METHOD FOR CREATING, ISSUING AND REDEEMING PAYMENT ASSURED CONTRACTS BASED ON MATHEMEMATICALLY AND OBJECTIVELY VERIFIABLE CRITERIA

• US 20150206106A1
• Filed: 01/13/2015
• Published: 07/23/2015
• Est. Priority Date: 01/13/2014
• Status: Abandoned Application

• Current Assignee: Yaron Edan Yago
• Original Assignee: Yaron Edan Yago
• Inventors: YAGO, YARON EDAN
• Application Number:
  US14/596,103
• Publication Number:
  US 20150206106A1
• Time in Patent Office: Days
• US Class Current: 1/1
• CPC Class Codes: G06F 21/00 Security arrangements for protecting computers, components thereof, programs or data against unauthorised activity
• CPC Class Codes: G06F 21/645 using a third party
• CPC Class Codes: G06Q 20/0655 e-cash managed centrally
• CPC Class Codes: G06Q 20/0658 e-cash managed locally
• CPC Class Codes: G06Q 2220/00 Business processing using cryptography
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: H04L 9/50 using hash chains, e.g. blockchains or hash trees

Abstract

A business method and a system are disclosed comprising a software/computer/firmware module that creates contract/credit certificates with verifiable and objective terms based on a trade request between two or more parties. The module of the present invention also monitors crypto-digital instrument networks, including crypto-digital financial networks, to verify performance of the expected terms and notifies a credit issuing party as to the status (complete/not complete) of the relevant contract/credit certificate. The module, by use of encryption techniques or cryptography, ensures that the credit issued is only issued once while verifying credit-certificates. The disclosed business method and system allows for credit issuing bodies to provide payment guarantees that may be claimed only upon meeting objectively and/or mathematically verifiable terms on crypto-digital instrument networks. Lastly, the invention provides a business method for using crypto-digital instrument networks to issue digital credit certificates that cannot be double-spent.

Claims

1. In a communications network comprising a public ledger network and at least one private ledger system, a method comprising:

a. Associating a first proposed transaction (“

the public ledger transaction”

) of the public ledger network with a second proposed private ledger transaction (“

the private ledger transaction”

) of the at least one private ledger system;

b. Attesting that a value required to fulfill for the private ledger transaction is reserved;

c. Receiving notice that the public ledger transaction is fulfilled; and

d. Executing the private ledger transaction.

2. The method of claim 1, wherein the value ceases to be reserved after a set time period.

3. The method of claim 1, wherein the execution of the private ledger transaction is automated and no additional user action is required after receipt of the notice that the public ledger transaction is fulfilled.

4. The method of claim 1, wherein the value is expressed in fiat currency.

5. The method of claim 1, wherein the value is reserved within a financial account.

6. The method of claim 1, wherein the value is provided as a credit to a first party, the first party initiating private ledger transaction.

7. The method of claim 6, wherein the value is denominated in fiat currency.

8. The method of claim 1, wherein the value is recorded within a public ledger prior to an initiation of the public ledger transaction.

9. The method of claim 1, wherein the private ledger transaction comprises an electronic funds transfer of the value.

10. The method of claim 1, wherein the private ledger transaction is an assignment of ownership of a financial instrument or a nonfinancial instrument.

11. The method of claim 1, wherein the private ledger transaction is an assignment of ownership of a CDI.

12. The method of claim 1, wherein the private ledger transaction is an assignment of ownership of an amount of a commodity.

13. The method of claim 1, wherein the public ledger transaction comprises a recordation within the public ledger network related to a crypto-digital instrument.

14. The method of claim 1, wherein the execution of the public ledger transaction is recorded on a public ledger stored by a plurality of nodes of the public ledger network.

15. The method of claim 1, wherein the public ledger network comprises a blockchain.

16. The method of claim 1, wherein the public ledger transaction is recorded on a blockchain.

17. The method of claim 1, wherein the public ledger transaction is recorded on a bitcoin blockchain.

18. The method of claim 1, wherein the public ledger transaction is fulfilled via recordation on a blockchain.

19. The method of claim 18, wherein the public ledger transaction is recorded on a bitcoin blockchain.

20. A system comprising:

a. Means to associate a proposed transaction of a public ledger network (“

the public ledger transaction”

) with a proposed private ledger transaction (“

the private ledger transaction”

) of a private ledger;

b. Means to attest that a value required to fulfill for the private ledger is reserved;

c. Means to receive notice that the public ledger transaction is fulfilled; and

d. Means to automatically execute the private ledger transaction upon a determination that the public ledger transaction has been performed.