summary
Story, a peer-to-peer intellectual property network, is committed to building the world's first programmable knowledge and creativity market. In Story, scientific and creative assets can be registered on a universal ledger with custom parameters. All assets have standardized interfaces and can be used by any software application or artificial intelligence model to achieve the free flow and value realization of intellectual property. Story coordinates assets through a decentralized network graph: nodes represent independent intellectual property assets, and edges represent the legal and economic commitments of the asset. Story also has an asynchronous, decentralized verification mechanism that relies on crypto-economic incentives to evaluate the uniqueness of assets to ensure fairness and transparency. Join Story and help grow the world's only, open, permissionless repository of knowledge and creativity.
1. Introduction
The current intellectual property (IP) system relies heavily on centralized institutions to manage ownership and value circulation. From social media to pharmaceutical companies, a small number of unregulated institutions have a firm grip on the production and exchange of global knowledge, which has led to high costs for IP transactions. Worse still, the traditional IP system is unable to cope with the large-scale generation and distribution of content in the AI era. The works of individual creators are captured, trained, and used by AI without permission, but they are not credited or paid; and AI companies are unable to sign licensing agreements for massive amounts of content one by one, and the IP market lacks transparency and liquidity.
We need a truly open, programmable, peer-to-peer intellectual property market that allows anyone to freely create, trade, and monetize, free from exploitation by monopolistic institutions. In Story, each IP asset has embedded programmable licensing rules that can be monetized and traded on any application. Story not only provides a global IP repository, but also a programmable IP market that drives the exponential growth of human knowledge productivity.
2. Architecture Overview
The development of blockchain technology has gone through multiple stages. Bitcoin[1] first introduced a decentralized ledger, and Ethereum[2] built a smart contract platform on top of it, giving rise to new asset classes such as NFTs. Subsequently, blockchain faced scalability challenges, and high-performance public chains such as Solana[3] emerged to try to overcome limitations. Although the industry has long focused on balancing the blockchain’s “trilemma” of decentralization, scalability, and security, the applicability and usability of blockchain have been overlooked, which has become a barrier to mainstream adoption of blockchain technology. Therefore, we need a new type of blockchain that not only solves technical challenges, but also creates programmable markets for complex new assets, so that blockchain technology can truly serve the real world.
Story is a purpose-built decentralized blockchain with a multi-core execution environment. It consists of a main execution core and multiple highly customizable cores. The main core is equivalent to the Ethereum Virtual Machine (EVM) and enables rapid adoption of existing applications in the ecosystem. The Intellectual Property (IP) core is one of the specialized cores that efficiently handles IP registration as a native asset class while optimizing operations on complex IP relationship graphs. The IP core transforms intelligence into programmable IP assets. While Story is primarily focused on intellectual property, its flexible architecture allows future cores to be used far beyond IP-based applications.
Figure 1: Story’s protocol layers
Story runs on a set of decentralized nodes (or validators) connected through a peer-to-peer network. They work together to ensure consensus, transaction processing, and chain integrity, building a secure decentralized network that any participant who follows the protocol rules can join. Following the principle of separation of concerns, the protocol can be divided into three layers: execution layer, storage layer, and consensus layer.
2.1 Execution Layer
The execution layer is the computing foundation of Story and is responsible for the execution of all transactions and smart contracts. It consists of a main core and multiple specialized cores that work together. The execution layer is designed to provide maximum flexibility and computing power to each core while ensuring the stability and activity of the network.
Figure 2: Multi-core design at the execution layer
The main core is the default execution environment and is fully compatible with the EVM. The main core handles all transactions and activates the corresponding dedicated core when a transaction call involves a contract in the corresponding dedicated core. The execution environment of each dedicated core is optimized to prioritize specific requirements such as processing speed, scalability, security, or privacy. For example, the way data is modeled, stored, and processed in certain applications directly affects its scalability and even feasibility. The complexity of the multi-core design is invisible to the user because each dedicated core provides functionality through smart contracts and is automatically activated when the user interacts with the relevant contract. All cores follow the following requirements:
Determinism: The execution result of any method call must be deterministic. For example, although a core may use a GPU internally to accelerate floating-point calculations, the final result must remain consistent. Non-deterministic behavior threatens the stability and activity of the network.
Bounded and measurable resource consumption: Each core must accurately calculate the expected resource consumption (such as gas fees) of all contract calls and calculate it in constant time based on the input parameters. Incorrect measurement will undermine network stability and fair use.
Storage: Each stateful core can store data in the form of key/value pairs in the namespace of its storage layer, where data commitments are used for consensus. All key-value pair updates must follow a canonical format and maintain determinism in the order of updates.
To meet different needs, Story’s first release deployed three dedicated cores to work with the main core: one core is responsible for the storage and operation of IP as a native asset class, another core connects the on-chain execution environment with the off-chain world, and the third cross-chain communication core helps IP assets circulate in the wider blockchain ecosystem.
Intellectual Property Core
In Story, IP assets are presented through multi-dimensional graphs, with various types of nodes (such as IP assets, licenses, etc.) connected by edges representing economic and legal relationships. These IP Graphs track the rights, licenses, and monetization processes of original and derivative assets.
Figure 3: IP asset diagram
The PoC protocol is deployed on the IP core and is a native protocol that provides an open IP repository and a set of modules to interact with these IPs in a frictionless way. The PoC protocol is both a standardized universal ledger for IP assets on Story and a way to create a digital market around these assets and their rights. The PoC protocol tracks the genealogy of the use, expansion, and monetization of IP in various applications, similar to the role of Git in code branching and version control. This open repository allows Story to become the source and exchange layer of IP assets.
IP holders can register their IP on-chain and use the PoC module to customize the terms of use and copyright structure. Each IP can be registered on-chain as an IP asset (ERC-721) and optionally associated with an IP account (optimized version of ERC-6551). Off-chain entities can monitor registrations, verify IP holder identities, provide certification for registered IPs and their licenses, and initiate decentralized dispute resolution processes in the event of infringement. For more details on the PoC protocol, see Appendix A.
The IP core supports the PoC protocol through an optimized data model, providing efficient local storage for IP-related assets, licenses, and certifications to optimize the processing of the intellectual property relationship graph. The IP core also provides efficient local implementations for complex graph operations (such as traversal), which would otherwise be time-consuming and computationally expensive.
Figure 4: IP registration and use flow chart (standard process path)
For example, when a new association is established between a user and an IP asset, the protocol needs to verify compatibility by checking the IP parameters and all its parent assets to ensure uniform execution of the rules. The IP core uses advanced algorithms to efficiently traverse the relationship graph and apply a universal compatibility engine for IP terms. It is almost impossible to achieve such a function in other Layer 1 or Layer 2 blockchains without a dedicated execution core.
Off-chain synchronization core
Oracles play an important role in the blockchain ecosystem, allowing these previously isolated systems to connect with real-world data and services. Without oracles, blockchains can only process on-chain data, which greatly limits their practical applications. Off-chain Sync Core provides native support for stable and seamless integration of oracles.
Figure 5: Off-chain synchronization core facilitates seamless integration of oracles and other data providers
One of the services deployed on the off-chain synchronization core is the Story's Orchestration Service (SOS) framework.
The service extends the PoC protocol by verifying the authenticity of registered IP assets and licenses, verifying the social identity of creators, receiving off-chain payments, and generating legal contracts that are available off-chain. The SOS framework bridges the gap between the off-chain reality and the on-chain world through a network of off-chain entities that provide proof of service for basic services on Story.
Cross-chain communication core
The cross-chain communication core provides the basic components for efficient cross-chain message passing. Taking the Inter-Blockchain Communication Protocol (IBC) [4] as an example, it is impractical to implement the protocol using EVM smart contracts due to the high computational cost of verifying proofs (such as Merkle proofs) and signature verification. This problem is solved by the cross-chain communication core.
The ability to support cross-chain communication promotes broad interoperability of the ecosystem, eliminates value silos, and expands more application scenarios. For example, IP holders can use their IP assets on different blockchains to access various markets, platforms, and services while ensuring consistency in ownership and monetization terms. Users can also use their IP assets as collateral on DeFi-focused blockchains. This interconnected approach ensures that IP ownership can be enforced regardless of where the asset is used, regardless of the execution environment, thereby realizing Story's vision of becoming the IP layer for the entire network.
Future Core Scalability
Story's architecture supports the addition of new specialized cores that extend its capabilities beyond the realm of IP. Let's look at two potential future cores.
Artificial Intelligence (AI) Cores optimize AI-related on-chain operations. By default, these operations are not feasible on the EVM - as pointed out in the paper [5], a simple multiplication of two 1000 x 1000 matrices alone would cost over 3 billion gas, far exceeding the gas limit of the logical block. AI Cores are able to use modern GPU processors for integer operations, combined with deterministic fixed-point operations, quantization techniques [6] and an on-chain pseudo-random generator to eliminate non-determinism caused by randomness and floating-point errors.
Zero-knowledge (ZK) Core enables efficient verification of zero-knowledge proofs such as ZK-SNARKs. Zero-knowledge proof (ZK-proof) is a cryptographic method that allows a prover to prove to a verifier that he possesses certain knowledge or information without exposing the actual information. By providing native support for zero-knowledge proof verification and leveraging a highly optimized software stack or hardware acceleration, ZK Core has an advantage over smart contracts in reducing computational overhead and gas costs. This core is particularly important for applications that require confidential IP exchange or large-scale verifiable IP maps. For example, it allows IP holders to prove their ownership and authenticity of IP assets without exposing sensitive information.
2.2 Storage Layer
The storage layer sits above the consensus layer and provides storage APIs to the execution layer and its core. It simplifies the complexity of data organization, cryptographically commits data, and determines which database to use to manage data. The design of the storage layer is inspired by the NAND Flash Translation Layer (FTL), which maps logical addresses to physical storage blocks to optimize write performance and extend device life. The storage layer also uses data placement strategies to balance the performance, scalability, cost, proof size, and redundancy of heterogeneous storage systems. By analyzing usage patterns and access frequencies, the storage layer can actively optimize data distribution between different storage layers. The sub-storage system automatically adjusts based on the size, access frequency, and durability requirements of the data to efficiently handle various data types.
Figure 6: Story’s storage layer
In addition to performance improvements, the storage layer also addresses the fragmentation of the user experience by providing a unified interface that integrates on-chain and off-chain storage solutions (such as IPFS[7] and Arweave[8]). IP assets can take many forms, ranging from small text files to large multimedia files and complex databases. Storing large amounts of data on-chain is very expensive. When interacting with large datasets, the traditional approach is to store the content on IPFS and only maintain metadata references on-chain; this approach often has significant limitations and reduces the user experience. For example, when an ML model is registered as an IP asset, metadata (such as C2PA[9]) used to capture the authenticity of the content will be stored together with the actual file so that model inference can be performed directly when needed. It is worth noting that the underlying protocol has handled the complexity to ensure that the behavior of the interface remains deterministic and does not compromise the stability of the network. The relevant technical details will be released in a subsequent technical white paper.
2.3 Consensus Layer
The consensus layer ensures the integrity, security, and stability of the network by coordinating the block generation of all network participants. In recent years, blockchain consensus mechanisms have made significant breakthroughs and progress. The design of this layer is very flexible and can adapt to the addition of new consensus mechanisms.
Figure 7: Tendermint’s block formation cycle (standard path)
Story initially adopted a modern Tendermint implementation called CometBFT. Tendermint is a Byzantine Fault Tolerant (BFT) consensus engine with well-defined properties and customization options that fully meet our design requirements:
Fault tolerance: Even if 33% of validators are malicious or offline, the system can maintain security. It ensures that all honest nodes reach consensus on the submitted blocks and identifies and punishes malicious nodes through cryptographic proofs.
Liveness guarantees: When more than two-thirds of validators (measured by voting power) remain active and participating in the network, the network can continue to move forward.
Instant finality: Transactions can be quickly finalized after being packaged into blocks. This instant finality is crucial for applications that require immutability, and it directly affects the user's experience of reliability.
Modular design: The Application Blockchain Interface (ABCI) separates consensus and execution, ensuring that future consensus upgrades will not affect the existing execution logic.
Story's consensus layer uses a proof-of-stake (PoS) mechanism, and validators play a vital role in maintaining the security and integrity of the blockchain. This provides economic incentives for honest and efficient operations, as malicious behavior is punished, including losing staked tokens. This layer manages all operations related to staking, lockup requirements, and reward distribution.
3. Application scenarios
In addition to Story’s technical architecture, we can start to think about the various application scenarios that a peer-to-peer IP system may bring. With the emergence of a universal IP repository and a programmable smart market, perhaps we are standing at the starting point of a new round of Renaissance. This section will explore some of the most promising application cases, of course, there are many equally exciting applications that have not yet been mentioned.
3.1 The rise of the smart market
Bitcoin and Ethereum have redefined money in the past few decades, but the road to expanding blockchain to other new asset classes beyond money has been slow. Unstoppable digital markets are the "killer app" of blockchain, and purpose-built blockchains will create new markets starting with IP.
The traditional IP system is overly dependent on complex centralized structures and intermediaries, which makes IP, a trillion-dollar asset class, inefficient in terms of readability, trading, and monetization. High transaction costs prevent knowledge and creativity from being transformed into value, and also limit the exchange and dissemination of ideas. Story breaks through limitations by supporting peer-to-peer IP transactions and programmable IP.
Applications can integrate the IP catalog of pharmaceutical companies or media organizations into Story as IP RWAs (real world assets). Even more exciting is that natively programmable IP can be combined with DeFi applications to produce an emerging field - IPFi, in which IP assets can be divided, used as collateral, pledged, or utilized in other cost-effective ways.
Interactions between people are the most basic transactions in the new smart economy. With Story’s programmable execution environment, interactions between agents and people become possible. Agents can automatically obtain IP asset licenses from Story and upgrade their creative style or knowledge base through fine-tuning. If revenue is generated, the agent can share part of the revenue with the original IP holder through Story’s royalty module, thus forming a virtuous economic cycle in which AI empowers IP holders rather than weakens their earnings. In addition, pure agent-to-agent IP transactions are also feasible, using Story as the settlement layer for smart agent business to prosper the entire agent interaction market. We will introduce this possibility in detail in the next section.
3.2 The Basic Layer of Artificial Intelligence
Blockchain is an ideal foundation for AI interactions because it provides a programmable medium in which software can make hard commitments. Since agents are trained with IP as native input and produce IP as native output, Story provides a base settlement layer for AI transactions, suitable for both training AI models and monetizing AI outputs.
Smart Chain
In the field of AI, intellectual property assets cover all types of IP - from databases, basic ML models, to fine-tuned models and model tuning packages.
Figure 8: Schematic diagram of AI-related IP assets
Figure 8 shows how IP assets can be used to build smart chains. A machine learning model (Model 2) may come from a deep fine-tuned model (Model 1) that has been enhanced through reinforcement learning and using other databases (Dataset 6). This fine-tuned deep model itself may be derived from a base model trained on multiple databases. These training databases may also be a combination of other databases. In addition, research on independent model fine-tuning packages is also actively underway. Model fine-tuning packages contain all the necessary data for efficient parameter model fine-tuning, which can reduce trainable parameters while maintaining performance close to that of full fine-tuning. Since comprehensive model fine-tuning requires a lot of computing resources and memory, these packages provide an efficient alternative (i.e., Huggingface Adapters). When a model is registered as an on-chain IP asset, cutting-edge model fingerprinting technologies, such as OML developed by Sentient Protocol [12], can capture the unique features and basic properties of the model.
By registering the entire smart chain on Story, economic value can be distributed among nodes in the network. Story lays the foundation for the market of high-quality databases and model fine-tuning packages, thereby promoting the birth of more efficient ML models. Such an incentive mechanism encourages data providers to contribute high-quality databases and accelerates the development of AI through guaranteed fair rewards. Under transparent economic incentives and automated income distribution mechanisms, Story becomes a negotiation, collaboration and settlement layer for seamless cooperation between data providers, model developers and end users, and ensures that all participants have reasonable ownership rights.
Intelligent Agent Business Model
AI is evolving from standalone models to networks of autonomous agents that can perceive, decide, and act to achieve goals. This shift means AI is no longer just a tool, but is increasingly becoming an ecosystem in which agents create value through collaborative interactions.
Figure 9: Agent TCP/IP Protocol - Interaction Flow
The Agent TCP/IP protocol released by the Story team provides a key framework for the development of an automated agent ecosystem. Agent TCP/IP is designed to promote standardized automated interactions between AI agents. This agent-to-agent protocol lays the foundation for the exchange of IP assets (such as training data, proprietary algorithms, and creative content) between agents without relying on human intermediaries. With the Agent TCP/IP protocol, agents can automatically negotiate, authorize, and execute agreements through on-chain smart contracts, which combine on-chain execution with off-chain legal enforcement, all powered by Story. The Agent TCP/IP protocol lays the foundation for the realization of the role of agents as independent economies in the future, and agents can improve themselves with authorized training data and registered IP, and then monetize their output. As more and more agents join the network, the value and capabilities of the entire ecosystem will grow exponentially. Each new agent brings unique capabilities and can combine with the strengths of existing agents to produce new solutions and services. For example, a number of specialized agents can jointly produce a movie, where the producer agent hires the screenwriter agent and the video generation agent, and the revenue is divided according to their on-chain agreement.
3.3 IP Tokens
Story's native token, IP, coordinates all value flows throughout the entire peer-to-peer intellectual property system.
IP acts as the underlying medium of exchange for the network. Whenever an IP asset is used, exchanged, or generates revenue, IP enables efficient processing of transactions and fair allocation of resources through a transparent fee payment mechanism. It not only facilitates direct peer-to-peer transactions without the involvement of intermediaries, but also serves as a functional tool and medium of value exchange to help the growth of the network economy.
In addition, Story uses a PoS consensus mechanism, and validators need to pledge IP to ensure network security. Validators are responsible for processing transactions and maintaining the integrity of the blockchain, and receive rewards denominated in IP based on their performance. This provides a strong incentive for validators to operate in an honest and efficient manner because they have a stake in the success of the network, thereby consolidating IP as the foundation of Story's security.
As a unified utility token, IP has the dual functions of maintaining network security and ecosystem functions, closely integrating network operations with the broader intellectual property market. As Story's gas, staking and utility token, IP plays a key role in incentivizing all parties in the Story ecosystem and promoting the maintenance and development of a peer-to-peer intellectual property system.
In the broader ecosystem, IP is designed to play a more critical role, responsible for protecting IP assets, acting as the currency for IP revenue streams, and even providing a native medium of exchange for AI agents that settle their IP on Story. PoC protocols and other specialized protocols deployed on the IP core rely on IP as a foundation for operation. IP facilitates all value transfers within the IP core, including royalty distributions, licensing fees, and usage-based compensation. This integration means that the role of IP goes beyond basic network security - it is the cornerstone for protecting and verifying all intellectual property assets registered on Story. More importantly, the Agent TCP/IP protocol uses IP to provide a strong security layer to ensure communication between agents, while providing a native mechanism for efficient value exchange between agents. This dual functionality ensures that AI agents can automatically conduct economic transactions and communication without trust.
IP is a unified utility token for network security and ecosystem functionality, combining network operations with the broader intellectual property market. As Story's gas, staking and utility token, IP plays a vital role in incentivizing all parties in the Story ecosystem and maintaining and expanding the peer-to-peer intellectual property system.
in conclusion
We have launched a peer-to-peer IP system that breaks the reliance on centralized institutions. The Story blockchain provides a dedicated network that can create both a universal repository of IP assets and a programmable market for IP asset exchange. Story's multi-core architecture provides the necessary scalability and professional support to cope with evolving application integration and artificial intelligence scenarios. A full-network IP map embedded in the Story blockchain accurately depicts the complex relationship between various types of IP assets and provides a sound record of economic commitments. As artificial intelligence accelerates, the volume and liquidity of intellectual property rights are also expanding, and the network built by Story will become the backbone of the new smart economy. Bitcoin, as digital gold, serves as the value carrier of all commodity assets. Story provides value storage for all intellectual assets in the form of programmable intellectual property.
Acknowledgements
The Story Foundation would like to thank a16z crypto, especially Eddy Lazzarin and Scott Kominers, for their foundational support in the early stages of the Story network and PoC protocol design. In addition, the author would like to thank Jason Yanowitz, Chainyoda, and Scott Kominers for their feedback during the drafting of this white paper.
Appendix A - PoC Protocol
The PoC (Proof of Creativity) protocol launches an open programmable IP protocol, which elevates intellectual property (IP) to an important part of the blockchain ecosystem. The core of the protocol is the IP asset and its associated IP account, which is a smart contract account that serves as the core identity of each intellectual property.
This account-centric design makes it easier to store and manage IP data, and enables interaction and manipulation of this data through modular functions. These modules extend the functionality of the protocol, enabling creators and users to easily manage and authorize their IP in a decentralized and programmable environment.
To achieve this goal, the protocol consists of two parts: data structure and module. The data structure is equivalent to the "noun" in the protocol, which stores metadata related to IP, i.e. "IP Lego". The module is the "verb", which provides multiple functions for the IP assets registered in the protocol.
Data structure (noun)
IP assets are the basic "IP Lego" in the PoC protocol. Each IP asset represents an on-chain IP and its associated IP account, which is based on a modified version of ERC-6551 (token-bound account). IP assets transform a new or existing NFT into an IP entity with multiple functions and interactivity, representing tokenized intellectual property.
The IP account is a programmable account mapped to a tokenized IP. It modifies ERC-6551 and has a general "execute()" function, allowing any module in the protocol to be called by compiling byte data, which makes it possible to expand modules in the future.
module (verb)
Modules (i.e. verbs) are customized smart contracts used to define and extend the functionality of IP assets in the PoC protocol.
Authorization Module
The licensing module is the core part of the protocol, enabling IP holders (as licensors) to create and manage licensing agreements using license tokens and their associated terms. The licensing terms are derived from a preset licensing template. For derivative works, the licensing terms of the parent IP are also taken into account during the licensing process. The end result is the minting of license tokens.
The PoC protocol introduces the Programmatic IP License (PIL) as a ready-made licensing template, which aims to provide IP holders with a common and easy-to-adopt licensing framework, simplify the licensing process, and establish a standardized legal framework.
Programmable IP License (PIL)
A licensing template is a legal framework encoded in a smart contract (“programmable”) that specifies various licensing terms for the IP. The terms may include commercialization, transferability, or royalty percentages.
The Programmable IP License (PIL), developed by the Story team ([14]), is the first implementation of this licensing template. While the terms of the IP Agreement (IPA) and the issuance of license tokens occur on-chain, they are legally enforceable under an off-chain legal framework. This legal contract enables tokenized IP assets to fit into traditional legal systems and provides creators with clear guidelines on how they can remix, monetize, and create derivative works.
Royalty Module
The Royalty Module is used to manage the revenue distribution between a child IP asset and its parent IP asset. It allows the IP holder (as the licensor) to define the revenue ratio that the child IP pays to the parent IP. Similarly, the child IP holder, as the licensor, can also stipulate the revenue ratio that the derivative IP pays to its child IP.
After the income is paid to the IP asset, it will be deposited into the IP royalty treasury. Each IP asset has an independent royalty treasury, and the royalty token holder has the right to withdraw the funds in the treasury in proportion.
The royalty module supports a variety of customizable royalty payment structures. By default, each parent IP asset can set a minimum royalty rate. This rate determines the share of revenue that each derivative IP in the derivative chain needs to allocate to the parent IP according to the license agreement.
Dispute Module
The dispute module provides users with a framework for resolving disputes. Its arbitration system consists of two main parts:
Arbitration Policy: The arbitration policy defines the rules, process, and responsible entity for resolving disputes.
Arbitration Penalties: Arbitration penalties determine the consequences for IP assets that are “flagged” as part of a dispute.
