| US20200387891A1 | 2020-12-10 | |||
| US20190318326A1 | 2019-10-17 | |||
| US20120203605A1 | 2012-08-09 | |||
| US20210019737A1 | 2021-01-21 |
LI LEI ET AL: "Consensus with Voting Theory in Blockchain Environments", 2019 IEEE INTERNATIONAL CONFERENCE ON BIG KNOWLEDGE (ICBK), IEEE, 10 November 2019 (2019-11-10), pages 152 - 159, XP033681600, DOI: 10.1109/ICBK.2019.00028
PAHLAJANI SUNNY ET AL: "Survey on Private Blockchain Consensus Algorithms", 2019 1ST INTERNATIONAL CONFERENCE ON INNOVATIONS IN INFORMATION AND COMMUNICATION TECHNOLOGY (ICIICT), IEEE, 25 April 2019 (2019-04-25), pages 1 - 6, XP033564499, DOI: 10.1109/ICIICT1.2019.8741353
| Claims [Claim 1] System for the creation and transfer of digital FIAT (1.3) collateralized by FIAT money, between digital wallets (1.6), and management of the related FIAT, deposited in cash (Cash), bank remittances, Central bank reserves or CBDC (Central Bank Digital Currencies), on current accounts of the issuer (1.7) and immediately payable, as collateral for the digital currencies issued (collateral). [Claim 2] System referred to in the preceding claim, characterized by the fact that the system does not use a “pure proof-of- stake” (PPoS) protocol. [Claim 3] System referred to in the preceding claims, characterized by the fact that the system makes use of decentralized and public blockchain technology (1.2), of a shared / distributed public ledger (Distributed Public Ledger) (1.4) and accessible by anyone, of a network peer- to-peer (1.1), whose nodes (1.13) communicate with each other by forwarding digitally signed messages; the nodes use a gossip protocol (13.3), therefore they communicate in parallel with each other and each of them communicates with one or more nodes which are randomly chosen. [Claim 4] System referred to in claims 1,2,3 characterized by the fact that the total of the digital currency issued, and circulating is visible in real time (1.9), by anyone, directly through the blockchain, thanks to the establishment of a series of direct and indirect (1.16,1.17,1.22) between the wallet of the issuer (1.8) and the public register (1.4), which return the values to the network in real time. [Claim 5] System referred to in the preceding claims, characterized by the fact that, in the same way, the value of the consistency of the balances relating to collateral (1.10) held in the FIAT accounts of the issuer (1.7) are communicated in real time and automatically to the network , thanks to the establishment of a series of direct and indirect connections (1.14,1.15,1.21), between the financial entities that keep the collateral (1.7) and the public register (1.4), which return the values to the network in real time. [Claim 6] System referred to in the preceding claims, characterized by the fact that, thanks to the establishment of a series of direct connections (1.19,1,20) with the real-time relationship on collaterals (1.10) and the real-time relationship of the digital currency issued by the issuer (1.9), is able to generate a public and accessible relationship, via the network, by anyone and updated in real time (1.18), between the collateral held (1.7) and the digital currency in circulation, showing also publicly the ratio between the two values (1.10) and (1.9). [Claim 7] System referred to in the preceding claims, characterized in that the digital wallets (1.6) are associated with an address and not with a person; the balances and transactions of each individual wallet are public and visible on the blockchain, but it is not known who the owner of that wallet is. [Claim 8] System referred to in the preceding claims, characterized by the fact that the custodian of the collateral (1.7) allows a connection between the bank accounts of the issuer where the collaterals are kept and the network (1.14.1.21), so that it is made public and verifiable by anyone, through the blockchain, the actual amount (1.10). [Claim 9] System referred to in the preceding claims, characterized by the presence of a public register (1.4) which records and authenticates all transactions and is shared and open to all. [Claim 10] System as per claim 9, characterized by the fact that the public register can be updated only on the basis of specific rules, respected by all participants and predetermined by the consensus protocol (1.5), in which each single operation / transaction on the register keeps a copy complete with the register and the peer-to-peer network of servers / computers (1.13) distributes the proposed transactions among them; The consensus process determines which transactions are applied to each new version of the shared public ledger. [Claim 11] System as per claims 9 and 10, characterized in that the public register is composed of a series of registers or register versions, which are distributed in the network; each of these versions has an index (15.5) which identifies the order in which the registry or its version was created. [Claim 12] System as per claims 9,10,11 characterized in that the registers are managed according to the following procedure: - The server makes a distinction between the open, closed, and validated register versions. - Each server has only one open log, a variable number of closed but not validated logs, and an immutable history of validated logs. - The server discards the open ledger, creates a new closed ledger, applies the transactions that were on top on a previous closed ledger, then creates a new open ledger, using the last closed ledger as a basis. For an open ledger, transactions are applied in the order in which they are displayed, but different servers / computers can display transactions in different orders. To create a closed ledger, each server always starts with a set of transactions and an older, or “parent”, version of the ledger. The server places the transactions in a canonical (i.e. rule- compliant) order, then applies them to the previous ledger in that order. Each server, therefore, will order the transactions in the exact same way as another, therefore in a deterministic way. Each registry version that is "closed" also has an identifying hash value, which uniquely identifies the contents of that registry. At any given time, a single instance contains a "current" and current open register, as well as a number of closed registers that have not yet been approved for consensus and a variable number of "historical" registers that have been validated for Consensus. [Claim 13] System referred to in claims 9,10,11,12 characterized by the fact that a single version of the register is composed of the following parts (Fig. 15): - A heading (15.1): the register index (15.5), the hashes of the other contents and other metadata; - A transaction tree (15.2): the transactions that have been applied to the previous register for the creation of the current one. Transactions are the only way to modify the register; - A status tree (15.3): all the register objects, which contain the settings, balances and objects in the register starting from this version; - The register index (15.5): the register index is a 32-bit integer used to identify a register. The register index is sometimes known as the register sequence number. The very first register is indicated with the index number 1 (Fig. 14) and each new register will have +1 compared to the index number of the previous one (14.1). [Claim 14] System as per claims 9,10,11,12,13 characterized by the presence of a register index and a hash; the register index identifies the order in which the registers were created, the hash identifies the exact content of each individual register (14.2). Consequently: - Two registers with the same hash are therefore two copies of the same register; - For validated registers, the hash values and indexes of the registers are equally valid and correlated 1:1; - When multiple register versions have the same register index but different contents (and different hashes), only one of these closed registers can be validated (15.4); - The current open register hash is not calculated; - A log hash, on the other hand, is calculated only when the log is closed. [Claim 15] System referred to in the preceding claims, characterized by the fact that the status data (15.3) of each version of the register, are a set of objects of the register that collectively represent all the settings, balances and relations at a given time of each register. [Claim 16] System referred to in claims 9,10,11,12,13,14,15 characterized by the fact that the register is governed by a set of rules, the properties of the consensus protocol (1.5), which are the following: - All those who participate in the network, through the public register, can agree on the most recent balances, on which transactions have been carried out and in what order; - All valid transactions are processed without the need for a central operator; - The public ledger can make progress, even if some network participants join it, leave it, or behave inappropriately; - If too many participants are unreachable or behave inappropriately, the network fails make progress (hang), instead of diverging or confirming invalid transactions; [Claim 17] System as per claims 9,10,11,12,13,14,15,16 characterized by a consensus group (or consensus round) (Fig. 16) in which each validator (16.1) proposes a set of transactions that must be included in the next version of the register: - If a particular transaction does not have the support of the majority of validators, the participants agree to postpone / postpone that transaction (16.3); - If a particular transaction has majority support, the participants agree to include the transaction (16.4). [Claim 18] System as per claims 9,10,11,12,13,14,15,16,17 characterized by the fact that the threshold required to include a transaction increases over time according to the following procedure: - Initially, the participants continue to agree to include a transaction if more than 50% of the other participants agree; - If participants disagree, they increase this threshold, first to 60% and then even higher, until all disputed transactions are removed from the current set; - All transactions removed, in this way, are deferred to the next version of the register; - When a participant sees a majority that agrees on the set of transactions to be processed, they declare that consensus has been reached; - As the network progresses, each server listens to its trusted validators, because the peer-to-peer network uses a protocol in which servers identify each other via public keys and transmit / forward encrypted messages with digital signature from the others; [Claim 19] System as per claims 9,10,11,12,13,14,15,16,17,18 characterized by the fact that the consensus agreement is managed by the following procedure: As long as a sufficiently large percentage of nodes agree on the fact that a series of transactions should occur and that a particular ledger is the result of this series of transactions, the server declares a consensus (15.4); - If they disagree, validators modify their proposals to match those of other validators they trust as closely as possible, repeating the process in several rounds until a consensus is reached; - As long as less than 20% of trusted validators are defective, consensus can continue unhindered; and the confirmation of an invalid transaction would require the collusion of more than 80% of the trusted validators (highly unlikely scenario); - If for any reason there are a very large number of unreachable or faulty validators, the network stops making progress and therefore freezes instead of being subjected to attacks or validating erroneous transactions. [Claim 20] System referred to in the preceding claims, characterized by the fact that the failure of consensus is managed with the following procedure: - After the completion of a consensus round (Fig. 16), each participant applies the set of transactions that he believes have been agreed. - The participants, who are also validators (16.1), then post a cryptographic fingerprint of this next register, called the “validation vote.” - The participants then, collect these validation votes. - From the validation votes, they can determine whether the previous consensus round led a majority of participants to agree or disagree on a series of transactions. - Participants are therefore in one of three cases, in order of probability: • They have built the same public ledger as agreed by the majority. In this case, they can consider that register fully validated and rely on its content. • They have built a public register other than that agreed by the majority. In this case, they must build and accept the register of the absolute majority. • No majority is clear from the validations received. In this case it must a new round occur before any records can be [Claim 21] System referred to in the preceding claims, characterized by the fact that the stability of the price of the digital currency, which always replicates the value of the FIAT currency to which it is pegged, and at the price at which the FIAT currency is exchanged with other pairs, at the rate of official exchange, is achieved through the following procedure: - Automated bots (9.5) place buy and sell orders, at the exchanges where the digital currency is traded, paired with the same FIAT currency (9.3); - The buy and sell orders are entered at 1 tick from the reference price (therefore at the first value close to the reference price); - The same procedure also occurs with the other pairs exchanged between digital currency and different FIAT currency (9.4), thus replicating the trend of the official exchange rate (9.2) between one FIAT currency and another (9.6); - Therefore, the official exchange rate (9.2) is also replicated with the related digital currency (9.4); - The bots adjust the prices of orders over time, adapting to the changes in the official exchange rate (9.2) of each pair, thus also replicating it with digital currencies. [Claim 22] System referred to in the preceding claims, characterized by a verification and blocking procedure, as shown in Fig. 10, which inhibits any type of collateral that is not of the same currency as the currency of the digital currency issued; In addition, by means of operative blocking processes, the deposited collaterals are inhibited from any use other than mere deposition. [Claim 23] System referred to in the preceding claims, characterized by the fact that the issuing processes (Minting) of the digital currency (Fig. 19), is managed by the following procedure: - It is the network that authorizes the issuance of new digital currency; - The decision to authorize the issuance of a certain amount of digital currency is determined by the factual lack of digital currency that can be transferred to those who request it; - If an entity requests a certain amount in digital currency (19.1), sending the related FIAT amount to the issuer (19.2); - If the aforementioned amount of digital currency were not immediately available from the issuer (19.3), a situation would arise in which the collateral of the digital currency issued / in circulation would be greater; - In this situation, there is an excess of collateral and a shortage of digital currency (19.4); - Only in these conditions, the network authorizes the issue (19.5) of digital currency equal to the amount of the shortage; - The issue automatically updates the total digital currency in circulation (19.6) on the blockchain; - The ratio between collateral and digital currency issued is automatically updated (19.7); - At this time the issuer will have the required amount of digital money and will be able to send it to the applicant (19.8). [Claim 24] System referred to in the preceding claims, characterized by the fact that the processes of destruction (Burning) of the digital currency (Fig. 20), is managed by the following procedure: - It is the network that authorizes the destruction of existing digital currency; - The decision to authorize the destruction of a certain amount of digital currency is determined by the factual overabundance of digital currency, in relation to collateral; - Indeed, it may happen that the issuer has in its digital wallet an amount of digital money higher than the collateral. This may derive from the fact that an entity has decided to convert the digital currencies in its possession in exchange for the same amount of FIAT money, thus sending the digital sums to the issuer (20.5); - When the issuer sends the related FIAT sum to this entity (20.6); - A situation arises in which there is an excess of digital currency and a shortage of collateral (20.7); - Only in these conditions, the network authorizes the destruction (20.8) of digital currency equal to the amount of the shortage; - Destruction automatically updates the total digital currency circulating (20.9) on the blockchain; - The ratio between collateral and digital currency issued is automatically updated (20.10); [Claim 25] System referred to in the preceding claims, characterized by the fact that it introduces buyers’ protection and fraud - When a payment is made by a user (17.1) against of another (17.2), for the purchase of physical / tangible goods (17.5); - The sum is not sent directly to the recipient (17.2), but a third party is entered, the escrow user (17.7), who manages a specific wallet, the escrow wallet (17.8); - The original payment is then sent (17.6) to the escrow wallet (17.8), from the payer's wallet (17.3); - The digital sum remains blocked in the escrow wallet until the physical goods are delivered; - The control over the delivery of the physical goods (17.5) takes place automatically through links with the shippers; - Only after the actual delivery of the physical goods and only if the user (17.1) does not initiate a dispute / claim, the payment is released from the escrow wallet (17.8) to the recipient (17.2), in his digital wallet (17.4). [Claim 26] System referred to in the preceding claims, in which the digital wallets (1.6) also offer the holder the possibility of converting FIAT digital currencies, immediately, with other forms of FIAT currency (banknotes, bank reserves, central bank reserves / national) and vice versa. The processes vary according to the type of conversion to be performed and are grouped as follows: - Conversion from cash (banknotes) to FIAT digital currency (via bank and postal ATMs) (Fig. 22): • The user, without inserting a credit card / debit and without entering any PIN (22.1); • Initialize the conversion operation on the ATM Display (22.2); • scans the QR Code of your wallet via the ATM, which can be generated immediately and found via the wallet interface / App installed on the user's smartphone. Then the ATM, by means of a camera, scans this QR code from the user's phone (which is nothing more than the address where the digital coins will be transferred, therefore the user's wallet) (22.4); • The user enters the amount he wants to convert into digital currency (22.6); • Insert the same amount in cash in the ATM (22.7); • Authorize / sign the operation via the App / wallet interface (via pin or biometrics, etc.) (22.8); • If the transaction is not properly authorized for any reason, the ATM returns the cash (22.13); • If, on the other hand, it is authorized, the bank (which has its own digital wallet with stocks in digital currency) automatically transfers the same amount in digital currency to that wallet (22.9); • Cash is held through the ATM (22.11); Conversion from FIAT digital currency to cash (banknotes) via bank and postal ATMs) (Fig. 22): • The user, without inserting a credit / debit card and without entering any PIN (22.1); • Initialize the conversion operation on the ATM Display (22.3); • The user scans through the phone, the QR Code that will be shown on the ATM display. The ATM QR Code is then scanned by the user's phone (this QR code is nothing more than the address where the digital coins will be transferred, therefore the Bank's wallet) (22.5); • The user enters the amount he wants to convert (22.6) and starts the transfer process; • Authorize / sign the operation (via pin or biometrics, etc.) via App / wallet interface (22.8); • If the transaction is correctly authorized, the digital 30 currency is transferred from the user's wallet to that of the Bank (22.10); • The same sum in cash is then delivered to the user via the ATM (22.12); Conversion from Cash (Banknotes) to FIAT Digital Currency (At any bank / post office and even without a current account) (Fig. 23): • The user delivers the banknotes to the counter clerk (23.1); • The bank employee scans the QR CODE of the user's wallet (23.3) and starts the transfer operation; • The employee withholds the cash (23.5); • The employee authorizes / signs the digital transfer operation via the App / wallet interface (via pin, biometrics, etc.) (23.6); • If the transaction is authorized, the same digital sum is transferred from the bank's Wallet to that of the user (23.7); Conversion from FIAT Digital Currency to Cash (Banknotes) (At any bank / post office and even without a current account) (Fig. 23): • The user scans the QR code of the bank wallet, provided by the counter clerk (23.2) ; • The user sends the digital amount from his wallet to the bank wallet (23.4); • The user authorizes / signs the digital transfer operation via the App / wallet interface (via pin, biometrics, etc.) (23.6); • If the transaction is authorized, the digital currency is automatically transferred from the user's wallet to that of the Bank (23.8); • The same sum in cash is delivered by the employee to the user (23.9); Conversion from Cash (Banknotes) to FIAT Digital Currency (At physical points of sale) (FIG.24): • The user delivers the banknotes to the staff of the point of sale (24.1); • The staff of the point of sale scans the QR CODE of 31 the user's wallet, where they can send the same amount of digital currency (24.3), directly from the user's smartphone; • The store staff withhold the cash (24.5); • The store staff initiates the digital transfer operation, authorizing / signing the operation via the App / wallet interface (via pin, biometrics, etc.) (24.6); • If the transaction is authorized, the digital sum is transferred from the Wallet of the point of sale to that of the user (24.7); Conversion from FIAT Digital Currency to Cash (Banknotes) (At physical points of sale) (FIG.24): • The user scans the QR code of the wallet of the point of sale, provided by the staff of the point of sale (24.2); • The user initiates the digital transfer operation from his wallet to the wallet at the point of sale (24.4); • The user authorizes / signs the operation via the App / wallet interface (via pin, biometrics, etc.) (24.6); • If the transaction is authorized, the digital currency is transferred from the user's wallet to that of the point of sale (24.8); • The same sum in cash is delivered by the staff of the point of sale to the user (24.9); Conversion from FIAT bank reserves into FIAT digital currency (via home banking / app of your bank) (FIG. 25): • The user accesses his Home Banking and decides the amount of FIAT money held in his account and available, which he wants convert into Digital currency (25.1); • The user enters the address or scans the QR CODE of the wallet where to send the converted digital currency (25.3); • The bank initiates the digital transfer operation from its wallet to the wallet indicated by the customer (25.5); • The bank automatically authorizes the digital transfer (25.7); 32 • If the transaction is authorized, the bank sends this amount of Digital Currency from its wallet to that of the client (25.8); • the bank withholds the same FIAT amount from the user's current account (25.10); Conversion from FIAT digital currency into FIAT bank reserves (via home banking / app of your bank) (FIG.25): • The user, through his digital wallet, decides the amount of digital currency he wants to convert into FIAT (25.2); • The user enters the address or scans the QR CODE of the digital wallet of his bank, where to send the digital currency and begins the transfer process from his digital wallet to that of the bank (25.4); • The user authorizes / signs the operation via the App / wallet interface (via pin or biometrics, etc.) (25.6); • If the transaction is authorized, the digital currency is automatically transferred from the user's wallet to that of the Bank (25.9); • The bank credits the same FIAT amount to the customer's account (25.11); Conversion from bank reserves to FIAT digital currency (at the counter of your bank / post office or any other - even if you are not a customer) (FIG.26): • The user goes to the bank counter (26.1); • The user decides the amount of FIAT money to be converted into Digital currency, from the one he has available on his bank account (26.2); • If he is a customer of the bank, the bank checks the availability of FIAT on the Customer's account (with them) and sees if it has this amount available (26.5); • If he is not a customer of that bank (26.4), it is the customer's bank (26.6) that confirms to the bank where the customer is making the conversion, if he has that amount available, returning the result (26.7); • If it has sufficient funds, the bank enters the address or scans the QR CODE of the customer's wallet, where he wants to send the converted digital 33 currency, which is provided by the customer (26.8); • The bank initiates the transfer of the digital sum from its digital wallet to the wallet requested by the customer (26.9); • Authorizes the operation automatically (26.10); • If the transaction is authorized, the bank withholds the same FIAT amount from the user's current account (26.11); • However, if the customer had a FIAT account with another bank (26.4), that bank reimburses the same digital amount to the bank that carried out the conversion, advancing the digital currency to the customer (26.12); Conversion from FIAT digital currency to bank reserves (at the counter of your bank / post office or any other - even if you are not a customer) (FIG.26): • The user goes to the bank counter (26.1); • The user decides the amount of digital money to be converted into FIAT currency (26.3); • If you are a customer of that bank, the user scans the QR Code of the bank's wallet via smartphone (provided by the operator at the counter) (26.14); • If he is not a customer of that bank, the user scans via smartphone the QR Code of the wallet of the bank where he has the FIAT current account, provided by his bank (26.15); • The user initiates the digital currency transfer operation, from his wallet to that of the bank (26.16); • The user authorizes / signs the operation via the App / wallet interface (via pin, biometrics, etc.) (26.17); • The bank immediately credits the same FIAT amount to the user's current account (26.18); Conversion from bank reserves to FIAT digital currency (directly through the issuer, Exchanges, stock exchange operators, etc.) (FIG. 27): • The user decides the amount of FIAT money to be converted into Digital (27.1); • The user sends the FIAT coin to the operator, in his 34 FIAT account (27.3) and indicates the address of the wallet where to receive the same digital sum; • The operator retains the FIAT sum (27.5); • The operator begins the transfer operation of the same digital amount from his wallet to the one provided by the customer (27.7); • The operator authorizes / signs the operation via the App / wallet interface (via pin or biometrics, etc.) (27.8); • If the transaction is authorized, the user will have received the digital sum in the reported wallet; Conversion from FIAT Digital Currency to Bank Reserves (directly through the issuer, Exchanges, stock exchange operators, etc) (FIG. 27): • The user decides the amount of digital currency to be converted into FIAT (27.2) and reports to the operator the account where to send the sum converted into FIAT ; • The operator signals the wallet where he must send the digital sum (27.4); • The user initiates the digital transfer operation from his wallet to that of the operator (27.6); • The user authorizes / signs the operation via the App / wallet interface (via pin or biometrics, etc.) (27.8); • If the transaction is authorized, the operator will have received the digital sum in the reported wallet; • The operator sends the same amount in FIAT currency to the bank account indicated by the user (27.9); Conversion from National / Central Bank Reserves to FIAT Digital Currency (directly through the issuer) (Fig. 28): • The Central / National Bank decides the amount it wants to convert from FIAT to digital and the issuer indicates on which account FIAT bank make the deposit (28.1); • The central / national bank deposits the amount in FIAT currency in the issuer's accounts and indicates on which digital wallet to receive the same digital 35 sum (28.2); • When the deposit has been correctly completed (28.3); • The issuer initiates the digital transfer operation from its wallet to the one provided by the central / national bank (28.4); • The issuer authorizes / signs the operation (via pin or biometrics, etc.) via the App / wallet interface (28.5); • If the transaction is authorized, the central / national bank will have received the digital sum in the reported wallet; - Conversion from FIAT Digital Currency to National / Central Bank Reserves (directly through the issuer) (Fig. 28): • The Central / National Bank decides the amount it wants to convert from digital to FIAT and the issuer indicates on which wallet deposit the same digital sum (28.6); • The central / national bank initiates the digital transfer operation in the issuer's wallet and signals to the issuer on which FIAT account to receive the same amount in FIAT currency (28.7); • The Central bank authorizes / signs the operation (via pin or biometrics, etc.) via the App / wallet interface (28.8); • If the transaction is authorized, the issuer will have received the digital sum in the reported wallet; • The issuer transfers the same amount in FIAT currency to the bank accounts of the central / national bank (28.9). [Claim 27] System referred to in the preceding claims, characterized by the fact that digital wallets (1.6) allow the holder to create letters of credit / sureties / guarantees - including international ones - and guaranteed by digital FIAT currency, by means of the following procedure (Fig .6): - The payment between two parties (6.1) and (6.2) is subject to the occurrence of certain conditions established between the parties; 36 - The subject (6.1) sends the sum from his digital wallet (6.3) to the escrow wallet (6.8), which is managed by the escrow user (6.7) and which is in contact with both parties; - The payment is released by the escrow (6.7) to the user (6.2) and in his digital wallet (6.4), only upon the occurrence of the condition (s) previously agreed between the two users. The flow of the digital payment when the condition is satisfied is (6.6); - If the condition is not met, the payment reverts to the payer (6.5); [Claim 28] System referred to in the preceding claims, in which the digital wallets (1.6) allow the holder to lend the digital FIAT currencies in possession, by means of the following procedure (Fig. 11): - The user who requests a loan and who, after the credit check, he is not creditworthy, he will have a declined loan request (11.7); - The user (11.5) who, on the other hand, was found to be creditworthy, will have an accepted loan request (11.8) and receives the loan from various lending users (11.13,11.15,11.17); - The financing starts from the lenders (11.13,11.15,11.17), who send part of their possessions in digital currency, from their digital wallets (11.12,11.14,11.16) to the warranty wallet (11.11), in exchange for the payment of interest monthly; - The warranty wallet, therefore, disburses loans (11.10) to creditworthy users (11.5), in their digital wallet (11.6), using the funds made available by the lenders; - The user who received the loan (11.5), will repay the monthly payment (11.9) to the warranty wallet (11.11) on a monthly basis, including interest, up to the full repayment of the loan; - The lenders (11.13,11.15,11.17), at the end of the period, will have received monthly repayments, in their respective digital wallets (11.12,11.14,11.16) of the loaned amount, including interest; 37 [Claim 29] System referred to in the preceding claims, in which the digital wallets (1.6) allow the holder to be able to request instant loans in digital FIAT currency by means of the following procedure (Fig. 12): - Request for a loan based on merit creditworthiness of the applicant: • The user who requests a loan and who, after the credit check, is not creditworthy, will have a declined loan request (12.8); • The user (12.1) who, on the other hand, was found to be creditworthy, will have an accepted loan request (12.7); • The loan is disbursed (12.9) directly on his digital wallet (12.3) from the Lender Wallet (12.5); • The user will repay monthly (12.10), to the Lender wallet (12.5), the total amount of the loan plus interest; - Request for a loan secured by cryptocurrency collateral by the applicant (without credit check: • The user (12.2) who wants to request a loan secured by cryptocurrency collateral; • Decides the amount of the request; • The user can request a maximum loan 50% of the value of the collateral that will be deposited, thus placing collateral in cryptocurrencies which, at the current value, are worth double the amount requested, transferring them (12.11) to the Escrow wallet (12.6); • When the collateral has been deposited, the escrow wallet (12.6) communicates to the Lender wallet (12.5) the effective custody of collaterals (12.13); • The loan is disbursed (12.9) from the Lender wallet (12.5) to the user's wallet (12.4) • at this point (12.14), two situations can occur: • In the case of automatic liquidation of collateral (if these have lost value over time and their value approaches the value of the loan disbursed), the system will auto- 38 matically sell these collaterals, repaying the entire loan plus any unpaid interest to the lender wallet (12.5) and returning any excess (12.10), sending it to the user's wallet (12.4); • In the event that the automatic settlement does not take place (12.12), the user will decide how much and when to repay the loan, continuing to pay daily interest, until he decides to repay the loan (in whole or in part) (12.15). [Claim 30] System referred to in the preceding claims, in which the digital wallets (1.6) allow the holder to make available his possessions in digital FIAT currency or part of them, for a certain time defined by him, obtaining potential quantities of coins additional (interest), by means of the following procedure (Fig. 21): - The user has a digit X of digital currency available in his digital wallet (21.1); - Using the wallet interface, he decides the amount to be blocked and the time, displaying the amount of daily interest that will be paid to him; - The Staking period then begins (21.4); - The user will have the amount defined by him which will be blocked for the entire period (21.2), while the excess sum of his balance will be usable (21.3); - The blocked sum is transferred (21.5) to the lender wallet (21.6). The lender wallet is the same wallet that it will then lend to users through borrowing (Fig. 12); - At this point (21.7), if the staking period is still active (21.8), the user is paid daily interest (21.9) directly in his wallet (21.1) and for the entire period of the digital sum block; - If, on the other hand, the staking period has ended (21.10), the user is returned the amount (21.11) in his wallet (21.1). |
Title of Invention: “System for the creation and transfer of digital FIAT currency based on blockchain "
Technical Field
[0001] The present invention is part of the field of digital currencies and allows to exchange, without having a bank account, through the use of a decentralized public blockchain and a shared public register, in real time, of FIAT Currencies (such as the Euro, the British Pound, the US Dollar, etc.).
[0002] Offering security, reliability, privacy in operations, as well as a very low environmental impact.
[0003] As is known, there are different forms of currency transfer, which however have different operational limits.
Background Art
[0004] Cash is the best-known form, but it has the limit of being a means usable only in proximity, to which are added very high costs of printing, storage, distribution, and replacement of worn banknotes.
[0005] Bank remittances, on the other hand, have the limit of not guaranteeing the confidentiality of transactions and therefore privacy. For instant transfers (e.g., SEPA) they can only be used in certain geographical areas (Europe) and are not accepted by all banks. Furthermore, they provide for the obligation to keep a bank account, with limits on the maximum transferable amount (for instant ones), exorbitant costs and times to complete particularly long transfers, especially for cross-border ones.
[0006] Then there are the non-anchored cryptocurrencies (e.g., Bitcoin), or cryptocurrencies whose price is not fixed, but is given by the supply and demand of the market. These, in some cases, are controlled directly by the issuer, so they are not transparent.
[0007] Furthermore, they are extremely speculative, with highly volatile prices, potentially manipulable and with a high environmental impact (e.g., Bitcoin Mining or Ethereum Gas).
[0008] Furthermore, they have very expensive transfer rates as well as highly variable over time and unpredictable, because they depend on external factors, non-instant transfers, security problems (the main one is that of double spending), risk of default / bankruptcy of the issuer, they are not instantly convertible to other types of FIAT currency (e.g. cash) without having a bank account, they do not offer any purchase and fraud protection for buyers, as payments are irrevocable.
[0009] Anchored Cryptocurrencies (or stablecoins), i.e., those cryptocurrencies that have a nominal value equal to a FIAT currency (e.g., USD), which also have many limits because they are controlled directly by the issuer (centralized) and therefore not transparent.
[0010] Furthermore, the issuer can "print" coins indefinitely, having in fact an absolute governance power.
[0011] They are not secure because they are subject to attack, the transfer rates are often very high, and the transfer times are not instantaneous. They also have a strong environmental impact.
[0012] There is no guarantee of the presence and consistency of collateral to guarantee the "minted" coins, there is no truly independent and reliable third-party control; therefore, there is a high risk of issuer bankruptcy.
[0013] Finally, they do not offer any protection to consumers in the event of a purchase (irrevocable payments) and security problems presented, precisely because of the type of blockchain they use (mainly double spending, 51% attacks, DDOS, fake deposits, etc.).
[0014] However, all cryptocurrencies (anchored or not) cannot be instantly converted to other forms of FIAT currency (e.g., at a bank ATM and without being an account holder). In addition, there is no independent, reliable, unalterable, and verifiable control in real time on the exact amount of digital coins issued, which can give a certain guarantee on the reliability of the data.
[0015] Similarly, it does not exist even with reference to the corresponding value in reserves, made up of the same FIAT currency.
[0016] To make a digital currency risk- free, therefore safe, and reliable, this value must always be > 100% and must be immediately available and payable (therefore not tied or invested), as well as not subject to exchange risk.
[0017] Furthermore, all centralized systems allow the authority that controls them to have absolute governance powers; therefore, it can print coins indefinitely without there being any evidence that they are collateral-backed.
[0018] In other words, regarding the known solutions, there is no system, procedure or process that is able to offer a certain guarantee that the amount of the digital currency issued is guaranteed and therefore covered by an equal value in FIAT cash and therefore, that these solutions cannot face the risk of failure. In fact, in the hypothesis in which everyone decided to reconvert the total number of digital currencies in circulation in FIAT money, if there is no complete coverage, the real value of the digital coins is automatically equal to zero, precisely because the coins would no longer be guaranteed by collateral. Some circumstances are known in which the authorities investigated the consistency of these collateral, discovering that there were no collateral guarantees for the digital coins issued.
[0019] Furthermore, no known solution allows the network to govern very important processes and decisions such as the issue of new money and the destruction of existing and excess money (Mining and Burning).
[0020] The known solutions do not allow instant and autonomous (therefore simply through a web / mobile interface) and without the help of a bank or authorized intermediary, to be able to create payment promises in FIAT digital currency such as sureties and letters of credit, to receive interest in FIAT currency on inventories of FIAT digital currency, to request loans in FIAT digital currency, to lend to other FIAT digital currency in exchange for interest, to have purchase and fraud protection when used as a means of payment for physical goods and do not allow to be converted in real time with other forms of FIAT currency
Summary of Invention
[0021] Innovative, economical, and very low environmental impact methods and systems, suitable for the transfer, deposit, exchange, investment, conversion and instant payment, 24 hours a day, 7 days a week and anywhere in the world, of digital currencies pegged to FIAT currencies and 100% guaranteed by (collateral) reserves in FIAT currency, through the use of a peer-to-peer network with decentralized public blockchain technology, a shared public ledger, and a sophisticated consensus protocol.
[0022] With this secure and transparent invention, even digital currencies are interoperable, easily, and instantly convertible into other forms of FIAT currency, such as cash, bank deposits, central bank reserves and vice versa. The set of characteristics of this invention allows the FIAT currencies object of the same, to be absolutely risk-free and in a certain way and to be transferred, exchanged, invested, converted, and used as a means of payment, through decentralized networks. Therefore, the aforementioned industrial invention represents the realization of FIAT Digital Currencies.
[0023] The invention also offers the possibility, through a series of direct and indirect links, to be able to verify by anyone and at any time, the total of the digital currency issued and circulating, the total of the relative collateral and the ratio between the circulating currency and collaterals, which will always be at least 1:1.
[0024] The invention also manages the processes of creating a new digital currency (minting) and destroying the existing one (burning) through a series of procedures that delegate the authorization to minting and burning to the network only when there is an effective and documented need to print new currency or destroy the existing one and only for the necessary amount.
[0025] In addition, the invention introduces purchase and fraud protection, the possibility of creating letters of credit in digital FIAT money, the possibility of instant conversion of digital FIAT money into other forms such as cash, bank remittances and reserves of central banks (and vice versa). [0026] It introduces the possibility of lending digital currencies in possession, in exchange for interest, the possibility of requesting loans in digital FIAT currency (both guaranteed by other cryptocurrencies and through credit-check), the possibility of blocking the digital currencies in possession by creating term deposits, in exchange for interest in digital FIAT currency.
Technical Problem
[0027] The technical problem that the present invention solves consists in making certain, irrefutable, and unchangeable the total amount of the FIAT digital currencies issued and circulating, as well as the relative FIAT reserves (collateral) in order to make this solution financially reliable, and in a mathematical way.
[0028] This result is achieved with the help of blockchain technology, decentralized and public, which makes it possible to verify the exact total of circulating digital currencies and the exact amount and consistency of collateral.
[0029] Furthermore, the processes of issuing (minting) and destroying (burning) the digital currencies object of the invention are decided and authorized by the network itself, only under certain conditions. Therefore, the issuer does not have the authority to create new money or destroy the existing one either.
[0030] With regard to the real existence, consistency, and value of collaterals (reserves), these are kept by an authoritative third party and / or directly accessible by an authoritative third party and / or verifiable at any time by an authoritative third party. Therefore, if a digital € 1 is issued, there is certainty that there is at least € 1 FIAT deposited to guarantee the issue. In addition, the consistency of the collateral, as well as the consistency of the digital currencies issued, is in any case always publicly accessible, cannot be modified in any way and complies with any type of verification, including by any Authority, at any time.
[0031] The issue of new digital currency (minting) ([Fig.19]) is demanded to the decision of the network, which issues new money only when there is an objective and documented request. In other words, the network authorizes the printing of new digital currency only if it is guaranteed by deposits in FIAT currency of the same amount. For example, if there is 1 digital € in circulation, this means that there is certainly 1 € FIAT deposited. At this point, if there is a need to print an additional 5 € digital, it can only be done if there is a further 5 € FIAT on deposit. By the same principle, even the destruction of excess digital money is authorized by the network ([Fig.20]).
[0032] These characteristics make the digital currencies object of the invention absolutely risk-free, 100% guaranteed against legal tender value and therefore not subject to the risk of bankruptcy.
[0033] The invention therefore represents a new means of transferring and using money, as well as a new method of payment both online and offline.
[0034] The main elements of the invention are ([Fig.1]):
[0035] The distributed network (1.1), composed of n. computers / servers - the nodes of the network (1.13) - which communicate with each other through a Gossip protocol (13.3). The designated nodes, which participate in the consensus, are called validators.
[0036] Public decentralized blockchain technology (1.2);
[0037] The FIAT digital currency that is transferred through the network (1.3);
[0038] The shared / distributed public ledger (Distributed Public Ledger) which records and authenticates all transactions (1.4);
[0039] The registry consensus protocol (1.5);
[0040] Users' digital wallets (1.6) in which digital currencies are stored and traded and which also offer the possibility of converting balances, immediately, with other forms of FIAT currency (banknotes or bank reserves) ([Fig.22] ,23,24, 25,26,27,28) This feature is extremely innovative as it does not exist today at the state of the art.
[0041] The issuer's bank deposit (s) (1.7) (or bank account (s)), in FIAT currency equal to that of the anchored digital currency, where the collateral reserves of the digital currencies issued (collateral), and subject to the control of the authorities.
[0042] The issuer's digital wallet (1.8) in which the individual digital currencies are issued (printed) and distributed.
[0043] The real-time reporting system based on decentralized public blockchain technology - therefore unalterable and unchangeable - which publicly displays the total of the digital currency issued and circulating (1.9), and that relating to inventories / collateral in FIAT currency (1.10). Both comply with any type of Audit by third parties and / or certified authorities, including public or governmental ones.
[0044] Any FIAT bank accounts (1.11), which are located outside the Blockchain.
[0045] The FIAT currency (1.12) which is transferred through the banking system, therefore external to the blockchain.
[0046] The connection (1.14) between the financial authority that keeps the collateral deposited in the issuer's FIAT accounts (1.7) and the blockchain (1.2), which communicates in real time to the network (1.1) and to the register (1.4), the amount of reserves deposited in the issuer's FIAT accounts, updating the reporting system in real time (1.10).
[0047] The Connection (1.16) between the digital wallet of the issuer (1.8) which holds the collateral deposited in the FIAT accounts of the issuer (1.7) and the blockchain (1.2), which shows in real time to the network (1.1) and to the register (1.4), the amount of digital coins issued, updating the real-time reporting system (1.9).
[0048] The real-time report (1.18) which shows the exact total of the digital currency issued (1.9), of the FIAT collateral (1.10) and the relative ratio (Ratio). The combination of the aforesaid elements, as described below, constitutes the system object of the invention capable of solving all the problems of the prior art.
Solution to Problem
[0049] The proposed invention offers several solutions to different problems: the main problem that is solved is the creation and transfer of digital FIAT money using the blockchain, a shared public register and a consensus protocol. In addition, through this solution, all digital coins issued are guaranteed by 100% collateral in FIAT cash and immediately payable.
[0050] This offers the mathematical certainty that every single currency is always guaranteed by the same collateral, thus avoiding the risk of exchange, market, speculation. The solution also introduces a system that shows in real time and through the blockchain both the total of coins issued and circulating, and the relative amount of collateral and finally the ratio between digital currency issued and collateral, which will always be at least 1:1.
[0051] Furthermore, through sophisticated processes and procedures, the issue of new money (minting) and the destruction of the existing one (burning) are authorized by the network and only when there is a factual and documented need to create or destroy money.
[0052] These procedures are used to keep the ratio between issued currency and collateral always equal to 1:1. In addition, the proposed solution offers buyer protection and fraud protection, the possibility of creating digital letters of credit, the possibility of lending the digital FIAT currency in exchange for interest in digital FIAT currency, the possibility of requesting loans in digital FIAT currency, and finally, the possibility of converting the digital FIAT currency into cash, bank remittances and central bank reserves (and vice versa), by various means (ATMs, Bank, Point of Sales, Exchanges, etc.)
Advantageous Effects of Invention
[0053] It is the first solution in the world capable of creating and transferring digital FIAT money, guaranteed by 100% reserve cash and mathematically not subject to exchange rate, speculation, market, and price risks.
[0054] The solution also introduces absolute innovations that are not present in the state of the art, such as the possibility of creating digital letters of credit (Stand-by-letter of credit or sureties) in FIAT Digital currency.
[0055] It introduces consumer and fraud protection, the possibility of requesting loans in digital FIAT currency, the possibility of lending FIAT digital currency in exchange for interest in FIAT digital currency, the possibility of converting FIAT digital currency into other forms of currency and through different modes. Brief Description of Drawings
Fig.l
[0056] [Fig-1] schematically represents the ecosystem object of the invention and its main characteristics, in order to facilitate its understanding. The main elements are: (1) The distributed network (network), made up of n. computers / pc / servers (Nodes) (13), (2) Public decentralized blockchain technology. (3) The digital currency that transits / is transferred through the network (Digital Currency), (4) The shared / distributed public ledger (Ledger) which records and authenticates all transactions and where all account balances are updated (Digital Wallets / Wallets), (5) the registry consensus protocol, (6) Users' digital wallets (Wallet), where digital currencies (3) are stored, deposited, traded and where, via an interface (App / web / mobile), there is access to additional functions and features, (7) The bank deposit (bank account) in FIAT currency equal to that of the anchored digital currency, where the collateral reserves of the digital currencies issued are stored and immediately payable (collateral), (8) The issuer's digital wallet (Issuer wallet), where individual digital currencies are issued (through the minting process) and destroyed (through the burning process), archived, blocked, lent and distributed, (9) The real-time reporting system based on public decentralized blockchain technology - therefore unalterable and unchangeable - which publicly displays the total digital currency issued / circulating (total supply), (10) The real-time reporting system is based on public decentralized blockchain technology - therefore unalterable and unchangeable - which certifies the total consistency of the corresponding FIAT reserves, (18), the ratio (ratio) between collateral (10) and digital currency issued by the issuer (9) which is displayed in real time , thanks to the establishment of a series of connections (14,15,16,17,19,20,21,22), which will always be at least 1:1, (11) Any bank accounts, (12) The FIAT currency that transits / is transferred through the banking system, therefore external to the blockchain (FIAT Currency).
Fig.2
[0057] [Fig.2] shows an example of conversion between digital currency and FIAT currency, showing the payment flows from FIAT currency to FIAT digital from User B to bank A. The other elements of fig. are: (1) the Network, (2) Blockchain, (3) digital currency, (4) the public ledger, (5) the Consensus Protocol, (6) the digital wallet, (7) The FIAT account the issuer, (8) the issuer's digital wallet, (9) the amount of digital money issued in real-time, (10) the amount of FIAT reserves in real-time, (11) the bank account, (12) the FIAT currency, (13) the PCs / Servers / Nodes.
Fig.3
[0058] [Fig.3] the difference between centralized and decentralized Ledgers is schematically represented. Fig.4
[0059] [Fig.4] is schematically representing the financial reliability of the proposed invention. The above figure shows that the digital currency object of this invention (1) always has an identical nominal value (3) to the FIAT currency (2) to which it is anchored. So, in the example, 1 € FIAT is always equal to 1 digital €. The quantities of digital currency in circulation and that of FIAT currency as collateral (collateral) are also identical (5). Therefore, every 1 € Digital is always guaranteed by 1 € FIAT. (7) shows the ratio, which is always 1: 1 and which means that the digital currency issued is 100% Collateral Covered. (6) The result is that the system is absolutely transparent, no risk of issuer insolvency. The amount of digital currencies in circulation and the amount of FIAT reserves (collateral) are public and 100% real. All this information is immediately verifiable by anyone and at any time and is unalterable and unchangeable (8). The result is that the system is reliable and safe.
Fig.5
[0060] [Fig.5] shows the diagram of the Standard payment flow, in case of purchase of products using the current known cryptocurrencies. The figure shows user A (1), user B (2), A's digital wallet (3), B's digital wallet (4), physical commodity (5) and cryptocurrency (6).
Fig.6
[0061] [Fig.6] shows the operating flow of payment promises / guarantees (letter of credit, etc.). The elements of the figure are: (1) user A, (2) user B, (3) the digital wallet of A, (4) the digital wallet of B, (5) the payment flow when the condition is not met, (6) the payment flow when the condition is met, (7) the escrow user, and (8) the escrow wallet. In the example we can see that the sum object of the credit promise remains "blocked" in the escrow wallet (8), until the conditions defined between the two users are fulfilled. When these are done, the transfer from the escrow wallet (8) to that of the beneficiary (4) is processed.
Fig.7
[0062] [Fig.7] schematically represents an example that includes different types of payments and transfers between different entities (of different types, private, business and governmental), which demonstrates how this invention can be used by any user and for any type of transfer of resources. At the top of the figure (in green), the reporting system of the circulating digital currency, collateral and the relative ratio (1.18) is also visible. The elements of the figure are: The issuer (1), the issuer's digital wallet (2), the issuer's FIAT deposit account (3), the public register (4), the real-time consistency of the amount of digital currency and FIAT currency as collateral (5.6). To follow, there are several other entities with their related digital wallets and FIAT deposit accounts. Including central banks (7), Exchanges (10), private banks (13), public banks (16), national banks (19), end users (22), corporations (25), central government administrations (28), administrations peripheral government (31).
Fig.8
[0063] [Fig.8] shows the sequence of actions (process) to be performed to complete a transfer between two different entities in digital currency (5). The sequence of actions that Alpha (1) must perform to send a certain amount to Beta (2) is shown, whether this payment is made through desktop / laptop (15) or mobile / tablet (14) devices. As can be seen, the payment starts from the Alpha digital wallet (3) and arrives, after a series of operations, in the Beta wallet (4). Item (6) can only be done from desktop / laptop: Opening a web interface. (7) performed from mobile / tablet: opening of the wallet's mobile / app interface. (8) enter the address of the recipient's wallet or scan a QR code of the address (where to send the payment); (9) enter the amount to be sent; (10) the transaction is confirmed; (11) scan the QR code from the desktop / laptop with the smartphone; (12) the transaction is authorized via the wallet's mobile / app interface; (13) the transaction is processed.
Fig.9
[0064] [Fig.9] shows the process that allows the price of digital currencies to always be stable and anchored to the FIAT currencies to which they are linked. This stability is created through automatic processes of entering buy and sell orders, at 1 tick from the reference price (therefore at the first value close to that price), by automated bots (5). In the example, we see that at the Exchange (1), two pairs of digital currencies are traded: The Digital Euro / EUR pair (3), where the exchange price is 1 €. Bots places buy orders at € 0.99999 and sell orders at € 1.00001, thus keeping the price stable at € 1. The Digital Euro / USD pair (4) trades, for example, at USD 1.11. The price is the same as the EUR / USD pair (6), at the official exchange rate of that moment (2). The bots then replicate the official rate, placing buy orders at $ 1.11001 and sell orders at $ 1.11001, thus keeping the price identical to that of the official exchange rate (2). Bots adjust order prices over time, adjusting to changes in the official exchange rate (2) of each pair.
Fig.10
[0065] [Fig.10] shows the process of verifying the currency correspondence between the
FIAT collateral deposited in the issuer's bank account (1.7) and the digital currency issued (1.3), which can only and only be of the same currency. As can be seen, the Digital Euro (1) may have collateral only in Euro, the Digital Dollar (2) only in Dollars, the Digital British Pound (3) only in British Pounds, and so on for all other currencies (4). Other types of collateral and / or other currencies are inhibited by the system through a verification and blocking process.
Fig.ll
[0066] [Fig.11] graphically represents an example flow of use of P2P lending (social lending) by means of the proposed invention. In the example, 3 applicants (1,3,5) and 3 lenders (13,15,17) were simulated. In this specific case, only applicant 3 (5) was found to be creditworthy. The flow shows that the three lenders send 50 € Digital to the warranty wallet (11) which, therefore, will have a total of resources equal to 150 € Digital. The applicant 3 (5), who after the credit check was found to be creditworthy, therefore bankable, receives the payment of the loan (10), in his digital wallet (6) which, in the example, is 150 € Digital. Then, the aforementioned € 150 Digital are transferred from the warranty wallet (11) to the wallet of the applicant 3 (6). This will reimburse the monthly payment (9), including interest, to the warranty wallet on a monthly basis. At the end of the period, you will have reimbursed (for example) 10 € digital per month x 16 months = 160 € digital. In the warranty wallet (11) there will therefore be the sum of € 160 Digital. The lenders (13,15,17) will have monthly repayments, in their respective digital wallets (12,14,16) including interest which, at the end of the period, will have generated total repayments of € 53 Digital each. Therefore, € 50 Digital will be their initial investment and € 53 Digital is the total reimbursement to individual lenders. The figure also shows the following elements: (7) declined loan request; (8) loan request accepted.
Fig.12
[0067] [Fig.12] two examples of utilization flow are graphically represented, which show how Borrowing (loan request) works using this invention. The request can be made through creditworthiness (therefore with the credit check) or with guarantees of other cryptocurrencies (without credit check). In the example relating to creditworthiness (left), we see that user A (1) requests a loan of € 200 Digital, this is paid (9) directly to his wallet (3) from the Lender Wallet (5). The user will refund (10), at the end of the period, to the lender wallet (5) the € 200 Digital + Interest. In the example relating to the loan guaranteed by other cryptocurrencies (right), User B (2) places collateral that is worth € 150 as collateral, transferring them to the escrow wallet (6). The escrow wallet (6) communicates to the lender wallet (5) the effective blocking of collaterals (13). With these guarantees, he requests a loan of € 75 Digital (9), which is sent from the lender wallet (5) to the user's wallet (4). Over time (14), two situations can occur: In the case of automatic liquidation of collateral (if these have lost value over time and their value approaches the value of the loan disbursed), the system will automatically sell these collateral, repaying the entire loan of € 75 Digital plus any unpaid interest to the lender wallet (5) and returning any excess (10), sending it to the user's wallet (4). In the event that automatic settlement does not take place (12), the user will decide how much and when to repay the loan, continuing to pay daily interest, until it decides to repay the loan (in whole or in part) (15). The figure also shows the following elements: (7) loan request accepted; (8) loan request declined.
Fig.13
[0068] [Fig.13] different types of network protocols. Centralized approach (1): use a centralized server to forward and mix the data stream; Totally connected and overlapping approach (2): all peers (nodes) are in direct contact with each other; Gossip-based approach (3): the peers (nodes) operate in parallel, and each communicates with one or more nodes, selected randomly.
Fig.14
[0069] [Fig.14] visually shows how the consensus process determines which transactions are applied to each new version of the public ledger. (1) The register index increments by 1, (2) New unique hash, (3) Set of newly executed transactions, (4) New version of the register is not immediately validated, (5) Transaction results in updated state, (6) proposed transactions, (7) The hash identifies the parent transactions used as a basis for the new version of the ledger.
Fig.15
[0070] [Fig.15] graphically shows a simplistic representation of how the public register validated by consensus is composed: (1) Metadata, (2) New transactions just executed, (2) Status data (accounts, balances, etc.), (4) Version of the register validated by consensus, (5) Index of the register.
Fig.16
[0071] [Fig.16] shows the operation of the consensus round which is part of this invention.
Each Validator (1) proposes a set of transactions (2) which must be included in the next version of the register, (3) Validators remove transactions where the majority disagree or where the validators, they do not trust do not propose them. Typically, these transactions will then be re-proposed in the next version of the ledger. (4) Validators add transactions where the majority of validators they trust agree in the next version of the ledger.
Fig.17
[0072] [Fig.17] shows the scheme of the payment flow by cryptocurrency object of this invention, when a purchase with protection against fraud is made, introduced by the same invention. In this specific case, User A (1) buys a product from User B (2). User A pays € 30 to User B. In this case, the € 30 is not sent directly to B's wallet (4) but is sent to an Escrow Wallet (8), which holds the sum until User A sends the goods, and this is not delivered to B. Only after a short period of delivery, which is automatically verified by querying the shipper's tracking systems, if User B does not open a dispute / claim, the escrow user (7), transfers the sum from the Escrow Wallet (8) to the wallet of user B (2).
Fig.18
[0073] [Fig.18] visually represents the difference between the various types of wallets. The elements of the figure are: (1) Software Wallet, (2) Web Wallet, (3) Cold Wallet, (4) Hardware Wallet.
Fig.19
[0074] [Fig.19] shows the Minting (digital money printing) by the issuer (issuer) and shows the evolution over time, from TO to T4. In TO we see that all values are at 0 (so there is no digital currency in circulation). In Tl: the bank wants to convert € 1000 FIAT into € 1000 digital (1); In T2: the bank sends the € 1000 FIAT to the issuer (2); At the moment, however, there are no digital € 1000 available from the broadcaster (3); The ratio between collateral and circulating digital currency is 1000: 0 (4) as there are 1000 that guarantee 0 digital currency (so there is an excess of collateral). In this condition, the network authorizes the printing (minting) of 1000 Digital, as there are 1000 € of FIAT collateral already available and there are not 1000 digital € to be sent to the bank; In T3: The broadcaster prints € 1000 digital (5). This operation immediately updates the total circulating digital currency (6) which goes from 0 to 1000; At this time the ratio between collateral and digital currency issued is 1: 1 (7). In fact, there are € 1000 digital in circulation, guaranteed by € 1000 FIAT Deposited; In T4: the issuer sends the 1000 digital € to the bank (8). All these values are publicly visible and in real-time.
Fig.20
[0075] [Fig.20] shows the Burning (destruction of digital currency) by the issuer (issuer) and shows the evolution over time, from TO to T3. TO is a situation in which the circulating digital currency (3) is totally guaranteed by FIAT reserves (4). So there is a ratio of 1: 1 (2). The 1000 digital euros issued are held by the bank (1); In Tl: the bank wants to convert € 1000 digital into € 1000 FIAT; therefore, the bank sends the € 1000 digital to the issuer (5). In Tl, therefore, the digital currency issued is always guaranteed, but all that in circulation is in the possession of the issuer; In T2, the issuer sends the € 1000 FIAT to the bank (6). Therefore, at this time the ratio is 0: 1000 (7). Therefore, there are 0 collateral in guarantee of € 1000 digital issued (and which are in the availability of the issuer); T3: In this situation the network authorizes the destruction (burning) of the 1000 digital € (8), since it is digital currency not guaranteed by collateral. After the destruction, the total in circulation goes from 1000 to 0 (9) and the ratio goes to 0 (10) as there are 0 digital coins and 0 guarantees. All these values are publicly visible and in real-time.
Fig.21
[0076] [Fig.21] shows the operation of the staking object of this invention: the wallet holder, by making his possessions available in digital FIAT currency or part of them, for a certain time defined by him, is able to obtain potential quantities of coins additional (interest). In the example, the user has 1000 digital € available in his wallet (1); Through the wallet interface / app, he decides the amount to be blocked and the time by displaying the amount of daily interest that will be paid to him. Staking begins (4). In the example he has decided to block € 500 digital for 30 days (2), in exchange for € 30 total interest, then € 1 per day (9). The remaining 500 € will be available and can be spent by the user (3). The blocked sum is transferred (5) to the lender wallet (6). This is the same wallet that it will then lend to users through borrowing ([Fig.12]). At this point (7), if the staking period is still active (8) the user is paid daily interest (9). If, on the other hand, the staking period has ended (10), the user is returned the amount (11) in his wallet (1);
Fig.22
[0077] [Fig.22] shows the Conversion process from cash (banknotes) to FIAT digital currency and vice versa (via bank and postal ATMs);
Fig.23
[0078] [Fig.23] shows the process of Conversion from Cash (Banknotes) to FIAT Digital
Currency and vice versa (At any bank / post office and even without a current account);
Fig.24
[0079] [Fig.24] shows the process of Conversion from Cash (Banknotes) to FIAT Digital
Currency and vice versa (At physical points of sale);
Fig.25
[0080] [Fig.25] shows the process of Conversion from FIAT bank reserves into FIAT digital currency and vice versa (via home banking / app of your own Bank);
Fig.26
[0081] [Fig.26] shows the process of Conversion from bank reserves to FIAT digital currency and vice versa (at the counter of your bank / post office or any other - even if you are not a customer);
Fig.27
[0082] [Fig.27] shows the conversion process from bank reserves to FIAT digital currency and vice versa (directly through the issuer, Exchanges, stock exchange operators, etc.);
Fig.28
[0083] [Fig.28] shows the Conversion process from National / Central Bank Reserves to FIAT Digital Currency and vice versa (directly through the issuer).
Description of Embodiments
[0084]
Examples
[0085] There are several examples on drawing descriptions:
[0086] [Fig.2] shows an example of conversion between digital currency and FIAT currency, showing the payment flows from FIAT currency to FIAT digital from User B to bank A.
[0087] [Fig.4] is schematically representing the financial reliability of the proposed invention. The above figure shows that the digital currency object of this invention (1) always has an identical nominal value (3) to the FIAT currency (2) to which it is anchored. So, in the example, 1 € FIAT is always equal to 1 digital €. The quantities of digital currency in circulation and that of FIAT currency as collateral (collateral) are also identical (5). Therefore, every 1 € Digital is always guaranteed by 1 € FIAT. (7) shows the ratio, which is always 1: 1 and which means that the digital currency issued is 100% Collateral Covered. (6) The result is that the system is absolutely transparent, no risk of issuer insolvency. The amount of digital currencies in circulation and the amount of FIAT reserves (collateral) are public and 100% real. All this information is immediately verifiable by anyone and at any time and is unalterable and unchangeable (8). The result is that the system is reliable and safe.
[0088] [Fig.5] shows the diagram of the Standard payment flow, in case of purchase of products using the current known cryptocurrencies. The figure shows user A (1), user B (2), A's digital wallet (3), B's digital wallet (4), physical commodity (5) and cryptocurrency (6).
[0089] [Fig.6] shows the operating flow of payment promises / guarantees (letter of credit, etc.). The elements of the figure are: (1) user A, (2) user B, (3) the digital wallet of A, (4) the digital wallet of B, (5) the payment flow when the condition is not met, (6) the payment flow when the condition is met, (7) the escrow user, and (8) the escrow wallet. In the example we can see that the sum object of the credit promise remains "blocked" in the escrow wallet (8), until the conditions defined between the two users are fulfilled. When these are done, the transfer from the escrow wallet (8) to that of the beneficiary (4) is processed.
[0090] [Fig.7] schematically represents an example that includes different types of payments and transfers between different entities (of different types, private, business and governmental), which demonstrates how this invention can be used by any user and for any type of transfer of resources. At the top of the figure (in green), the reporting system of the circulating digital currency, collateral and the relative ratio (1.18) is also visible. The elements of the figure are: The issuer (1), the issuer's digital wallet (2), the issuer's FIAT deposit account (3), the public register (4), the real-time consistency of the amount of digital currency and FIAT currency as collateral (5.6). To follow, there are several other entities with their related digital wallets and FIAT deposit accounts. Including central banks (7), Exchanges (10), private banks (13), public banks (16), national banks (19), end users (22), corporations (25), central government administrations (28), administrations peripheral government (31).
[0091] [Fig.8] shows the sequence of actions (process) to be performed to complete a transfer between two different entities in digital currency (5). The sequence of actions that Alpha (1) must perform to send a certain amount to Beta (2) is shown, whether this payment is made through desktop / laptop (15) or mobile / tablet (14) devices. As can be seen, the payment starts from the Alpha digital wallet (3) and arrives, after a series of operations, in the Beta wallet (4). Item (6) can only be done from desktop / laptop: Opening a web interface. (7) performed from mobile / tablet: opening of the wallet's mobile / app interface. (8) enter the address of the recipient's wallet or scan a QR code of the address (where to send the payment); (9) enter the amount to be sent; (10) the transaction is confirmed; (11) scan the QR code from the desktop / laptop with the smartphone; (12) the transaction is authorized via the wallet's mobile / app interface; (13) the transaction is processed.
[0092] [Fig.9] shows the process that allows the price of digital currencies to always be stable and anchored to the FIAT currencies to which they are linked. This stability is created through automatic processes of entering buy and sell orders, at 1 tick from the reference price (therefore at the first value close to that price), by automated bots (5). In the example, we see that at the Exchange (1), two pairs of digital currencies are traded: The Digital Euro / EUR pair (3), where the exchange price is 1 €. Bots places buy orders at € 0.99999 and sell orders at € 1.00001, thus keeping the price stable at € 1. The Digital Euro / USD pair (4) trades, for example, at USD 1.11. The price is the same as the EUR / USD pair (6), at the official exchange rate of that moment (2). The bots then replicate the official rate, placing buy orders at $ 1.11001 and sell orders at $ 1.11001, thus keeping the price identical to that of the official exchange rate (2). Bots adjust order prices over time, adjusting to changes in the official exchange rate (2) of each pair.
[0093] [Fig.10] shows the process of verifying the currency correspondence between the FIAT collateral deposited in the issuer's bank account (1.7) and the digital currency issued (1.3), which can only and only be of the same currency. As can be seen, the Digital Euro (1) may have collateral only in Euro, the Digital Dollar (2) only in Dollars, the Digital British Pound (3) only in British Pounds, and so on for all other currencies (4). Other types of collateral and / or other currencies are inhibited by the system through a verification and blocking process.
[0094] [Fig.11] graphically represents an example flow of use of P2P lending (social lending) by means of the proposed invention. In the example, 3 applicants (1,3,5) and 3 lenders (13,15,17) were simulated. In this specific case, only applicant 3 (5) was found to be creditworthy. The flow shows that the three lenders send 50 € Digital to the warranty wallet (11) which, therefore, will have a total of resources equal to 150 € Digital. The applicant 3 (5), who after the credit check was found to be creditworthy, therefore bankable, receives the payment of the loan (10), in his digital wallet (6) which, in the example, is 150 € Digital. Then, the aforementioned € 150 Digital are transferred from the warranty wallet (11) to the wallet of the applicant 3 (6). This will reimburse the monthly payment (9), including interest, to the warranty wallet on a monthly basis. At the end of the period, you will have reimbursed (for example) 10 € digital per month x 16 months = 160 € digital. In the warranty wallet (11) there will therefore be the sum of € 160 Digital. The lenders (13,15,17) will have monthly repayments, in their respective digital wallets (12,14,16) including interest which, at the end of the period, will have generated total repayments of € 53 Digital each. Therefore, € 50 Digital will be their initial investment and € 53 Digital is the total reimbursement to individual lenders. The figure also shows the following elements: (7) declined loan request; (8) loan request accepted.
[0095] [Fig.12] two examples of utilization flow are graphically represented, which show how Borrowing (loan request) works using this invention. The request can be made through creditworthiness (therefore with the credit check) or with guarantees of other cryptocurrencies (without credit check). In the example relating to creditworthiness (left), we see that user A (1) requests a loan of € 200 Digital, this is paid (9) directly to his wallet (3) from the Lender Wallet (5). The user will refund (10), at the end of the period, to the lender wallet (5) the € 200 Digital + Interest. In the example relating to the loan guaranteed by other cryptocurrencies (right), User B (2) places collateral that is worth € 150 as collateral, transferring them to the escrow wallet (6). The escrow wallet (6) communicates to the lender wallet (5) the effective blocking of collaterals (13). With these guarantees, he requests a loan of € 75 Digital (9), which is sent from the lender wallet (5) to the user's wallet (4). Over time (14), two situations can occur: In the case of automatic liquidation of collateral (if these have lost value over time and their value approaches the value of the loan disbursed), the system will automatically sell these collateral, repaying the entire loan of € 75 Digital plus any unpaid interest to the lender wallet (5) and returning any excess (10), sending it to the user's wallet (4). In the event that automatic settlement does not take place (12), the user will decide how much and when to repay the loan, continuing to pay daily interest, until it decides to repay the loan (in whole or in part) (15). The figure also shows the following elements: (7) loan request accepted; (8) loan request declined.
[0096] [Fig.17] shows the scheme of the payment flow by cryptocurrency object of this invention, when a purchase with protection against fraud is made, introduced by the same invention. In this specific case, User A (1) buys a product from User B (2). User A pays € 30 to User B. In this case, the € 30 is not sent directly to B's wallet (4) but is sent to an Escrow Wallet (8), which holds the sum until User A sends the goods, and this is not delivered to B. Only after a short period of delivery, which is automatically verified by querying the shipper's tracking systems, if User B does not open a dispute / claim, the escrow user (7), transfers the sum from the Escrow Wallet (8) to the wallet of user B (2).
[0097] [Fig.19] shows the Minting (digital money printing) by the issuer (issuer) and shows the evolution over time, from TO to T4. In TO we see that all values are at 0 (so there is no digital currency in circulation). In Tl: the bank wants to convert € 1000 FIAT into € 1000 digital (1); In T2: the bank sends the € 1000 FIAT to the issuer (2); At the moment, however, there are no digital € 1000 available from the broadcaster (3); The ratio between collateral and circulating digital currency is 1000: 0 (4) as there are 1000 that guarantee 0 digital currency (so there is an excess of collateral). In this condition, the network authorizes the printing (minting) of 1000 Digital, as there are 1000 € of FIAT collateral already available and there are not 1000 digital € to be sent to the bank; In T3: The broadcaster prints € 1000 digital (5). This operation immediately updates the total circulating digital currency (6) which goes from 0 to 1000; At this time the ratio between collateral and digital currency issued is 1: 1 (7). In fact, there are € 1000 digital in circulation, guaranteed by € 1000 FIAT Deposited; In T4: the issuer sends the 1000 digital € to the bank (8). All these values are publicly visible and in real-time.
[0098] [Fig.20] shows the Burning (destruction of digital currency) by the issuer (issuer) and shows the evolution over time, from TO to T3. TO is a situation in which the circulating digital currency (3) is totally guaranteed by FIAT reserves (4). So there is a ratio of 1: 1 (2). The 1000 digital euros issued are held by the bank (1); In Tl: the bank wants to convert € 1000 digital into € 1000 FIAT, therefore, the bank sends the € 1000 digital to the issuer (5). In Tl, therefore, the digital currency issued is always guaranteed, but all that in circulation is in the possession of the issuer; In T2, the issuer sends the € 1000 FIAT to the bank (6). Therefore, at this time the ratio is 0: 1000 (7). Therefore, there are 0 collateral in guarantee of € 1000 digital issued (and which are in the availability of the issuer); T3: In this situation the network authorizes the destruction (burning) of the 1000 digital € (8), since it is digital currency not guaranteed by collateral. After the destruction, the total in circulation goes from 1000 to 0 (9) and the ratio goes to 0 (10) as there are 0 digital coins and 0 guarantees. All these values are publicly visible and in real-time.
[0099] [Fig.21 ] shows the operation of the staking object of this invention: the wallet holder, by making his possessions available in digital FIAT currency or part of them, for a certain time defined by him, is able to obtain potential quantities of coins additional (interest). In the example, the user has 1000 digital € available in his wallet (1); Through the wallet interface / app, he decides the amount to be blocked and the time by displaying the amount of daily interest that will be paid to him. Staking begins (4). In the example he has decided to block € 500 digital for 30 days (2), in exchange for € 30 total interest, then € 1 per day (9). The remaining 500 € will be available and can be spent by the user (3). The blocked sum is transferred (5) to the lender wallet (6). This is the same wallet that it will then lend to users through borrowing ([Fig.12]). At this point (7), if the staking period is still active (8) the user is paid daily interest (9). If, on the other hand, the staking period has ended (10), the user is returned the amount (11) in his wallet (1);
[0100] [Fig.22] shows the Conversion process from cash (banknotes) to FIAT digital currency and vice versa (via bank and postal ATMs);
[0101] [Fig.23] shows the process of Conversion from Cash (Banknotes) to FIAT Digital Currency and vice versa (At any bank / post office and even without a current account);
[0102] [Fig.24] shows the process of Conversion from Cash (Banknotes) to FIAT Digital Currency and vice versa (At physical points of sale);
[0103] [Fig.25] shows the process of Conversion from FIAT bank reserves into FIAT digital currency and vice versa (via home banking / app of your own Bank);
[0104] [Fig.26] shows the process of Conversion from bank reserves to FIAT digital currency and vice versa (at the counter of your bank / post office or any other - even if you are not a customer);
[0105] [Fig.27] shows the conversion process from bank reserves to FIAT digital currency and vice versa (directly through the issuer, Exchanges, stock exchange operators, etc.);
[0106] [Fig.28] shows the Conversion process from National / Central Bank Reserves to FIAT Digital Currency and vice versa (directly through the issuer).
Industrial Applicability
[0107] The proposed patent finds application in various fields. It is applicable to the banking sector, the digital payments sector, the insurance sector, the public administration sector, the government sector, the retail sector (both online and in store) Reference Signs List
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Reference to Deposited Biological Material [0109]
Sequence Listing Free Text
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Citation List
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Patent Literature
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Non Patent Literature
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