Research: Converting IP into Currency for AI with Story Blockchain

In the era of artificial intelligence (AI), intellectual property (IP) is emerging as one of the largest and most important intangible assets globally. From code to data to scientific research, IP plays a pivotal role in training and developing AI models. Story, a specialized Layer-1 blockchain, is revolutionizing the way IP is converted into programmable assets, automating licensing, copyright, and securing IP ownership at scale.

IP - A Critical Asset for the AI Era

In the current context, intellectual property (IP) has become the world's most valuable intangible asset, estimated at over $61.9 trillion. However, managing and monetizing IP is fraught with difficulties, including complex licensing processes, fragmented legal frameworks, and high costs that prevent many IPs from being fully utilized. In an era where AI is increasingly reliant on high-quality data, the need to monetize IP is becoming more urgent.

Story: Blockchain IP for the AI Economy

Story solves this problem by putting IP on the blockchain and turning it into a programmable asset. By implementing a Programmable IP License (PIL), Story helps streamline the licensing process and secure ownership of IP works globally. This allows creators and businesses to easily access and commercialize their IP without having to overcome complex legal hurdles.

Story has also raised over $140 million, reaching a valuation of $2.25 billion with strong investment from major investors such as Andreessen Horowitz (a16z Crypto). This support proves that IP will be an important economic driver for the development of AI.

Partnering with Stability AI: Innovation in IP Management

A prime example of Story’s development is its partnership with Stability AI. AI-generated outputs from the Stable Diffusion platform can be instantly registered as IP on the blockchain. This not only ensures transparent ownership but also fosters a fair ecosystem where IP contributors are fairly compensated when their works are integrated into various AI models.

Story’s Infrastructure

Story is built on three main components:

Story’s L1 blockchain

Story uses CometBFT consensus and is EVM (Ethereum Virtual Machine) compatible, enabling fast processing of complex derivative chains related to IP works.

Proof-of-Creativity (PoC) Protocol

The PoC defines the rules for IP tokenization, from minting assets to automatically handling licensing, copyright, and dispute processes. Each IP asset is represented as an ERC-721 token with a linked account, allowing flexibility to respond to external events.

Programmable IP License (PIL)
PIL ensures that automated IP transactions on the blockchain can be enforced within the traditional legal system if needed. This is an important bridge between the blockchain ecosystem and existing legal frameworks.

TCP/IP Protocol for Machine-to-Machine Interactions

One of the highlights of Story is the Story Agent Transaction Control Protocol for IP (TCP/IP), which allows AI agents to automatically negotiate and exchange IP data with each other without human intervention. This opens up the opportunity for the development of self-directed AI systems, where interactions with IP are performed transparently and securely on the blockchain.

Applications and Impact on the AI Economy

Story brings huge benefits to both AI developers and IP-owning businesses. AI developers can easily access and license valuable datasets without going through complex agreements. Meanwhile, businesses can turn their IP into a programmable asset, earning royalties from anywhere in the world where their IP is used.

Additionally, Story is expanding into decentralized finance (DeFi) with what it calls “IPFi,” where IP becomes collateral for activities such as staking, lending, or other financial products. With Story, IP is not just intellectual property, but also a foundation for the development of new financial products.

Story’s Growing Ecosystem

Story has attracted the attention of many innovative projects. For example, Aria tokenizes cultural IP works, allowing fans and investors to participate in exclusive revenue streams. The Mahojin project uses AI to create derivative works with royalties distributed in real time. Other projects such as ai16z’s Eliza, Virtuals’ G.A.M.E., or ZerePy from Zerebro have integrated the Story protocol, which enables AI agents to automatically discover and license IP.

Conclusion

Story is paving a new path for the AI economy, where IP becomes a programmable asset and