Apparatus and method of a distributed capital system

• US 9,830,656 B2
• Filed: 03/24/2015
• Issued: 11/28/2017
• Est. Priority Date: 02/14/2002
• Status: Expired due to Term

• Current Assignee: Zachary Pessin
• Original Assignee: Zachary Pessin
• Inventors: Pessin, Zachary
• Primary Examiner(s): Cheung, Mary
• Application Number:
  US14/667,171
• Publication Number:
  US 20150193879A1
• Time in Patent Office: 980 Days
• CPC Class Codes: G06Q 20/00 Payment architectures, schemes or protocols apparatus for performing or posting payment transactions G07F7/08, G07F19/00; electronic cash registers G07G1/12
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 20/381 Currency conversion
• CPC Class Codes: G06Q 20/4016 involving fraud or risk level assessment in transaction processing
• CPC Class Codes: G06Q 20/403 Solvency checks
• CPC Class Codes: G06Q 30/08 Auctions
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

A method conducting financial transactions over a computerized network, which includes conducting awareness propagation such that capital movement over a participant system-network is optimized.

Claims

1. A computer-implemented method of conducting transactions over a network, comprising:

providing a plurality of client computers and servers, which are connected to one another, over the network to a plurality of financial institutions;

conducting awareness propagation from a first client computer, to one or more client computers or servers of said plurality of client computers and servers, over the network, by;

informing each of said client computers or servers, of transactions between each transacting participant, allowing each of said client computers or servers to update their local ledgers accordingly;

analyzing notices of funds transfers at said client computers and said servers; and

optimizing said transactions by directing funds between said plurality of financial institutions such that a total summed distance of all funds transferred between said plurality of financial institutions is minimized, thereby reducing risks to said plurality of financial institutions conducting said funds transfers, by reducing a total amount of capital per time at risk during said funds transfers while fulfilling obligations of all participants to said funds transfers;

wherein said transactions and said notices are propagated across the network in a distributed manner, without being centrally stored and processed.

2. The method according to claim 1, further comprising:

implementing, using said plurality of client computers and servers, a transaction protocol to monitor and match data requirements associated with said funds transfers, and allow matching between unrelated participants;

taking digital representations of said transactions and executing a netting summation of said transactions for said unrelated participants using said plurality of client computers and servers; and

executing and settling original intended transactions for said unrelated participants using said plurality of client computers and servers.

3. A computer-readable medium whose contents cause a computer system to perform transactions over a network, the computer system having a program which performs the steps of:

providing a plurality of client computers and servers, which are connected to one another, over the network, to a plurality of financial institutions;

conducting awareness propagation from a first client computer, to one or more client computers or servers of said plurality of client computers and servers, over the network, by;

informing each of said client computers or servers, of transactions between each transacting participant, allowing each of said client computers or servers to update their local ledgers accordingly;

analyzing notices of funds transfers at said client computers and said servers; and

optimizing said transactions by directing funds between said plurality of financial institutions such that a total summed distance of all funds transferred between said plurality of financial institutions is minimized, thereby reducing risks to said plurality of financial institutions conducting said funds transfers, by reducing a total amount of capital per time at risk during said funds transfers while fulfilling obligations of all participants to said funds transfers;

wherein said transactions and said notices are propagated across the network in a distributed manner, without being centrally stored and processed.

4. A computer system adapted to perform transactions over a network, comprising:

at least one memory including a program having instructions adapted to enable the computer system to perform the steps of;

providing a plurality of client computers and servers, which are connected to one another, over the network to a plurality of financial institutions;

conducting awareness propagation from a first client computer, to one or more client computers or servers of said plurality of client computers and servers, over the network, by;

informing each of said client computers or servers, of transactions between each transacting participant, allowing each of said client computers or servers to update their local ledgers accordingly;

analyzing notices of funds transfers at said client computers and said servers; and

optimizing said transactions by directing funds between said plurality of financial institutions such that a total summed distance of all funds transferred between said plurality of financial institutions is minimized, thereby reducing risks to said plurality of financial institutions conducting said funds transfers, by reducing a total amount of capital per time at risk during said funds transfers while fulfilling obligations of all participants to said funds transfers;

wherein said transactions and said notices are propagated across the network in a distributed manner, without being centrally stored and processed; and

at least one processor which runs said program.

5. A computer program product for enabling a computer to perform transactions over a network, comprising:

software instructions for enabling the computer to perform predetermined operations, and

a computer readable medium bearing the software instructions;

the predetermined operations including the steps of;

providing a plurality of client computers and servers, which are connected to one another, over the network to a plurality of financial institutions;

conducting awareness propagation from a first client computer, to one or more client computers or servers of said plurality of client computers and servers, over the network, by;

informing each of said client computers or servers, of transactions between each transacting participant, allowing each of said client computers or servers to update their local ledgers accordingly;

analyzing notices of funds transfers at said client computers and said servers; and

optimizing said transactions by directing funds between said plurality of financial institutions such that a total summed distance of all funds transferred between said plurality of financial institutions is minimized, thereby reducing risks to said plurality of financial institutions conducting said funds transfers, by reducing a total amount of capital per time at risk during said funds transfers while fulfilling obligations of all participants to said funds transfers;

wherein said transactions and said notices are propagated across the network in a distributed manner, without being centrally stored and processed.