Method for realizing law enforcement, supervision, social, economic and financial transactions and verification on block chain

Abstract

The invention relates to a method. Any information (instructions, events, occurrences, invitations, social interactions, histories, relationships, associations, membership, affiliations, hierarchies, rights, privileges, requests, ownership, obligations, responsibilities, contracts, commitments, identities, attributes, statuses, endorsement, qualification, authentication, credentials, etc.) worthy of being recorded for future reference, transactions, verification, calculation, determination, and execution can be made through a law enforcement agency. Electronic communication records sent to block chain operators and guardians (nodes, miners and the like) by supervision organizations and other entities or individuals are recorded into the block chain system. Then, the block chain system can decide whether to approve the transaction, whether to unfreeze the frozen account, how to perform and settle the smart contract, and the like. The external system can also query information such as facts, verification and guidance from the block chain system. According to the method, law enforcement, supervision and social, economic and financial transactions and verification can be performed on the block chain, and the method is not only suitable for an unlicensed block chain system, but also suitable for a licensed block chain system.

Description

This application claims all benefits of U.S. Provisional Application No. 63 / 434,038, filed on December 20, 2022 (Eastern Time). BACKGROUND

[0001] The present invention is mainly related to the fields of blockchain, cryptography, computer science, law enforcement, governance, finance, and economy. The decentralized nature of non-permissioned blockchain technology makes it convenient for criminal and illegal activities. This is because, unless the cryptographic private keys of cryptocurrencies and tokens are discovered and seized, law enforcement agencies or other individuals / entities cannot practically seize the relevant funds in the form of cryptocurrencies and tokens. The decentralized nature also makes it impractical for governments to directly regulate. It also becomes impractical to conduct large-scale and diverse social, economic, and financial transactions and verifications on the blockchain in such a blockchain system. This is because non-permissioned blockchain systems are not good at communicating with people or entities outside the blockchain system (with credibility or authority) to obtain credible information to serve diverse social, economic, and financial transactions and verifications. Permissioned blockchains are somewhat better at this communication, but at the same time, they also bring about centralization. The present invention solves this problem through a new mechanism (applicable to both non-permissioned and permissioned blockchain systems) that allows law enforcement agencies or other individuals / entities to communicate with the blockchain system, thereby enabling law enforcement, regulation, and social, economic, and financial transactions and verifications on the blockchain. SUMMARY

[0002] In the present invention, law enforcement agencies, regulatory agencies, and other entities and individuals can communicate with the operators and custodians of blockchains (permissionless and permissioned) (nodes, miners, etc.) to record any information to the blockchain and the nodes and miners’ software / database for future reference, transaction, verification, calculation, determination, execution, etc. The types of such information include instructions, scheduled events, occurred events, invitations, social interactions, history, relationships, associations, memberships, affiliations, hierarchies, rights, privileges, requests, ownerships, obligations, responsibilities, contracts, commitments, identities, attributes, statuses, endorsements, qualifications, certifications, credentials, etc. The content of the communications can be written in any language (natural language or code, full or abbreviated), format, and manner that the nodes and / or miners’ software can be programmed to understand. Such communications can be sent using digitally signed with an encrypted private key or other electronic means (e.g., email). The corresponding encrypted public key (or derivative thereof), email address, or other identifier has been stored in the blockchain or the nodes and / or miners’ software / database, either by the original creator of the blockchain or according to the nodes and / or miners’ consensus (after the law enforcement agencies or other individuals / entities disclose such information to the nodes and / or miners). The nodes and / or miners verify the authenticity of the communications by looking up the email address or verifying the digital signature using the encrypted public key (if found and acquired / derived from the records). If the communication is authentic, the nodes and / or miners broadcast such communications to each other, store them in a transaction pool or similar, and record them to a new block (to be appended to the blockchain).

[0003] This enables law enforcement, regulation, and social, economic, and financial transactions and verifications to be conducted on the blockchain, as the blockchain system can decide whether a transaction should be approved, whether a frozen account should be unfrozen, how a smart contract should proceed and settle, etc., with reference to the communications of these records. Such a blockchain system can also be queried by other systems (blockchain systems or other systems) for facts, verifications, directions, etc. DETAILED DESCRIPTION

[0004] In a blockchain system, a user can initiate a transaction by communicating with a computer called a node. In this communication, the user creates a digital signature by using an encryption private key to sign the transaction instruction, thereby claiming to be the owner of an account (hereinafter referred to as an “encryption address”, which can be an encryption public key or its derivative) and the initiator of this communication. The node verifies the authenticity of the communication by verifying the digital signature using the encryption public key. The node also verifies that the encryption address indeed has a balance to meet the transaction amount of the payment request by looking up the relevant transaction history in the blockchain or looking up the real-time balance in the ledger (which shows the balance of the account), which is dynamically maintained and updated by the node according to the blockchain and the transaction pool (or called the memory pool, etc.). If the requested transaction passes both tests, the node will broadcast the transaction to other nodes and / or miners, and put the transaction into the transaction pool, which may contain other transactions. These transactions will be packaged and recorded into a block (which will be attached to the blockchain).

[0005] Non-permissioned blockchain systems are decentralized (the degree of decentralization depends on the number and diversity of nodes and miners), making them ideal tools for criminal and illegal transactions and related storage of funds. Current technologies can perhaps find out which encryption addresses are related to criminal and illegal activities. However, law enforcement agencies or other individuals / entities need to find and seize the encryption private keys held by suspects or criminals in order to seize funds in the form of cryptocurrencies and tokens. In reality, it can be very difficult (or even impossible) to find and decrypt (if the private key is protected by encryption) the private key, because such a private key is just a string of mixed letters and numbers, has a high degree of portability, and is very easy to hide. It is also difficult for governments and other entities / individuals to monitor activities in decentralized blockchain systems in reality, and it is also difficult to conduct diverse social, economic and financial transactions and verifications on the blockchain.

[0006] In the present invention, law enforcement agencies or other individuals / entities can send communications to the nodes and / or miners of a blockchain system requesting that all or part of the balance of a certain cryptographic address (or all or part of the cryptocurrency balance locked in a certain smart contract, etc.) be frozen or confiscated, or instruct whether a certain transaction or activity (e.g. a smart contract) can be carried out unconditionally or conditionally. Such communications are referred to as "tags" hereinafter. The initiator of such communications is referred to as "tagger" hereinafter. This applies to payment-oriented blockchain systems, smart contract blockchain systems and other blockchain systems. Such tags can be sent through digital signatures signed using cryptographic private keys, or through other electronic communications such as email. Initiating such tags can be required to require multiple approvals, similar to initiating a Bitcoin transaction from a multi-signature wallet. Any other technology related to cryptographic private keys and cryptographic wallets can be used for such tags. In contrast to the simple transfer transaction request in a blockchain system such as Bitcoin, which specifies the recipient's cryptographic address and the amount of cryptocurrency to be sent, the specification of a tag can include which cryptographic address or smart contract balance to freeze or confiscate, how much of the balance to freeze or confiscate (a default value of the entire balance can be set), how long the freeze should last (a default value of indefinite can be set), to which cryptographic address the confiscated balance should be sent, what conditions or restrictions should be added on which smart contract, the reason for this tag (e.g. the reason for freezing the balance), etc. This specification can be written in any language (natural language or coded language, full language or abbreviated language), format and manner, and the node and / or miner software can be programmed to understand it. Law enforcement agencies or other individuals / entities generate their cryptographic public keys (just like end users generate cryptographic public keys to receive or send Bitcoin) or email accounts and disclose this information to the original creator of the blockchain or the nodes and / or miners through any form of communication. In such a blockchain system, these email addresses or cryptographic public keys (or derived information thereof) are stored in the blockchain or the software / database of the nodes and / or miners, and the storage method can be either by the original creator of the blockchain or by the consensus of the nodes and / or miners. Alternatively, the original creator of the blockchain, node operator and / or miner can generate the public key and record it (or derived information thereof) in the blockchain or the software / database of the nodes and / or miners, and provide the private key to the law enforcement agency or other entity, but doing so risks the original creator of the blockchain or the node operator and / or miner retaining a copy of the private key and misusing it. In the case of email, if the original creator of the blockchain or the node operator and / or miner already knows the email address (e.g. because the email address of a person / entity is public), they can record it in the blockchain or the software / database of the nodes and / or miners.The node verifies the validity of the tag by checking whether the tagger (whoever owns the email address or cryptographic address) is authorized to send this particular type of tag, according to the records in the existing blockchain and / or the node software / database and / or the miner software / database. In the case of a cryptographic address, the digital signature of the cryptographic public key can be used to verify that the tagger is indeed the owner of the cryptographic address. If the tag is valid, the node and / or miner will broadcast the tag to other nodes and / or miners, store it in a transaction pool or similar, and record the tag into a new block (which can contain other tags and / or transactions) that will be appended to the blockchain. If the tag is sent via a digital signature, the tagger can only need to send it to one or a few nodes and / or miners, since other nodes can independently verify the digital signature without receiving it directly from the tagger. If the tag is sent via email or other electronic means, the tagger can need to send the tag to enough nodes and / or miners so that the blockchain system can be confident of the tag's authenticity.

[0007] The law enforcement agency or other individual / entity has achieved its purpose because the criminal or illegal cryptoasset balance holder can no longer use the funds that have been frozen or seized. Any activity (such as a smart contract) that does not comply with the regulation or condition will not be able to proceed. This is because any such attempt will be deemed invalid as the node and / or miner software will look for and find the relevant freezing or seizure or regulatory instruction in the blockchain and / or transaction pool or any database (that stores this flag). In the case of a seizure order, the node and / or miner will consider that part or all of the cryptoasset balance of the relevant cryptoasset address has been transferred to a cryptoasset address (specified in the flag) that is controlled and owned by the law enforcement agency or other entity or the victim of the corresponding crime or the designated beneficiary of the event. This cryptoasset address will be able to use this balance. If the seizure order is initiated through an encryption private key, the corresponding cryptoasset address can be used as the receiving address. Likewise, the law enforcement agency or other individual / entity can send a flag to the node and / or miner requesting the unfreezing of a frozen balance, or the return of a seized balance, or the cancellation of a regulation or condition for a certain activity. For the return of a seized balance, the flagger does not have to send a flag, but simply send the balance to a cryptoasset address. It is feasible to allow flaggers to freeze, seize and regulate cryptoassets / tokens that have entered a smart contract (as collateral for a loan, etc.) or other conditional transactions because such smart contracts or conditional transactions and / or their related software and / or blockchain systems can be pre-programmed to handle such unexpected situations (i.e., know how the smart contract or conditional transaction should proceed and settle in the event of such a flag). Of course, it is not only individuals / entities who have committed a crime that can freeze or seize cryptoassets / tokens. If the owner of the cryptoassets / tokens owes alimony, taxes, property damage compensation, or is otherwise economically liable (whether or not such liability is related to the cryptoassets / tokens), a law enforcement agency or other individual / entity can freeze or seize the cryptoassets / tokens.

[0008] The present invention can also be used to implement traditional financial, governmental, economic, and other social transactions and verifications on a blockchain. Here are some examples. A government agency can tag a certain cryptographic address to indicate that the owner has a license to practice law in a certain jurisdiction. Later, a new tag can be sent to indicate that the license has been suspended (to a certain date or indefinitely) or revoked. Later, another tag can be sent to indicate that the license has been reinstated. An individual / entity can hold a bank account in dollars, euros, or some other currency, and tag a cryptographic address to indicate how much of those fiat currencies are owned by which cryptographic address. And the ownership of those fiat currencies can be transferred or sold (for native blockchain tokens or something else) on the blockchain, etc. This is not limited to fiat currency ownership. An individual / entity can hold a vault of gold or silver, an oil field / petroleum reserves, a stack of sovereign debt securities, and tag a cryptographic address to indicate how much of those assets / commodities are owned by which cryptographic address. The ownership of such assets / commodities can be transferred or sold (for native blockchain tokens or something else) on the blockchain, etc. A shipping company can tag a cryptographic address to indicate how much of the company’s future shipping capacity is owned by which cryptographic address. Such rights can be transferred or sold (for native blockchain tokens or something else) on the blockchain, etc. If the shipping company encounters problems or wants to reduce its overall future shipping capacity for other reasons, the company can even buy back some of the rights on the blockchain using native blockchain tokens or something else (which can or can not be registered on the blockchain). To board a ship, an individual / entity that owns such shipping capacity rights can use a cryptographic private key to create a digital signature to be verified by the shipping company to verify the authenticity of the shipping capacity rights. Similarly, tickets for ships, trains, planes, movies, soccer games, pre-paid utility fees (electricity, water, gas, etc.), pre-paid landline fees, cell phone fees, and internet access fees, etc. can all be registered, transferred, sold, refunded / bought back, and verified on or using a blockchain. The Department of Veterans Affairs can tag a cryptographic address to indicate that its owner is a veteran. A merchant can feel comfortable offering a veteran discount after querying the blockchain for the tag included in the customer’s cryptographic address. Similarly, passports, driver’s licenses, and any other identification documents can be tagged into a blockchain. Such tags are referred to as “identity tags” hereinafter. A credit agency can tag a certain cryptographic address as having a certain credit score. When the owner of that cryptographic address attempts to obtain a loan through the blockchain, other blockchains, or off-chain transactions, the lender can determine eligibility for the loan and interest based on the tag. Similarly, a credit agency can tag a cryptographic address owned by a company as junk grade or investment grade (e.g. AAA and AA+ ratings). When the company issues debt through a transaction (decentralized finance in a smart contract, etc.) using that cryptographic address, the lender (e.g. a pension fund) or any agent can determine the appropriate interest based on the tag.The lender or any agent also knows whether the regulations, laws or other rules allow lending to such borrowers. The node and / or miner software can be programmed to allow or disallow lending to a borrower based on the identity of the cryptographic address (e.g., indicating a pension fund). The right to receive repayment can be considered an asset. Such assets can be transferred, traded, mortgaged, extended, etc. on the blockchain. This is similar to the transfer, trade, mortgage, extension, etc. of corporate bonds in the traditional world. Similar to corporate debt, other entities can also issue debt on the blockchain (national sovereign debt, provincial debt, municipal debt, etc.). Such debt can also be transferred, traded, mortgaged, extended, etc. on the blockchain. Any debt can be signed on the blockchain for a repurchase agreement, sold and repurchased on the blockchain; or signed on the blockchain for an inverse repurchase agreement, bought and sold back on the blockchain. The blockchain system can also use a credit rating algorithm to automatically generate a real-time credit score for an individual or a credit rating for an entity based on the individual’s past record on the blockchain (social, economic and financial activities) and information and instructions recorded to the blockchain by tagging. The blockchain system or other systems can use such credit scores or credit ratings to automatically determine (other factors can or can not be considered) the loan eligibility, interest, term and conditions of an individual or entity.

[0009] The following are examples of more complex uses of the invention. A company can tag an encrypted address to indicate how many shares of the company the encrypted address owns. The encrypted address can transfer ownership of some or all of the shares directly to another encrypted address by specifying the name and quantity of the shares to be transferred and the recipient encrypted address. As opposed to specifying the quantity of coins to be transferred and the recipient encrypted address in a regular transfer transaction. If the node and / or miner finds that the encrypted address does indeed own more than or equal to the quantity of shares requested to be transferred by looking up the records in the blockchain system, the transfer transaction can be accepted by the node and / or miner into the blockchain system. The encrypted address can even create conditional transactions by specifying the name and quantity of the shares to be transferred, the recipient's encrypted address, the time at which the transfer will occur and under what conditions (e.g., the transfer will only occur if the recipient encrypted address or some other encrypted address sends a certain quantity of coins to the encrypted address or some other encrypted address that owns these shares before a certain time). Alternatively, the owner can use a smart contract to sell shares on a decentralized exchange. If the company is considered a publicly traded company (e.g., based on the demographics of the target buyers or past buyers, which can be learned from the identity tags of these buyers), a government agency can tag the company's encrypted address or tag the sale information to indicate whether the company meets regulatory requirements and whether the sale can proceed. The company can even buy back shares from the encrypted addresses that own the shares. This can be done using a smart contract on a decentralized exchange. Since all of these events are recorded in the blockchain system, it is easy for the node and / or miner software and end user software or other software to determine which encrypted address ends up owning the shares, just like the Bitcoin system determines which encrypted address owns how many bitcoins by tracking all of the relevant activities recorded in the blockchain. Furthermore, in a blockchain system with smart contract functionality, the owner of an encrypted address can transfer ownership of the company shares to a smart contract and lock the shares in it (to obtain a mortgage or anything else feasible in a smart contract), wait for the contract to execute and settle, similar to sending a quantity of coins to a smart contract. The company can pay dividends to shareholders by sending cryptocurrencies / tokens (or full or partial ownership of other assets / properties registered on the blockchain) to the encrypted addresses that own the shares (even if the shares are locked in a smart contract, etc.). If a jurisdiction has a legally sound tax system, the company can even pre-deduct a certain amount from the dividends as a dividend pre-deduction tax. When the address that owns the shares sells the shares (on a decentralized exchange, through a conditional transaction, etc.), the node and / or miner software can calculate the capital gains and losses by querying the blockchain system and comparing the buying and selling prices.If capital gains exist (capital loss carryforward can be considered by calculating losses from certain previous transactions on the blockchain), node and / or mining software can withhold capital gains tax by automatically deducting a certain amount from the sales proceeds to an address owned by the government tax authority (i.e., recording a transaction that sends funds from the seller's address to the government address without obtaining the seller's consent). The government can periodically send markers to the blockchain system indicating the latest tax rate, which can be used for tax calculation and automatic withholding or payment of taxes.

[0010] Crypto addresses can obtain loans by creating conditional transactions that state that the crypto address (or other crypto addresses) agrees to pay a certain amount of coins (or other items registered on the blockchain) to certain crypto addresses at specific frequencies, on specific dates, or for specific periods, provided that the coins (or other items registered on the blockchain) are transferred (lent) to the address that owns the real estate. If a debt default occurs, the real estate should be considered transferred to a crypto address. The new owner may need to transfer ownership of the real estate to a smart contract for auction and return any excess proceeds (sales revenue minus outstanding debt) to the borrower. Alternatively, such mortgage loans can be completed in a smart contract, provided that ownership of the real estate is transferred to and locked in the smart contract. Government agencies can mark their assessments of real estate value on the blockchain. Property taxes can be paid by the crypto address owning the real estate to a crypto address owned by the government agency. Such taxes can also be paid automatically through rules set in node and / or miner software, based on markings indicating the latest tax rate. Capital gains taxes or capital loss carryforwards can be conducted on the blockchain, with conditions and methods identical and similar to those discussed in the previous paragraph. Real estate buyers can take out mortgages on the blockchain, obtaining loans by mortgaging the property (similar to the example above) to pay the seller and the creditor for the down payment and monthly repayments. In the event of a debt default, the liquidation of the property follows a similar process to the example above. During the debt repayment period, the borrower can choose to refinance the mortgage, i.e., take out a new loan on the blockchain to repay the remaining debt of the old loan. When the new lender repays the old loan, the lien is automatically considered (because all these transactions are easily read and understood by node and / or mining software) to have been transferred to the new lender and liquidated in the event of a potential debt default. If the property's value exceeds the outstanding debt, the borrower can take out a property equity loan on the blockchain. The blockchain system understands the property's value and outstanding debt by looking at tokens (indicating the appraised value) sent by government agencies or other individuals / entities, along with debt and repayment records. The lender can then provide the borrower with an appropriate loan amount (e.g., not exceeding the difference between the property's appraised value and the outstanding debt) at an appropriate interest rate (e.g., determined based on the tokens on the credit score). If the credit score is not high enough, the lender can choose not to lend anything. In the event of default, the lender has the right to auction the property (e.g., using a smart contract) to recover loan losses. How the proceeds from the sale—in cryptocurrency / tokens—should be distributed among the borrower, mortgage lender, and equity lender can be pre-defined in the smart contract (or conditional transaction) of the equity loan. Because property registration, valuation, owner credit scores, mortgage repayment history, and cryptocurrency / tokens are all on the blockchain, all operations in traditional equity lending can be programmed onto the blockchain.Other financial products / options / features, whether simple or complex, can be implemented on the blockchain through programming.

[0011] Of course, this invention is not limited to the aforementioned debt, real estate, and corporate shares. The registration, transfer, transaction, mortgage, and other uses and agreements of ownership of any asset, property, rights, and other things (traditionally registered outside the blockchain) can be conducted on the blockchain, similar to how they operate in the traditional social, economic, and financial world. Examples include, but are not limited to, fund units (exchange-traded funds, pension funds, sovereign wealth funds, wealth management funds, etc.), insurance products, futures contracts, options, credit default swaps, interest rate swaps, and other financial derivatives. For futures contracts on the blockchain, if delivery of goods is required but ownership of such goods is not registered on the blockchain, a trusted person / entity can send a token to the blockchain to confirm that delivery has occurred off-chain. The token holder can send a token to the blockchain to indicate that a cryptographic address (owned by the token holder) owns the asset, goods, rights, etc. The token holder can then transfer, sell, repurchase, or mortgage such ownership through the blockchain.

[0012] Because ownership of assets, property, and other items is registered digitally on the blockchain, the segmentation of these ownerships, their transfers, transactions, mortgages, etc., can be easily achieved. Here are some examples: A government agency can tag a crypto address, indicating that the owner of that address owns 0.3 percent of a piece of real estate by declaring ownership of 0.003 in the tag. An owner of 5 shares of a company can transfer one-tenth of the shares by declaring an amount of 0.1 in the transfer transaction. An antique owner can send 20% ownership to a smart contract for any purpose, just as they would send cryptocurrency and tokens to a smart contract for any purpose.

[0013] Events and occurrences of arrangements marked on a blockchain can be used as conditions and results to influence or determine related transactions or smart contracts within the blockchain. For example, a smart contract stipulates that if it rains in a city on a certain date, Bob should pay Alice 10 tokens. When that day arrives, a meteorological agency or other entity can mark this weather information (rain or no rain) on the blockchain by sending a communication (containing the date, city, and weather information, in any natural or encoded language, in any format and manner, recognizable by the node and / or miner's software) to the nodes and / or miners of the blockchain system, using a digital signature signed with an encrypted private key or other electronic means (such as email). Smart contracts related to this weather event, as well as any type of contract or conditional transaction, will know how to execute and settle based on this mark. The mark is not limited to simply containing a description of the weather outcome. It can also contain a set of discrete or continuous data to describe weather conditions (e.g., wind speed), commodity price fluctuations, and any other facts and outcomes over multiple dates, times, or time periods.

[0014] Tags and their content can be collected, prepared, and sent manually, automatically, or a combination of both. A tag can specify when and how long the blockchain system should adhere to it. A tag can also specify a deletion time; after this time, the tag will be removed from the blockchain system. The blockchain system can periodically delete these outdated tags to maintain efficient system operation. This can be achieved by writing rules in the node and / or miner software that periodically generate and adopt a new blockchain that is essentially an older blockchain with outdated tags removed. Subsequent referencing or verification can be performed within the blockchain system, in other blockchain systems, or simply by using the blockchain with these tags, just like using a traditional ledger (i.e., simply querying the blockchain using some software). Nodes can dynamically maintain and update a ledger (displaying the real-time status of all transactions and tags) based on these transactions and tags in the blockchain and mining pool.

[0015] Optionally, the original creators of the blockchain or nodes and / or miners may set, add, or update rules regarding these tokens in the node and / or miner software and / or the blockchain through simple majority voting (from nodes or miners or coin holders or any combination of the three) or other consensus mechanisms, or in accordance with rules, laws, and regulations. These rules can allow tokens to function like in the traditional world, allowing tokenizers to send tokens to correct errors and update existing tokens, and allowing the token system to respond to accidents and attacks. Here are some examples: Meteorological agencies could be allowed to send new tokens indicating that existing tokens contain incorrect weather information (due to accidents, malicious attacks, etc.) and should be ignored. Correct weather information can be included in this new token or another token. Rules can be established stipulating that a freeze can only last for 24 months. If no forfeiture order is issued by the court by then, the balance will be automatically unfrozen. Each recorded token has a timestamp, so nodes and / or miners know how much time has passed. When nodes and / or miners discover a freeze on the blockchain that exceeds 24 months, they will ignore the freeze and will not reject any transactions because of it. Another rule could be established: a court-owned account (encrypted address or email address, or other identity information capable of sending tokens) could invalidate a frozen token set by a police account (by referencing the token using a unique identifier (such as the token holder's encrypted address) combined with the token's timestamp), thereby unfreezing the balance without waiting 24 months. Another rule could be established: a token holder could send tokens to invalidate, correct, and modify previous tokens. Such previous tokens might have been created by the same token holder or by other token holders. The blockchain system would see both tokens and be able to handle such invalidation, correction, and modification. Another rule could be established stipulating that one encrypted address only has the authority to freeze balances, while another encrypted address has the authority to freeze, unfreeze, and confiscate balances. Another rule could be established stipulating that an encrypted address can only freeze or confiscate a maximum of a certain number of encrypted addresses or a certain total amount of balances within a certain time period or indefinitely. Another rule could be established stipulating that for a confiscation operation to be performed, the balance must first be frozen for at least 30 days, either at the encrypted address to be confiscated, at the encrypted address receiving the balance, or both. These measures can mitigate or prevent losses caused by the misuse of accounts (authorized to send tokens) (e.g., account loss of control, hacking, etc.). Otherwise, criminals could confiscate the balance and immediately sell it for other things (fiat currency, goods, services, coins of other blockchain systems, etc.), attempting to prevent legitimate institutions from freezing or confiscating the confiscated balance in time. Another rule could be established: a court account could send tokens to nodes and / or miners to revoke or suspend the permissions of a police account if it has been misused or for other reasons.Unless the court account regains permissions through subsequent tagging, the node and / or mining software will not execute any tags sent by such revoked or suspended accounts. If a court account is compromised, the node and / or miner can revoke or suspend the court account by making a decision through a simple majority vote (from nodes or miners or coin holders or any combination of the three) or other consensus mechanisms and update the software / database or write the decision to the blockchain based on that decision. Similar or more complex hierarchical systems can be implemented, granting certain accounts higher permissions than others, enabling them to easily revoke, suspend, or reinstate these lower-level accounts, add, delete, change, relax or tighten their conditions, and grant specific permissions to new accounts (which may not yet exist in the blockchain, node, or mining software / database). Similarly, a similar super account can be granted to the initial creator of the blockchain or someone else to tag appropriate crypto addresses, giving it the permission to tag other addresses. Such permissions can be removed from the super account after reaching a certain limit or exceeding a certain period of time through a pre-set future-effective mechanism in the system. Hierarchical systems can contain multiple tiers, meaning that lower-level accounts can have higher permissions than lower-level accounts. These lower-level accounts can then have higher privileges than even the lowest-level accounts. The number of such hierarchies can increase indefinitely until a specific purpose is achieved.

[0016] In resolving jurisdictional conflicts, this invention has at least two implementations. A dedicated blockchain can be created for a specific jurisdiction, placing all activities within that blockchain system under the rules, laws, and regulations of that jurisdiction. When the owner of a crypto address on one blockchain wants to transact with an individual or entity in another jurisdiction, the owner can sell or exchange (using centralized or decentralized exchanges, cross-chain transfer protocols, etc.) their balance in exchange for the cryptocurrency of that jurisdiction's blockchain system and use that cryptocurrency to transact with the individual or entity in that jurisdiction. Alternatively, when the owner of a crypto address (whether an individual, company, or other entity) enters a jurisdiction, border officials or other agencies can tag the crypto address to indicate that the person has entered their jurisdiction. Alternatively, merchants or trading partners in that jurisdiction can add this tag to the blockchain system when conducting transactions within that jurisdiction. The merchant or trading partner knows it is an in-jurisdiction transaction, either because the transaction is conducted face-to-face within the jurisdiction or remotely, but there is evidence that the owner of the crypto address is actually within the jurisdiction. If the owner of the encrypted address rejects the tag, merchants or trading partners can refuse to transact with the owner of the encrypted address. From this point onward, all activities of the encrypted address may be subject to the rules, laws, and regulations specific to that jurisdiction, which are encoded in the node and / or miner software and / or blockchain. Law enforcement agencies and other entities outside the jurisdiction will be unable to freeze, confiscate, or monitor the cryptocurrency / token balance, assets, property, or anything else held by the encrypted address, because the nodes and / or miners will know that the tagger's encrypted address is not within the jurisdiction and will ignore the tag, although they may be able to request assistance from law enforcement agencies or other individuals / entities within the jurisdiction. If the owner of the encrypted address leaves the jurisdiction, another tag can be added to the blockchain system (added by border officials or other appropriate persons or entities) to exempt the encrypted address from the rules, laws, and regulations defined by that jurisdiction. If the owner of a crypto address has never crossed any borders, or if the owner is a company or other entity, that owner can request that police stations, other government agencies, notaries, businesses, or other entities within that jurisdiction add a marker to the blockchain to indicate that the owner has always been within that jurisdiction and should comply with the rules, laws, and regulations defined within that jurisdiction. As mentioned earlier, this can easily occur in commercial transactions within a jurisdiction. Of course, any crypto address can be required to comply with the general rules of the blockchain system, general or international rules, laws, and regulations incorporated into the blockchain system, and be bound by markers issued by international organizations such as Interpol, regardless of which jurisdiction the owner of the crypto address is located in.

[0017] Anything worth recording for future reference, verification, guidance, or execution can be tagged in the blockchain, including arranged events, occurrences, invitations, social interactions, history, relationships, associations, memberships, affiliations, hierarchies, rights, privileges, requests, instructions, ownership, obligations, responsibilities, contracts, promises, performance (such as delivery confirmations), identity, attributes, status, endorsements, qualifications, certifications, credentials, etc. The blockchain system can be programmed to allow or require any or some taggers to include fees in the tagging, just as people include transaction fees when sending Bitcoin transactions. Law enforcement agencies and other individuals / entities can be granted tagging rights to freeze, unfreeze, confiscate, revoke, restore, return, and monitor assets, property, rights, and anything tagged in the blockchain, whether ownership is idle or locked in smart contracts or conditional transactions, just as law enforcement agencies and other individuals / entities can do these things with cryptocurrencies / tokens as described above. The difference is that in this example, the label specifies which assets / property and other things (and their quantities) (rather than specifying the amount of cryptocurrency / tokens) need to be frozen, unfrozen, confiscated, revoked, restored, returned, and regulated.

[0018] Any information contained in the tag can be encrypted to protect the privacy of any relevant parties. For example, a person might want to encrypt their passport information before tagging it on the blockchain so that it is inaccessible to the public. Instance-specific decryption keys can be used so that taggers and readers can only use that key to decrypt certain information about a person, rather than all of that person's privacy on the blockchain. In a passport scenario, to tag passport information, the passport authority can generate an encryption key, use that key to encrypt the passport information, and then provide the passport holder with a decryption key (which may be the same as or different from the encryption key). When passport verification is required, the person can provide the decryption key to a verifier, who uses that key to decrypt the passport information. The private key of an encrypted address owned by the passport holder can be set as the decryption key. Alternatively, the passport authority and the verifier can use a common encryption and / or decryption key. In this way, everyone's key is the same, although this may pose a risk of decryption key misuse (e.g., theft) and the leakage of large amounts of identity data. It's not just any text or numbers in natural language that can be tagged on the blockchain. Any information that can be represented in a computer system can be tagged, including passport photos, biometric information (fingerprints, iris scans, etc.), audio, video, etc. Therefore, the authenticator can compare the passport photo decrypted from the blockchain with the appearance of the real person. If the authentication does not involve any subsequent transactions through this or other blockchains, the passport tag does not need to specify any target encrypted address, but only needs to contain the passport information. This simplification can be applied to other types of tags, such as the weather tag mentioned above.

[0019] This invention achieves all these functions without sacrificing the decentralized nature of permissionless blockchain systems. This is because, aside from the general computational requirements of proof-of-work blockchain systems, the stake requirements of proof-of-stake blockchain systems, or other requirements of permissionless blockchain systems with different consensus mechanisms, and the hardware requirements (and related requirements) for proper operation in these blockchain systems, no special requirements are imposed on anyone's qualifications as a node operator or miner. This invention applies to any system using blockchain technology, including (but not limited to) permissionless blockchains, permissioned blockchains (distributed ledger technology), public blockchains, private blockchains, general-purpose blockchains, dedicated blockchains, main chains, sidechains (layer 0, layer 1, layer 2, etc.), stablecoins (cryptocurrencies pegged to fiat currency or other things or stable through algorithms), and any combination thereof.

Claims

1. A method for enabling law enforcement, regulatory, social, economic, and financial transactions and verification on a blockchain, the method comprising: The consensus reached by the original creators of the blockchain or the operators and guardians (nodes, miners, etc.) stores in the blockchain or the software / database of the nodes and / or miners: email addresses or encrypted public keys (or derivatives thereof) or other identifiers of individuals or entities, as well as rules and instructions on how to handle electronic communications sent by such individuals or entities (e.g., how many permissions can electronic communications carry, how, to what extent, under what conditions, and under what restrictions the blockchain system should comply with electronic communications). The owner of an email address or a public key (or a derivative thereof) or other identifier sends electronic communications (using a digital signature signed with a private key or via other electronic means of communication such as email) to blockchain operators and guardians (nodes, miners, etc.). Such communications may contain any information and instructions written in any language (natural or coded language, full or abbreviated language), format and manner. Nodes and / or miners verify the authenticity of electronic communications by using a cryptographic public key (if found and obtained / derived from a record) to verify digital signatures or by looking up email addresses or other identifiers; Nodes and / or miners broadcast this real electronic communication to other nodes and / or miners; Nodes and / or miners store this actual electronic communication in a transaction pool or similar; Nodes and / or miners record this actual electronic communication in a new block (which may contain other electronic communications and / or transactions), and this new block is appended to the blockchain; as well as All subsequent activities related to this electronic communication (such as referencing, trading, verification, calculation, determination, and execution) function normally accordingly.

2. The method according to claim 1, wherein, Subsequent activities (such as referencing, trading, verifying, calculating, determining, and executing) can take place within the blockchain system, in other blockchain systems, or outside the blockchain (by querying the blockchain like a traditional record book).

3. The method of claim 1, wherein the electronic communication can be sent to record any recordable information into the blockchain system, including arranged events, events that have occurred, invitations, social interactions, history, relationships, associations, memberships, subordination, hierarchical structures, rights, privileges, requests, ownership, obligations, responsibilities, contracts, commitments, performance (such as delivery confirmations), identities, attributes, statuses, endorsements, qualifications, authentications, credentials, etc.

4. The method of claim 3, wherein the information may be encrypted before being recorded to the blockchain via electronic communication to protect the privacy of any relevant parties.

5. The method according to claim 1, wherein, Electronic communications can be sent to nodes and / or miners in a blockchain system to indicate that the owner of a cryptographic address is qualified to do something (such as practice law in a particular jurisdiction), or to suspend, revoke, or reinstate a qualification or status.

6. The method according to claim 1, wherein, Electronic communications can be sent to nodes and / or miners in a blockchain system to identify the owner of a cryptographic address (veteran, employee, passport, driver's license, and any other identity information).

7. The method according to claim 1, wherein, Electronic communications can be sent by credit scoring agencies or other individuals / entities to nodes and / or miners in a blockchain system to indicate that the owner of a particular crypto address has a certain credit score, which can be used to determine eligibility and interest when the owner of that crypto address attempts to obtain a loan through a transaction on the blockchain, on other blockchains, or off-blockchain.

8. The method according to claim 1, wherein, Electronic communications can be sent by credit rating agencies or other individuals / entities to nodes and / or miners in a blockchain system to indicate that a company or other entity has a certain credit rating for its cryptographic addresses. When the company or other entity issues debt through transactions (decentralized finance in smart contracts, etc.), lenders (e.g., pension funds) or any agents can use it to determine the appropriate interest rate.

9. Through a blockchain system, a lender or any agent can know, based on the identity of the owner of such encrypted address (which is recorded in the blockchain as described in claim 6), whether rules, regulations, and laws permit lending to such borrowers (as described in claims 7 and 8).

10. The method according to claim 1, wherein, Electronic communications can be sent by a company or other individual / entity to nodes and / or miners in a blockchain system to indicate how many shares of a company the owner of a cryptographic address owns.

11. The owner of the encrypted address (as described in claim 10) may: Transferring share ownership directly on the blockchain; Create a conditional transaction, specifying the name and quantity of the shares to be transferred, the encrypted address of the recipient, the time of the transfer, and the conditions under which the transfer should occur; as well as Transferring ownership of company shares to a smart contract and locking the shares therein (to obtain a mortgage loan or anything else feasible within the smart contract), awaiting contract execution and settlement, is similar to sending a certain amount of coins into a smart contract.

12. The method according to claim 1, wherein, Electronic communication can digitally register all or part of the ownership of assets, property, rights and other things on the blockchain, thereby realizing segmented ownership on the blockchain, as well as its transfer and transaction.

13. The method according to claim 1, wherein, Electronic communications can contain not only simple descriptions of single facts or events, but also a set of discrete or continuous data to describe facts and outcomes across multiple dates, times, or consecutive time periods (such as price changes of goods).

14. The method according to claim 1, wherein, Electronic communication can include not only text or numbers in any natural language, but also any information that can be represented in a computer system, including photos in a passport, biometric information (fingerprints, irises, etc.), audio, video, etc.

15. The method according to claim 1, wherein, Electronic communication does not require specifying any target encrypted address, but can contain only information that is unrelated to any encrypted address.

16. The method according to claim 1, wherein, Electronic communication can record arranged events and what happens in the blockchain. These arranged events and what happens can be used as conditions and results to influence or determine related transactions or smart contracts in the blockchain, because smart contracts, as well as any type of contract and conditional transaction and blockchain system, can be pre-programmed to understand how to execute and settle based on these arranged events and what happens.

17. The recorded information (as described in claim 3) can be used on the blockchain for the registration, reference, transfer, transaction, verification, instruction, enforcement, and other uses and agreements of ownership of any asset, property, right, and any other thing (recorded on the blockchain).

18. The method according to claim 1, wherein, Electronic communications can be sent by government agencies, private companies, or other individuals / entities to nodes and / or miners in a blockchain system, instructing whether, how, when, under what conditions, and to what extent transactions occur in accordance with laws, regulations, and other rules.

19. The method according to claim 1, wherein, Law enforcement agencies or other individuals / entities may send electronic communications to nodes and / or miners of a blockchain system to request the freezing, confiscation, supervision, revocation, or suspension of all or part of the balance (ownership of cryptocurrency, real estate, stocks, or other assets) or rights or other things in a crypto address, even if the balance or rights or other things are already locked in a smart contract or conditional transaction, because such smart contracts or conditional transactions and / or the blockchain system can be pre-programmed to handle such unforeseen circumstances.

20. The method according to claim 1, wherein, Law enforcement agencies or other individuals / entities may send electronic communications to nodes and / or miners in a blockchain system to request the unfreezing of frozen balances, the return of confiscated balances, the restoration or cancellation of regulatory or restrictive conditions on the rights of crypto address owners, or other such matters.

21. The method according to claim 1, wherein, Electronic communications (sent by border officials or other agencies, businesses or other individuals / entities) to nodes and / or miners in a blockchain system can indicate that the owner of a cryptographic address has entered or is located within a jurisdiction.

22. All activities of the encrypted address (as described in claim 21) may be required to comply with the rules, laws and regulations of the jurisdiction (as described in claim 21), which are encoded in the node and / or miner's software / database and / or blockchain.

23. The method according to claim 1, wherein, Electronic communications (sent by border officials or other agencies, businesses, or other individuals / entities) to nodes and / or miners in a blockchain system can indicate that the owner of a crypto address has left the jurisdiction, which can be used to remove the crypto address from the rules, laws, and regulations applicable in the jurisdiction.

24. The method according to claim 1, wherein, A hierarchical system can be implemented to grant certain accounts higher privileges than others, enabling them to send electronic communications to nodes and / or miners in the blockchain system, thereby: Revoke, suspend, or restore the ability of these subordinate accounts to send valid electronic communications to nodes and / or miners in the blockchain system; Add, delete, change, relax, or tighten these restrictions on the account; as well as Grant new accounts (which may not even exist in the blockchain, node software / database, or miner software / database) permission to send certain electronic communications.

25. The method according to claim 1, wherein, Electronic communications can be sent to nodes and / or miners in a blockchain system to invalidate, declassify, correct, modify, or abolish records and instructions previously recorded in the blockchain.

26. The method according to claim 1, wherein, The original creators of the blockchain or nodes and / or miners can set, add, change, or update rules regarding electronic communication in the node and / or miner software / database and / or blockchain through simple majority voting (from nodes or miners or coin holders or any combination of the three) or other consensus mechanisms, or in accordance with rules, laws, and regulations, to: Correcting errors and updating existing recorded electronic communications; This enables the system to cope with unexpected events and attacks; as well as The ability to revoke, suspend, or restore an account's ability to send valid electronic communications to nodes and / or miners in the blockchain system.