Multi-layer cryptocurrency conversions using available blockchain outputs

Patent metadata

Field	Value
Publication number	US-2023298005-A1
Application number	US-202217697786-A
Country	US
Kind code	A1
Filing date	Mar 17, 2022
Priority date	Mar 17, 2022
Publication date	Sep 21, 2023
Grant date	—

Abstract

Methods and systems described herein may implement blockchain cryptocurrency transactions in a variety of environments. An online transaction processor may provide operations for cryptocurrency conversions. The transaction processor may detect that a user is involved in a cryptocurrency transaction with another entity, which is requested to be processed using an amount of cryptocurrency and using an off-chain amount of the cryptocurrency. The transaction processor may determine that the entity does not have a digital wallet, node, or the like on a layer two network to receive and/or process the off-chain balance for the cryptocurrency. The transaction processor may then, after a risk assessment, determine that the user may access the amount of the cryptocurrency from an on-chain balance available to a digital wallet of the cryptocurrency. The transaction processor may make that on-chain amount available and may request repayment via the user's off-chain balance.

First claim

What is claimed is:

1 . A computing system comprising:
a non-transitory memory; and one or more hardware processors coupled to the non-transitory memory and configured to read instructions from the non-transitory memory to cause the computing system to perform operations comprising:
receiving, by a service provider from a device of a user, a request to transfer, via a cryptocurrency protocol, an amount of cryptocurrency in a first digital wallet of the user to a second digital wallet associated with an entity;
determining whether the entity has a node corresponding to a layer two network associated with cryptocurrency protocol; and
in response to determining that the entity does not have the node corresponding to the layer two network associated with the cryptocurrency protocol:
providing the user with an access to utilize a third digital wallet associated with the service provider, wherein the providing the user with the access causes the third digital wallet to transfer the amount of cryptocurrency to the second digital wallet associated with the entity, and
causing a transaction to be initiated via the layer two network associated with the cryptocurrency protocol, wherein the transaction corresponds to a transfer associated with the amount of cryptocurrency from the first digital wallet to the third digital wallet via the layer two network.

2 . The computing system of claim 1 , wherein prior to the providing the user with the access, the operations further comprise:
determining, based on a risk assessment of at least the user, that the user qualifies for the access to the amount of cryptocurrency from the third digital wallet of the service provider.

3 . The computing system of claim 2 , wherein the operations further comprise:
performing the risk assessment of at least one of the request, the first digital wallet, or the user, wherein the providing the user with the access is in response to the risk assessment meeting or exceeding a positive risk threshold.

4 . The computing system of claim 1 , wherein the providing the user with the access is performed on a layer one network for the cryptocurrency protocol.

5 . The computing system of claim 1 , wherein the amount of cryptocurrency transferred from the third digital wallet to the second digital wallet and transferred from the first digital wallet to the third digital wallet via the layer two network are matching amounts, and wherein the providing the user with the access does not require a reimbursement transaction for an excess amount.

6 . The computing system of claim 1 , wherein the amount of cryptocurrency transferred from the third digital wallet to the second digital wallet and transferred from the first digital wallet to the third digital wallet via the layer two network are different amounts requiring a reimbursement transaction for an excess amount provided to one of the user or the entity, and wherein the operations further comprise:
implementing the reimbursement transaction for the excess amount from the user.

7 . The computing system of claim 1 , wherein the providing the user with the access to utilize the third digital wallet associated with the service provider comprises:
providing the user with one or more private keys associated with one or more unspent transaction outputs (UTXOs) available to the service provider via the third digital wallet on a layer one network of the cryptocurrency protocol.

8 . The computing system of claim 1 , wherein the operations further comprise:
processing the transaction for the amount of cryptocurrency via the layer two network of the cryptocurrency protocol.

9 . The computing system of claim 1 , wherein the receiving the request comprises one of:
receiving a payment request for the amount of cryptocurrency from the user to the entity on a layer one network of the cryptocurrency protocol; or receiving a conversion request of at least a portion of the amount of cryptocurrency for the transaction from the device of the user via the first digital wallet.

10 . The computing system of claim 9 , wherein a processing of the transaction via the layer one network for the cryptocurrency protocol requires an amount of time exceeding a processing of the transaction via the layer two network, and wherein the amount of cryptocurrency is unavailable to the first digital wallet on the layer one network.

11 . A method comprising:
receiving, from a device of a user, a request to process a transaction with a merchant using an amount of cryptocurrency on a layer one network of a cryptocurrency protocol, wherein the amount of cryptocurrency is not accessible to a first digital wallet of the user on the layer one network, and wherein the first digital wallet has access to the amount of cryptocurrency on a layer two network of the cryptocurrency protocol; determining that the merchant does not have a node on the layer two network to process the transaction with the first digital wallet of the user on the layer two network; in response to the determining that the merchant does not have the node on the layer two network, determining one or more unspent transaction outputs (UTXOs) corresponding to the amount of cryptocurrency available via the layer one network in a second digital wallet of a service provider; requesting the amount of cryptocurrency from the user via the layer two network; and providing an access to the amount of cryptocurrency via the layer one network to the user using the one or more UTXOs available to the second digital wallet of the service provider.

12 . The method of claim 11 , wherein the determining that the merchant does not have the node on the layer two network comprises:
determining that the merchant only transacts on the layer one network using at least the service provider.

13 . The method of claim 11 , wherein the providing the amount of cryptocurrency comprises providing at a private key for the UTXOs for the amount of cryptocurrency to the first digital wallet of the user.

14 . The method of claim 11 , further comprising:
processing the transaction with the merchant using the one or more UTXOs, wherein the processing comprises providing an access to the user to one or more private keys for the one or more UTXOs via the first digital wallet.

15 . The method of claim 11 , wherein the providing the access comprises providing the amount of cryptocurrency to one of the first digital wallet of the user or a third digital wallet of the merchant for the transaction.

16 . A mobile device system comprising:
a non-transitory memory; and
one or more hardware processors coupled to the non-transitory memory and configured to read instructions from the non-transitory memory to cause the mobile device system to perform operations comprising:
receiving a request to process a transaction with an entity using a cryptocurrency available to a digital wallet of a user, wherein the digital wallet comprises an amount of the cryptocurrency available via a layer two network of a cryptocurrency protocol;
determining that the entity does not have a node corresponding to the layer two network for processing the transaction;
accessing the digital wallet of the user via a mobile application of the mobile device system;
requesting, from a transaction processor, an access to the amount of the cryptocurrency on a layer one network from a service provider digital wallet; and
receiving, in the mobile application, a confirmation of the access to the user of the amount of the cryptocurrency via the layer one network.

17 . Th

Assignees

• Paypal Inc

Inventors

• Saad Muhammad
• Johnson Raoul
• Burgis Jakub

Classifications

• H04L9/50

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

• G06Q20/367 Primary

  involving electronic purses or money safes · CPC title

• G06Q2220/00

  Business processing using cryptography · CPC title

• G06Q20/4016

  involving fraud or risk level assessment in transaction processing · CPC title

• G06Q20/403

  Solvency checks · CPC title