Cornell Tech Unveils ‘Liquefaction’: New Blockchain Tool Lets Users Access Tokens Without Ownership

Cornell Tech researchers have introduced a breakthrough in blockchain technology that could reshape how digital assets are accessed and controlled. The system, dubbed Liquefaction, challenges one of crypto's most entrenched assumptions: that control over digital assets belongs solely to the holder of the private key.

Revealed at the 10th anniversary of the Initiative for Cryptocurrencies and Contracts (IC3), the new platform enables users to grant temporary, permissioned access to blockchain assets—without transferring ownership. The working use case, titled Take My Ape, lets users lend access to a high-value NFT (such as a Bored Ape) for a set time and purpose, all while keeping the original ownership secure and intact.

Traditionally, ownership in blockchain is defined by control of a private key. But Liquefaction flips that model by allowing “encumbrance” of keys through smart contracts executed inside trusted execution environments (TEEs)—secure zones isolated from a device's main operating system. In practice, this means someone could borrow an asset, like a $50,000 NFT, for as little as $2, while the original owner retains control over resale and other high-risk actions.

“This system demonstrates how fragile the private-key-based model really is,” the research team noted in their whitepaper.

Take My Ape, deployed on the Oasis Sapphire network, showcases the ability to lend access without giving up the keys. The application restricts what the temporary user can do with the NFT, allowing them to participate in perks like event access or club membership but not sell the token or transfer it elsewhere.

According to IC3 researcher James Austgen, the implications go far beyond NFTs. Liquefaction could be applied to a wide range of use cases, including DAO governance, airdrops, loyalty rewards, and even soulbound tokens—assets designed to be non-transferable. The tool introduces a new layer of programmable trust, enabling complex agreements and usage rights without changing asset ownership.

The system’s stealthy execution—with minimal off-chain footprint and no on-chain changes—raises important questions about transparency and trust in decentralized ecosystems. Still, its creators say the benefits of flexible, rule-based access could open new doors for digital collaboration and asset utilization.