Blockchain-based Method, Apparatus, And System To Accelerate Transaction Processing
Blockchain, or distributed ledger network technology, facilitates and accelerates foreign currency (FX) transactions and makes them reliable and trusted by prequalifying participants in the transactions to participate. Prequalifying participants enables funding of the transaction before parties enter into a trade, reducing the time required to consummate a transaction. In one aspect, the credit aspect of these transactions is disaggregated from the transactions themselves, eliminating credit risk and delivery risk, among others. Immutability of data in the blockchain enhances transaction reliability, and promotes confidence on both sides of a given transaction. In another aspect, fully collateralized fiat coins (FCFC) residing within the blockchain are based on an underlying fiat currency. Within the blockchain, the FCFC are their own currency.
Claim CLM-00001. 1. A blockchain-based system to effect accelerated foreign exchange (FX) transaction processing, wherein the blockchain-based system disaggregates funding of an FX transaction from the FX transaction itself by prequalifying the funding in a secure and trusted manner, the blockchain-based system including structure to effect the following:
responsive to a first indication from a first party (taker) of a desire to enter into a FX transaction, record the first indication in encrypted fashion in the system, and provide a first approval to the taker to engage in the FX transaction in response to satisfaction of first predetermined criteria which are communicated in encrypted fashion within the blockchain-based system; and responsive to a second indication from a second party (maker) of a desire to enter into the FX transaction, record the second indication in encrypted fashion in the blockchain-based system, and provide a second approval to the maker to engage in the FX transaction in response to satisfaction of second predetermined criteria which are communicated in encrypted fashion within the blockchain-based system; and record, in encrypted and immutable fashion, all steps in effecting the FX transaction; wherein the system further comprises: a taker node to enable the taker to participate in the FX transaction by exchanging first tokens that are priced according to a first fiat currency, for second tokens that are priced according to a second fiat currency; and a maker node to enable the maker to participate in the FX transaction by exchanging the second tokens that are priced according to the second fiat currency, for the first tokens that are priced according to the first fiat currency; wherein a value of the first tokens fluctuates only according to fluctuations in an underlying value of the first fiat currency, and a value of the second tokens fluctuates only according to fluctuations in an underlying value of the second fiat currency.
Claim CLM-00011. 11. A blockchain-based method employing a blockchain to effect accelerated foreign exchange (FX) transaction processing, wherein the blockchain-based method disaggregates funding of an FX transaction from the FX transaction itself by prequalifying the funding in a secure and trusted manner, the blockchain-based method comprising:
on the blockchain, responsive to a first indication from a first party (taker) of a desire to enter into a FX transaction, recording the first indication in encrypted fashion in the system, and providing a first approval to the taker to engage in the FX transaction in response to satisfaction of first predetermined criteria which are communicated in encrypted fashion; and on the blockchain, responsive to a second indication from a second party (maker) of a desire to enter into the FX transaction, recording the second indication in encrypted fashion in the blockchain-based system, and providing a second approval to the maker to engage in the FX transaction in response to satisfaction of second predetermined criteria which are communicated in encrypted fashion; and recording, on the blockchain, all steps in effecting the FX transaction; wherein the method further comprises: enabling the taker to participate in the FX transaction by exchanging first tokens that are priced according to a first fiat currency, for second tokens that are priced according to a second fiat currency; and enabling the maker to participate in the FX transaction by exchanging the second tokens that are priced according to the second fiat currency, for the first tokens that are priced according to the first fiat currency; wherein a value of the first tokens fluctuates only according to fluctuations in an underlying value of the first fiat currency, and a value of the second tokens fluctuates only according to fluctuations in an underlying value of the second fiat currency.
