The Islamic Development Bank Institute (IsDBI) has submitted a patent application for its Smart Stabilization System to the Intellectual Property Office of Singapore (IPOS) as part of its drive to develop fintech solutions for socio-economic development challenges facing IsDB member countries.
Confirming that the patent is pending approval in its latest annual report, the IsDBI explained that this is part of its MoU with Beyond Limits, a firm specializing in artificial intelligence, to explore the transformation of the IsDBI’s fintech patents into ready-made solutions.
The institute has already patented three solutions, all based on blockchain technology: Smart Credit Management System, Smart Voucher and Proof-of-Use. Two out of these three IPOS patents have already been recognized by the World Intellectual Property Organization.
“The institute completed the capitalization framework and strategy meant to identify, select and manage partnership agreements for the capitalization and commercialization of the patented solutions,” the IsDBI expounded. “The framework formulation process took into consideration the intellectual property protecting and licensing models, revenue model, and technological assessments approaches.”
The Smart Stabilization System is an algorithm for stabilizing the value of assets or coins traded on centralized exchanges. In May this year, the IsDBI partnered with blockchain firm Settlement to work on this system.
Table 1: IsDBI’s fintech solutions
|Smart Credit Management System||A blockchain-based system that integrates: |
– Credit information and history
– Credit rating
– Credit insurance
– Credit incentives for debtors to pay on time
– Verification incentives of the blockchain network
|Smart Voucher||A blockchain-based voucher allowing a regulatory authority to authorize selected goods and/or service providers to provide selected goods and/or services to eligible parties. This can be funded through sales tax proceeds and be channeled to disadvantaged groups or individuals, making the smart voucher a tax-credit receipt and subsequently, a social impact bond.|
|Proof-of-Use||A method and system for transaction validation in a distributed ledger technology (DLT) such as a blockchain network. The method is based on reciprocity: members validate the transactions of other members in return for others validating theirs. Members are incentivized to offer reciprocal verification services for the DLT system to be sustainable.|
|Smart Stabilization System||An algorithm for stabilizing the value of assets or coins traded on centralized exchanges. The main idea of the system is that the gap between supply and demand can be managed to reduce the volatility of the price while maintaining the role of the gap in adjusting prices. The system is unique in several aspects: |
1. It is self-funded
2. It acts before price changes
3. It protects the rights of investors