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May 2, 2023

Scaling Tokenization Takes Scaling of Business Logic

Scaling tokenization takes scaling of Business Logic into a digital framework using smart contracts.

Scaling Tokenization Takes Scaling of Business Logic

(SEBI Approves Five AIF Reforms)

Scaling tokenization takes scaling of Business Logic into a digital framework using smart contracts. We need to be able to do this with heterogeneous assets built in concert with the unique structures needed to construct in a unique locale. Defining this business logic has an entire eco-system in fund accountants and lawyers, we either need to turn them into programmers, train programmers in a whole new set of skills, or develop tools for the existing alts fund administrators. We think the latter makes the most sense.

- Business people decide how their internal, vendor and customer relationships “should” work.

- Internal relationships are often expressed as policies and procedures.

- Vendor and customer relationships are negotiated and to increase inforceability are written down in contracts.

Contract Logic (smart and legal)

Contract is a particular type of business logic agreed to and documented by lawyers to re-express the agreed/desired Vendor and Customer relationships as written contracts. These also remove contingencies, and document as many what if situations as possible. This is called an exclusion of the middle arguement in logic. As we use logic to turn this legally defined relationships, into an algebraicly defined formula, which becomes a programmatically defined calculation.

The move to programmatically articulate the contract has predominately been in excel with fund accountants and lawyers agreeing on the programmatically defined calculation by fund admins. A middle layer of algebraically defined calculation using Inveniam operating system shows how data flows through a calculation with pointers back to the legal contract, data sources, and moving data through valuation, waterfall, capital stack valuation, risk, and reporting tools, with proof of process, origin, and calculation, on and off chain. This will transform what a fund admin is in 3-5 years.

There is no logic in the data layer, but there is massive logic in where it is pulled from and the order of operation in accordance with a legal agreement.

We need to have contract management life cycle solutions that inform risk solutions, counterparts, Vendor and supply chain management, cyber risk, and on to code risk. Inveniam allows you to manage this as an institution at scale...this is digital middle office...

This will be used to deliver transparency and compliance as alternatives seek a broader buying universe. This is how you manage the life cycle of;

1)your funds

2)your assets

3)all associated legal agreements, and

4)your contracts, smart, and legal.

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