Decentralized Collaboration with InvArch’s Multi-Signature Solution
InvArch Network, with its cousin chain on the Kusama relay, Tinkernet, speeds up blockchain technology and innovation, bringing ideas to life with utilities that were not realize before. The protocol leverages the potential of NFTs and combines it with the innovation hub of Kusama, and the security and interoperability of Polkadot to create the world’s first IP (Intellectual Property) Protocol for Web3.
InvArch and Tinkernet are both creating a loud, distinctive noise in the Dotsama and broader Web3 space, much due to their announcement of a innovating the Multisignature Pallet, as Yung Beef 4.2 (Community Manager of Subsocial) had put, “It really is unimaginably bullish.”
Lolmcshizz, a ChaosDao member, also expressed their thoughts on how InvArch had innovated the multi-signature pallet and has even suggested a use case in collaboration with Talisman Wallet:
We will look into this a bit later. Before talking about Multi-signature functionality, it’s important to know the fundamentals on InvArch’s IP Tokens. In its fundamental architecture and understanding, InvArch utilizes blockchain technology to allow individuals to tokenize and store their IP — thanks to the partnership with RMRK — as RMRK 2.0 NFTs, allowing them to have the utmost composability in the form of IP Sets and utilize programmable IP Tokens pegged to an IP Set.
Now it becomes very interesting! Personally speaking, IP Tokens are a “magical” component of InvArch technology. They confirm the ownership or rights over an IP Set, which can be divided among multiple addresses or owners. They are completely programmable, and creators of IP Sets define the utility and the use case for IP Tokens.
The number of IP Tokens for each IP Set is defined by its creator, but it can be changed later by IP Tokens holders via voting. The IP Tokens pegged to IP Sets can serve an evolving array of functions such as streamlined royalty allocations and copyright agreements, access rights to linked IP Sets, divisional ownership, voting weight governing a project, admittance access in a group, and currency linked to an IP Set, and much more.
With IP Tokens, creating a “percentage ownership right” allows users to own diverse IP Sets for a particular share.
IP Sets can utilize IP Tokens similarly to how dApps and smart contracts interact with their utility tokens. In addition, they are indeed “magical” because they can streamline royalty shares over any IP opening the door to trustless, decentralized collaboration.
In other words, with InvArch, every project, any IP can become a DAO (a decentralized autonomous organization).
To illustrate, the following is an example from Co-founder and Head of Development, Gabriel Facco de Arruda on how and why a SmartIP contract is created:
Alice needs funding to build her time machine, and Bob comes along, offering the money she needs and asking for 10% ownership of the IP. She created a SmartIP and sent Bob 10% of the IP tokens. Now the IP is owned by a collective of accounts; Bob owns 10% of the IP and Alice 90%.
Now, let’s expand this example: Bob’s funds weren’t enough to develop such an auspicious project, and Alice needs three other investors, a developer, and a manager. Alice finds them and decides to start a DAO offering each of them 10% ownership of the IP, i.e. 10% of the IP tokens, to help her dream of a time machine become reality. In the end, Alice holds 40% of the IP tokens and the other six collaborators each 10%.
Here is where Multi-Signature comes in. Multi-Signature (Multisig) or the Multisig Pallet can be used with IP Tokens for voting. Multisig is an added layer of security by requiring more than one key to authorize a transaction. Using InvArch, different users can have percentages of the IP Tokens pegged to an IP Set as in our example above. In this case, over 50% ownership or Multisig is required to authorize changes.
Multi-Signature allows collaboration, security, and decentralization at the same time.
Of course, things can be much more complex in a bigger DAO with several hundreds of members. It is the case with @YoudleDAO, the NFT project designed as a DAO that will showcase the fantastic possibilities of InvArch technology around IP and NFTs. But the principle is the same:
50% ownership or Multisig is required to authorize changes.
- Multisig is a way for DAOs or businesses to realize board decisions; using multi-sigs, the entity can govern its treasury in a decentralized manner
- However, InvArch Multisig can be used more commonly as a kind of 2FA, allowing multiple parties to sign off a single transaction
- It gets even more exciting as we can apply this technology seamlessly to every NFT. It becomes one of the most powerful features of an IP Set, namely the multi-sig ownership solution that InvArch provides over NFTs and NFT collections. On InvArch, NFTs are DAOs, right out of the box. The most flexible DAOs in the Web3. These are amazing news for every NFT artist and creator out there. They can design the royalties of their NFTs as they like and have an influence on their artwork in the future using multisig in collaboration with the user to whom they sell
In a Twitter thread, the InvArch team was excited to share, in detail, that multi-signature accounts are indeed improved and innovated on the InvArch Network because it has solved the issue of Multisig on Polkadot, where Multi-signature accounts (via current Polkadot iteration) cannot be modified after being created as the address is derived from the member addresses.
With InvArch, multisig addresses are derived from the IP Set ID. Therefore, the multisig address will never change. But the rights, the ownership tokens (IPTO), can simply be transferred to another user. Multisig account creation and functionality are much more straightforward, faster, and easier on InvArch. Though at the moment, user functionality for multisig on InvArch is through polkadot.js, in the future, it will have a well-designed front-end user interface that will give users a fast and seamless user experience!
Without extending too much, it’s worth mentioning that as a part of the OCIF (On-Chain-Innovation-funding) protocol, users will be able to get a portion of the IP Tokens via IP farming. IP Tokens Farming — as an alternative to IP Bootstrapping and a way to establish liquidity and distribute an IP Set’s IP Tokens. Users can divert a portion of their staking rewards to an IP Set in exchange for a part of that IP Set’s IP Tokens. For the original owner of the IP, this can be a much more attractive and decentralized way to fund his idea.
A world where IP innovation, funding, and social collaboration can exist hand-in-hand without the burden of trust. That’s the mission.
A lot is going on behind the scenes at InvArch. Everything is coming together and it truly feels like it’s meant to be! The team has been working tirelessly, pushing technology first with Tinkernet on the Kusama Network with high speed, on its way to revolutionizing the blockchain space through its unique innovations on IP, NFT, DAO, and Polkadot XCM technologies. The project will bring about entirely new use cases that would not currently be possible without the essential technology InvArch provides. This time was an enhanced Multi-signature solution that caused great excitement in the Dotsama Twitter space. You can keep up with the official channels below to learn how InvArch will shock the Web3 space next!
This is Article #3 from the InvArch Ambassador Contributory Process called the “Creation Flow.”
Congratulations to Cap#0438 who authored this article, and to Nullex_tv#5008, samurai ilusha#9958, Haizara#3529, and ArtemKus#7268 for creating the graphic designs featured in this article! 👏
If you would like to follow them on social media, here are their Twitter handles (links included).
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