Derivative contracts that settle based on transaction data

Patent metadata

Field	Value
Publication number	US-11488245-B2
Application number	US-202117169688-A
Country	US
Kind code	B2
Filing date	Feb 8, 2021
Priority date	Jun 30, 2016
Publication date	Nov 1, 2022
Grant date	Nov 1, 2022

Abstract

The disclosed systems and methods make derivatives contracts based on an underlying virtual currency available for trading. Certain derivatives contracts have a settlement value based on the transaction fees associated with recording and/or performing transactions for the selected virtual currency. The contracts can be used, for example, by virtual currency miners against certain risks associated with mining virtual currency.

First claim

The invention claimed is:

1. A computer system comprising:
a processor; and
a computer-readable medium containing computer-executable instructions that, when executed cause the processor to:
(a) receive, via a virtual currency network, transaction data for a plurality of transactions for a virtual currency processed by the virtual currency network and stored on a blockchain, the transaction data including transaction inputs and transaction outputs;
(b) determine, based on the received transaction data, a network utilization of the virtual currency network indicative of a transaction processing time for each of the plurality of transactions, wherein an increase in the network utilization is indicative of an increase in the transaction processing time and a reduction in a capacity of the virtual currency network to process transactions and a decrease in the network utilization is indicative of a decrease in the transaction processing time and an increase in the capacity of the virtual currency network to process transactions;
(c) determine first transaction differences for the plurality of transactions for a period of time based on a difference between a sum of all transaction inputs and a sum of all corresponding transaction outputs associated with each transaction of the plurality of transactions, wherein each of the first transaction differences is related to a value for an amount a transaction validator who successfully validates and adds a block to the blockchain is allowed to keep as a reward therefore wherein the first transaction differences increase as the network utilization increases and decrease as the network utilization decreases;
(d) determine, based on the network utilization, a second transaction difference for a new transaction to be submitted to the virtual currency network;
(e) determine, based on the first transaction differences as compared to the second transaction difference, a value of a financial instrument held by one or more participants;
(f) generate a minimum requirement for the one or more participants based at least partially on the value of the financial instrument;
(g) determine whether an amount of funds on an account with a clearinghouse computer, coupled with the processor, for a participant of the one or more participants is below or exceeds the minimum requirement; and
(h) one of credit or debit the account of the participant based on the determination that the amount of funds on the account is below or exceeds the minimum requirement.

2. The computer system of claim 1 , further comprising:
an order book module that determines bid and offer prices for the financial instrument; and
a match engine coupled with the order book module and operative to match bids and offers for the financial instrument to execute transactions there between for the purchase and/or sale of the financial instrument and report executed transactions to the clearinghouse computer.

3. The computer system of claim 1 , wherein the network utilization is determined based on an amount of average available space in one or more blocks of the block chain, and/or a number of transactions awaiting processing by the virtual currency network.

4. The computer system of claim 1 , wherein the financial instrument comprises a futures contract.

5. The computer system of claim 4 , wherein the value of the financial instrument comprises a cash settlement value of the futures contract.

6. The computer system of claim 1 , wherein the virtual currency is a cryptocurrency.

7. The computer system of claim 1 , wherein the first transaction differences are at least one of: (i) adjustable and (ii) varying over time.

8. A computer implemented method comprising:
receiving, by a processor via a network, transaction data for a plurality of transactions, the transaction data including transaction inputs and transaction outputs;
determining, by the processor based on the received transaction data, a network utilization of the network indicative of a transaction processing time for each of the plurality of transactions, wherein an increase in the network utilization is indicative of an increase in the transaction processing time and a reduction in a capacity of the network to process transactions and a decrease in the network utilization is indicative of a decrease in the transaction processing time and an increase in the capacity of the network to process transactions;
determining, by the processor, first transaction differences for the plurality of transactions based on a difference between a sum of all transaction inputs and a sum of all corresponding transaction outputs associated with each transaction of the plurality of transactions, wherein each of the first transaction differences relate to a value for an amount a transaction validator who successfully validates and adds a block to a blockchain is allowed to keep as a reward therefore;
determining, by the processor based on the network utilization, a second transaction difference for a new transaction to be submitted;
determining, by the processor based on the first transaction differences as compared to the second transaction difference, a first value of a financial instrument held by one or more participants;
generating, by the processor, a minimum requirement for the one or more participants based at least partially on the first value of the financial instrument;
determining, by the processor, whether an amount of funds on an account with a clearinghouse computer, coupled with the processor, for a participant of the one or more participants is below or exceeds the minimum requirement; and
one of crediting or debiting, by the processor, the account of the participant based on the determination that the amount of funds on the account is below or exceeds the minimum requirement.

9. The computer implemented method of claim 8 , further comprising:
determining, by an order book module, bid and offer prices for the financial instrument; and
matching, by a match engine coupled with the order book module, bids and offers for the financial instrument to execute transactions there between for the purchase and/or sale of the financial instrument and reporting executed transactions to the clearinghouse computer.

10. The computer implemented method of claim 8 , wherein the network utilization is determined based on an amount of average available space in one or more blocks of the block chain, and/or a number of transactions awaiting processing by the network.

11. The computer implemented method of claim 8 , wherein determining the first value of the financial instrument based on the first transaction differences includes further determining a second value of the financial instrument based on an average of the first transaction differences over a contract period.

12. The computer implemented method of claim 8 , wherein determining the first value of the financial instrument based on the first transaction differences includes further determining a second value of the financial instrument based on an average of the first transaction differences per a specified unit of data size over a contract period.

13. The computer implemented method of claim 8 , wherein the financial instrument comprises a futures contract.

14. The computer implemented method of claim 13 , wherein the first value of the financial instrument comprises a cash settlement value of the futures contract.

15. The computer implemented method of claim 8 , wherein the transaction data comprises data for virtual currency transactions and wherein the network comprises a virtual currency network.

16. Th

Assignees

• Chicago Mercantile Exchange Inc

Inventors

• Pierce Ryan
• Ahmed Mansoor
• Plante John

Classifications

• G06Q40/04 Primary

  Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange · CPC title

• G06Q2220/00

  Business processing using cryptography · CPC title

• G06Q50/18

  Legal services · CPC title

• G06Q20/381

  Currency conversion · CPC title

• G06Q20/065

  using e-cash · CPC title