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Patent US9704143
Issued 2017-07-11
Cryptographic Currency For Securities Settlement
The present disclosure is directed to security settlement in financial markets and cryptographic currencies. Particular portions of the present disclosure are directed to a cryptographic currency protocol and to a cryptographic currency that includes a positional item. The cryptographic currency protocol supports a virtual wallet that, in various embodiments, is a security and cash account for storing and managing the cryptographic currency. Opening a transaction via the virtual wallet to transfer the cryptographic currency is a strong guarantee of the availability of funds in the virtual wallet because, e.g., funds are not transacted unless the commit phase is successful.
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- 1. A non-transitory computer-readable storage device having contents adapted to cause a programmed computer system to perform operations comprising:
receiving, from a source computing node in a network, one or more electronic transaction messages, wherein the one or more electronic transaction messages include at least transaction information and a digital signature of the source computing node, wherein the transaction information includes at least:
a recipient electronic address of a recipient computing node;
a cryptographic currency representing a security and a first position, the first position representative of a first quantity of the security; and
an ownership history of the cryptographic currency;
internally verifying an authenticity of the one or more electronic transaction messages based on the digital signature; internally verifying the source computing node as owner of the cryptographic currency based on the ownership history using a ledger; receiving electronic verification messages from a plurality of other computing nodes in the network, the electronic verification messages including information providing external verification of the source computing node as the owner of the cryptographic currency; recording, in the ledger, a change in the ownership history from the source computing node to the recipient computing node in response to the ownership history being verified internally and by the other computing nodes; transmitting electronic change messages updating the change in ownership history to the source computing node and the other computing nodes; aggregating the cryptographic currency with another cryptographic currency representing the same security into an aggregated cryptographic currency, the aggregated cryptographic currency representing the same security and a second position, the second position representative of a second quantity of the security, the second quantity of the security larger than the first quantity of the security; and updating the ledger to perfect ownership rights in the aggregated cryptographic currency.
- 11. An apparatus comprising:
at least one interface configured to receive, from a source computing node in a network, one or more electronic transaction messages, wherein the one or more electronic transaction messages include at least transaction information and a digital signature of the source computing node, wherein the transaction information includes at least:
a recipient electronic address of a recipient computing node;
a cryptographic currency representing a security and a first position, the first position representative of a first quantity of the security; and
an ownership history of the cryptographic currency;
at least one memory; and at least one processor configured to execute instructions stored in the at least one memory in order to:
internally verify an authenticity of the one or more electronic transaction messages based on the digital signature;
internally verify the source computing node as owner of the cryptographic currency based on the ownership history using a ledger;
receive electronic verification messages from a plurality of other computing nodes in the network, the electronic verification messages including information providing external verification of the source computing node as the owner of the cryptographic currency;
record, in the ledger, a change in the ownership history from the source computing node to the recipient computing node in response to the ownership history being verified internally and by the other computing nodes;
transmit electronic change messages updating the change in ownership history to the source computing node and the other computing nodes;
aggregate the cryptographic currency with another cryptographic currency representing the same security into an aggregated cryptographic currency, the aggregated cryptographic currency representing the same security and a second position, the second position representative of a second quantity of the security, the second quantity of the security larger than the first quantity of the security; and
update the ledger to perfect ownership rights in the aggregated cryptographic currency.
- 18. A method comprising:
receiving, from a source computing node in a network, one or more electronic transaction messages, wherein the one or more electronic transaction messages include at least transaction information and a digital signature of the source computing node, wherein the transaction information includes at least:
a recipient electronic address of a recipient computing node;
a cryptographic currency representing a security and a first position, the first position representative of a first quantity of the security; and
an ownership history of the cryptographic currency;
internally verifying an authenticity of the one or more electronic transaction messages based on the digital signature; internally verifying the source computing node as owner of the cryptographic currency based on the ownership history using a ledger; receiving electronic verification messages from a plurality of other computing nodes in the network, the electronic verification messages including information providing external verification of the source computing node as the owner of the cryptographic currency; recording, in the ledger, a change in the ownership history from the source computing node to the recipient computing node in response to the ownership history being verified internally and by the other computing nodes; transmitting electronic change messages updating the change in ownership history to the source computing node and the other computing nodes; aggregating the cryptographic currency with another cryptographic currency representing the same security into an aggregated cryptographic currency, the aggregated cryptographic currency representing the same security and a second position, the second position representative of a second quantity of the security, the second quantity of the security larger than the first quantity of the security; and updating the ledger to perfect ownership rights in the aggregated cryptographic currency.
