METHOD AND SYSTEM FOR LINKAGE OF BLOCKCHAIN-BASED ASSETS TO FIAT CURRENCY ACCOUNTS

• US 20160342976A1
• Filed: 05/21/2015
• Published: 11/24/2016
• Est. Priority Date: 05/21/2015
• Status: Active Grant

• Current Assignee: Mastercard International Incorporated (MasterCard Incorporated)
• Original Assignee: Mastercard International Incorporated (MasterCard Incorporated)
• Inventors: Davis, Steven Charles
• Granted Patent: US 10,026,082 B2
• Time in Patent Office: Days
• US Class Current: 1/1
• CPC Class Codes: G06Q 20/065 using e-cash
• CPC Class Codes: G06Q 20/0855 involving a third party
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/3678 e-cash details, e.g. blinded, divisible or detecting double spending
• CPC Class Codes: G06Q 20/3829 involving key management
• CPC Class Codes: H04L 9/50 using hash chains, e.g. blockchains or hash trees

Abstract

A method for managing fractional reserves of blockchain currency includes: storing, in a first central account, a fiat amount associated with a fiat currency; storing, in a second central account, a blockchain amount associated with a blockchain currency; storing a plurality of account profiles, each profile including a fiat currency amount, blockchain currency amount, account identifier, and address; receiving a transaction message associated with a payment transaction, the message being formatted based on one or more standards and including a plurality of data elements, including a data element reserved for private use including a specific address and a transaction amount; identifying a specific account profile that includes the specific address included in the data element in the received transaction message; and updating the blockchain currency amount included in the identified specific account profile based on the transaction amount included in the data element in the received transaction message.

Claims

1. A method for managing fractional reserves of blockchain currency, comprising:

storing, in a first central account, at least a fiat amount associated with a fiat currency;

storing, in a second central account, at least a blockchain amount associated with a blockchain currency;

storing, in an account database, a plurality of account profiles, wherein each account profile includes data associated with a consumer including at least a fiat currency amount, a blockchain currency amount, an account identifier, and an address;

receiving, by a receiving device, a transaction message associated with a payment transaction, wherein the transaction message is formatted based on one or more standards and includes a plurality of data elements, including at least a data element reserved for private use including a specific address and a transaction amount;

identifying, by a processing device, a specific account profile stored in the account database where the included address corresponds to the specific address included in the data element in the received transaction message; and

updating, by the processing device, the blockchain currency amount included in the identified specific account profile based on the transaction amount included in the data element in the received transaction message.

2. The method of claim 1, further comprising:

updating, by the processing device, the blockchain amount stored in the second central account based on the transaction amount included in the data element in the received transaction message.

3. The method of claim 1, wherein the blockchain amount stored in the second central account is based on a sum of the blockchain currency amounts included in each account profile stored in the account database.

4. The method of claim 1, further comprising:

initiating, by the processing device, a blockchain transaction using a blockchain network associated with the blockchain currency amount, wherein the blockchain transaction is for the transaction amount to or from the specific address.

5. The method of claim 1, wherein the one or more standards includes at least the ISO 8583 standard.

6. The method of claim 1, wherein the second central account is further configured to store a plurality of keys, each key associated with an account profile stored in the account database.

7. The method of claim 6, further comprising:

generating, by the processing device, the address stored in each account profile of the account database based on application of the associated key to one or more hashing and/or encoding algorithms.

8. The method of claim 7, wherein the one or more hashing and/or encoding algorithms includes the use of Base58Check encoding.

9. The method of claim 1, wherein the transaction message further includes a data element configured to store a personal account number that includes a funding address.

10. The method of claim 9, further comprising:

identifying, by the processing device, a funding account profile stored in the account database where the included address corresponds to the funding address; and

deducting, by the processing device, the blockchain currency amount included in the identified funding account profile based on the transaction amount included in the data element in the received transaction message, wherein

updating the blockchain currency amount included in the identified specific account profile includes adding to the blockchain currency amount based on the transaction amount included in the data element in the received transaction message.

11. A system for managing fractional reserves of blockchain currency, comprising:

a central database configured to store

a first central account including at least a fiat amount associated with a fiat currency, and

a second central account including at least a blockchain amount associated with a blockchain currency;

an account database configured to store a plurality of account profiles, wherein each account profile includes data associated with a consumer including at least a fiat currency amount, a blockchain currency amount, an account identifier, and an address;

a receiving device configured to receive a transaction message associated with a payment transaction, wherein the transaction message is formatted based on one or more standards and includes a plurality of data elements, including at least a data element reserved for private use including a specific address and a transaction amount, and

a processing device configured to

identify a specific account profile stored in the account database where the included address corresponds to the specific address included in the data element in the received transaction message, and

update the blockchain currency amount included in the identified specific account profile based on the transaction amount included in the data element in the received transaction message.

12. The system of claim 11, wherein the processing device is further configured to update the blockchain amount stored in the second central account based on the transaction amount included in the data element in the received transaction message.

13. The system of claim 11, wherein the blockchain amount stored in the second central account is based on a sum of the blockchain currency amounts included in each account profile stored in the account database.

14. The system of claim 11, wherein the processing device is further configured to initiate a blockchain transaction using a blockchain network associated with the blockchain currency amount, wherein the blockchain transaction is for the transaction amount to or from the specific address.

15. The system of claim 11, wherein the one or more standards includes at least the ISO 8583 standard.

16. The system of claim 11, wherein the second central account is further configured to store a plurality of keys, each key associated with an account profile stored in the account database.

17. The system of claim 16, wherein the processing device is further configured to generate the address stored in each account profile of the account database based on application of the associated key to one or more hashing and/or encoding algorithms.

18. The system of claim 17, wherein the one or more hashing and/or encoding algorithms includes the use of Base58Check encoding.

19. The system of claim 11, wherein the transaction message further includes a data element configured to store a personal account number that includes a funding address.

20. The system of claim 19, wherein the processing device is further configured to

identify a funding account profile stored in the account database where the included address corresponds to the funding address, and

deduct the blockchain currency amount included in the identified funding account profile based on the transaction amount included in the data element in the received transaction message, and wherein

updating the blockchain currency amount included in the identified specific account profile includes adding to the blockchain currency amount based on the transaction amount included in the data element in the received transaction message.