System, method and program product for generating and utilizing stable value digital assets

• US 10,373,129 B1
• Filed: 06/27/2018
• Issued: 08/06/2019
• Est. Priority Date: 03/05/2018
• Status: Active Grant

• Current Assignee: Gemini IP LLC (IPNav)
• Original Assignee: Winklevoss IP LLC
• Inventors: James, Daniel William Halley, Arvanaghi, Brandon, Paya, Cem, Winer, Eric, Winklevoss, Cameron Howard, Winklevoss, Tyler Howard
• Primary Examiner(s): Huang, Jay
• Application Number:
  US16/020,534
• Time in Patent Office: 405 Days
• CPC Class Codes: G06Q 20/065 using e-cash
• CPC Class Codes: G06Q 2220/00 Business processing using cryptography postage metering system using cryptography G06Q2250/05
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: H04L 2209/56 Financial cryptography, e.g. electronic payment or e-cash
• CPC Class Codes: H04L 67/10 in which an application is distributed across nodes in the network software deployment G06F8/60; multiprogramming arrangements G06F9/46
• CPC Class Codes: H04L 67/1042 using topology management mechanisms
• CPC Class Codes: H04L 9/006 involving public key infrastructure [PKI] trust models network architecture or network communication protocol for supporting authentication of entities using certificates in a packet data network H04L63/0823
• CPC Class Codes: H04L 9/06 the encryption apparatus using shift registers or memories for block-wise or stream coding, e.g. DES systems or RC4; Hash functions; Pseudorandom sequence generators
• CPC Class Codes: H04L 9/3239 involving non-keyed hash functions, e.g. modification detection codes [MDCs], MD5, SHA or RIPEMD
• CPC Class Codes: H04L 9/3247 involving digital signatures
• CPC Class Codes: H04L 9/50 using hash chains, e.g. blockchains or hash trees

Abstract

The present invention generally relates to a method, system and program product for generating a stable value digital asset tied to a blockchain.

Claims

1. A method of issuing stable value digital asset tokens comprising the steps of:

(a) providing a first designated key pair, comprising a first designated public key and a corresponding first designated private key, wherein the first designated private key also corresponds to a first designated public address associated with an underlying digital asset;

wherein the underlying digital asset is maintained on a distributed public transaction ledger maintained in the form of a blockchain by a plurality of geographically distributed computer systems in a peer-to-peer network in the form of a blockchain network, and

wherein the first designated private key is stored on a first computer system which is connected to the distributed public transaction ledger through the Internet;

(b) providing a second designated key pair, comprising a second designated public key and a corresponding second designated private key, wherein the second designated private key also corresponds to a second designated public address associated with the underlying digital asset; and

wherein the second designated private key is stored on a second computer system which is physically separated from the first computer system and is not operatively or physically connected to the distributed public transaction ledger or the Internet;

(c) providing first smart contract instructions for a stable value digital asset token associated with a first contract address associated with the underlying digital asset, wherein the smart contract instructions are saved as part of the blockchain for the underlying digital asset and include instructions for;

(1) token creation;

(2) token transfer;

(3) token destruction;

(4) authorization instructions for the first designated key pair; and

(5) authorization instructions for the second designated key pair,

(d) receiving, by a digital asset token issuer system, a request to obtain a first sum of stable value digital asset tokens in exchange for a second sum of fiat,

wherein the first sum corresponds to the second sum based on a fixed ratio of stable value digital asset token to fiat, and

wherein the request comes from a requesting user with an associated first requester key pair, comprising a first requester public key and a corresponding first requester private key, wherein the first requester private key also corresponds to a first requester public address associated with the underlying digital asset;

(e) confirming, by the digital asset token issuer system, receipt of the second sum of fiat;

(f) transferring the first sum of stable value digital asset tokens to the first requester public address using the following steps;

(1) generating, by the digital asset token issuer system, first instructions from the first designated public address to the contract address to obtain the first sum of stable value digital asset tokens and transfer the first sum to the first requester public address;

(2) sending, from the digital asset token issuer system to the first computer, the first instructions;

(3) digitally signing, by the first computer system, the first instructions using the first designated private key to generate the first digitally signed instructions;

(4) sending, from the first computer system to the digital asset token system, the first digitally signed instructions; and

(5) sending, from the digital asset token system to the plurality of geographically distributed computer systems, the first digitally signed instructions;

wherein the first digitally signed instructions are executed by the plurality of geographically distributed computer systems in accordance with the first contract instructions; and

(g) confirming, by the digital asset token issuer system, that the first sum of stable value digital asset tokens have been obtained and transferred to the first requester public address based on reference to the blockchain.

2. The method of claim 1, wherein the method further comprises the steps of:

(h) receiving, by the digital asset token issuer system, a second request to obtain a third sum of stable value digital asset tokens in exchange for a fourth sum of fiat,

wherein the third sum corresponds to the fourth sum based on the fixed ratio of stable value digital asset token to fiat, and

wherein the second request comes from a second requesting user with an associated second requester key pair, comprising a second requester public key and a corresponding second requester private key, wherein the second requester private key also corresponds to a second requester public address associated with the underlying digital asset;

(i) confirming, by the digital asset token issuer system, receipt of the fourth sum of fiat;

(j) transferring the third sum of stable value digital asset tokens to the second requester public address, using the following steps;

(1) generating, by the digital asset token issuer system, second instructions from the second designated public address to the contract address to obtain the third sum of stable value digital asset tokens and transfer said third sum to the second requester public address;

(2) transferring, from the digital asset token issuer system to a portable memory device, the second instructions;

(3) transferring, from the portable memory device to the second computer, the second instructions;

(4) digitally signing, by the second computer, the second instructions using the second designated private key to generate second digitally signed instructions;

(5) transferring, from the second computer to a second portable memory device, the second digitally signed instructions; and

(6) sending, from the second portable memory device to the plurality of geographically distributed computer systems, the second digitally signed instructions;

wherein the second digitally signed instructions are executed by the plurality of geographically distributed computer systems in accordance with the first contract instructions; and

(k) confirming, by the digital asset token issuer system, that the third sum of stable value digital asset tokens have been obtained and transferred to the second requester public address based on reference to the blockchain.

3. The method of claim 1, wherein the step of sending, from the second portable memory device to the plurality of geographically distributed computer systems, the second digitally signed instructions comprises the further steps of:

(i) transferring, from the second portable memory device to the digital asset computer system, the second digitally signed instructions; and

(ii) transferring, from the digital asset computer system to the plurality of geographically distributed computer systems, the second digitally signed instructions.

4. The method of claim 1, wherein the method further comprises the steps of:

(l) providing a third designated key pair, comprising a third designated public key and a corresponding third designated private key, wherein the third designated private key is also associated with a third designated public address associated with the underlying digital asset;

wherein the third designated private key is stored on a third computer system which is physically separated from the first computer system and from the second computer system and is not operatively or physically connected to the distributed public transaction ledger or the Internet; and

wherein the first smart contract instructions further comprise;

(6) authorization instructions for the third designated key pair; and

(m) transferring the third sum of stable value digital asset tokens to the second requester public address, using the following additional steps as part of step (j);

(i) generating, by the digital asset token issuer system, third instructions from the third designated public address to the first contract address to obtain the third sum of stable value digital asset tokens and transfer said third sum to the second requester public address;

(ii) transferring, from the digital asset token issuer system to a third portable memory device, the third instructions;

(iii) transferring, from the third portable memory device to the third computer system, the third instructions;

(iv) digitally signing, by the third computer system, the third instructions using the third designated private key to generate third digitally signed instructions;

(v) transferring, from the third computer to a fourth portable memory device, the third digitally signed instructions; and

(vi) sending, from the fourth portable memory device to the plurality of geographically distributed computer systems, the third digitally signed instructions;

wherein the plurality of geographically distributed computer systems execute the third digitally signed in accordance with the first contract instructions.

5. The method of claim 1, wherein the step of sending, from the fourth portable memory device to the plurality of geographically distributed computer systems, the third digitally signed instructions comprises the further steps of:

(i) transferring, from the fourth portable memory device to the digital asset computer system, the third digitally signed instructions; and

(ii) transferring, from the digital asset computer system to the plurality of geographically distributed computer systems, the third digitally signed instructions.

6. The method of claim 1, wherein the first portable memory device and second portable memory device are the same portable memory device.

7. The method of claim 1, wherein the first portable memory device and second portable memory device are different portable memory devices.

8. The method of claim 1, wherein the third portable memory device and fourth portable memory device are the same portable memory device.

9. The method of claim 1, wherein the third portable memory device and fourth portable memory device are different portable memory devices.

10. The method of claim 1, wherein the authorization instructions for the first designated key pair includes a limit on a number of tokens that the first designated key pair is authorized to issue.

11. The method of claim 1, wherein the authorization instructions for the first designated key pair includes a time limit during which the first designated key pair is authorized to issue tokens.

12. The method of claim 1, wherein the authorization instructions for the first designated key pair includes a limitation on a number of tokens that the first designated key pair is authorized to issue within a set period of time.

13. The method of claim 1, wherein the fiat is U.S. dollars.

14. The method of claim 13, wherein the fixed ratio is one token for one U.S. dollar.

15. The method of claim 13, wherein the fixed ratio is 100 tokens for one U.S. dollar.

16. The method of claim 1, wherein the first designated public key is mathematically associated with the first designated private key.

17. The method of claim 1, wherein the second designated public key is mathematically associated with the second designated private key.

18. The method of claim 1, wherein the first contract instructions are based on the ERC20 standard.

19. The method of claim 1, wherein the blockchain is the Ethereum blockchain.

20. The method of claim 1, wherein the blockchain is the NEO blockchain.

21. The method of claim 1, wherein the blockchain is the Bitcoin blockchain, and another protocol is used as a layer over the Bitcoin blockchain to provide for smart contract functionality.

22. The method of claim 21, wherein the another protocol utilizes a two-way peg of stable value digital asset tokens to bitcoin and a sidechain that shares miners with the Bitcoin blockchain.

23. The method of claim 1, wherein the blockchain is the Bitcoin blockchain, and an overlying protocol is used to create custom digital assets on an additional underlying blockchain.

24. The method of claim 1, wherein the method further comprises the steps of:

(l) providing a third designated key pair, comprising a third designated public key and a corresponding third designated private key, wherein the third designated private key is also associated with a third designated public address associated with the underlying digital asset;

wherein the third designated private key is stored on a third computer system which is physically separated from the first computer system and from the second computer system and is not operatively or physically connected to the distributed public transaction ledger or the Internet; and

wherein the first smart contract instructions further comprise;

(6) authorization instructions for the third designated key pair; and

(m);

transferring the third sum of stable value digital asset tokens to the second requester public address using the following additional steps as part of step (j);

(i) generating, by the digital asset token issuer system, third instructions from the third designated public address to the first contract address to obtain the third sum of stable value digital asset tokens and transfer said third sum to the second requester public address;

(ii) transferring, from the digital asset token issuer system to a third portable memory device, the third instructions;

(iii) transferring, from the third portable memory device to the third computer, the third instructions;

(iv) digitally signing, by the third computer system, the third instructions using the third designated private key to generate third digitally signed instructions;

(v) transferring, from the third computer to a fourth portable memory device, the third digitally signed instructions; and

(vi) sending, from the fourth portable memory device to the plurality of geographically distributed computer systems, the third digitally signed instructions,

wherein the plurality of geographically distributed computer systems execute the third digitally signed instructions in accordance with the first contract instructions.

25. The method of claim 1, wherein the second sum of fiat is deposited in one or more bank accounts associated with the digital asset token issuer.

26. The method of claim 1, further comprising the digital asset token issuer purchasing one or more interest bearing financial instruments using the second sum of fiat.

27. The method of claim 2, further comprising the digital asset token issuer depositing the fourth sum of fiat in one or more bank accounts associated with the digital asset token issuer.

28. The method of claim 2, further comprising the digital asset token issuer purchasing one or more interest bearing financial instruments using the fourth sum of fiat.

29. The method of claim 1, wherein the request to obtain the first sum of stable value digital asset tokens specifies a requester fee payable to the digital asset token issuer in addition to the second sum of fiat and step (e) includes confirming, by the digital asset token issuer system, receipt of the second sum of fiat and the requester fee.

30. The method of claim 1, wherein the request to obtain the first sum of stable value digital asset tokens specifies a miner fee payable to miners associated with the plurality of geographically distributed computer systems and step (e) includes confirming, by the digital asset token issuer system, receipt of the second sum of fiat and the miner fee.