System for implementing a distributed ledger across multiple network nodes

• US 10,475,030 B2
• Filed: 02/22/2016
• Issued: 11/12/2019
• Est. Priority Date: 02/22/2016
• Status: Active Grant

• Current Assignee: Bank of America Corp.
• Original Assignee: Bank of America Corp.
• Inventors: Castinado, Joseph Benjamin, Ronca, James Gregory
• Primary Examiner(s): Oyebisi, Ojo O
• Application Number:
  US15/050,294
• Publication Number:
  US 20170243212A1
• Time in Patent Office: 1,359 Days
• Field of Search: 705 44
• CPC Class Codes: G06Q 20/389 Keeping log of transactions for guaranteeing non-repudiation of a transaction
• CPC Class Codes: G06Q 20/401 Transaction verification
• CPC Class Codes: G06Q 2220/00 Business processing using cryptography postage metering system using cryptography G06Q2250/05
• CPC Class Codes: H04L 2209/56 Financial cryptography, e.g. electronic payment or e-cash
• CPC Class Codes: H04L 9/3236 using cryptographic hash functions
• CPC Class Codes: H04L 9/50 using hash chains, e.g. blockchains or hash trees

Abstract

Embodiments enable a system operatively connected with a block chain distributed network to use the block chain distributed network for validation (i.e., authorization) of a payment transaction. The system receives a transaction record associated with a payment transaction, wherein the transaction record comprises transaction data indicating a payor, a payee and an amount; accesses a distributed ledger stored in the memory device, wherein the distributed ledger is updated based on communications from a block chain distributed network; and, using payment transaction logic, determines whether the transaction record represents a valid transaction by, e.g., communicate the transaction record to a validating node for validation of the transaction record. Once validated, the system (or validating node) communicates validation of the transaction record to the block chain distributed network, e.g., by updating the distributed ledger with information indicating validation of the transaction record and providing access to the distributed ledger to the network.

Claims

1. A system for validation and approval of a payment transaction, the system comprising:

a block chain distributed network comprising a plurality of decentralized nodes, each decentralized node having a first memory and at least one first processing device operatively coupled to the first memory, wherein the first memory of decentralized nodes is configured to store a distributed ledger comprising a plurality of blocks that store data, wherein the block chain distributed network is configured to certify that the data stored in the blocks is authentic;

a second memory; and

a second processing device operatively coupled to the second memory, wherein the second processing device is configured to execute computer-readable program code to;

receive a transaction record associated with a payment transaction, wherein the transaction record comprises transaction data indicating a payor, a payee and an amount;

access the distributed ledger, wherein the distributed ledger is updated based on communications from the block chain distributed network;

using payment transaction logic, determine, by one of the plurality of decentralized nodes acting as an originating node associated with the transaction record, that the transaction record represents a valid transaction;

store, using a blockchain transaction validation logic, the transaction record on the distributed ledger, wherein storing further comprises inputting additional information indicating that the transaction record (i) represents a valid transaction and (ii) requires approval by one or more of the plurality of decentralized nodes acting as validator nodes, wherein the validator nodes are different nodes than the originator node;

receive a request from the one or more validator nodes to access the transaction record;

communicate the transaction record to the one or more validator nodes; and

determine, by the one or more validating nodes and based on the additional information in the distributed ledger, that the transaction record has been validated by the originating node; and

approve, by the one or more validating nodes, the transaction record based on at least determining that the transaction record has been validated by the originating node, wherein the one or more validator nodes are configured to approve the transaction without any communication with the originating node.

2. The system of claim 1, wherein the second processing device is configured to execute computer-readable program code further to:

determine that the transaction record represents a valid transaction by determining that the transaction record involves a valid payment instrument having associated funds less than or equal to the amount indicated in the transaction data.

3. The system of claim 1, wherein the second processing device is configured to execute computer-readable program code further to:

communicate the transaction record to the originating node for validation of the transaction record.

4. The system of claim 2, wherein the second processing device is configured to execute computer-readable program code further to:

communicate validation of the transaction record to the block chain distributed network.

5. The system of claim 2, wherein the second processing device is configured to execute computer-readable program code further to:

update the distributed ledger with information indicating validation of the transaction record and provide access to the distributed ledger to the block chain distributed network.

6. The system of claim 2, wherein the second processing device is configured to execute computer-readable program code further to:

initiate crediting the amount to an account of the payee indicated by the transaction record.

7. The system of claim 6, wherein the second processing device is configured to execute computer-readable program code further to:

update the distributed ledger with information indicating crediting of the amount to an account of the payee indicated by the transaction record and provide access to the distributed ledger to the block chain distributed network.

8. The system of claim 1, wherein the transaction record is encrypted and the processing device is configured to execute computer-readable program code further to decrypt the transaction record.

9. The system of claim 1, wherein the second processing device is configured to execute computer-readable program code further to:

determine that the transaction record represents an invalid transaction by determining that the transaction record involves an invalid payment instrument having associated funds less than or equal to the amount indicated in the transaction data.

10. A method for validation of a payment transaction, the method comprising:

providing for a block chain distributed network comprising a plurality of decentralized nodes, each decentralized node having a first memory and at least one first processing device operatively coupled to the first memory, wherein the first memory of decentralized nodes is configured to store a distributed ledger comprising a plurality of blocks that store data, wherein the block chain distributed network is configured to certify that the data stored in the blocks is authentic

receiving, by a computing processing device, a transaction record associated with a payment transaction, wherein the transaction record comprises transaction data indicating a payor, a payee and an amount;

accessing, by a computing processing device, the distributed ledger stored in the memory device, wherein the distributed ledger is updated based on communications from the block chain distributed network;

using payment transaction logic, determining, by a computing processing device of one of the plurality of nodes acting as an originating node associated with the transaction record, that the transaction record represents a valid transaction;

receiving, by a computing processing device, a request from one or more of the plurality of decentralized nodes acting as validator nodes to access the transaction record wherein the validator nodes are different nodes than the originator node;

communicating, by a computing processing device, the transaction record to the one or more validator nodes;

storing, using a blockchain transaction validation logic, by a computing processing device, the transaction record on the distributed ledger, wherein storing further comprises inputting additional information indicating that the transaction record represents a valid transaction and requires approval by one or more validator nodes; and

determining, by at least one computing processing device of one or more of the validating nodes and based on the additional information in the distributed ledger, that the transaction record has been validated by the originating node; and

approving, by the at least one computing processing device of the one or more of the validating nodes, the transaction record based on at least determining that the transaction record has been validated by the originating node, wherein the one or more validator nodes are configured to approve the transaction without any communication with the originating node.

11. The method of claim 10, further comprising:

determining, by a computing processing device, that the transaction record represents a valid transaction by determining that the transaction record involves a valid payment instrument having associated funds less than or equal to the amount indicated in the transaction data.

12. The method of claim 10, further comprising:

communicating, by a computing processing device, the transaction record to an originating node for validation of the transaction record.

13. The method of claim 11, further comprising:

communicating, by a computing processing device, validation of the transaction record to the block chain distributed network.

14. The method of claim 11, further comprising:

updating, by a computing processing device, the distributed ledger with information indicating validation of the transaction record and provide access to the distributed ledger to the block chain distributed network.

15. The method of claim 11, further comprising:

initiating, by a computing processing device, crediting the amount to an account of the payee indicated by the transaction record.

16. The method of claim 15, further comprising:

updating, by a computing processing device, the distributed ledger with information indicating crediting of the amount to an account of the payee indicated by the transaction record and provide access to the distributed ledger to the block chain distributed network.

17. The method of claim 10, wherein the transaction record is encrypted and the method further comprises decrypting, by the processing device, the transaction record.

18. The method of claim 10, further comprising:

determining, by a computing processing device, that the transaction record represents an invalid transaction by determining that the transaction record involves an invalid payment instrument having associated funds less than or equal to the amount indicated in the transaction data.