Interpreting the Story white paper: In the AI era, the “encrypted Lego” of the IP economy

If knowledge will become the new oil in the AI era, and Story will become its pipeline.

Written by: Deep Trend TechFlow

Recently, the encryption market has gradually felt like ice and fire.

On one hand, AI Agents ‘on-chain track is collectively experiencing cold weather, while on the other hand, classical infrastructure projects are gradually taking new actions.

In addition to Berachain’s recent launch and release of tokens, another intellectual property agreement with high hopes, Story has also updated its white paper, detailing its own designs and changes.

Last year, the project received a huge US$80 million in Series B financing led by a16z crypto, with a total financing amount reaching US$140 million. It has been highly expected by community players, and several rounds of test-net interactions have also been very popular.

The update of the white paper may also indicate that the project’s main network and tokens are not far away from being launched.

If you don’t know Story yet, we have provided a more popular interpretation of this latest white paper and hope to provide you with reference.

Why do you want to make Story and what problems are solved?

You and I both understand that the narrative of encryption projects is crucial.

What is the narrative of Story? This has to start with intellectual property rights.

The crypto community always loves to talk about “killer apps,” but the reality is——The real killer market has long existed, just locked inWeb2In the iron cage。

Intellectual property (IP) is a good example.

Global intellectual property (IP) market valuation exceedstrillion US dollars, covering all creative outputs such as film and television, music, patents, and AI datasets. But this market also faces an “impossible triangle”:

Question 1: The “greed tax” of centralized intermediaries

Whether you are an independent musician or a scientific research institution and want to commercialize your ideas, you have to pay a huge “toll fee” to the platform:

• case: When Spotify pays royalties to record companies, less than 15% actually go to creators [industry data], while the Story white paper notes that centralized platforms “increase transaction costs.”

• Conflict intensification point: The threshold for creative production has been lowered in the AI era, but the sharing model of centralized platforms cannot support the micro-payment needs of “long-tail creators”.

Question 2:AI Training in the “Land of No Own”

When Stability AI was accused of using an artist’s work training model without authorization, a fatal problem was exposed:existingIPThe system is simply incompatible with AI large-scale production。

• data: Training GPT-4 requires 45TB of text. If negotiation is carried out according to the traditional authorization process, the legal cost alone will exceed the model training cost [estimate];

• Insights from the white paper:”AI companies cannot generate hundreds of millions of individual authorization agreements” The result can only beInfringement becomes the norm, and creators gain zero benefits。

Question 3:IP “Desertification” of mobility

A DEMO of African folk music was used by a popular single, which should have led to continued income for the original creator, but the reality is:

• Derivative tracing incompetence: Lack of automated royalty allocation tools for secondary creation, transnational licensing and other scenarios;

• Waste of value: The white paper describes the status quo as an “island without interoperability”, making it difficult for IP assets to generate compound interest effects like DeFi.

If you want to solve these problems, go through legal procedures, which is costly, time-consuming, and cannot cover AI-generated content (for example, the spread speed of Deepfake face-changing videos far exceeds the judicial response);

In traditional blockchain solutions, NFT only solves “ownership” but does not touch on “circulation of use rights”(for example, owning a CryptoPunk does not mean that you can use it to train AI models).

Story：IP “Encrypted Lego” in the economy

Looking at the above problems faced by the IP economy, you can understand Story this way: Become the “bottom ledger of the knowledge economy” Any idea, from a paper to a paragraphAIThe generated videos can gain global mobility here.

Positioning:IP of “TCP/IP Agreement “

In the Web2 era, the TCP/IP protocol allowed data packets to flow freely across the Internet; corresponding to the Web3 era, Story attempted to define similar common interaction standards for IP assets:

• core functions：

  • Standardized registration: Convert IP into on-chain assets (IP-Assets), including metadata such as ownership and license terms;

  • programmable interface: Any application can invoke IP terms through the API (e.g. allowing derivative creations, 5% royalties);

• Benchmarking cases：

  • SWIFT Agreement (interbank settlement) Story (inter-IP settlement);

  • GitHub (Code Version Management) Story (IP Derivative Relationship Map)

Three-layer design “IP Lego “

1. base layer：

   1. PoCagreement: IP registration and compliance verification (such as automatically detecting whether secondary creations are infringing)

   2. Fingerprint on the chain: Ensure traceability of AI training data through model hashes (such as the OML technology mentioned in the white paper)

2. Middle Layer (IPFi)：

   1. Fragmentation: In layman terms, for example, splitting the IP of a movie into 100 million NFTs to lower the investment threshold;

   2. Mortgage lending: Borrowing stablecoins using unrealized patent IP as collateral;

   3. Royalty securitization: Packaging future royalty proceeds into ERC-20 token transactions

3. application layer：

   1. Possible human use cases: Indie musicians set the “sampling rights” automatic sharing rule; you can earn income by using a certain segment of his DEMO

   2. Possible AI use case: Autonomous driving company purchases training rights for Street View datasets

From the copyright chain to AI Settlement layer of Agent economy

• short-term goals: Replace traditional copyright offices and provide lower-cost, more transparent IP registration services;

• long-term vision：

  • Become the “settlement layer” of the AI Agent economy

  • Build an “on-chain knowledge map” that can globally check the derivatives, benefits, and collaboration relationships of each IP

Story technical highlights: layered design andPoCagreement

While other blockchains were still struggling with “how to get NFT moving,” Story chose a more radical technical path.——forIPCustomized exclusive blockchain。Its core innovations can be summarized as follows:Don’t make universal chains, only make IP “acceleration chips”。

Since it is a blockchain, it must not bypass these layers: execution, storage and consensus.

We refined some important descriptions and key data in the white paper to present its technical design as popularly as possible.

execution layer：

• IP core: natively supports complex IP relationship verification (such as checking whether a song sample is authorized by all ancestor nodes), and the white paper reveals that the speed is faster than EVM;

• AI core (planning): Optimize the fingerprint calculation of on-chain models and reduce Gas costs.

storage layer：

• Dynamic hierarchical storage: Hot data (such as IP license terms) is uploaded, and cold data (such as 4K movie source files) is stored in Arweave;

• Original “Storage Translation Layer”: Automatically optimizes data location, so developers do not need to perceive storage details.

consensus layer：

• Based on the instant finality of CometBFT, IP transaction confirmation is ensured in 3 seconds (compared to Ethereum’s average of 12 seconds)

Highlights:Proof of Creativity (PoC) Protocol

PoC is Story’s “IP compiler” that converts legal terms into executable code:

• IP Account (ERC-6551++)：

  • Each IP is bound to a smart contract account, which supports modular function extensions (such as adding royalty allocation rules)[15];

  • Case: When a painter released an NFT, he automatically embedded the “commercial royalty payment of 3%” clause without manual coding [16].

• Automated compliance：

  • Conflict interception: If a movie soundtrack quotes unauthorized sampling segments, NFT casting is automatically prevented;

  • Global royalties: Automatic distribution of proceeds to all contributors (e.g. original authors, translators, mixers) based on IP derivatives maps

$IP Tokens: Leveraging the Knowledge Economy

Compare Story to the central bank of a knowledge-based economy,IP Tokens are issued by them.”base currency」——It is not only a network fuel, a value carrier, and a governance certificate.

1. Network fuel：

   1. Pay transaction Gas fees (e.g. IP registration, licensing authorization);

   2. Pledge to obtain verifier qualifications (PoS Consensus).

2. value medium：

   1. Royalty distribution: IP income is settled in IP tokens (e.g., secondary creation sharing);

   2. Inter-agent settlement: AI agents use IP tokens to purchase training data rights.

3. Governance certificate：

   1. Voting to decide on agreement upgrades (such as adding core types);

   2. Adjust key parameters such as royalty allocation ratios.

Where might the demand for tokens be?

• Gas consumption: increases with IP transaction volume;

• Pledge demand: At least 30% of the total supply is required to maintain network security [8];

• speculative demand：

  • IPFi scenario: mortgage IP assets and lend IP tokens;

  • Governance premium: Scarce voting rights may push up the currency price.

Regarding the formal IP token economic model and allocation method, the white paper is not mentioned and may need to wait for more information.

summary

Story seems to be betting on a larger proposition: ifknowledge will becomeAIThe new oil of the times, and Story wants to become its pipeline。

Outside of the white paper, is there a moat for objectively analyzing Story to do this?

From a technical point of view, the multi-core architecture mentioned in the white paper requires in-depth optimization of the IP processing process. If the imitator wants to replicate it, it may be difficult (such as the graph traversal algorithm based on the IP core mentioned above). At the same time, the dynamic optimization of the project’s own blockchain storage layer relies on the accumulation of long-term data patterns; if Story comes first, there will inevitably be a certain time lag for those who come later.

In addition, a16z’s leading investment and extremely high financing amount have undoubtedly attracted everyone’s interest and attention. Da Mao’s expected business and narrative are one aspect. The market performance of tokens also affects Story’s business development. This part remains to be observed.

Some uncertainties include:

• Regulation: Countries have different progress in legal recognition of on-chain IP rights (for example, EU MiCA does not cover IP assets);

• Cold start: In the early stage, it is necessary to attract multiple top IPs (such as Disney and Universal Music) to settle in to establish a network effect; if it is flooded with low-quality IPs, it may trigger a “lemon market” effect (you don’t know how good the IP is, information is asymmetric, and players are willing to pay for IP will not be very high).

But in terms of narrative, Story may satisfy the following two points:

• on individuals: Any creator can publish IP like a tweet and capture full life cycle value;

• onAI: Become the “HTTP protocol” for IP transactions between agents

Welcome to join the official social community of Shenchao TechFlow

Telegram subscription group: www.gushiio.com/TechFlowDaily
Official Twitter account: www.gushiio.com/TechFlowPost
Twitter英文账号：https://www.gushiio.com/DeFlow_Intern