Cryptographic currency for securities settlement

Patent metadata

Field	Value
Publication number	US-11514409-B2
Application number	US-201715618508-A
Country	US
Kind code	B2
Filing date	Jun 9, 2017
Priority date	May 16, 2014
Publication date	Nov 29, 2022
Grant date	Nov 29, 2022

Abstract

The present disclosure is directed to security settlement in financial markets and cryptographic currencies. Particular portions of the present disclosure are directed to a cryptographic currency protocol and to a cryptographic currency that includes a positional item. The cryptographic currency protocol supports a virtual wallet that, in various embodiments, is a security and cash account for storing and managing the cryptographic currency. Opening a transaction via the virtual wallet to transfer the cryptographic currency is a strong guarantee of the availability of funds in the virtual wallet because, e.g., funds are not transacted unless the commit phase is successful.

First claim

We claim:

1. A computer-implemented method, comprising:
storing, by a first computing node in a network, a first cryptographic currency in a virtual wallet of the first computing node, wherein the virtual wallet is configured to store one or more types of cryptographic currencies;
receiving, at the virtual wallet of the first computing node, from a second computing node in the network, a public address of the second computing node, the public address indicating where to send the first cryptographic currency for a trade, between the first computing node and the second computing node, of the first cryptographic currency and one or more second cryptographic currencies;
broadcasting, by the first computing node, a first electronic transaction message to a plurality of other computing nodes in the network, the first electronic transaction message comprising an identifier of the first cryptographic currency, the public address of the second computing node, a first digital signature of the first computing node, and an ownership history of the first cryptographic currency;
verifying, by the plurality of other computer nodes, that the first computing node is owner of the first cryptographic currency based on the first electronic transaction message;
verifying, by the plurality of other computer nodes, that the second computing node is owner of the one or more second cryptographic currencies based on a second digital signature of the second computing node and an ownership history of the one or more second cryptographic currencies;
receiving, at the first computing node, second electronic transaction messages from the plurality of other computing nodes, the second electronic transaction messages comprising one or more identifiers of the one or more second cryptographic currencies, the second digital signature of the second computing node, and the ownership history of the one or more second cryptographic currencies;
removing the first cryptographic currency from the virtual wallet of the first computing node and storing the one or more second cryptographic currencies in the virtual wallet of the first computing node based on the plurality of other computing nodes verifying that the first computing node is owner of the first cryptographic currency and that the second computing node is owner of the one or more second cryptographic currencies; and
recording, by the first computing node in one or more digital ledgers, (i) a change in the ownership history of the first cryptographic currency from the first computing node to the second computing node, and (ii) a change in the ownership history of the one or more second cryptographic currencies from the second computing node to the first computing node,
wherein the one or more second cryptographic currencies are of a different type of cryptographic currency than the first cryptographic currency.

2. The computer-implemented method of claim 1 , wherein the first electronic transaction message is configured to enable the plurality of other computing nodes to verify that the first computing node is owner of the first cryptographic currency.

3. The computer-implemented method of claim 1 , wherein the first electronic transaction message further comprises an identification of a first positional item represented by the first cryptographic currency.

4. The computer-implemented method of claim 1 , wherein ownership of the first cryptographic currency is based on at least one entry associated with the one or more digital ledgers.

5. The computer-implemented method of claim 1 , wherein the first cryptographic currency is for trading financial securities.

6. The computer-implemented method of claim 1 , wherein the second electronic transaction messages further comprise an identification of a second positional item represented by the one or more second cryptographic currencies.

7. The computer-implemented method of claim 1 , wherein at least some of the other computing nodes maintain their own digital ledgers.

8. A non-transitory computer-readable storage device having contents adapted to cause one or more processors to perform operations comprising:
storing, by a first computing node in a network, a first cryptographic currency in a virtual wallet of the first computing node, wherein the virtual wallet is configured to store one or more types of cryptographic currencies;
receiving, at the virtual wallet of the first computing node, from a second computing node in the network, a public address of the second computing node, the public address indicating where to send the first cryptographic currency for a trade, between the first computing node and the second computing node, of the first cryptographic currency and one or more second cryptographic currencies;
broadcasting, by the first computing node, a first electronic transaction message to a plurality of other computing nodes in the network, the first electronic transaction message comprising an identifier of the first cryptographic currency, the public address of the second computing node, a first digital signature of the first computing node, and an ownership history of the first cryptographic currency;
verifying, by the plurality of other computer nodes, that the first computing node is owner of the first cryptographic currency based on the first electronic transaction message;
verifying, by the plurality of other computer nodes, that the second computing node is owner of the one or more second cryptographic currencies based on a second digital signature of the second computing node and an ownership history of the one or more second cryptographic currencies;
receiving, at the first computing node, second electronic transaction messages from the plurality of other computing nodes, the second electronic transaction messages comprising one or more identifiers of the one or more second cryptographic currencies, the second digital signature of the second computing node, and the ownership history of the one or more second cryptographic currencies;
removing the first cryptographic currency from the virtual wallet of the first computing node and storing the one or more second cryptographic currencies in the virtual wallet of the first computing node based on the plurality of other computing nodes verifying that the first computing node is owner of the first cryptographic currency and that the second computing node is owner of the one or more second cryptographic currencies; and
recording, by the first computing node in one or more digital ledgers, (i) a change in the ownership history of the first cryptographic currency from the first computing node to the second computing node, and (ii) a change in the ownership history of the one or more second cryptographic currencies from the second computing node to the first computing node,
wherein the one or more second cryptographic currencies are of a different type of cryptographic currency than the first cryptographic currency.

9. The non-transitory computer-readable storage device of claim 8 , wherein the first electronic transaction message is configured to enable the plurality of other computing nodes to verify that the first computing node is owner of the first cryptographic currency.

10. The non-transitory computer-readable storage device of claim 8 , wherein the first electronic transaction message further comprises an identification of a first positional item represented by the first cryptographic currency.

11. The non-transitory computer-readable storage device of claim 8 , wherein ownership of the first cryptographic currency is based on at least one entry associated with the one or more digital ledgers.

12. The non-transitory computer-readable storage de

Assignees

• Goldman Sachs & Co Llc

Inventors

• Walker Paul
• Venables Phil J

Classifications

• G06Q20/3674

  involving authentication · CPC title

• H04L2209/56

  Financial cryptography, e.g. electronic payment or e-cash · CPC title

• H04L9/50

  using hash chains, e.g. blockchains or hash trees · CPC title

• G06Q20/382

  insuring higher security of transaction · CPC title

• H04L9/30

  Public key, i.e. encryption algorithm being computationally infeasible to invert or user's encryption keys not requiring secrecy · CPC title