Systems and Methods to Validate Transactions For Inclusion in Electronic Blockchains

• US 20190130394A1
• Filed: 04/17/2017
• Published: 05/02/2019
• Est. Priority Date: 04/17/2017
• Status: Active Application

• Current Assignee: Jeff Stollman, Martin Mateev
• Original Assignee: Jeff Stollman
• Inventors: Stollman, Jeff, Mateev, Martin
• Granted Patent: US 11,887,115 B2
• Time in Patent Office: Days
• CPC Class Codes: G06F 16/2365 Ensuring data consistency and integrity
• CPC Class Codes: G06F 16/2379 Updates performed during online database operations; commit processing
• CPC Class Codes: G06Q 20/389 Keeping log of transactions for guaranteeing non-repudiation of a transaction
• CPC Class Codes: H04L 2209/56 Financial cryptography, e.g. electronic payment or e-cash
• CPC Class Codes: H04L 9/0637 Modes of operation, e.g. cipher block chaining [CBC], electronic codebook [ECB] or Galois/counter mode [GCM]
• 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 9/50 using hash chains, e.g. blockchains or hash trees

Abstract

A system for validating the integrity of blockchain transactions prior to such transactions being added to the electronic blockchain using, in part, an automated, protocol-based methodology is disclosed. Use of such a system circumvents current costly consensus mechanisms for validating transactions prior to inclusion onto the underlying electronic blockchain. In a preferred embodiment, the disclosed system may be implemented within blockchain environments where the transacting parties “trust” each other where trust may be evidenced in different ways. In such an example, the system provides an automated, protocol-based validation of transactions that have been approved by the transacting parties, such that record of the validated transaction may be appended to a blockchain.

Claims

1. A protocol-based method for validating the integrity of transactions before electronic recordation of said transactions is added to an electronic blockchain, the protocol comprising the steps of:

a. obtaining a first confirmation from at least one first party to transfer an asset as part of a transaction that each said first party agrees with at least one term of said transaction;

b. obtaining a second confirmation from at least one second party to receive an asset as part of said transaction that each said second party has verified each said first party'"'"'s respective agreement with at least one term of said transaction;

c. creating a validated electronic record of said transaction based upon receipt of said first and second confirmations;

d. adding said validated electronic record to a block of electronic transactions; and

e. adding said block of electronic transactions to said blockchain.

2. The protocol-based method for validating the integrity of transactions before electronic recordation of said transactions is added to an electronic blockchain, as provided in claim 1, further comprising the step of:

registering each of said at least one first parties to transfer an asset as part of said transaction, and each of said at least one second party to receive an asset as part of said transaction.

3. The protocol-based method for validating the integrity of transactions before electronic recordation of said transactions is added to an electronic blockchain, as provided in claim 2, further comprising the step of:

authenticating each of said at least one first parties to transfer an asset as part of said transaction, and each of said at least one second party to receive an asset as part of said transaction.

4. The protocol-based method for validating the integrity of transactions before electronic recordation of said transactions is added to an electronic blockchain, as provided in claim 1, wherein at least one of said first and second confirmation is a digitally signed specification of said transaction.

5. The protocol-based method for validating the integrity of transactions before electronic recordation of said transactions is added to an electronic blockchain, as provided in claim 1, wherein said at least one term of said transaction is transfer of custody of assets to be transferred between at least two parties to said transaction.

6. The protocol-based method for validating the integrity of transactions before electronic recordation of said transactions is added to an electronic blockchain, as provided in claim 1, wherein said transaction is a transfer of assets between parties to said transaction.

7. The protocol-based method for validating the integrity of transactions before electronic recordation of said transactions is added to an electronic blockchain, as provided in claim 1, wherein said transaction is a sale of assets between parties to said transaction.

8. The protocol-based method for validating the integrity of transactions before electronic recordation of said transactions is added to an electronic blockchain, as provided in claim 1, wherein said step (a) is:

obtaining a first confirmation from at least one first party to transfer at least one part of an asset as part of a transaction and that each said first party and each said second party agrees with a same at least one term of said transaction.

9. The protocol-based method for validating the integrity of transactions before electronic recordation of said transactions is added to an electronic blockchain, as provided in claim 1, wherein said validated electronic record is added directly to said blockchain.

10. The protocol-based method for validating the integrity of transactions before electronic recordation of said transactions is added to an electronic blockchain, as provided in claim 1, wherein a record of any amendments to said at least one term of said transaction, and record of any data relating to said amendments are recorded separately.

11. A method for validating the integrity of electronic records within a block before said block is added to an electronic blockchain using a protocol-based set of instructions, comprising the steps of:

a. validating that all electronic recordations included in a block, where said electronic recordations relate to at least one condition of at least one underlying transaction, have been confirmed by at least one transferring party and at least one receiving party to said at least one underlying transaction; and

b. adding said validated block to said electronic blockchain.

12. The method for validating the integrity of electronic records within a block before said block is added to an electronic blockchain using a protocol-based set of instructions, as provided in claim 11, further comprising the step of:

registering each of said at least one transferring party and at least one receiving party to said at least one underlying transaction.

13. The method for validating the integrity of electronic records within a block before said block is added to an electronic blockchain using a protocol-based set of instructions, as provided in claim 11, further comprising the step of:

authenticating each of said at least one transferring party and at least one receiving party to said at least one underlying transaction.

14. The method for validating the integrity of electronic records within a block before said block is added to an electronic blockchain using a protocol-based set of instructions, as provided in claim 11, wherein said validation is a digitally signed specification of said transaction.

15. The method for validating the integrity of electronic records within a block before said block is added to an electronic blockchain using a protocol-based set of instructions, as provided in claim 11, wherein said confirmation of said electronic recordations is made by all parties to said underlying transaction.

16. The method for validating the integrity of electronic records within a block before said block is added to an electronic blockchain, as provided in claim 11, wherein said underlying transaction is a transfer of custody of assets between parties to said transaction.

17. A computerized system for validating the integrity of electronic records of transactions before said records are added to an electronic block in an electronic blockchain, said system comprising:

a. at least one computer server;

b. a plurality of terminals, each of said plurality of terminals being associated with a first plurality of transferring parties and a second plurality of receiving parties each associated with a transaction;

c. machine readable instructions stored on said at least one computer server, and said machine readable instructions when executed manages a blockchain data structure associated with said transaction and causes said at least one computer server to execute the steps of;

i. receiving a transaction specification from at least one of said first plurality of transferring parties associated with said transaction;

ii. obtaining confirmation from said at least one of said plurality of receiving second parties that said transaction specification is verified;

iii. sending an electronic data transmission request to each of said remaining plurality of terminals relating to said obtained confirmation of verification of said transaction specification;

iv. receiving from each of said remaining plurality of terminals associated with said first and second plurality of parties'"'"' confirmations of verification of said transaction specification;

v. creating a validated electronic record of said transaction based upon receipt of said first and second plurality of parties'"'"' verification confirmations;

vi. adding said validated electronic record to a block of transactions to be appended to said blockchain data structure; and

vii. adding said block of transactions to said blockchain data structure.

18. The computerized system for validating the integrity of electronic records of transactions before said records are added to an electronic block in an electronic blockchain, as provided in claim 17, further comprising the step of:

registering each of said authenticated plurality of parties associated with said transaction.

19. The computerized system for validating the integrity of electronic records of transactions before said records are added to an electronic block in an electronic blockchain, as provided in claim 17, further comprising the step of:

authenticating each of said plurality of parties associated with said transaction.

20. The computerized system for validating the integrity of electronic records of transactions before said records are added to an electronic block in an electronic blockchain, as provided in claim 17, wherein said validated electronic record is a digitally signed specification relating to said transaction.

21. The computerized system for validating the integrity of electronic records of transactions before said records are added to an electronic block in an electronic blockchain, as provided in claim 17, wherein said transaction specification is receipt of assets to be transferred between said plurality of parties.

22. The computerized system for validating the integrity of electronic records of transactions before said records are added to an electronic block in an electronic blockchain, as provided in claim 17, wherein said transaction is a transfer of assets between said plurality of parties.

23. The computerized system for validating the integrity of electronic records of transactions before said records are added to an electronic block in an electronic blockchain, as provided in claim 17, wherein said transaction is a sale of assets between said plurality of parties.

24. The computerized system for validating the integrity of electronic records of transactions before said records are added to an electronic block in an electronic blockchain, as provided in claim 17, wherein said validated electronic record is added directly to the blockchain.