Blockchain Technology Secures Used Software Licences on Digital Marketplace

Security is of paramount importance to customers purchasing used software on the li-x trading platform. You want to be properly licensed in case of a software audit, i.e. when a software manufacturer conducts a licence check. The transparent processes, which li-x established since the company was founded, are now additionally secured with Blockchain Technology. Since June 1, 2018, li-x customers can validate their license transfers directly via the website. In addition, If the Blockchain transaction is known, verification of a license transfer is also possible via any generally accessible Blockchain explorer.


Security in the Used Software Market

Ever since its legal status had been clarified, the market for used software has been growing rapidly as a low-cost alternative for purchasing software. Consequentially, this growing demand has also attracted unprofessional resellers. Especially the origin of the license is often obscured, or not known to the reseller himself. The Blockchain technology makes an important contribution to this in terms of transparency, as the supply chain of the software of the initial buyer is encrypted and traceable, all the way up until the buyer. The best-known proponent of Blockchain technology is the crypto currency Bitcoin. However, the fields of application of the technology extend considerably, as the actual application is only just now being developed.


Real Application for Blockchain Technology

“We have been dealing with Blockchain Technology ever since the founding of li-x. The very fact that license transfers cannot be manipulated with this technology is promising for the future of the legal protection of user-licenses,” says Boris Vöge, founder and CEO of The dynamic developments of China were not yet present in the German market in 2014. “That’s why our CTO and co-partner Sven Mutzl visited Asia several times, and most recently co-developed with Metaverse in Shanghai.” Together with the development team in Hamburg, the existing SQL database technology of li-x was linked to the Blockchain. Over 1.1 million licences were transferred during 9,000 licence transfers. All of these are secured with the Blockchain Technology. This corresponds to a licence value of approximately EUR 180 Million in terms of second-hand market prices.


In-house Development Ensures Flexibility

For each transaction, li-x generates multiple hash values and stores them in a self-developed sidechain structure. All transactions are interlinked. The company deliberately relies on the two public Blockchains Metaverse and Bitcoin. The major advantage of the in-house development of li-x is that you are not dependent on certain Blockchains and are also optimally protected in terms of data protection law. Smart Contracts were deliberately waived in order to avoid any use-restrictions.

Rather, the existing technology, which handles the transfer of licences and monetary processing fully automatically, is connected to the Blockchain. “An example that will set a new standard, since every company can combine its traditional database with the Blockchain and make use of its advantages”, Boris Vöge describes regarding the future of the technology


The advantage for resellers and end customers

li-x is often used by resellers to procure licences for their customers. Each reseller can provide their customers with li-x validation of the licence transfers through the “Licence Proof”. A website is available for this, through which each transaction can be verified.


About li-x

The technology company li-x offers a platform on which companies and resellers can trade used software licenses. The transfer of licences and payment processes are fully automated. Transparency and customer security are thereby paramount: The origin is made available to the customers upon naming the first licence holder and the applicable contract numbers. In addition, li-x provides the buyer the option to download the product keys as well as the de-installation declaration of the initial licence holder. The use of Blockchain ensures that a subsequent change of the licence details is impossible.