Method and system for net settlement by use of cryptographic promissory notes issued on a blockchain

Abstract

A method for generating a cryptographic promissory note for posting to a blockchain includes: receiving an authorization request for a payment transaction, the authorization request being a transaction message formatted based on one or more standards that includes a plurality of data elements including a first data element configured to store a blockchain address and a second data element configured to store a transaction amount, generating a promissory note including the transaction amount, digitally signing the generated promissory note with a private key, encrypting the signed promissory note with a symmetric key, wrapping the symmetric key with a public key corresponding to the private key and a public key associated with an acquirer involved in the payment transaction, and electronically transmitting a blockchain transaction to a blockchain network that includes the encrypted promissory note, each symmetric key, and the blockchain address.

Description

[0001] Cross References to Related Applications [0002] This application claims the benefit and priority of US Patent Application 15 / 342,463, filed November 3, 2016. The entire disclosure of the above application is incorporated herein by reference. technical field [0003] This disclosure relates to the generation of cryptographic promissory notes for issuance to the blockchain, and in particular, to the generation of cryptographic promissory notes from payment transactions issued to the blockchain for net settlement of payment transactions (net settlement). Background technique [0004] Settlement of payment transactions has traditionally been a highly-centralized process performed through the use of payment networks that also process large numbers of payment transactions, often billions, in the same time frame, where these payment transactions Each of these also needs to be settled. As a result, bottlenecks sometimes occur in settlement processing, resulting in less r...

AI Technical Summary

Problems solved by technology

As a result, bottlenecks sometimes occur in settlement processing, resulting in less responsive settlements that cannot be executed quickly

This situation can be detrimental to merchants and acquirers, who may expect more timely settlement of their transactions

[0005] In addition, centralized settlement processing often renders merchants and other entities unaware of the value of settlements being performed due to time-sensitive variables whose values ​​are difficult to predict (e.g., foreign exchange rates)

As a result, merchants, acquirers, and other entities often cannot reliably know the amount they will receive via settlement

Additionally, due to the lack of transparency in traditional, highly centralized settlements, settlement processing is inaccessible to consumers, investors, and other stakeholders to understand the financial health of merchants, acquirers, and other entities

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