Method and System for Associating Blockchain-Based Assets with Fiat Currency Accounts

Abstract

A method for managing fractional reserves of blockchain currency, comprising: storing a fiat amount associated with fiat currency in a first central account; storing a blockchain amount associated with blockchain currency in a second central account; storing a plurality of account profiles, each account profile including a fiat currency amount, a blockchain currency amount, an account identifier, and an address; receiving a transaction message associated with a payment transaction, formatting the transaction message based on one or more criteria and the transaction message including a plurality of data elements, which includes data elements reserved for private use, the data elements reserved for private use including a specific address and a transaction amount; identifying a specific account profile including the specific address, the specific address being included in the data elements in the received transaction message; and updating the blockchain currency amount included in the identified specific account profile based on the transaction amount included in the data elements in the received transaction message.

Description

[0001] Cross - Reference to Related Applications

[0002] This divisional application is a divisional application of a Chinese patent application with application number 201680042817.2, filing date May 6, 2016, and invention title "Method and System for Associating Blockchain - Based Assets with Fiat Currency Accounts".

[0003] The parent application of this divisional application claims the priority of U.S. Patent Application No. 14 / 719,047 filed on May 21, 2015, the content of which is incorporated herein by reference in its entirety. Technical Field

[0004] This disclosure relates to the management of fractional reserves of blockchain currency, and particularly to the use of a centralized account to manage fractional reserves of fiat currency and blockchain currency updated by transaction messages corresponding to fiat - and blockchain - based payment transactions. Background Art

[0005] Recently, consumers who value anonymity and security are using blockchain currency more than traditional fiat currency. Currencies using blockchain (e.g., cryptocurrencies) provide consumers with a decentralized, relatively anonymous, and secure currency when in use. For example, transactions recorded on the blockchain may not require any information about the sender or receiver of the currency, so the payer and payee of the transaction can remain anonymous. This aspect of blockchain transactions may be highly desirable for consumers who wish to maintain their privacy and can help reduce the likelihood of fraud due to theft of their information.

[0006] However, although blockchain currency can generally provide such reliability and security for the payer's information, this security may be limited for the payee, especially due to the limitations of the blockchain. For example, due to the computer processing time and resources required to verify and update the blockchain, processing blockchain - based transactions often takes a significant amount of time (about ten minutes). In contrast, the processing time of traditional fiat payment transactions processed using a payment network is typically measured in nanoseconds. Thus, consumers and merchants accustomed to fast transaction times are often forced to wait a long time for blockchain transactions to be conducted, or the payee must rely on the payer's good faith that their transfer will be valid. In such a latter case, the payee cannot identify the payer, which may prevent the payee from using various risk or fraud detection methods. Thus, the anonymity of the blockchain may put the payee at a disadvantage. As a result, many entities, especially merchants, retailers, service providers, and other goods and service providers, may be cautious about accepting blockchain currency for products and participating in blockchain transactions.

[0007] In addition, consumers themselves may often be reluctant to use blockchain currency. Since blockchain currency is decentralized and relies on the blockchain to track which accounts can access how much currency amount, it may be difficult for consumers to adopt and even understand blockchain currency, especially when compared with the known and understood traditional fiat currency and accounts. This may be particularly troublesome for consumers who are used to having their currency held in accounts by financial institutions. The nature of blockchain currency is that access to any given address associated with the currency is controlled based on the possession of an electronic voucher (commonly referred to as an electronic wallet, e-wallet or simply "wallet"). Therefore, if the wallet is lost, discarded or stolen, the associated currency usually cannot be recovered by the legitimate owner and can be used without their knowledge and permission. In addition, due to the anonymity of the blockchain, consumers may not be able to prove their identity and ownership of the wallet, so if their wallet and / or the associated currency is stolen, there is little recourse.

[0008] Accordingly, there is a need to improve the storage and processing of transactions using blockchain currency. Existing payment networks and payment processing systems using fiat currency have been specifically designed and configured to securely store and protect the information and vouchers of consumers and merchants and to transfer sensitive data between computing systems. In addition, existing payment systems are typically configured to execute complex calculations, risk assessments, and fraud algorithm applications at extremely high speeds to ensure the rapid processing of fiat currency transactions. Therefore, traditional payment network and payment system technologies, when used in combination with blockchain currency, can provide consumers and merchants with the benefits of a decentralized blockchain while still maintaining the security of account information and providing strong protection against fraud and theft. Summary of the Invention

[0009] The present disclosure provides a description of systems and methods for managing fractional reserves of blockchain currency.

[0010] A method for managing fractional reserves of blockchain currency, comprising: storing at least a fiat amount associated with fiat currency in a first central account; storing at least a blockchain amount associated with blockchain currency in a second central account; storing a plurality of account profiles in an account database, wherein each account profile includes data associated with a consumer, the data including at least a fiat currency amount, a blockchain currency amount, an account identifier, and an address; receiving, by a receiving device, a transaction message associated with a payment transaction, wherein the transaction message is formatted based on one or more criteria and the transaction message includes a plurality of data elements, which include at least a data element reserved for private use, the data element reserved for private use including a specific address and a transaction amount; identifying, by a processing device, a specific account profile stored in the account database, wherein the included address corresponds to the specific address included in the data elements of the received transaction message; and updating, by the processing device, the blockchain currency amount included in the identified specific account profile based on the transaction amount included in the data elements of the received transaction message.

[0011] A system for managing fractional reserves of blockchain currency, comprising a central database, an account database, a receiving device, and a processing device. The central database is configured to store: a first central account that includes at least a fiat amount associated with fiat currency; and a second central account that includes at least a blockchain amount associated with blockchain currency. The account database is configured to store a plurality of account profiles, wherein each account profile includes data associated with a consumer, the data including at least a fiat currency amount, a blockchain currency amount, an account identifier, and an address. The receiving device is configured to receive a transaction message associated with a payment transaction, wherein the transaction message is formatted based on one or more criteria and the transaction message includes a plurality of data elements, which include at least a data element reserved for private use, the data element reserved for private use including a specific address and a transaction amount. The processing device is configured to: identify a specific account profile stored in the account database, wherein the included address corresponds to the specific address included in the data elements of the received transaction message; and update the blockchain currency amount included in the identified specific account profile based on the transaction amount included in the data elements of the received transaction message. Brief Description of the Drawings

[0012] The scope of the present disclosure can be best understood from the following detailed description of exemplary embodiments when read in conjunction with the accompanying drawings. The accompanying drawings include the following figures:

[0013] Figure 1is a block diagram showing a high-level system architecture according to an exemplary embodiment for managing blockchain currency storage and its association with privately verified identities and its use in processing blockchain transactions using a payment network.

[0014] Figure 2 is a block diagram showing according to an exemplary embodiment Figure 1 of a processing server for authorizing blockchain transactions and associating blockchain transactions with privately verified identities.

[0015] Figure 3 is a block diagram showing according to an exemplary embodiment Figure 1 of an issuer for managing fractional reserves of fiat and blockchain currency.

[0016] Figure 4 is a flowchart showing a process for authorizing blockchain transactions using transaction messages and a payment network according to an exemplary embodiment.

[0017] Figure 5 is a flowchart showing a process for authorizing blockchain transactions using Figure 2 a processing server according to an exemplary embodiment.

[0018] Figure 6 is a block diagram showing the generation of an invoice included in a reserved data element of a transaction message containing blockchain transaction details according to an exemplary embodiment.

[0019] Figure 7 is a flowchart showing a process for associating blockchain transaction data with a privately verified identity according to an exemplary embodiment.

[0020] Figure 8 is a flowchart showing a process for managing fractional reserves of fiat and blockchain currency according to an exemplary embodiment.

[0021] Figure 9 is a flowchart showing a process for authorizing blockchain transactions based on an identified risk value according to an exemplary embodiment.

[0022] Figure 10 is a flowchart showing an exemplary method for authorizing blockchain-based transactions according to an exemplary embodiment.

[0023] Figure 11 is a flowchart showing an exemplary method for associating blockchain transactions with a privately verified identity according to an exemplary embodiment.

[0024] Figure 12 is a flowchart showing an exemplary method for managing fractional reserves of blockchain currency according to an exemplary embodiment.

[0025] Figure 13 is a flowchart showing an exemplary method for authorizing blockchain transactions using risk values in accordance with an exemplary embodiment.

[0026] Figure 14 is a block diagram showing a computer system architecture in accordance with an exemplary embodiment.

[0027] Based on the detailed description provided below, other application areas of the present disclosure will become apparent. It should be understood that the detailed description of the exemplary embodiments is for illustrative purposes only and is not intended to limit the scope of the present disclosure. Detailed Description

[0028] Glossary

[0029] Payment network – A system or network for transferring money by using cash substitutes. The payment network can use various different protocols and procedures to handle money transfers for various types of transactions. Transactions that can be conducted through the payment network can include product or service purchases, credit purchases, debit transactions, fund transfers, account withdrawals, etc. The payment network can be configured to execute transactions through cash substitutes, which can include payment cards, letters of credit, checks, transaction accounts, etc. Examples of networks or systems configured to function as a payment network include those operated by American and so on. The term "payment network" as used herein can refer to a payment network as an entity and a physical payment network (e.g., the devices, hardware, and software that make up the payment network).

[0030] Transaction account - A financial account that can be used to fund transactions, such as a checking account, savings account, credit account, virtual payment account, etc. The transaction account can be associated with a consumer, who can be any suitable type of entity associated with a payment account, which can include individuals, families, companies, enterprises, government entities, etc. In some cases, the transaction account can be virtual, such as an account operated by and so on.

[0031] A blockchain - a public ledger of all transactions of blockchain - based currency. One or more computing devices can include a blockchain network, which can be configured to process transactions and record them as part of a block in the blockchain. Once a block is completed, the block is added to the blockchain and thus the transaction record is updated. In many cases, the blockchain can be a ledger of transactions in chronological order, or can be presented in any other order suitable for use by the blockchain network. In some configurations, the transactions recorded in the blockchain can include a destination address and an amount of currency, such that the blockchain records how much currency is attributable to a particular address. In certain cases, other information such as a source address, a timestamp, etc. can be captured.

[0032] System for Using Blockchain Currency in a Payment Network

[0033] Figure 1 System 100 for managing blockchain currency and fiat currency and their use in payment transactions using a traditional payment network is shown, the management including associating a verified identity to a blockchain - based transaction and assessing risk in the blockchain - based transaction.

[0034] In system 100, a blockchain transaction can occur between the computing device of payer 102 and the computing device of payee 104. As used herein, a "payer" can refer to a computing device and / or consumer providing funds for a payment transaction, and a "payee" can refer to a computing device and / or consumer receiving payment in a payment transaction. The blockchain transaction can be processed by one or more computing devices including blockchain network 106. The blockchain network can receive at least a destination address (e.g., associated with payee 104) and an amount of blockchain currency, and can process the transaction by generating a block added to the blockchain containing the transaction record.

[0035] The computing device of payer 102 can digitally sign a transaction request using an encryption key stored in the computing device (e.g., stored in an e - wallet). The digital signature can be an address generated using the encryption key, can include an address generated using the encryption key, or can otherwise be associated with an address generated using the encryption key, which can be associated with the blockchain currency in the blockchain and can be used to transfer the blockchain currency to an address associated with payee 104 and / or their computing device. In some embodiments, the address can be encoded using one or more hashing and / or encoding algorithms (e.g., Base58Check encoding algorithm). The generation and use of addresses to transfer blockchain currency in blockchain - based transactions using blockchain network 106 will be apparent to those skilled in the relevant art.

[0036] System 100 may also include a payment network 108. The payment network 108 may be configured to process payment transactions using methods and systems that are apparent to those skilled in the relevant arts. In system 100, the payment network 108 may also include a processing server 110. The processing server 110, discussed in more detail below, may be configured to authorize blockchain-based transactions using the payment network 108 and traditional payment rails, may be configured to associate blockchain transactions with a privately verified identity including a fiat transaction account and / or a blockchain transaction account, and may be configured to provide risk and sanctions assessments for blockchain transactions.

[0037] The payer 102 may be associated with an issuer 112. The issuer 112, discussed in more detail below, may be a computing system of a financial institution (e.g., an issuing bank) that issues one or more transaction accounts to the payer 102. The transaction accounts may include one or more fiat currency transaction accounts, one or more blockchain currency transaction accounts, one or more combined currency transaction accounts, or any combination thereof. For example, the payer 102 may have a transaction account with the issuer 112 for fiat and blockchain currency and an additional fiat currency transaction account.

[0038] The payee 104 may be associated with an acquirer 114. The acquirer 114 may be a computing system of a financial institution (e.g., an acquiring bank) that issues one or more transaction accounts to the payee 104. The acquirer 114 may be the equivalent of the issuer 112, but with respect to the payee 104 rather than the payer 102. In some cases, the issuer 112 and the acquirer 114 may be the same financial institution. For example, the issuer 112 may provide transaction accounts to both the payer 102 and the payee 104.

[0039] The payer 102 may conduct a blockchain transaction with the payee 104. As part of the blockchain transaction, the payee 104 may generate a destination address for receiving payment in blockchain currency. The destination address may be generated using an encryption key stored in the payee 104's computing device. The encryption key may be part of a key pair, e.g., a public key corresponding to a private key stored in the computing device. In some cases, the payee 104 may provide the public key to the payer 102, and the payer 102 may generate the destination address. The payer 102 may then submit a transaction request to pay an agreed-upon amount of blockchain currency to the destination address provided by the payee 104. In a traditional blockchain transaction, the transaction request may be submitted to the blockchain network 106 by a computing device. In this system 100, the transaction request may be submitted to the processing server 110 of the payment network 108.

[0040] A transaction request can be a transaction message and can be formatted based on one or more criteria for its management (e.g., the ISO 8583 standard of the International Organization for Standardization). In some cases, the processing server 110 can receive a transaction request and can generate a subsequent transaction message. The transaction message can include a plurality of data elements, and the plurality of data elements can be associated with a specific use based on one or more criteria. For example, the data elements can include a data element for storing the transaction amount and also include at least one data element reserved for private use. In the system 100, the transaction message submitted to the processing server 110 can include a data element reserved for private use, which includes data associated with a desired blockchain transaction.

[0041] For example, the data element reserved for private use can include a network identifier, a transaction amount, and at least one of the following: a public key and an address identifier. The network identifier can be associated with the blockchain network 106, which is associated with the blockchain currency transferred in the transaction. The processing server 110 can use the network identifier to identify the associated blockchain network 106 for posting the final blockchain transaction. Additionally, by using different identifiers, the processing server 110 can be configured to perform the functions discussed herein for multiple different blockchain currencies and associated blockchain networks 106.

[0042] The transaction amount can be the amount of the blockchain currency transferred as a result of the transaction. The address identifier can be the destination address of the blockchain currency provided by the payee 104 or generated by the payer 102 using information provided by the payee 104 (e.g., their public key). In the case where the data element includes a public key (e.g., associated with the payee 104) instead of an address identifier, the processing server 110 can be configured to generate an address identifier using the public key. In some cases, one or more hashing and / or encoding algorithms (e.g., the Base58Check algorithm) can be used to encode the address identifier.

[0043] In some embodiments, the transaction message can include information for a plurality of payees 104. In such embodiments, the data element reserved for private use can include a plurality of transaction amounts and associated address identifiers and / or public keys. In another embodiment, the transaction message can include a plurality of data elements reserved for private use, where each data element includes a transaction amount and a different address identifier and / or public key associated with the payee 104. In some cases, one of the payees 104 can be the payer 102. For example, a blockchain transaction can include the remaining amount of the blockchain currency to be retained by the payer 102 and can further include a transfer from the input address of the payer 102 to the destination address, which will be apparent to those skilled in the relevant art.

[0044] In some embodiments, data elements reserved for private use or alternative data elements reserved for private use in a transaction message may include input information associated with the payor 102. The input information may include a transaction identifier associated with a previous blockchain transaction and a public key and digital signature associated with the payor 102. The digital signature may be generated using a private key corresponding to the public key and may be used to verify the payor 102's ownership of the blockchain currency amount associated with the transaction identifier in order to authorize the payor 102 to transfer blockchain currency in the requested transaction.

[0045] In some cases, the transaction message may be submitted by the payor 102 to the processing server 110. In other cases, the payor 102 may provide the transaction information to the issuer 112, and the issuer 112 may generate the transaction message and submit it to the processing server 110. Once the processing server 110 receives the transaction message, the processing server 110 may perform additional functions, such as risk or sanctions assessment, as discussed in more detail below. Subsequently, the corresponding blockchain transaction may be processed using the blockchain network 106 based on the information included in the data elements reserved for private use. In some embodiments, the blockchain transaction may be initiated by the processing server 110. In other embodiments, the processing server 110 may provide the transaction message or the data included therein to the issuer 112, and the issuer 112 may initiate the blockchain transaction, for example, after assessing the risk of the transaction as described below, assessing whether the payor 102 has sufficient blockchain currency for the transaction, and so on.

[0046] For example, as discussed in more detail below, the issuer 112 may manage a fractional reserve of fiat currency and blockchain currency, which may include storing the currency associated with the payor 102. The issuer 112 may store a transaction account for the blockchain currency associated with the payor 102 such that when the payor 102 attempts to transact, the issuer 112 may verify the payor 102's available funds before initiating the blockchain transaction, which may be before and / or after submitting the transaction message to the processing server 110 and before submitting the transaction request to the blockchain network 106.

[0047] In another example, the issuer 112 may evaluate the risk of a transaction based on an evaluation provided by the processing server 110 or an evaluation performed by the issuer 112 (e.g., based on the payer's available funds, credit history, or other fraud, sanctions, and risk considerations that would be apparent to one of ordinary skill in the relevant art). In some embodiments, the acquirer 114 may evaluate the risk of a transaction before it is processed by the blockchain network 106. For example, as discussed in more detail below, the acquirer 114 may evaluate the reliability of the payer 102, the expected fraud, etc. based on data provided by the issuer 112, the processing server 110, or a third-party entity. In some cases, the payer 102 may decline to use refund or payment protection in exchange for a discount offered by the payee 104 (e.g., a merchant), which may be beneficial to the merchant 104 due to reduced fees. In other cases, the payee 104 may decline to use risk assessment and other protections for a transaction.

[0048] In some embodiments, the issuer 112 and / or the processing server 110 may be further configured to store private keys on behalf of the payer 102 and / or the payee 104. In such embodiments, the private keys may be stored such that the issuer 112 and / or the processing server 110 may initiate blockchain transactions on behalf of the payer 102 and digitally sign the blockchain transactions, such that the payer 102 does not need to retain ownership of the computing device used for the blockchain transaction. For example, the issuer 112 may store the private key and any transaction identifiers associated with the payer 102 (e.g., in their blockchain currency account) on behalf of the payer 102, and may be configured to generate a digital signature and include the generated signature and transaction identifier in a transaction message for a blockchain transaction involving the payer 102.

[0049] In some embodiments, the processing server 110 may be further configured to associate a blockchain transaction with a privately verified identity, e.g., with the payer 102, the payee 104, or a transaction account associated therewith. For example, the processing server 110 may store account information for transaction accounts associated with the payer 102 (e.g., held by the issuer 112) and the payee 104 (e.g., held by the acquirer 114), which may include address identifiers. The processing server 110 may then associate the blockchain transaction with the stored account information using the account identifiers included therein and the account identifiers included in the data elements of the received transaction message. The processing server 110 may thereby store historical transaction data for blockchain transactions made by an individual. In cases where an individual may have a combined currency transaction account of fiat currency and blockchain currency, the processing server 110 may thus store the transaction history of the consumer's fiat transactions and blockchain transactions.

[0050] Accordingly, the methods and systems discussed herein provide for the processing of blockchain transactions using transaction message transmission and traditional payment networks, which can provide significant benefits to consumers and financial institutions that are not currently available for blockchain transactions. By using highly regulated and secure traditional payment rails and transaction messages, transaction information can be transmitted at a higher level of security than current methods used in blockchain transactions. Additionally, the storage of private keys in financial institutions and / or payment networks can enable consumers to participate in blockchain transactions without having to always hold the computing device storing their private keys. This can reduce the risk of a consumer's blockchain currency being stolen by entrusting the data to such a financial institution or payment network that is specialized in storing sensitive financial information and has the ability to transmit and analyze transaction messages well.

[0051] Moreover, by using a payment network to process blockchain transactions, the payment network can use existing fraud and risk algorithms and information available to the payment network (e.g., historical fiat and blockchain transaction data, credit bureau data, demographic information, etc. that are not available in blockchain network 106) to evaluate the likelihood of fraud and assess the risk of blockchain transactions. Accordingly, payer 102 and payee 104 can have enhanced protection against fraud and risk when participating in blockchain transactions. Additionally, the risk assessment can be used by financial institutions to provide funds or their instructions to the payee (e.g., a merchant that provides a product to the payer) on behalf of the consumer without having to wait for the long processing times required for traditional blockchain transactions.

[0052] For example, a consumer may wish to pay for a product at a merchant using blockchain currency. In a traditional blockchain transaction, the merchant must wait at least ten minutes for the transaction to be verified (e.g., and the merchant is assured of the consumer's ability to pay) or risk providing the product without receiving payment. By using the methods and systems discussed herein, the merchant's acquiring bank can evaluate the risk of the transaction to determine whether the product should be provided before waiting for the verification of the blockchain transaction. Additionally, if a financial institution stores the blockchain currency for the consumer, the financial institution (a trusted and verified entity) can assure the acquirer that the consumer has sufficient funds, such that the merchant can immediately provide the product to the consumer. Moreover, if the financial institution manages a fractional reserve of the blockchain currency, the financial institution can immediately update the consumer's available currency accordingly, such that the consumer can participate in a series of transactions without waiting for the blockchain network to verify.

[0053] Accordingly, the methods and systems discussed herein can provide significant improvements over traditional blockchain transaction processing by using fractional reserves, transaction messages, risk assessment, and payment network processing, by enhancing consumer security, significantly reducing processing times, and providing significantly enhanced protection against fraud.

[0054] Processing Server

[0055] Figure 2 An embodiment of the processing server 110 of the system 100 is shown. It will be apparent to those skilled in the relevant art that Figure 2 the illustrated embodiment of the processing server 110 is merely exemplary and does not exhaust all possible configurations of the processing server 110 suitable for performing the functions discussed herein. For example, Figure 14 the computer system 1400 shown and discussed in more detail below may be a suitable configuration of the processing server 110.

[0056] The processing server 110 may include a receiving unit 202. The receiving unit 202 may be configured to receive data via one or more network protocols over one or more networks. The receiving unit 202 may be configured to receive transaction information formatted according to one or more standards (e.g., ISO 8583 standard) for exchanging transaction messages and thus using the communication protocol associated with the standard from the issuer 112, the acquirer 114, the payer 102, and other entities. The receiving unit 202 may also receive transaction requests from the issuer 112, the acquirer 114, and / or the payer 102. The receiving unit 202 may also be configured to receive account information of transaction accounts from financial institutions such as the issuer 112 and the acquirer 114, and the transaction accounts may include fiat currency accounts and blockchain currency accounts. The receiving unit 202 may further be configured to receive any additional data suitable for performing the functions disclosed herein, such as data that may be used in the risk assessment of blockchain transactions (e.g., credit bureau information, demographic characteristics, etc.).

[0057] The processing server 110 may also include a processing unit 204. It will be apparent to those skilled in the relevant art that the processing unit 204 may be configured to perform the functions of the processing server 110 discussed herein. When the receiving unit 202 receives a transaction request for a blockchain transaction, the processing unit 204 may be configured to identify the data contained in the transaction request and generate a transaction message based thereon. The generated transaction message may conform to one or more standards (e.g., ISO 8583 standard) and may include a plurality of data elements. The data elements may include a data element configured to store the transaction amount and a data element reserved for private use. The processing unit 204 may be configured to store a zero value in the data element configured to store the transaction amount, and may be configured to store at least a network identifier or an encoded value based on the network identifier, an address identifier, and the transaction amount in the data element reserved for private use.

[0058] In some embodiments, the processing unit 204 may be further configured to generate an address identifier. In such embodiments, the processing unit 204 may use the public key included in the received transaction request to generate a destination address. The destination address may be the address identifier, or in some cases, one or more hashing and / or encoding algorithms (e.g., Base58Check encoding) may be used to encode the destination address to generate the address identifier.

[0059] The processing server 110 may further include a sending unit 206. The sending unit 206 may be configured to send data via one or more network protocols over one or more networks. The sending unit 206 may send a data request to the issuer 112, the acquirer 114, the payer 102, or other entities. The sending unit 206 may also be configured to use the payment network 106 to send the generated transaction message to financial institutions such as the issuer 112 and the acquirer 114. In some embodiments, the sending unit 206 may also, based on the information received by the receiving unit 202 and generated by the processing unit 204, send a blockchain transaction request to the blockchain network 106 for use in a blockchain transaction. For example, the sending unit 206 may send a transaction message to the issuer 112, and the issuer 112 may approve the corresponding blockchain transaction indicated in the approval received by the receiving unit 202. The sending unit 206 may then send the blockchain transaction to the blockchain network 106 using methods and systems that will be apparent to those skilled in the relevant art.

[0060] In some embodiments, the processing server 110 may further include an account database 208. The account database 208 may be configured to store a plurality of account profiles 210. Each account profile 210 may include data related to a consumer (e.g., the payer 102, the payee 104, etc.) or a transaction account associated therewith, including at least an account identifier, a fiat currency amount, and one or more blockchain currency amounts. Each blockchain currency amount may be associated with the blockchain network 106. The account identifier may be a unique value associated with the account profile 210 for its identification, such as a transaction account number, a wallet identifier, a device identifier, a username, an email address, a phone number, etc. In some embodiments, the account identifier may be a private key. The account profile 210 may also include a plurality of associated address identifiers used in blockchain transactions related to the relevant consumer and / or transaction account.

[0061] In such an embodiment, the receiving unit 202 may be further configured to receive a transaction message of a blockchain transaction. The transaction message may include a data element configured to store a personal account and a data element reserved for private use, the personal account including a specific account identifier, and the data element reserved for private use including at least a network identifier and a transaction amount. The processing unit 204 may be configured to identify a specific account profile 210 including the specific account identifier stored in the account database 208. The processing unit 204 may be further configured to identify a risk value of the blockchain transaction. The risk value may be based on the transaction amount included in the data element reserved for private use and the data included in the identified specific account profile 210.

[0062] For example, the risk value may be based on the correspondence between the transaction amount and the blockchain currency amount of the specific account profile 210, and the specific account profile 210 is associated with the blockchain network 106 corresponding to the network identifier included in the data element reserved for private use. In some cases, the risk value may also be based on the amount of the corresponding fiat currency, for example, based on one or more conversion rates associated with the conversion of fiat currency to the corresponding blockchain currency / the corresponding blockchain currency to fiat currency.

[0063] The processing unit 204 may also be configured to determine the authorization of the blockchain transaction based on the identified risk value. For example, if the processing unit 204 identifies that the blockchain transaction has a high risk value (e.g., indicating a high likelihood of fraud, sanctions, inability to pay, etc.), the processing unit 204 may determine that the transaction should be rejected. The processing unit 204 may modify the transaction message to include the determination, and the sending unit 206 may be configured to send the transaction message to the issuer 112 and / or the acquirer 114. Then, the financial institution may continue to process the transaction accordingly based on the determination. As part of the processing, the receiving unit 202 may receive an authorization response from the financial institution, and the sending unit 206 may forward the response as a reply to the received transaction message, and may also (e.g., if the transaction is approved) initiate a blockchain transaction with the blockchain network 106.

[0064] In some embodiments, the processing unit 204 may also be configured to associate blockchain transactions with account profiles 210 stored in the account database 208. In such an embodiment, the transaction message of the blockchain transaction received by the receiving unit 202 may at least include a first data element configured to store a personal account number, a second data element configured to store a merchant identifier, and a third data element that may be reserved for private use and is configured to store at least a blockchain network identifier. The processing unit 204 may identify a first account profile 210 in which the included account identifier corresponds to the personal account number and a second account profile 210 in which the included account identifier corresponds to the merchant identifier.

[0065] The receiving unit 202 may also receive a transaction notification indicating a blockchain transaction processed using the blockchain network 106 associated with the blockchain network identifier included in the third data element of the received transaction message. The transaction notification may at least include a transaction identifier and an address identifier. The address identifier may be associated with the identified first account profile 210 or the identified second account profile 210. The processing unit 204 may then store the association between the transaction identifier and the account identifier included in the account profile 210 associated with the address identifier. In some cases, the association may be stored by storing the transaction identifier in the corresponding account profile 210, which may thus be used in future blockchain transactions involving the associated transaction accounts. In some cases, the sending unit 206 may send the transaction identifier to a financial institution associated with the associated account so that the financial institution can store the transaction identifier for use in future blockchain transactions. In some cases, the processing unit 204 may store the transaction data included in the transaction message in the first and / or second account profiles 210.

[0066] In some embodiments, the processing server 110 may also include a transaction database 212. The transaction database 212 may be configured to store a plurality of transaction data entries 214. Each transaction data entry 214 may include data related to a payment transaction, which may be a fiat currency transaction or a blockchain currency transaction. Each transaction data entry 214 may include a transaction message, a transaction notification, and / or data included therein, such as transaction time and / or date, transaction identifier, source address, destination address, transaction amount, merchant data, consumer data, product data, loyalty data, reward data, etc. In some cases, the transaction data entry 214 may be stored in the account profile 210 related to the transaction account involved in the associated payment transaction.

[0067] The processing server 110 may also include a memory 216. The memory 216 may be configured to store data suitable for use by the processing server 110 in performing the functions disclosed herein. For example, the memory 216 may store one or more hashing algorithms for encoding address identifiers, one or more rules for generating address identifiers, blockchain network data, rules and / or algorithms for calculating risk values, fiat and blockchain currency conversion algorithms or data, and the like. Additional data that may be stored in the memory 216 will be apparent to those skilled in the relevant art.

[0068] Financial Institution

[0069] Figure 3 An embodiment of a financial institution (e.g., the issuer 112) of the system 100 is shown. It will be apparent to those skilled in the relevant art that Figure 3 the embodiment of the issuer 112 shown is merely exemplary and does not exhaust all possible configurations of the issuer 112 suitable for performing the functions discussed herein. For example, Figure 14 the computer system 1400 shown and discussed in more detail below may be a suitable configuration for the issuer 112.

[0070] The issuer 112 may include a central database 308. The central database 308 may be configured to store a plurality of central accounts 310. Each central account 310 may be associated with a type of currency and may include a corresponding currency amount. For example, the issuer 112 may include at least a first central account 310 associated with fiat currency and including a fiat currency amount and a second central account 310 associated with blockchain currency and including a blockchain currency amount.

[0071] The issuer 112 may also include an account database 312. The account database 312 may be configured to store a plurality of account profiles 314. Each account profile 314 may be configured to store data related to a consumer (e.g., the payer 102) or a transaction account, including at least a fiat currency amount, a blockchain currency amount, an account identifier, and one or more addresses. Each address may be associated with the account profile 314 and may be used as a destination address when transferring blockchain currency to the relevant consumer and / or transaction account.

[0072] The issuer 112 may further include a receiving unit 302. The receiving unit 302 may be configured to receive data via one or more network protocols over one or more networks. The receiving unit 302 may receive addresses from the payer 102, payee 104, acquirer 114, processing server 110, etc., which may be stored in the corresponding account profile 314. The receiving unit 302 may also be configured to receive transaction messages related to payment transactions. The transaction messages may be formatted according to one or more standards such as the ISO 8583 standard and may be transmitted to the issuer 112 using relevant communication protocols and communication channels (e.g., the payment network 108 and / or related payment rails). The transaction messages may include a plurality of data elements, at least including data elements reserved for private use including a specific address and a transaction amount.

[0073] The issuer 112 may further include a processing unit 304. The processing unit 304 may be configured to perform the functions of the issuer 112 discussed herein, which will be apparent to those skilled in the relevant art. The processing unit 304 may identify a specific account profile 314 stored in the account database, the specific account profile 314 including the address included in the received transaction message. The processing unit 304 may then update the blockchain currency amount included in the identified account profile 314 based on the transaction amount in the data elements reserved for private use included in the received transaction message. The processing unit 304 may also update the blockchain currency amount in the central account 310 in the central database 308 associated with the blockchain currency.

[0074] In the case where the transaction account related to the account profile 314 stored in the account database 312 can fund a blockchain transaction, the processing unit 304 may be configured to deduct the transaction amount from the blockchain currency amount in the identified account profile 314. The processing unit 304 may also update the blockchain currency amount included in the corresponding central account 310 stored in the central database 308. The processing unit 304 may further be configured to perform the same function using fiat currency or an additional quantity and / or type of blockchain currency.

[0075] In some embodiments, each account profile 314 may be further configured to store one or more cryptographic keys, such as a private key and public key pair. In such embodiments, the processing unit 304 may be configured to generate an address using the public key stored in the account profile 314 for use as a destination address in a blockchain transaction. The processing unit 304 may also be configured to provide a digital signature for transferring blockchain currency from a specific account profile 314 using the private key included therein.

[0076] In some embodiments, the issuer 112 may be further configured to initiate a blockchain transaction using the payment network 108. In such an embodiment, the receiving unit 302 may receive a transaction request from the payor 102. The transaction request may include at least a destination address (e.g., a destination address associated with the payee 104), a network identifier, a blockchain currency amount, and an account identifier. The processing unit 304 may identify an account profile 314 that includes the account identifier. In some cases, the processing unit 304 may verify that the account profile 314 includes a sufficient amount of blockchain currency to support the transaction before proceeding. The processing unit 304 may identify a transaction identifier, address, or other identifier for funding the transaction in the blockchain transaction based on the data stored in the identified account profile 314. The processing unit 304 may also generate a digital signature using a private key stored therein. In some cases, the digital signature may be included in the received transaction request.

[0077] The processing unit 304 may then generate a transaction message. The transaction message may include data elements reserved for private use, which may include the destination address, the network identifier, and the blockchain currency amount. The data element or an alternative data element reserved for private use may include the digital signature and the transaction identifier or other identifier. In some cases, the transaction message may include a data element configured to store the transaction amount, and the transaction amount may include a zero amount, which indicates that the transaction is not for fiat currency but for a blockchain transaction. In some cases, a separate data element may indicate that the transaction is a blockchain transaction or a non-fiat currency transaction.

[0078] The issuer 112 may include a sending unit 306 configured to send data via one or more network protocols over one or more networks. The sending unit 206 may submit the generated transaction message to the processing server 110 for processing the blockchain transaction using the methods and systems discussed herein. In some cases, the receiving unit 302 may receive a modified transaction message from the processing server 110. For example, the processing server 110 may perform a risk assessment and may modify the transaction message to include an identified risk value and / or an authorization determination based on the identified risk value. The processing unit 304 may then approve or reject the transaction based on the data included in the modified transaction message using methods or systems that would be apparent to those skilled in the relevant art. The processing unit 304 may generate an authorization response, which may be submitted by the sending unit 306 to the processing server 110 and processed accordingly. For example, if the authorization response indicates approval, the processing server 110 may initiate a blockchain transaction at the blockchain network 106 and notify the payee 104 of the approval of the transaction.

[0079] The issuer 112 may also include a memory 316. The memory 316 may be configured to store data suitable for use by the issuer 112 in performing the functions disclosed herein. For example, the memory 316 may be configured to store rules or algorithms for authorizing transactions, converting fiat currency to blockchain currency / converting blockchain currency to fiat currency, generating blockchain addresses, generating digital signatures, and the like. Additional data that may be stored in the issuer 112 will be apparent to those skilled in the relevant art.

[0080] Process for Authorizing Blockchain Transactions in a Payment Network

[0081] Figure 4 A process 400 for authorizing blockchain transactions in a traditional payment network using the system 100 is shown.

[0082] In step 402, the processing server 110 of the payment network 108 may generate a transaction message for the blockchain transaction. As described above, the transaction message may be formatted based on one or more criteria, and the transaction message includes a plurality of data elements, including at least a first data element configured to store the transaction amount and a second data element reserved for private use. The first data element may store a zero amount, and the second data element may store a blockchain network identifier, the transaction amount of the blockchain currency, and an address identifier associated with the payee 104.

[0083] In step 404, the sending unit 206 of the processing server 110 may send the transaction message to the issuer 112 via the payment network 108. The receiving unit 302 of the issuer 112 may receive the transaction message using the relevant protocol, and in step 406, the processing unit 304 of the issuer 112 may check the authorization of the blockchain transaction. For example, the authorization may be based on sufficient funds of the payer 102 (e.g., based on the stored currency amount, based on the blockchain currency amount associated with the transaction identifier associated with the payer 102, etc.), or based on other criteria that will be apparent to those skilled in the relevant art. The processing unit 304 may generate an authorization response based on this determination, for example, an authorization response indicating approval or rejection of the transaction.

[0084] In step 408, the sending unit 306 of the issuer may send an authorization response message to the processing server 110 via the payment network 108. The receiving unit 202 of the processing server 110 may receive the authorization response, which may be a transaction message formatted based on one or more criteria and sent using the associated protocol, and in step 410, the processing unit 204 of the processing server 110 may evaluate the response code. The evaluation of the response code may include, for example, checking for approval or rejection, checking a reference identifier (e.g., related to the corresponding blockchain transaction, such as a transaction identifier), verifying transaction details, and the like.

[0085] In step 412, the sending unit 206 of the processing server 110 may forward a response message to the acquirer 114 via the payment network 108 and a protocol associated with the sending of the transaction message. In step 414, the issuer 112 may conduct a blockchain transaction, for example, by submitting a transaction request to an appropriate blockchain network 106 by using details included in the data elements reserved for private use in the received transaction message by utilizing the sending unit 306. In some cases, the issuer 112 may receive a transaction identifier from the blockchain network 106, and the processing unit 304 may include the transaction identifier in the authorization response message provided to the processing server 110, for example, by including it in a data element configured to store a reference identifier. In such a case, step 414 may be performed before steps 408 to 412. In step 416, the acquirer 114 may verify that the blockchain transaction has occurred, for example, by verifying the receipt of the blockchain currency, verifying the transaction using the transaction identifier, etc.

[0086] Processing of Blockchain-Based Transaction Messages

[0087] Figure 5 Illustrated is the processing of a transaction message associated with a blockchain transaction in the processing server 110 of the payment network 108.

[0088] In step 502, the receiving unit 202 of the processing server 110 may receive a transaction request, for example, from the payer 102 or the issuer 112. The transaction request may at least include a network identifier associated with the blockchain network 106, a transaction amount of the blockchain currency associated with the blockchain network 106, and a public key and / or an address identifier associated with the payee 104. In some embodiments, the transaction request may further include a transaction identifier and a digital signature associated with a private key associated with the payer 102. In other embodiments, for example, in the case where the processing server 110 may store the private key associated with the payer 102 (e.g., stored in the account profile 210 in the account database 208), the transaction request may include an account identifier.

[0089] In step 504, the processing unit 204 of the processing server 110 may determine whether the received transaction request includes an address identifier. If the transaction request does not include an address identifier, but includes, for example, a public key associated with the payee 104, then in step 506, the processing unit 204 may generate an address identifier for the payee 104. In some cases, step 506 may include the sending unit 206 of the processing server sending the generated address identifier to the payee 104.

[0090] Once the address identifier has been generated and / or recognized, at step 508, the processing unit 204 may determine whether the network identifier included in the received transaction request is encoded. If the network identifier is not encoded, at step 510, the processing unit 204 may encode the network identifier. The network identifier may be encoded by applying one or more algorithms configured to generate an encoded value such as a hexadecimal value to the network identifier included in the received transaction request.

[0091] Once the network identifier is encoded, at step 512, the processing unit 204 may generate a transaction message. The transaction message may be formatted based on one or more criteria associated with the transaction message (e.g., ISO 8583 standard). The transaction message may include a plurality of data elements. For example, the data elements may include a data element configured to store the transaction amount, which may include a zero amount or other value indicating a blockchain transaction; a data element configured to store a personal account number, which may include an account identifier associated with the payor 102; a data element configured to store a merchant identifier, which may include an account identifier associated with the payee 104 (e.g., it may be an address identifier); and a data element reserved for private use. The data element reserved for private use may at least include the encoded network identifier, the address identifier, and the transaction amount of the blockchain currency. In some embodiments, the data element reserved for private use or additional data elements reserved for private use may also include payor information, such as a transaction identifier and a digital signature associated with the payor 102, to verify the source of the blockchain currency used to fund the transaction. In some cases, the transaction message may also include a message type indicator that may indicate an authorization message.

[0092] At step 514, the sending unit 206 of the processing server 110 may send the transaction message to the issuer 112 associated with the payor 102 via the payment network 108. The issuer 112 may then use the data included in the transaction message to authorize and conduct the blockchain transaction. In some embodiments, process 500 may also include receiving an authorization response from the issuer 112 by the receiving unit 202 and processing the transaction accordingly by the processing unit 204. For example, if the authorization response indicates approval of the transaction, the processing unit 204 of the processing server 110 may initiate a blockchain transaction with the blockchain network 106 using the associated transaction information.

[0093] Blockchain Transaction Invoice

[0094] Figure 6Process 600 for generating an invoice for a blockchain transaction is shown. An invoice can be a data value, a container, an element, or other data storage type that can include data applicable to the initiation and processing of a blockchain transaction. As discussed herein, an invoice can be stored in a data element of a transaction message (e.g., a data element reserved for private use based on one or more standards such as the ISO 8583 standard).

[0095] As Figure 6 shown, an invoice can consist of a network identifier 602, a payee public key 604, and a transaction value 606. The network identifier 602 can be associated with the blockchain network 106 for processing blockchain transactions of the corresponding blockchain currency. For example, the network identifier 602 can be a unique value associated with the blockchain network 106, such as an alphanumeric name, a numerical value, an Internet protocol address, a media access control address, etc. The payee public key 604 can be the public key in a key pair associated with the payee 104 to whom the blockchain currency will be transferred as a result of the blockchain transaction. The transaction value 606 can be the transaction amount of the blockchain currency to be transferred as a result of the blockchain transaction.

[0096] The network identifier 602 can be encoded using one or more encoding algorithms 608 to obtain an encoded network value 612. The encoded network value 612 can be a hexadecimal value associated with the blockchain network 106. For example, the encoded network value 612 can be used in the identification of the blockchain network 106 to be used for a blockchain transaction. In some cases, the encoded network value 612 can consist of data used when transmitting a transaction request to the blockchain network 106, e.g., a destination address (e.g., an Internet protocol address), or information that a processing device (e.g., the processing server 110 or the processing device of the issuer 112) can use when identifying the destination address of the blockchain network 106 (e.g., by using a lookup table).

[0097] The payee public key 604 can be used to generate a payee address 614 by using one or more hashing algorithms 610. The payee address 614 can be a unique value associated with the payee 104 and can be used as the destination address for the currency to be transferred in subsequent blockchain transactions. In some embodiments, the hashing algorithm 610 can additionally and / or optionally use encoding (e.g., Base58Check encoding) to generate the payee address 614, which is an alphanumeric string consisting only of easily distinguishable characters.

[0098] The encoded network value 612, payee address 614, and transaction value 606 can be combined in the transaction message data element 616 (e.g., in a string, in a value array, or in other suitable types of data storage). For example, data element 616 can be a data element reserved for private use in one or more standards (e.g., ISO 8583 standard) on which the transaction message is based. An invoice can be included in data element 616, and data element 616 can be included in the transaction message and used to initiate a blockchain transaction to be executed by the blockchain network 106 associated with the network identifier 602 to pay the transaction value 606 to the payee 104 associated with the generated payee address 614.

[0099] Process for Associating Blockchain Transactions with Verified Identities

[0100] Figure 7 Process 700 for associating a blockchain transaction with a privately verified identity using the processing server 110 of the payment network 108 is shown. It will be apparent to those skilled in the art that process 700 discussed herein and shown in Figure 7 can be performed by any entity (e.g., issuer 112) configured to receive and analyze transaction messages and receive and use private and / or publicly available sources of blockchain transaction information (e.g., by analyzing the blockchain itself) to verify blockchain transactions. For example, when the issuer 112 performs process 700, the steps of process 700 performed by the components of the processing server 110 as described below can be performed by the corresponding components of the issuer 112.

[0101] In step 702, the receiving unit 202 of the processing server 110 can receive a transaction message. The transaction message can be formatted based on one or more standards (e.g., ISO 8583 standard), and the transaction message can include a plurality of data elements. The data elements can at least include a first data element configured to store a personal account number, a second data element configured to store a merchant identifier, and a third data element configured to store at least a blockchain network identifier associated with the blockchain network 106. In some embodiments, the data included in each data element can be included in a single data element (e.g., a data element reserved for private use).

[0102] In step 704, the processing unit 204 of the processing server 110 may identify the account profile 210 stored in the account database 208 that corresponds to the entity involved in the associated payment transaction. For example, the processing server 110 may identify a first account profile associated with the payer 102, the first account profile including an account identifier that is included in a first data element configured to store a personal account number, and the processing server 110 may identify a second account profile associated with the payee 104, the second account profile including an account identifier that is included in a second data element configured to store a merchant identifier. In some cases, the account identifier may be an address identifier, e.g., an address identifier generated using the public key in a key pair associated with the corresponding entity.

[0103] In step 706, the processing unit 204 may determine whether a fraud score for the corresponding payment transaction has been requested. For example, the fraud score may be requested by the issuer 112 associated with the payer 102 or the acquirer 114 associated with the payee 104, e.g., in the case where the processing server 110 receives a transaction message before processing the corresponding blockchain. If no fraud score has been requested, the process 700 may proceed to step 712. If a fraud score has been requested, then in step 708, the processing unit 204 may apply fraud rules (e.g., fraud rules stored in the memory 216) to the data included in the received transaction message and, in some cases, also to the identified account profile to generate a fraud score. In step 710, the sending unit 206 of the processing server 110 may send the fraud score to an appropriate entity, e.g., the issuer 112 and / or the acquirer 114.

[0104] In step 712, the processing unit 204 may determine whether a blockchain transaction associated with the received transaction message has occurred. The determination may be: (1) based on receiving a transaction notification from the blockchain network 106 or from an entity configured to initiate a blockchain transaction (e.g., the issuer 112); (2) internal to the processing server 110 in the case where the processing server 110 initiates a blockchain transaction; or (3) based on the verification of a blockchain transaction through the analysis of the blockchain itself (e.g., using the payee address, the transaction amount, and other information included in the transaction message). If no blockchain transaction has occurred, the process 700 may be completed since no association is required.

[0105] If a blockchain transaction does occur, at step 714, the receiving unit 202 of the processing server 110 can receive a transaction notification associated with the blockchain transaction. The transaction notification can be provided, for example, by the blockchain network 106, the issuer 112, the acquirer 114, the payer 102, the payee 104, or an entity (such as the payment network 108) or a third party configured to verify the blockchain transaction (e.g., using the processing unit 204) using the blockchain. The transaction notification can at least include a transaction identifier and an address identifier. The transaction identifier can be a unique value associated with the blockchain transaction. The address identifier can include an address associated with the payee 104. In some cases, the transaction notification can also include the payer address associated with the payer 102 and any additional information (such as the transaction amount). In some cases, the processing unit 204 can identify such information from the received transaction message.

[0106] At step 716, the processing unit 204 can identify any applicable associations based on the information included in the received transaction notification. For example, the processing unit 204 can identify an association between the blockchain transaction and the second account profile associated with the payee 104 of the transaction identified in step 704 based on the correspondence with the included account and / or address identifier and the address identifier included in the received transaction notification. In cases where the transaction notification can include the payer address, the processing unit 204 can use the payer address to identify an association between the first account profile identified in step 704 and the blockchain transaction.

[0107] At step 718, the processing unit 204 can store the association data in the processing server 110. For example, the association data can be stored as an association between each applicable account profile in the memory 216 and the transaction identifier, it can be stored in the transaction data entry 214 (e.g., as the account identifier of the associated account profile 210) in the transaction database 212 associated with the blockchain transaction, or it can be stored in the account profile 210 identified as associated with the transaction, for example, by storing the transaction identifier of the associated transaction in the account profile 210. In some cases, the storage of the association data can include sending the association data by the sending unit 206 to an external entity for storage, such as sending it to the issuer 112 for storage in the account profile 314 for future blockchain transactions.

[0108] Process for Managing Fractional Reserves

[0109] Figure 8 A process 800 for managing fractional reserves of fiat currency and blockchain currency in an issuer 112 or other financial institution configured to issue transaction accounts using a combination of fiat currency and one or more blockchain currencies is shown.

[0110] In step 802, the receiving unit 302 of the issuer 112 can receive a transaction message. The transaction message can be associated with a payment transaction, and the transaction information can be formatted based on one or more standards (such as ISO 8583), and the transaction information can be received using a relevant communication protocol. The transaction message can include a plurality of data elements, at least including data elements reserved for private use, and the data elements at least include a specific address and a transaction amount associated with the entity involved in the relevant transaction. In some cases, the data elements reserved for private use or another data element in addition thereto can include an additional address.

[0111] In step 804, the processing unit 304 of the issuer 112 can identify the account profile 314 stored in the account database 312 involved in the relevant payment transaction. The account profile 314 can be identified based on the address included therein, and the address corresponds to the address included in the data element included in the received transaction message. In cases where multiple involved account profiles 314 can be identified, the remaining steps of process 800 can be performed for each identified account profile 314.

[0112] In step 806, the processing unit 304 can identify whether the identified account profile 314 corresponds to the payer 102 or the payee 104 of the transaction. This determination can be based on the data element in which the associated address is stored, the position within the data element (such as in the invoice stored therein), the source of the transaction message, or other suitable values.

[0113] If the account profile 314 is associated with the payee 104 of the transaction, then in step 808, the processing unit 304 can determine whether fiat currency is involved in the transaction. This determination can be based on the data elements included in the received transaction message. For example, if fiat currency is involved, each data element included in the transaction message can include data specified based on one or more standards, including a transaction amount with a non-zero value. In another example, if fiat currency is not involved, the data element configured to store the transaction amount can have a zero amount, the data element reserved for private use can include a blockchain transaction invoice, and / or the additional data element can include data indicating that the transaction is a blockchain transaction or other non-fiat transaction.

[0114] If the transaction involves the use of fiat currency, then at step 810, the processing unit 304 may add the fiat currency to the fiat currency amount in the corresponding account profile 314. The added currency amount may be based on the amount included in the data element configured to store the transaction amount in the received transaction message. At step 812, the fiat currency amount in the central account 310 associated with the fiat currency stored in the central database 308 may be updated (e.g., increased) by the same or a related (e.g., due to fees) currency amount.

[0115] If the transaction does not involve the use of fiat currency, then at step 814, the processing unit 304 may add the blockchain currency to the blockchain currency amount in the corresponding account profile 314. The added currency amount may be based on the amount included in the data element reserved for private use in the received transaction message, or based on the amount included in the transaction notification associated with the corresponding blockchain transaction, e.g., by analyzing the blockchain. At step 816, the blockchain currency amount in the central account 310 associated with the blockchain currency may be updated (e.g., increased) by the same or a related (e.g., due to fees) currency amount.

[0116] If at step 806, the processing unit 304 determines that the account profile 314 involved corresponds to the payer 102 of the transaction, then at step 818, the processing unit 304 may determine whether fiat currency is involved in the transaction. Similar to the determination made for the payee 104 at step 808, this determination may be based on the data element included in the received transaction message. If the transaction involves fiat currency, then at step 820, the fiat currency may be deducted from the account profile 314 based on the currency amount. At step 822, the fiat currency may be deducted from the fiat currency central account 310 of the central database 308 based on the currency amount (e.g., with additional fees removed). If the transaction involves blockchain currency, the account profile 314 and the blockchain currency central account 310 may be updated by deducting the blockchain currency based on the currency amount.

[0117] Process for Authorizing Blockchain-Based Transactions Based on Risk

[0118] Figure 9 A process 900 is shown for authorizing blockchain transactions based on risk by a processing server 110 using a payment network 108. It will be apparent to those skilled in the relevant art that the process 900 discussed herein and shown in Figure 9 may be performed by any entity (e.g., the issuer 112) configured to receive and analyze transaction messages and determine risk. For example, when the issuer 112 performs the process 900, the steps of the process 900 performed by the components of the processing server 110 as described below may be performed by the corresponding components of the issuer 112.

[0119] In step 902, the receiving unit 202 of the processing server 110 may receive a transaction message. The transaction message may be formatted based on one or more standards (e.g., ISO 8583 standard), and the transaction message may include a plurality of data elements. The data elements may include a first data element configured to store a personal account number and a second data element reserved for private use, where the personal account number includes a specific account identifier, and the second data element includes at least a blockchain network identifier and a transaction amount. In step 904, the processing unit 204 of the processing server 110 may identify an account profile 210 associated with the payor 102 involved in the payment transaction. The account profile 210 may be identified based on the correspondence between the included account identifier and the specific account identifier included in the data element configured to store the personal account number.

[0120] In step 906, the processing unit 204 may determine whether the identified account profile 210 includes sufficient blockchain currency to fund the blockchain transaction. If the account includes sufficient currency, then in step 908, a risk value for the transaction may be determined based on the sufficiency of the currency. In some cases, the risk value may be based on the difference between the available currency (e.g., the available currency indicated in the account profile 210) and the transaction amount. For example, if the transaction can barely be paid for, it may indicate a higher risk such that concurrent transactions may cause the payor 102 to be unable to afford the amount.

[0121] If in step 906 the processing unit 204 determines that there is not sufficient blockchain currency in the account profile 210, then in step 910, the processing unit 204 may calculate the equivalent amount in fiat currency. The calculation may use one or more conversion rates. For example, the one or more conversion rates may be stored in the memory 216, or may be obtained by using the sending unit 206 and the receiving unit 202, e.g., by requesting the conversion rate from the blockchain network 106, a financial institution, or other third party. In step 912, the processing unit 204 may determine whether the identified account profile 210 includes a sufficient amount of fiat currency to pay the equivalent amount for the transaction.

[0122] If the processing unit 204 determines that the account does not include a sufficient amount of blockchain or fiat currency, then in step 914, the processing unit 204 may reject the payment transaction due to insufficient funds. The rejection of the payment transaction may include modifying the transaction message (e.g., by modifying the message type indicator and / or one or more data elements) to indicate that the transaction is rejected. In step 916, the sending unit 206 may send the modified transaction message as an authorization response to the received transaction message.

[0123] If the processing unit 204 determines in step 912 that there is sufficient fiat currency to pay the transaction amount, the process 900 can proceed to step 908, where the risk value is determined. In some cases, the risk value may be affected by the availability of each specific type of currency. For example, if the payer 102 has insufficient blockchain currency but has sufficient fiat currency of an equivalent amount, the risk value can indicate a higher risk than the same proportion of sufficient blockchain currency. The risk value based on blockchain and fiat currency availability may be similar to the risk value based on the availability of multiple currencies in a traditional transaction that may involve multiple fiat currencies.

[0124] In step 918, the processing unit 204 can determine whether the determined risk value is at an acceptable level. Acceptance of the risk value can be based on criteria set by the issuer 112 associated with the payer 102, the payer 102, the payment network 108, the payee 104 involved in the transaction, the acquirer 114 associated with the payee 114, or a combination thereof. If the risk value is unacceptable, then in step 920, the processing unit 204 can reject the payment transaction due to the high risk. Rejection of the transaction can include modifying the transaction message (e.g., by modifying the message type indicator and / or one or more data elements) to indicate that the transaction is rejected. In some cases, the modification can include indicating the reason for the rejection, e.g., in this case, the reason is high risk. In step 924, the sending unit 206 can send the modified transaction message as an authorization response to the received transaction message via the payment network 108.

[0125] If in step 918 the processing unit 204 determines that the risk value is acceptable, then in step 922, the transaction can be authorized. Authorization of the transaction can include modifying the transaction message (e.g., by modifying the message type indicator and / or one or more data elements) to indicate approval of the transaction. In step 924, the modified transaction message can be sent via the payment network 108. In some cases, the transaction message of the rejected transaction can be sent to the payer 102 and / or the payee 104, while the transaction message of the approved transaction can be sent to the issuer 112 or other entities for further authorization.

[0126] Exemplary Method for Authorizing Blockchain-Based Transactions

[0127] Figure 10 Method 1000 for authorizing a blockchain-based transaction using a transaction message generated and sent via the payment network 108 is shown.

[0128] In step 1002, a transaction request may be received by a receiving device (e.g., receiving unit 202), where the transaction request includes at least a network identifier associated with a blockchain network (e.g., blockchain network 106), a transaction amount, and one of the following two: a public key and an address identifier. In step 1004, if the received transaction request does not include an address identifier, an address identifier may be generated by a processing device (e.g., processing unit 204) using at least the public key included in the received transaction request and one or more hashing and / or encoding algorithms. In one embodiment, the one or more hashing and / or encoding algorithms include using Base58Check encoding.

[0129] In step 1006, a transaction message may be generated by a processing device, where the transaction message is formatted based on one or more criteria and the transaction message includes a plurality of data elements, at least including a first data element configured to store the transaction amount and a second data element reserved for private use, and the first data element includes a zero value, and the second data element includes at least (i) a network identifier or an encoded value based on the network identifier, (ii) an address identifier, and (iii) the transaction amount. In one embodiment, the one or more criteria may include at least the ISO 8583 standard. In some embodiments, the transaction message may include a message type indicator indicating an authorization message. In one embodiment, the encoded value based on the network identifier is a hexadecimal value generated using at least the network identifier and one or more algorithms. In some embodiments, the transaction message may include a third data element configured to store a processing code indicating a non-monetary transaction.

[0130] In step 1008, the transaction message may be sent by a sending device (e.g., sending unit 206) to a financial institution (e.g., issuer 112) using a payment network (e.g., payment network 108). In one embodiment, method 1000 may further include receiving, by receiving device 202, a return transaction message from financial institution 112 using payment network 108, where the return transaction message includes a third data element configured to store a response code. In yet another embodiment, method 1000 may even further include sending, by sending device 206, a return transaction message in response to the received transaction request. In another embodiment, the response code may indicate approval of the transaction associated with the generated transaction message, and the second data element may further include a reference identifier. In yet another embodiment, the reference identifier may be at least one of the following: a value associated with a transaction conducted using blockchain network 106, and a digital signature generated based on at least a portion of the data included in the second data element, where the second data element is included in the generated transaction message.

[0131] Exemplary Method for Associating Blockchain Transactions with Privately Verified Identities

[0132] Figure 11 Method 1100 is shown for associating blockchain transactions to a privately verified identity based on the use of standardized transaction messages and data elements included in the standardized transaction messages.

[0133] In step 1102, multiple account profiles (e.g., account profile 210) can be stored in an account database (e.g., account database 208), where each account profile 210 includes data related to a transaction account, which at least includes an account identifier and account data. In one embodiment, the account data can at least include at least one of the following: transaction data, location data, characteristic data, and fraud data.

[0134] In step 1104, a transaction message can be received by a receiving device (e.g., receiving unit 202), where the transaction message can be formatted based on one or more criteria, and the transaction message can include multiple data elements, at least including a first data element configured to store a personal account number, a second data element configured to store a merchant identifier, and a third data element configured to store a blockchain network identifier. In one embodiment, the transaction message can include a fourth data element configured to store a processing code indicating a non-monetary transaction. In some embodiments, the transaction message can include a message type indicator indicating an authorization message.

[0135] In step 1106, a first account profile 210 stored in the account database 208 can be identified by a processing device (e.g., processing unit 204), where the included account identifier corresponds to the personal account number stored in the first data element, and the first data element is included in the received transaction message. In step 1108, a second account profile 210 stored in the account database 208 can be identified by the processing device 204, where the included account identifier corresponds to the merchant identifier stored in the second data element, and the second data element is included in the received transaction message.

[0136] In step 1110, a transaction notification can be received by the receiving device 202, where the transaction notification indicates a transaction processed using a blockchain network (e.g., blockchain network 106) associated with the blockchain network identifier stored in the third data element, and the transaction notification at least includes a transaction identifier and an address identifier associated with one of the first account profile 210 and the second account profile 210, where the third data element is included in the received transaction message. In one embodiment, the address identifier can be a hash generated using a public key associated with one of the first account profile 210 and the second account profile 210.

[0137] In step 1112, an association between a transaction identifier included in a received transaction notification and at least one of an address identifier, a personal account number, and a merchant identifier can be stored by processing device 204. In one embodiment, the association can be stored as an association profile in a transaction database (e.g., transaction database 212), the association profile including at least the transaction identifier and at least one of the following: an address identifier, a personal account number, and a merchant identifier. In some embodiments, the association can be stored in a first account profile 210. In one embodiment, the association can be stored in a second account profile 210.

[0138] Exemplary Method for Managing Fractional Reserves of Blockchain Currency

[0139] Figure 12 Method 1200 for managing fractional reserves of blockchain currency and fiat currency for use by financial institutions in a payment network is shown.

[0140] In step 1202, a fiat amount associated with fiat currency can be stored at least in a first central account (e.g., central account 310). In step 1204, a blockchain amount associated with blockchain currency can be stored at least in a second central account 310. In step 1206, a plurality of account profiles (e.g., account profile 314) can be stored in an account database (e.g., account database 312), where each account profile 314 can include data associated with a consumer (e.g., payer 102, payee 104, transaction account, etc.), including at least a fiat currency amount, a blockchain currency amount, an account identifier, and an address. In one embodiment, the blockchain amount stored in the second central account 310 is based on the sum of the blockchain currency amounts included in each account profile 314 stored in the account database 312.

[0141] In step 1208, a transaction message associated with a payment transaction can be received by a receiving device (e.g., receiving unit 302), where the transaction message can be formatted based on one or more standards and the transaction message can include a plurality of data elements, including at least a data element reserved for private use, the data element including a specific address and a transaction amount. In one embodiment, the one or more standards can include at least the ISO 8583 standard. In step 1210, a specific account profile 314 stored in the account database 312 can be identified by a processing device (e.g., processing unit 304), where the included address corresponds to the specific address in the data elements included in the received transaction message.

[0142] In step 1212, the processing device 304 may update the blockchain currency amount included in the identified specific account profile 314 based on the transaction amount in the data elements included in the received transaction message. In one embodiment, method 1200 may further include the processing device 304 updating the blockchain amount stored in the second central account 310 based on the transaction amount included in the data elements of the received transaction amount. In some embodiments, method 1200 may also include the processing device 304 initiating a blockchain transaction using a blockchain network (e.g., blockchain network 106) associated with the blockchain currency amount, where the blockchain transaction is for the transaction amount to or from a specific address.

[0143] In one embodiment, the second central account 310 is further configured to store a plurality of keys, each key associated with an account profile 314 stored in the account database 312. In another embodiment, method 1200 may also include the processing device 304 generating an address stored in each account profile 314 of the account database 312 based on applying the associated key to one or more hashing and / or encoding algorithms. In yet another embodiment, the one or more hashing and / or encoding algorithms may include using Base58Check encoding.

[0144] In one embodiment, the transaction message may further include a data element configured to store a personal account number, the personal account number including an address providing funds. In another embodiment, method 1200 may also include: the processing device 304 identifying the account profile 314 providing funds stored in the account database 312, where the included address corresponds to the address providing funds; and the processing device 304 deducting the blockchain currency amount included in the identified account profile 314 providing funds based on the transaction amount in the data elements included in the received transaction message, where updating the blockchain currency amount included in the identified specific account profile 314 includes: increasing the blockchain currency amount based on the transaction amount in the data elements included in the received transaction message.

[0145] Exemplary Method for Authorizing Blockchain Transactions Using Risk Values

[0146] Figure 13 Method 1300 is shown for authorizing blockchain transactions in a payment network using a risk value based on available blockchain currency and / or fiat currency.

[0147] In step 1302, multiple account profiles (e.g., account profile 210) can be stored in an account database (e.g., account database 208), where each account profile 210 includes data related to a consumer (e.g., payer 102, payee 104, transaction account, etc.), which at least includes an account identifier, a fiat currency amount, and one or more blockchain currency amounts, and each blockchain currency amount is associated with a blockchain network (e.g., blockchain network 106).

[0148] In step 1304, a transaction message of a payment transaction can be received by a receiving device (e.g., receiving unit 202), where the transaction message can be formatted based on one or more standards, and the transaction message can include multiple data elements, including a first data element configured to store a personal account number and a second data element reserved for private use, the personal account number including a specific account identifier, and the second data element at least including a network identifier and a transaction amount. In one embodiment, the one or more standards can at least include the ISO 8583 standard.

[0149] In step 1306, a specific account profile 210 stored in the account database 208 can be identified by a processing device (e.g., processing unit 204), where the included account identifier corresponds to the specific account identifier included in the first data element of the received transaction message. In step 1308, a risk value of the payment transaction can be identified by the processing device 204, where the risk value is at least based on the transaction amount included in the second data element of the received transaction message and at least one of the following: the fiat currency amount and the blockchain currency amount associated with the blockchain network 106, where the blockchain network 106 corresponds to the network identifier included in the second data element of the received transaction message, and the received transaction message is included in the identified specific account profile 210.

[0150] In one embodiment, the transaction amount can be a blockchain currency amount, and the risk value of the identified payment transaction can be based on the transaction amount included in the second data element of the received transaction message and the blockchain currency amount associated with the blockchain network 106, where the blockchain network 106 corresponds to the network identifier included in the second data element of the received transaction message, and the received transaction message is included in the identified specific account profile. In some embodiments, the transaction amount can be an amount of blockchain currency, and the risk value of the identified payment transaction can be based on the transaction amount included in the second data element of the received transaction message, the fiat currency amount included in the identified specific account profile, and the exchange rate for converting blockchain currency to fiat currency / converting fiat currency to blockchain currency.

[0151] In step 1310, the processing device 204 may determine authorization for a payment transaction based at least on the identified risk value. In step 1312, the processing device 204 may modify the received transaction message based on the authorization determination. In one embodiment, modifying the received transaction message may include storing a response code indicating the authorization determination into a third data element of the transaction message. In step 1314, a sending device (e.g., sending unit 206) may send the modified transaction information.

[0152] In one embodiment, method 1300 may further include: the processing device 204 generating an address identifier for each account profile 210 using at least an account identifier included in the corresponding account profile 210 and one or more hashing and / or encoding algorithms. In another embodiment, a particular account identifier may have a value equivalent to an address identifier generated using the account identifier included in the identified particular account profile 210. In another embodiment, the one or more hashing and / or encoding algorithms may include using Base58Check encoding.

[0153] In some embodiments, method 1300 may also include the processing device 204 initiating a blockchain transaction using a blockchain network 106 corresponding to a network identifier included in a second data element of the received transaction message for a transaction amount from a particular account identifier. In another embodiment, modifying the received transaction message may further include adding a reference identifier generated as a result of initiating the blockchain transaction to the second data element.

[0154] Computer System Architecture

[0155] Figure 14 A computer system 1400 is shown, in which embodiments of the present disclosure or portions thereof may be implemented as computer-readable code. For example, it may be implemented in computer system 1400 using hardware, software, firmware, a non-transitory computer-readable medium storing instructions, or a combination thereof Figure 1 of the processing server 110 and the issuer 112, and Figure 1 the processing server 110 and the issuer 112 of may be implemented in one or more computer systems or other processing systems. Hardware, software, or any combination thereof may be embodied as modules and components for implementing Figure 4 , Figure 5 and Figures 7 - 13 the methods.

[0156] If programmable logic is used, such logic can be executed on commercially available processing platforms or dedicated devices. One of ordinary skill in the art will appreciate that various computer system configurations can be used to practice embodiments of the disclosed subject matter, including multi-core, multiprocessor systems, minicomputers, mainframe computers, computers linked or clustered with distributed functionality, and pervasive or microcomputers that can be embedded in almost any device. For example, the above-described embodiments can be implemented using at least one processor device and a memory.

[0157] The processor units or devices discussed herein can be a single processor, multiple processors, or a combination thereof. A processor device can have one or more processor "cores". The terms "computer program medium", "non-transitory computer-readable medium", and "computer-usable medium" as discussed herein generally refer to tangible media, such as removable storage unit 1418, removable storage unit 1422, and a hard disk installed in hard disk drive 1412.

[0158] Various embodiments of the present disclosure are described with reference to the exemplary computer system 1400. After reading this specification, it will be apparent to those skilled in the relevant art how to implement the present disclosure using other computer systems and / or computer architectures. Although operations may be described as sequential processes, some operations can in fact be performed in parallel, concurrently, and / or in a distributed environment, and program code can be stored locally or remotely for access by a single or multi-processor machine. Additionally, in some embodiments, the order of operations can be rearranged without departing from the spirit of the disclosed subject matter.

[0159] Processor device 1404 can be a dedicated or general-purpose processor device. Processor device 1404 can be connected to a communication infrastructure 1406, such as a bus, message queue, network, multi-core message transfer scheme, etc. The network can be any network suitable for performing the functions disclosed herein, which can include a local area network (LAN), wide area network (WAN), wireless network (such as WiFi), mobile communication network, satellite network, the Internet, fiber optic, coaxial cable, infrared, radio frequency (RF), or any combination thereof. Other suitable network types and configurations will be apparent to those skilled in the relevant art. Computer system 1400 can also include a main memory 1408 (e.g., random access memory, read-only memory, etc.), and can also include an auxiliary memory 1410. Auxiliary memory 1410 can include a hard disk drive 1412 and a removable storage drive 1414, such as a floppy disk drive, tape drive, optical disk drive, flash memory, etc.

[0160] The removable storage drive 1414 can read from and / or write to the removable storage unit 1418 in a well-known manner. The removable storage unit 1418 can include a removable storage medium that can be read from and written to by the removable storage drive 1414. For example, if the removable storage drive 1414 is a floppy disk drive or a universal serial bus port, the removable storage unit 1418 can be a floppy disk or a portable flash drive, respectively. In one embodiment, the removable storage unit 1418 can be a non-transitory computer-readable recording medium.

[0161] In some embodiments, the secondary storage 1410 can include alternative means for allowing a computer program or other instructions to be loaded into the computer system 1400, such as the removable storage unit 1422 and the interface 1420. Examples of such means can include a program cartridge and a cartridge interface (e.g., as seen in video game systems), a removable memory chip (e.g., EEPROM, PROM, etc.) and associated sockets, and other removable storage units 1422 and interfaces 1420, which will be apparent to those skilled in the art.

[0162] Data stored in the computer system 1400 (e.g., stored in the main memory 1408 and / or the secondary storage 1410) can be stored on any type of suitable computer-readable medium, such as optical memory (e.g., compact disc, digital versatile disc, Blu-ray disc, etc.) or magnetic tape storage devices (e.g., hard disk drives). The data can be configured in any type of suitable database configuration (e.g., relational database, structured query language (SQL) database, distributed database, object database, distributed key-value store, etc.). Suitable configurations and storage types will be apparent to those skilled in the art.

[0163] The computer system 1400 can also include a communication interface 1424. The communication interface 1424 can be configured to allow software and data to be transferred between the computer system 1400 and external devices. Exemplary communication interfaces 1424 can include a modem, a network interface (e.g., an Ethernet card), a communication port, a PCMCIA slot and card, etc. The software and data transmitted via the communication interface 1424 can be in the form of signals, which can be electrical, electromagnetic, optical, or other signals, which will be apparent to those skilled in the relevant art. The signals can travel via a communication path 1426, which can be configured to carry signals and can be implemented using wires, cables, optical fibers, telephone lines, cellular phone links, radio frequency links, etc.

[0164] The computer system 1400 may also include a display interface 1402. The display interface 1402 may be configured to allow data to be transmitted between the computer system 1400 and an external display 1430. Exemplary display interfaces 1402 may include a high-definition multimedia interface (HDMI), a digital video interface (DVI), a video graphics array (VGA), etc. The display 1430 may be any suitable type of display for displaying data sent via the display interface 1402 of the computer system 1400, including a cathode ray tube (CRT) display, a liquid crystal display (LCD), a light emitting diode (LED) display, a capacitive touch display, a thin film transistor (TFT) display, etc.

[0165] Computer program media and computer usable media may refer to memories, such as main memory 1408 and secondary memory 1410, which may be memory semiconductors (e.g., DRAM, etc.). These computer program products may be means for providing software to the computer system 1400. Computer programs (e.g., computer control logic) may be stored in the main memory 1408 and / or the secondary memory 1410. The computer program may also be received via a communication interface. When such a computer program is executed, the computer program may enable the computer system 1400 to implement the present method discussed herein. In particular, when the computer program is executed, the computer program may enable the processor device 1404 to implement the methods discussed herein. Figure 4 , Figure 5 and Figures 7 - 13 Thus, such a computer program may represent a controller of the computer system 1400. Where software is used to implement the present disclosure, the software may be stored in a computer program product and loaded into the computer system 1400 using the removable storage drive 1414, the interface 1420, and the hard disk drive 1412 or the communication interface 1424.

[0166] Among other features, technology consistent with the present disclosure provides systems and methods for authorizing blockchain transactions, identifying risk values ​​in blockchain transactions, and associating blockchain transactions with verified identities. Although various exemplary embodiments of the disclosed systems and methods have been described above, it should be understood that they are provided for illustrative purposes only and not limiting. This is not exhaustive and does not limit the content of the disclosure to the exact form disclosed. Modifications and changes may be made based on the above teachings or may be obtained from the practice of the present disclosure without departing from the breadth or scope.

Claims

1. A method for managing a fractional reserve of blockchain currency, wherein, At least store a fiat amount associated with fiat currency in a first central account and at least store a blockchain amount associated with blockchain currency in a second central account, the method comprising: Receiving, by a receiving device, a transaction message associated with a payment transaction, wherein the transaction message is formatted based on a standard and the transaction message includes a plurality of data elements, and in the case where the transaction is determined to be a blockchain transaction based on the transaction message, it at least includes a data element reserved for private use, the data element including a specific address and a transaction amount; Identifying, by a processing device, a specific account profile stored in an account database, the specific account profile including the specific address, the specific address being included in the data elements in the received transaction message, wherein the specific account profile further includes a fiat currency amount and a blockchain currency amount; and In the case where the transaction is determined to be a blockchain transaction based on the transaction message, updating, by the processing device, the blockchain currency amount included in the identified specific account profile based on the transaction amount included in the data elements in the received transaction message.

2. The method according to claim 1, further comprising: Updating, by the processing device, the blockchain amount stored in the second central account based on the transaction amount included in the data elements in the received transaction message.

3. The method according to claim 1, wherein, The blockchain amount stored in the second central account is based on the sum of the blockchain currency amounts included in each account profile stored in the account database.

4. The method according to claim 1, further comprising: Initiating, by the processing device, a blockchain transaction using a blockchain network associated with the blockchain currency amount, wherein the blockchain transaction is for a transaction amount to or from a specific address.

5. The method according to claim 1, wherein, The standard at least includes the ISO 8583 standard.

6. The method according to claim 1, wherein, The second central account is configured to store a plurality of keys, each key being associated with an account profile stored in the account database.

7. The method according to claim 6, further comprising: Generating, by the processing device, the address stored in each account profile in the account database based on applying the associated key to one or more hashing and / or encoding algorithms.

8. The method according to claim 7, wherein, The one or more hashing and / or encoding algorithms include using Base58Check encoding.

9. The method according to claim 1, wherein, The transaction message further includes a data element configured to store a personal account number, the personal account number including an address providing funds.

10. The method according to claim 9, further comprising: Identifying, by the processing device, a funding-providing account profile stored in the account database, wherein the included address corresponds to the funding-providing address; and Deducting, by the processing device, the blockchain currency amount included in the identified funding-providing account profile based on the transaction amount included in the data elements in the received transaction message, wherein Updating the blockchain currency amount included in the identified specific account profile includes: increasing the blockchain currency amount based on the transaction amount included in the data elements in the received transaction message.

11. A system for managing a fractional reserve of blockchain currency, wherein, At least store a fiat amount associated with fiat currency in a first central account and at least store a blockchain amount associated with blockchain currency in a second central account, the system comprising: A receiving device configured to receive a transaction message associated with a payment transaction, wherein the transaction message is formatted based on a standard and the transaction message includes a plurality of data elements, and in the case where the transaction is determined to be a blockchain transaction based on the transaction message, it at least includes data elements reserved for private use, the data elements including a specific address and a transaction amount, and A processing device configured to: Identify a specific account profile stored in an account database, the specific account profile including the specific address, the specific address being included in the data elements in the received transaction message, wherein the specific account profile further includes a fiat currency amount and a blockchain currency amount; and In the case where the transaction is determined to be a blockchain transaction based on the transaction message, update the blockchain currency amount included in the identified specific account profile based on the transaction amount included in the data elements in the received transaction message.

12. The system according to claim 11, wherein, The processing device is further configured to update the blockchain amount stored in a second central account based on the transaction amount included in the data elements in the received transaction message.

13. The system according to claim 11, wherein, The blockchain amount stored in the second central account is based on the sum of the blockchain currency amounts included in each account profile stored in the account database.

14. The system according to claim 11, wherein, The processing device is further configured to initiate a blockchain transaction using a blockchain network associated with the blockchain currency amount, wherein the blockchain transaction is for the transaction amount to or from a specific address.

15. The system according to claim 11, wherein, The standard at least includes the ISO 8583 standard.

16. The system according to claim 11, wherein,The second central account is configured to store a plurality of keys, each key being associated with an account profile stored in the account database.

17. The system according to claim 16, wherein, The processing device is further configured to generate the address stored in each account profile in the account database based on applying the associated key to one or more hashing and / or encoding algorithms.

18. The system according to claim 17, wherein, The one or more hashing and / or encoding algorithms include using Base58Check encoding.

19. The system according to claim 11, wherein, The transaction message further includes a data element configured to store a personal account number, the personal account number including an address providing funds.

20. The system according to claim 19, wherein, The processing device is further configured to: Identify an account profile providing funds stored in the account database, wherein the included address corresponds to the address providing funds; and Deduct the blockchain currency amount included in the identified account profile providing funds based on the transaction amount included in the data elements in the received transaction message, and wherein Updating the blockchain currency amount included in the identified specific account profile includes: increasing the blockchain currency amount based on the transaction amount included in the data elements in the received transaction message.

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