan amount that and a set of unlocking events, wherein the set of unlocking events include:
a loan repayment event that defines a first set of electronically verifiable conditions that must be met to determine that the loan has been fully repaid and
a loan default event that defines a second set of electronically verifiable conditions that must be met to determine that the borrower has defaulted on the loan;
locking, by the one or more processing devices, the collateral token by assigning the collateral token from the first user account to an escrow account on the distributed ledger, the collateral token remaining assigned to the escrow account until an unlocking event of the set of unlocking events is detected, whereby the collateral token is prevented from being redeemed or assigned to another account while the collateral token remains locked in the escrow account;
monitoring, by the one or more processing devices, a repayment status of the loan in accordance with the loan term parameters to detecting an occurrence of any of the set of unlocking events;
in response to detecting an occurrence of the loan repayment event, unlocking the collateral token and assigning the token to the first user account of the borrower; and
in response to determining an occurrence of the loan default event, unlocking the collateral token and initiating a loan default workflow.
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