Cryptocurrency Payment System

Abstract

A method for implementation by networked computing devices of a cryptocurrency payment system includes receiving real-time payment information regarding a cryptocurrency-based payment from a source computing device to a destination computing device and initiating a real-time cryptocurrency-based payment process to pay the destination computing device in a selected currency. The payment to the destination computing device in the selected currency is made within a first time frame. The method further includes initiating a non-real-time cryptocurrency-based payment reconciliation process to reconcile the cryptocurrency-based payment. The reconciliation of the cryptocurrency-based payment is made within a second time frame. The second time frame is longer than the first time frame.

Description

Technical Field

[0001] Description of research or development funded by the federal government Not applicable.

[0002] Incorporation by reference of materials submitted on a compact disc Not applicable.

[0003] The present invention generally relates to electronic payments, and more specifically to a universal digital payment system including cryptocurrencies.

Background Art

[0004] Current payment systems are vulnerable to security breaches, fraud, and identity theft. A typical payment card transaction with a retailer involves several steps (e.g., payment card authorization, clearing, and settlement) and the involvement of various entities (e.g., financial institutions, payment card companies, and payment processing networks). Each step and each entity has its own various security issues (e.g., hacking).

[0005] Also, the steps involved are inconvenient, time-consuming, and costly. For example, payment card authorization (e.g., credit card or debit card authorization) begins when the cardholder presents the card to the retailer for goods or services. The payment card is issued by a specific financial institution (e.g., a bank) and is associated with a payment card company (e.g., Visa, Mastercard, etc.). The retailer uses a payment card machine, software, or gateway to transmit transaction data to the retailer's acquiring bank (or its processor). The acquiring bank routes the transaction data to the payment processing network, and the payment processing network transmits the transaction data to the cardholder's issuing bank. The issuing bank verifies that the card has not been reported stolen or lost, checks whether funds are available, and returns a response code to the acquiring bank via the payment processing network regarding whether the transaction has been approved.

[0006] Transaction data typically includes a payment card number, transaction amount, date, retailer name, retailer location, retailer category code, and, if entered, an encrypted personal identification number (PIN). The response code reaches the retailer's terminal and is stored in a file until it is finalized. The retailer returns the stored approved transactions to its acquiring bank (e.g., at the end of the day), and the acquiring bank reconciles and transmits the approved transactions through the appropriate card processing network. The acquiring bank deposits the funds from the sales into the retailer's account. The payment processing network debits the amount of the transaction to the issuer bank account and credits the acquiring bank account.

[0007] Retailers pay significant payment card processing fees, and those costs are passed on to consumers. Most retailers pay an interchange rate for the total transaction and a fixed fee to the associated payment card company (e.g., Visa, Mastercard, etc.). The rate varies depending on the payment card company, the type of payment card (e.g., credit, debit, business, etc.), the type of processing (online payment, swipe, via a mobile device, card not present, etc.), and the retailer category code (MCC) that classifies the retailer's business type. Additionally, retailers typically pay a percentage and a fixed fee to the payment processing network.

[0008] A mobile wallet application enables a cardholder to store payment card data on a computing device via a digital wallet for convenient transactions. For example, some mobile wallet apps use Near Field Communication (NFC) for contactless payments (e.g., data exchange by holding the device over a payment reader). The NFC chip is specially designed to manage financial security and stores only the data necessary to initiate and complete a transaction. The mobile wallet uses a type of tokenization that assigns a Device Account Number (DAN) instead of an account or card number, such that the DAN, rather than the actual account / card number, is passed to the retailer. As another security measure, the digital wallet relies on digital certificates for identity verification. However, using a digital wallet on a device means that data is passed not only through the device's hardware and operating system but also through specific payment apps and ultimately the payment source. Additionally, user fraud via the mobile wallet is possible.

[0009] Distributed ledger technology (e.g., blockchain) reduces the risk of fraud. For example, a blockchain is an immutable ledger for recording transactions within a network, consisting of a continuously growing list of blocks (i.e., groups of transactions) that are securely linked, continuously reconciled, and shared among all network participants (i.e., a distributed network). Transactions are authenticated and added to a block via a hashing algorithm and then permanently written to the chain via network-wide consensus. Once recorded on the blockchain, a transaction cannot be altered.

[0010] A cryptocurrency is a digital asset that is created and transferred securely through encryption. Many cryptocurrencies are decentralized networks based on distributed ledger technology (e.g., blockchain). Decentralized networks such as Bitcoin use pseudonymous transactions that are open and public (i.e., anyone can participate in and create and view transactions). To minimize fraud and deter malicious network activity, cryptocurrency transactions can be recorded by "miners" using a "proof of work" secure hashing algorithm (SHA-256) that requires substantial computing power. While many cryptocurrencies are blockchain-based, other distributed ledger technologies can be used. For example, asynchronous consensus algorithms enable a network of nodes to communicate with each other and reach consensus in a decentralized manner. This method does not require miners to prove transactions and uses a directed acyclic graph for time-ordered transactions without bundling transactions into blocks.

Brief Description of the Drawings

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Best Mode for Carrying Out the Invention

[0031] FIG. 1 is a schematic block diagram of an embodiment of a cryptocurrency payment system 10 including a source computing device 12, a destination computing device 14, a network computing device 16, interface means 18, and a cryptocurrency-based payment backing account device 20. The cryptocurrency payment system 10 facilitates payments from a source computing device 12 that pays in cryptocurrency to a destination computing device 14 that accepts a desired currency (e.g., fiat currency, a different cryptocurrency), and overcomes the following problems.

[0032] At the time of filing of the present application, cryptocurrency has not been widely accepted by retailers as a form of payment for various reasons. For one, many retailers do not want to hold cryptocurrency. Holding cryptocurrency involves several problems for retailers, such as being unfamiliar with and / or not having the facilities to process it. These problems include issues such as holding private key information, legal compliance, government regulations, and timing issues such as waiting for transaction confirmation. Another reason is that the value of cryptocurrency is unstable and can fluctuate dramatically within a day. Another reason is that retailers are not willing to invest in expensive point-of-sale upgrades to directly accommodate cryptocurrency payments. Yet another reason is that many cryptocurrency payments are public and disclose confidential retailer / customer information.

[0033] Some digital wallet applications enable retail blockchain payments, but they generally rely on existing payment networks and are thus vulnerable to fraud attacks on existing payment networks. For example, cryptocurrencies are linked to payment cards (e.g., credit cards, debit cards, gift cards, etc.), and cryptocurrency payments are converted and executed as payment card transactions and are thus vulnerable to the same fraud attacks as payment cards.

[0034] Compared with traditional payment systems, cryptocurrencies significantly reduce wrongdoing, but fraudulent cryptocurrency transactions are possible. For example, a malicious user can manipulate the cryptocurrency blockchain to perform "double spending" (e.g., create one transaction within a block to transfer a certain amount to a retailer, and create another block without that transaction so that the transfer to the retailer does not exist). As another example, malicious or defective digital wallet software can prevent cryptocurrency transactions from being properly approved and completed.

[0035] Within the cryptocurrency payment system 10, the source computing device 12, the destination computing device 14, the network computing device 16, and the cryptocurrency-based payment backing account device 20 can be portable computing devices and / or fixed computing devices. The portable computing device can be a social networking device, a gaming device, a mobile phone, a smartphone, a digital assistant, a digital music player, a digital video player, a laptop computer, a handheld computer, a tablet, a video game controller, a portable merchant point of sale (POS) device (e.g., a mobile device with POS functionality), and / or any other portable device including a computing core. The fixed computing device can be a computer (PC), a computer server, a cable set-top box, a satellite receiver, a television set, a printer, a fax machine, a home entertainment device, a video game console, a fixed merchant point of sale (POS) device (e.g., a cash register), and / or any type of home or office computing device.

[0036] In this embodiment, the source computing device 12 and the destination computing device 14 each include a network application (an "app") 22 that associates the respective device with the network computing device 16. For example, the source computing device 12 is a smartphone, and the network application 22 is a digital wallet application downloaded to the smartphone and associated with the network computing device 16. As another example, the destination computing device 14 is a POS device, and the network application is software installed on the POS device and associated with the network computing device 16.

[0037] The cryptocurrency-based payment backing account device 20 stores system cryptocurrency as collateral for backing the cryptocurrency-based payments of the cryptocurrency payment system 10. The system cryptocurrency is any cryptocurrency selected and used by the cryptocurrency payment system. For example, the system cryptocurrency is a cryptocurrency specially created for use in the system (e.g., a token on the Ethereum blockchain). As another example, the system cryptocurrency is an already established and trusted cryptocurrency.

[0038] The cryptocurrency-based payment backing account device 20 is associated with one or more of the source computing device 12, the destination computing device 14, and the type of cryptocurrency. Most commonly, the cryptocurrency-based payment backing account device 20 is associated with the source computing device 12. As one example, the cryptocurrency-based payment backing account device 20 is associated with the cryptocurrency wallet of the source computing device 12.

[0039] The developers of the cryptocurrency wallet set up an account in the cryptocurrency-based payment backing account device 20 and deposit system cryptocurrency into the account of the cryptocurrency-based payment backing account device 20 to back up cryptocurrency-based payments made by the users of the cryptocurrency wallet. The developers of the cryptocurrency wallet are incentivized to back up the transactions of the wallet users of the cryptocurrency wallet by receiving rewards from the cryptocurrency-based payment backing account device 20, such as a percentage back of the system cryptocurrency for all successful wallet transactions. Further, since the developers are trying to back up the payments of the wallet users, the developers are incentivized to generate a high-quality digital wallet that can prevent user misconduct and repair defective software that affects the success of the users' transactions. Various types of cryptocurrency-based payment backing accounts of the cryptocurrency-based payment backing account device 20 are considered in more detail with reference to FIGS. 7-9.

[0040] The source computing device 12 and the destination computing device 14 interact via the interface means 18. The interface means 18 is one or more of the following: direct link and network connection. The direct link includes one or more of video, camera, infrared (IR), radio frequency (RF), barcode scanner, and / or near field communication (NFC). The network connection includes one or more local area networks (LANs) and / or one or more wide area networks (WANs) that can be a public network and / or a private network. The LAN can be a wireless LAN (e.g., Wi-Fi access point, Bluetooth, ZigBee, etc.) and / or a wired LAN (e.g., FireWire, Ethernet, etc.). The WAN can be a wired and / or wireless WAN. For example, the LAN is a personal home wireless network or a corporate wireless network, and the WAN is the Internet, a cellular phone infrastructure, and / or a satellite communication infrastructure.

[0041] As an example, the source computing device 12 is a smartphone, the destination computing device 14 is a fixed retailer POS device (e.g., a POS register), and the interface means 18 is an NFC barcode scanner of the fixed retailer POS device. The smartphone is operable to generate a code and display the code on the fixed retailer POS device, and the NFC barcode scanner of the fixed retailer POS device is operable to read the code.

[0042] As another example, the source computing device 12 is a smartphone, the destination computing device 14 is a fixed retailer POS device (e.g., a POS register), and the interface means 18 is a camera of the smartphone. The smartphone is operable to read a barcode generated by the fixed retailer POS device via the camera of the smartphone.

[0043] As another example, the source computing device 12 is a smartphone, the destination computing device 14 is an e-commerce platform, and the interface means 18 is a network connection. For example, the smartphone uses an Internet browser application (via a cellular Internet connection or a wireless Internet connection) to access the e-commerce platform.

[0044] As another example, the source computing device 12 is a smartphone, the destination computing device 14 is a smartphone, and the interface means 18 is a Bluetooth network. For example, two smartphones connect using Bluetooth to send a payment from one smartphone to another.

[0045] As yet another example, combinations of interface means 18 are possible. For example, source computing device 12 is a smartphone and destination computing device 14 is an online POS connection device (e.g., an e-commerce website). A user of source computing device 12 accesses the e-commerce platform via network connection interface means 18 on another computing device (e.g., a laptop or desktop computer) associated with the user of source computing device 12. The laptop or desktop computer displays information for use in a direct link with the smartphone. For example, a code is generated by the e-commerce platform and displayed on the laptop's display. The smartphone camera scans the code to further interact with the e-commerce platform (e.g., complete a payment).

[0046] Network computing device 16 is a specially licensed entity operable to convert cryptocurrency to a desired currency (e.g., fiat currency, another cryptocurrency, etc.). In one embodiment, network computing device 16 is associated with one or more cryptocurrency holding companies that are specially licensed to store sensitive materials and have an insurance policy for protection against theft and fraud.

[0047] The network computing device 16 can be associated with a stored value account (SVA) device, and the SVA device is associated with a destination computing device 14 such that an SVA for payment is generated (e.g., the destination computing device has an SVA account with the SVA device). In another embodiment, the network computing device 16 is operable to generate a stored value account (SVA). The generation of an SVA for a transaction is described in co-pending patent application Ser. No. 16 / 376,911, entitled "SECURE AND TRUSTED DATA COMMUNICATION SYSTEM," filed Apr. 5, 2019.

[0048] In one example of operation, the source computing device 12 and the destination computing device 14 interact via interface means 18. For example, the source computing device 12 establishes a direct communication link with the destination computing device 14 via NFC interface means 18.

[0049] Source computing device 12 transmits source real-time payment information 24 to network computing device 16 via network application 22 of source computing device 12, and destination computing device 14 transmits destination real-time payment information 26 to network computing device 16 via network application 22 of destination computing device 14. Source real-time payment information 24 includes a source identifier (ID) and the type of cryptocurrency that source computing device 12 wishes to use for real-time payment to destination computing device 14. Destination real-time payment information 26 includes a destination identifier (ID) and the type of currency (e.g., fiat currency, different cryptocurrency, etc.) that destination computing device 14 wishes to receive in real-time payment from source computing device 12. One or more of source real-time payment information 24 and destination real-time payment information 26 includes the amount of the real-time payment.

[0050] When network computing device 16 receives source and destination real-time payment information, the network computing device starts: 1) a real-time cryptocurrency-based payment process (e.g., real-time cryptocurrency-based payment loop 28); and 2) a non-real-time verification process (e.g., non-real-time verification loop 30 of cryptocurrency-based payment) for verifying the cryptocurrency-based payment against cryptocurrency-based payment backing account device 20. The verification of the cryptocurrency-based payment against cryptocurrency-based payment backing account device 20 is performed within a time frame longer than the time frame of the real-time cryptocurrency-based payment. For example, the verification of the cryptocurrency-based payment against cryptocurrency-based payment backing account device 20 takes several minutes, while the time frame of the real-time cryptocurrency-based payment takes several seconds.

[0051] Within the non-real-time verification loop 30 of the cryptocurrency-based payment, when source and destination real-time payment information is received, the network computing device 16 instructs the cryptocurrency-based payment backing account device 20 to lock the amount of the system cryptocurrency associated with the real-time cryptocurrency-based payment. Locking the amount of the system cryptocurrency associated with the real-time cryptocurrency-based payment is considered in more detail with reference to FIGS. 7-9.

[0052] Within the real-time cryptocurrency-based payment loop 28, when the network computing device 16 receives the amount of cryptocurrency for use in the real-time cryptocurrency-based payment from the source computing device 12, a network confirmation response (ACK) for the receipt of the amount of cryptocurrency is generated. If the start of the payment is terminated (e.g., the start of the payment fails and / or is canceled by the source and / or destination computing devices) within a certain period of time before the network computing device 16 continues with the following steps of the real-time cryptocurrency-based payment loop 28 (e.g., paying the destination computing device), no ACK is generated and the real-time payment is terminated. If no ACK is generated within the non-real-time verification loop 30 of the cryptocurrency-based payment, the network computing device 16 instructs the cryptocurrency-based payment backing account device 20 to release the locked amount of the system cryptocurrency.

[0053] Sending an amount of cryptocurrency to the network computing device 16 is a transaction that is added to the cryptocurrency blockchain of the cryptocurrency used by the source computing device 12 (e.g., this information is made public). However, other details related to the transaction (e.g., the ID of the destination computing device 14, the transaction fees to be paid by the destination computing device 14, etc.) are kept private and managed off-chain by the network computing device 16. Thus, the cryptocurrency payment system 10 maintains private highly confidential destination computing device 14-related information (e.g., revenue, consumer spending behavior, etc.) and highly confidential source computing device 12-related information (e.g., consumer ID for purchases, amount spent at a particular retailer, frequently visited recipient / retailer, etc.) (i.e., not made public on the blockchain so that anyone can view it).

[0054] Continuing the real-time cryptocurrency-based payment loop 28, when an ACK is generated, the network computing device 16 exchanges the amount of cryptocurrency received from the source computing device 12 for an amount of the desired currency. The cryptocurrency exchange is done quickly (e.g., 30 seconds to a few minutes) taking into account the instability of the exchange rate. The exchange can also be performed in real-time on a credit-based account to eliminate price instability. The network computing device 16 sends the amount of the desired currency to the destination computing device 14 to complete the real-time cryptocurrency-based payment.

[0055] Continue the non-real-time verification loop 30 for cryptocurrency-based payments, and the network computing device 16 verifies the amount of cryptocurrency received from the source computing device 12. For example, the network computing device 16 connects to a consensus network that verifies the amount of cryptocurrency received from the source computing device 12. The consensus network implements a proof process that can take several minutes to several hours.

[0056] For example, in the Bitcoin blockchain, miners record new transactions in a block that verifies all previous transactions in the blockchain. On average, it takes a miner 10 minutes to write a block to the Bitcoin blockchain, and the average block time depends on the total hash power of the Bitcoin network. Once a block is created and a new transaction is verified and included in the block, the transaction will have one confirmation. Each subsequent block (which verifies the previous state of the blockchain) provides one additional network confirmation. Cryptocurrency exchanges typically require 5 to 10 transaction confirmations (depending on the monetary value of the transaction) to be acceptable in order to avoid losses due to potential fraud. Therefore, if the source computing device 12 is using Bitcoin, the network computing device 16 requests the desired number of confirmations of the amount of cryptocurrency received by the source computing device from the consensus network 16 (e.g., via a Bitcoin miner). Therefore, a transaction may not be verified by the network computing device for over an hour. Therefore, the non-real-time verification loop 30 for cryptocurrency-based payments takes longer than the real-time cryptocurrency-based payment loop 28.

[0057] When the network computing device 16 proves the amount of cryptocurrency received by the source computing device 12, the network computing device 16 instructs the cryptocurrency-based payment backing account device 20 to release the amount of system cryptocurrency associated with the real-time cryptocurrency-based payment. If the network computing device 16 does not prove the amount of cryptocurrency received by the source computing device 12, the network computing device 16 instructs the cryptocurrency-based payment backing account device 20 to consume the amount of system cryptocurrency associated with the real-time cryptocurrency-based payment.

[0058] For example, if an improper act occurs (e.g., the source computing device operates maliciously to spend simultaneously on two destination computing devices, the software of the network application 22 is damaged, etc.), the network computing device 16 consumes the amount of system cryptocurrency associated with the real-time cryptocurrency-based payment. As a specific example, when the source computing device 12 attempts to double-spend on a transaction, the proof (e.g., the desired number of confirmations in an example of the Bitcoin blockchain) will not be received, and the network computing device 16 will not be able to prove the amount of cryptocurrency received by the source computing device 12. If the proof is not received, the network computing device 16 withdraws (e.g., consumes) the amount of system cryptocurrency locked by the cryptocurrency-based payment backing account device 20 to cover the real-time payment that occurred at the destination computing device 14.

[0059] FIG. 2 is a flowchart of an example of a method for execution by a network computing device 16 of the cryptocurrency payment system 10 of FIG. 1. FIG. 2 includes a source computing device 12, a destination computing device 14, a network computing device 16, interface means 18, and a cryptocurrency-based payment backing account device 20. In this example, the source computing device 12 and the destination computing device 14 each include a network application ("app") 22 that associates the respective device with the network computing device 16.

[0060] The cryptocurrency-based payment backing account device 20 stores system cryptocurrency as collateral to back the real-time cryptocurrency-based payments of the cryptocurrency payment system 10. The various types of cryptocurrency-based accounts of the cryptocurrency-based payment backing account device 20 are considered in more detail with reference to FIGS. 7-9. The source computing device 12 and the destination computing device 14 interact via the interface means 18. The interface means 18 is one or more of the following: a direct link and a network connection.

[0061] This method starts at step 32, where the network computing device 16 receives real-time payment information regarding a cryptocurrency-based payment from the source computing device 12 to the destination computing device 14. For example, the source computing device 12 transmits source real-time payment information 24 to the network computing device 16 via the network application 22 of the source computing device 12, and the destination computing device 14 transmits destination real-time payment information 26 to the network computing device 16 via the network application 22 of the destination computing device 14.

[0062] The source real-time payment information 24 includes a source identifier (ID) and the type of cryptocurrency that the source computing device 12 wishes to use for the real-time payment to the destination computing device 14. The destination real-time payment information 26 includes a destination identifier (ID) and the type of desired / selected currency (e.g., fiat currency, another cryptocurrency) that the destination computing device 14 wishes to receive in real-time payment from the source computing device 12. One or more of the source real-time payment information 24 and the destination real-time payment information 26 includes the amount of the real-time payment.

[0063] When the network computing device 16 receives real-time payment information, the network computing device starts (i.e., "starts payment") a 1) real-time cryptocurrency-based payment process (e.g., real-time cryptocurrency-based payment loop 28) and a 2) non-real-time verification process (e.g., non-real-time verification loop 30 of cryptocurrency-based payment) for verifying the cryptocurrency-based payment with the cryptocurrency-based payment backing account device 20. The verification of the cryptocurrency-based payment with the cryptocurrency-based payment backing account device 20 is performed within a time frame longer than the time frame of the real-time cryptocurrency-based payment.

[0064] The method continues at step 34, where within the non-real-time verification loop 30 of the cryptocurrency-based payment, the network computing device 16 instructs the cryptocurrency-based payment backing account device 20 to lock the amount of the system cryptocurrency associated with the real-time cryptocurrency-based payment.

[0065] The method continues to step 36, where a network confirmation response (ACK) for the receipt of the cryptocurrency amount is generated or not generated. For example, when network computing device 16 receives from source computing device 12 an amount of cryptocurrency 46 for use in a real-time cryptocurrency-based payment, an ACK is generated and the method continues to steps 38 and 40. If the payment initiation ends within a certain time before network computing device 16 continues with the following steps of real-time cryptocurrency-based payment loop 28 (e.g., the payment initiation fails and / or is canceled by the source and / or destination computing devices), no ACK is generated and the real-time payment ends. Within the non-real-time reconciliation loop 30 for cryptocurrency-based payments, if no ACK is generated, the method continues to step 44, where network computing device 16 instructs cryptocurrency-based payment backing account device 20 to release the locked system cryptocurrency amount.

[0066] Within real-time cryptocurrency-based payment loop 28, when an ACK is generated, the method continues to step 38, where network computing device 16 exchanges the amount of cryptocurrency 46 received from source computing device 12 for an amount of the desired currency. The cryptocurrency exchange is performed quickly (e.g., 30 seconds to several minutes) taking into account the instability of the exchange rate. Network computing device 16 transmits a payment 48 in the amount of the desired currency to destination computing device 14 to complete the real-time cryptocurrency-based payment.

[0067] Within the non-real-time verification loop 30 of the cryptocurrency-based payment, when an ACK is generated at step 36, the method continues to step 40, where the network computing device 16 verifies the amount of cryptocurrency 46 received from the source computing device 12. For example, the network computing device 16 connects to a consensus network that verifies the amount of cryptocurrency received from the source computing device 12. For example, the network computing device 16 connects to a consensus network that verifies the amount of cryptocurrency received from the source computing device 12. The consensus network implements a verification process that can take several minutes to several hours.

[0068] When at step 40 the network computing device 16 verifies the amount of cryptocurrency received by the source computing device 12, the method continues to step 44, where the network computing device 16 instructs the cryptocurrency-based payment backing account device 20 to release the amount of system cryptocurrency associated with the real-time cryptocurrency-based payment. If at step 40 the network computing device 16 does not verify the amount of cryptocurrency received by the source computing device 12, the method continues to step 42, where the network computing device 16 instructs the cryptocurrency-based payment backing account device 20 to consume the amount of system cryptocurrency associated with the real-time cryptocurrency-based payment.

[0069] FIG. 3 is a schematic block diagram of another embodiment of a cryptocurrency payment system 10, including a source computing device 12, a destination computing device 14, a network computing device 16, interface means 18, and a cryptocurrency-based payment backing account device 20. The cryptocurrency payment system 10 of FIG. 3 operates in the same manner as the cryptocurrency payment system 10 of FIG. 1, except that the destination computing device 14 does not include a network application 22 and is not associated with the network computing device 16.

[0070] In one example of operation, the source computing device 12 and the destination computing device 14 interact via the interface means 18. For example, the source computing device 12 establishes a direct communication link with the destination computing device 14 via near-field communication (NFC) interface means 18. The source computing device 12 transmits real-time payment information 50 to the network computing device 16 via the network application 22 of the source computing device 12. The real-time payment information 50 includes source real-time payment information (e.g., a source identifier (ID) and the type of cryptocurrency that the source computing device 12 wishes to use for real-time payment to the destination computing device 14), destination real-time payment information (e.g., a destination identifier (ID) and the desired type that the destination computing device 14 wishes to receive in real-time payment from the source computing device 12), and the amount of the real-time payment. The source computing device 12 receives the destination real-time payment information via the interface means 18.

[0071] When the network computing device 16 receives the real-time payment information 50, the network computing device starts: 1) a real-time cryptocurrency-based payment process (e.g., the real-time cryptocurrency-based payment loop 28), and 2) a non-real-time verification process (e.g., the non-real-time verification loop 30 of the cryptocurrency-based payment) for verifying the cryptocurrency-based payment with the cryptocurrency-based payment backing account device 20. The verification of the cryptocurrency-based payment with the cryptocurrency-based payment backing account device 20 is performed within a time frame longer than that of the real-time cryptocurrency-based payment.

[0072] When real-time payment information is received within the non-real-time verification loop 30 of the cryptocurrency-based payment, the network computing device 16 instructs the cryptocurrency-based payment backing account device 20 to lock the amount of the system cryptocurrency associated with the real-time cryptocurrency-based payment.

[0073] Within the real-time cryptocurrency-based payment loop 28, when the network computing device 16 receives the amount of cryptocurrency for use in the real-time cryptocurrency-based payment from the source computing device 12, a network confirmation response (ACK) for the amount of cryptocurrency is generated. If the payment is completed within a certain period of time before the network computing device 16 continues the following steps of the real-time cryptocurrency-based payment loop 28 (e.g., the payment start fails and / or is cancelled by the source and / or destination computing devices), the ACK is not generated and the real-time payment ends. If the ACK is not generated within the non-real-time verification loop 30 of the cryptocurrency-based payment, the network computing device 16 instructs the cryptocurrency-based payment backing account device 20 to release the locked amount of the system cryptocurrency.

[0074] Continue the real-time cryptocurrency-based payment loop 28. When an ACK is generated, the network computing device 16 exchanges the amount of cryptocurrency received from the source computing device 12 for the amount of the desired currency 52. The cryptocurrency exchange is performed quickly (e.g., 30 seconds to several minutes) taking into account the instability of the exchange rate. The exchange can also be performed in real time on a credit-based account to eliminate price instability. The network computing device 16 transmits the amount of the desired currency 52 to the source computing device 12. Then, the source computing device 12 transmits a payment 48 in the amount of the desired currency to the destination computing device 14 to complete the real-time cryptocurrency-based payment.

[0075] The remainder of the non-real-time reconciliation loop 30 for cryptocurrency-based payments operates in the same manner as the cryptocurrency payment system 10 of FIG. 1.

[0076] FIG. 4 is a flowchart of an example of a method for execution by the network computing device 16 of the cryptocurrency payment system 10 of FIG. 3. FIG. 4 includes a source computing device 12, a destination computing device 14, a network computing device 16, interface means 18, and a cryptocurrency-based payment backing account device 20. In this example, the source computing device 12 includes a network application 22 (e.g., network app 22) that associates the source computing device 12 with the network computing device 16. However, the destination computing device 14 is not associated with the network computing device 16.

[0077] This method starts at step 32, where network computing device 16 receives real-time payment information 50 regarding a cryptocurrency-based payment from source computing device 12 to destination computing device 14. For example, source computing device 12 transmits real-time payment information 50 to network computing device 16 via network application 22 of source computing device 12. Real-time payment information 50 includes source real-time payment information (e.g., source identifier (ID), and the type of cryptocurrency that source computing device 12 wishes to use for real-time payment to destination computing device 14), destination real-time payment information (e.g., destination identifier (ID), and the desired type that destination computing device 14 wishes to receive for real-time payment from source computing device 12), and the amount of the real-time payment. Source computing device 12 receives destination real-time payment information via interface means 18.

[0078] When network computing device 16 receives the real-time payment information, the network computing device starts 1) a real-time cryptocurrency-based payment process (e.g., real-time cryptocurrency-based payment loop 28) and 2) a non-real-time verification process (e.g., non-real-time verification loop 30 of the cryptocurrency-based payment) for verifying the cryptocurrency-based payment with cryptocurrency-based payment backing account device 20 (i.e., "start payment"). The verification of the cryptocurrency-based payment with cryptocurrency-based payment backing account device 20 is performed within a time frame longer than the time frame of the real-time cryptocurrency-based payment.

[0079] The method continues with step 34, where, within the non-real-time verification loop 30 for cryptocurrency-based payments, the network computing device 16 instructs the cryptocurrency-based payment backing account device 20 to lock the amount of the system cryptocurrency associated with the real-time cryptocurrency-based payment.

[0080] The method continues with step 36, where a network confirmation response (ACK) for the receipt of the cryptocurrency amount is generated or not generated. For example, when the network computing device 16 receives the amount 46 of cryptocurrency for use in a real-time cryptocurrency-based payment from the source computing device 12, an ACK is generated and the method continues with steps 38 and 40. If the payment is completed (e.g., the payment start fails and / or is canceled by the source and / or destination computing devices) within a certain period of time before the network computing device 16 continues with the following steps of the real-time cryptocurrency-based payment loop 28, no ACK is generated and the real-time payment fails. If no ACK is generated within the non-real-time verification loop 30 for cryptocurrency-based payments, the method continues with step 44, where the network computing device 16 instructs the cryptocurrency-based payment backing account device 20 to release the locked amount of the system cryptocurrency.

[0081] Within the real-time cryptocurrency-based payment loop 28, when an ACK is generated, the method continues to step 54, where the network computing device 16 exchanges the amount of cryptocurrency 46 received from the source computing device 12 for an amount of the desired currency. The cryptocurrency exchange is performed quickly (e.g., 30 seconds to several minutes) taking into account the instability of the exchange rate. The network computing device 16 transmits the amount of the desired currency 52 to the source computing device 12. The source computing device 12 then transmits a payment 48 in the amount of the desired currency to the destination computing device 14 to complete the real-time cryptocurrency-based payment. The remainder of this method operates in the same manner as the method of FIG. 2.

[0082] FIG. 5 is a schematic block diagram of another embodiment of a cryptocurrency payment system 10 including a source computing device 12, a destination computing device 14, a network computing device 16, interface means 18, a cryptocurrency-based payment backing account device 20, and a third-party payment device 56. The cryptocurrency payment system 10 of FIG. 5 operates in the same manner as the cryptocurrency payment system 10 of FIG. 3, except that the network computing device 16 adjusts the payment to the destination computing device 14 via the third-party payment device 56. The third-party payment device 56 can be a cryptocurrency exchange and holding device. Alternatively, the third-party payment device 56 is a store value account (SVA) or a gift card generation device.

[0083] In one example of operation, source computing device 12 and destination computing device 14 interact via interface means 18. For example, source computing device 12 establishes a direct communication link with destination computing device 14 via NFC interface means 18. Source computing device 12 transmits real-time payment information 50 to network computing device 16 via network application 22 of source computing device 12. Real-time payment information 50 includes source real-time payment information (e.g., source identifier (ID), and the type of cryptocurrency that source computing device 12 wishes to use for real-time payment to destination computing device 14), destination real-time payment information (e.g., destination identifier (ID), and the desired type that destination computing device 14 wishes to receive from source computing device 12 for real-time payment), and the amount of the real-time payment. Source computing device 12 receives destination real-time payment information via interface means 18.

[0084] When network computing device 16 receives real-time payment information 50, the network computing device starts 1) a real-time cryptocurrency-based payment process (e.g., real-time cryptocurrency-based payment loop 28) and 2) a non-real-time verification process (e.g., non-real-time verification loop 30 for cryptocurrency-based payment) that verifies the cryptocurrency-based payment with cryptocurrency-based payment backing account device 20. The verification of the cryptocurrency-based payment with cryptocurrency-based payment backing account device 20 is performed within a time frame that is longer than the time frame of the real-time cryptocurrency-based payment.

[0085] Within the non-real-time verification loop 30 for the cryptocurrency-based payment, when real-time payment information is received, the network computing device 16 instructs the cryptocurrency-based payment backing account device 20 to lock the amount of the system cryptocurrency associated with the real-time cryptocurrency-based payment.

[0086] Within the real-time cryptocurrency-based payment loop 28, when the network computing device 16 receives the amount of cryptocurrency for use in the real-time cryptocurrency-based payment from the source computing device 12, a network confirmation response (ACK) for the amount of cryptocurrency is generated. If the payment is cancelled within a certain period of time before the network computing device 16 continues with the following steps of the real-time cryptocurrency-based payment loop 28 (for example, the payment start fails and / or is cancelled by the source and / or destination computing devices), the ACK is not generated and the real-time payment ends. If the ACK is not generated within the non-real-time verification loop 30 for the cryptocurrency-based payment, the network computing device 16 instructs the cryptocurrency-based payment backing account device 20 to release the locked amount of the system cryptocurrency.

[0087] Continuing the real-time cryptocurrency-based payment loop 28, when the ACK is generated, the network computing device 16 exchanges the amount of cryptocurrency received from the source computing device 12 for the amount of the desired currency 52. The cryptocurrency exchange is performed quickly (for example, 30 seconds to several minutes) taking into account the instability of the exchange rate. The exchange can also be performed in real time on a credit-based account to eliminate price instability.

[0088] The network computing device 16 transmits the amount 52 of the desired currency to the third-party payment device 56. The third-party payment device 56 then transmits a payment 48 in the amount of the desired currency to the destination computing device 14 to complete a real-time cryptocurrency-based payment. Alternatively, the network computing device 16 transmits the amount of cryptocurrency to the third-party payment device 56. The third-party payment device 56 exchanges the amount of cryptocurrency for the amount of the desired currency and transmits a payment 48 in the amount of the desired currency to the destination computing device 14 to complete a real-time cryptocurrency-based payment.

[0089] The remainder of the non-real-time reconciliation loop 30 for cryptocurrency-based payments operates in the same manner as the cryptocurrency payment system 10 of FIG. 1.

[0090] FIG. 6 is a flowchart of an example of a method for execution by the network computing device 16 of the cryptocurrency payment system 10 of FIG. 5. FIG. 6 includes a source computing device 12, a destination computing device 14, a network computing device 16, interface means 18, a cryptocurrency-based payment backing account device 20, and a third-party payment device 56. In this example, the source computing device 12 includes a network application 22 (e.g., network app 22) that associates the source computing device 12 with the network computing device 16. However, the destination computing device 14 is not associated with the network computing device 16.

[0091] This method starts at step 32, where network computing device 16 receives real-time payment information 50 regarding a cryptocurrency-based payment from source computing device 12 to destination computing device 14. For example, source computing device 12 transmits real-time payment information 50 to network computing device 16 via network application 22 of source computing device 12. Real-time payment information 50 includes source real-time payment information (e.g., source identifier (ID), and the type of cryptocurrency that source computing device 12 wants to use for real-time payment to destination computing device 14), destination real-time payment information (e.g., destination identifier (ID), and the desired type that destination computing device 14 wants to receive in real-time payment from source computing device 12), and the amount of the real-time payment. Source computing device 12 receives the destination real-time payment information via interface means 18.

[0092] When network computing device 16 receives the real-time payment information, the network computing device starts 1) a real-time cryptocurrency-based payment process (e.g., real-time cryptocurrency-based payment loop 28) and 2) a non-real-time verification process (e.g., non-real-time verification loop 30 of cryptocurrency-based payment) for verifying the cryptocurrency-based payment with cryptocurrency-based payment backing account device 20 (i.e., "start payment"). The verification of the cryptocurrency-based payment with cryptocurrency-based payment backing account device 20 is performed within a time frame longer than the time frame of the real-time cryptocurrency-based payment.

[0093] The method continues at step 34, where within the non-real-time verification loop 30 for cryptocurrency-based payments, the network computing device 16 instructs the cryptocurrency-based payment backing account device 20 to lock the amount of the system cryptocurrency associated with the real-time cryptocurrency-based payment.

[0094] The method continues at step 36, where a network confirmation response (ACK) for the receipt of the cryptocurrency amount is generated or not generated. For example, when the network computing device 16 receives the amount 46 of cryptocurrency for use in a real-time cryptocurrency-based payment from the source computing device 12, an ACK is generated and the method continues at steps 38 and 40. If the payment is completed (e.g., the payment start fails and / or is cancelled by the source and / or destination computing devices) within a certain time before the network computing device 16 continues with the following steps of the real-time cryptocurrency-based payment loop 28, no ACK is generated and the real-time payment ends. If no ACK is generated within the non-real-time verification loop 30 for cryptocurrency-based payments, the method continues at step 44, where the network computing device 16 instructs the cryptocurrency-based payment backing account device 20 to release the locked amount of the system cryptocurrency.

[0095] Within the real-time cryptocurrency-based payment loop 28, when an ACK is generated, the method continues to step 58, where the network computing device 16 exchanges the amount of cryptocurrency 46 received from the source computing device 12 for an amount of the desired currency. The cryptocurrency exchange is performed quickly (e.g., 30 seconds to several minutes) taking into account the instability of the exchange rate. The network computing device 16 transmits the amount of the desired currency 52 to the third-party payment device 56. The third-party payment device 56 then transmits a payment 48 in the amount of the desired currency to the destination computing device 14 to complete the real-time cryptocurrency-based payment.

[0096] Alternatively, the network computing device 16 transmits the amount of cryptocurrency to the third-party payment device 56. The third-party payment device 56 exchanges the amount of cryptocurrency for an amount of the desired currency and transmits a payment 48 in the amount of the desired currency to the destination computing device 14 to complete the real-time cryptocurrency-based payment. The remainder of this method operates in the same manner as the method of FIG. 2.

[0097] FIG. 7 is a schematic block diagram of one embodiment of a cryptocurrency payment system 10 including a source computing device 12, a destination computing device 14, a network computing device 16, interface means 18, and a cryptocurrency-based payment backing account device 20. FIG. 7 operates in the same manner as FIG. 1 except that the cryptocurrency-based payment backing account device 20 is shown in more detail.

[0098] The cryptocurrency-based payment backing account device 20 includes a plurality of cryptocurrency-based payment backing accounts 60-1 to 60-n. The plurality of cryptocurrency-based payment backing accounts 60-1 to 60-n store the system cryptocurrencies 62-1 to 62-n as collateral to back up the real-time cryptocurrency-based payments associated with their respective cryptocurrency-based payment backing accounts 60-1 to 60-n.

[0099] The system cryptocurrency is any cryptocurrency selected for use as collateral by the cryptocurrency payment system 10. For example, the system cryptocurrency is a cryptocurrency specially created for use in the system (e.g., a token on the Ethereum blockchain). As another example, the system cryptocurrency is an already established and reliable cryptocurrency.

[0100] Each of the plurality of cryptocurrency-based payment backing accounts 60-1 to 60-n is associated with either the source computing device 12, the destination computing device 14, or the type of cryptocurrency. Most commonly, the cryptocurrency-based payment account 20 is associated with the source computing device 12. Different types of cryptocurrency-based payment backing account associations are considered in more detail with reference to FIGS. 8A-8E.

[0101] The cryptocurrency-based payment backing account device 20 is operable to receive commands regarding cryptocurrency-based payments from the source computing device 12 to the destination computing device 14 from the network computing device 16.

[0102] In one embodiment of the operation, the cryptocurrency-based payment backing account device 20 receives a lock instruction from the network computing device 16 to lock an amount based on the system cryptocurrency, based on real-time payment information (e.g., source real-time payment information 24 and destination real-time payment information 26) regarding the cryptocurrency-based payment from the source computing device 12 to the destination computing device 14. The source real-time payment information 24 includes a source identifier (ID) and the type of cryptocurrency that the source computing device 12 wants to use for the real-time payment to the destination computing device 14. The destination real-time payment information 26 includes a destination identifier (ID) and the type of currency that the destination computing device 14 wants to receive in real-time payment from the source computing device 12 (e.g., fiat currency, another cryptocurrency, etc.). One or more of the source real-time payment information 24 and the destination real-time payment information 26 includes the amount of the real-time payment.

[0103] The cryptocurrency-based payment backing account device 20 determines the cryptocurrency-based payment backing account among the plurality of cryptocurrency-based payment backing accounts 60-1 to 60-n associated with the real-time payment information. For example, the cryptocurrency-based payment backing account device 20 determines that the cryptocurrency-based payment backing account 60-1 is associated with the source ID.

[0104] In another embodiment, the cryptocurrency-based payment backing account device 20 determines that the cryptocurrency-based payment backing account 60-2 is associated with the destination ID. In another embodiment, the cryptocurrency-based payment backing account device 20 determines that the cryptocurrency-based payment backing account 60-n is associated with the type of cryptocurrency that the source computing device 12 wants to use for the real-time payment.

[0105] Next, the cryptocurrency-based payment backing account device 20 locks the amount of the system cryptocurrency stored in the cryptocurrency-based payment backing account until a release instruction or a consumption instruction is received from the network computing device 16. For example, if the cryptocurrency-based payment backing account device 20 determines that the cryptocurrency-based payment backing account 60-1 is associated with the source ID, the cryptocurrency-based payment backing account device 20 locks the amount of the system cryptocurrency 62-1 stored in the cryptocurrency-based payment backing account 60-1.

[0106] The amount of the locked system cryptocurrency may be based on the amount of the real-time payment and / or one or more characteristics of the cryptocurrency-based payment backing account, the source computing device, and the destination computing device. For example, the amount of the locked system cryptocurrency is equal to the amount of the real-time payment. As another example, the amount of the locked system cryptocurrency is based on how much the source computing device typically spends. As another example, the amount of the locked system cryptocurrency is based on the type of goods sold by the destination computing device (e.g., a larger amount is locked for a retailer selling high-end goods).

[0107] The amount of the system cryptocurrency remains locked until a release instruction or a consumption instruction is received from the network computing device 16. When a release instruction is received from the network computing device 16, the cryptocurrency-based payment backing account device 20 releases the amount of the system cryptocurrency to the cryptocurrency-based payment backing account. The release instruction is received after the cryptocurrency payment from the source computing device 12 is proven and the payment is successful, or after the start of the cryptocurrency payment is terminated (for example, the network computing device 16 fails and / or is canceled before sending the payment to the destination computing device).

[0108] When a consumption instruction is received from the network computing device 16, the cryptocurrency-based payment backing account device 20 sends the amount of the system cryptocurrency to the account associated with the network computing device 16 to cover the real-time cryptocurrency-based payment. The account associated with the network computing device 16 can be stored in the cryptocurrency-based payment backing account device 20, in the network computing device 16, or as a stand-alone computing device. The consumption instruction is received when the cryptocurrency payment from the source computing device 12 has not been successfully proven, but the real-time cryptocurrency payment has been made.

[0109] Figures 8A - 8E are schematic block diagrams of an embodiment of the cryptocurrency-based payment backing account device 20. The cryptocurrency-based payment backing account device 20 enables individuals and entities to provide backing for cryptocurrency payment system transactions. In exchange for backing the transactions and adding to the security of the cryptocurrency payment system, individuals and entities are provided with rewards.

[0110] FIG. 8A shows the most common embodiment of a cryptocurrency-based payment backing account, where multiple cryptocurrency wallet developers 64-1 to 64-n establish a cryptocurrency-based payment backing account using a cryptocurrency-based payment backing account device 20 to back up payments made by cryptocurrency wallet users.

[0111] For example, cryptocurrency wallet developer 64-1 developed a cryptocurrency wallet 66. To make cryptocurrency wallet 66 available in cryptocurrency payment system 10, cryptocurrency wallet developer 64-1 established a cryptocurrency-based payment backing account 72-1 for payments of cryptocurrency wallet 66 and deposited system cryptocurrency 62-1 for payments of cryptocurrency wallet 66 into the cryptocurrency-based payment backing account 72-1. Source computing devices 12-1a to 12-1n each store cryptocurrency wallets 66-1 to 66-n for making cryptocurrency-based payments in cryptocurrency payment system 10, and the system cryptocurrency 62-1 stored in the cryptocurrency-based payment backing account 72-1 for payments of cryptocurrency wallet 66 backs up those payments.

[0112] In exchange for establishing a cryptocurrency-based payment backing account, the developer of the cryptocurrency wallet receives a reward such as a percentage of the system cryptocurrency for any successful payment made by the users of the developer's wallet from the cryptocurrency-based account device 20. Since the developer is trying to back up the payments of the wallet users, the developer is incentivized to produce a high-quality digital wallet that prevents user misconduct and to fix defective digital wallet software. The cryptocurrency-based payment backing account setup and reward incentives are further described in co-pending patent application Ser. No. 16 / 695,459, titled "SECURE AND TRUSTED CRYPTOCURRENCY ACCEPTANCE SYSTEM," filed Nov. 26, 2019.

[0113] Figure 8A further shows additional cryptocurrency wallet developers 64-2 to 64-n. Cryptocurrency wallet developer 64-2 developed cryptocurrency wallet 68. To make cryptocurrency wallet 68 usable in cryptocurrency payment system 10, cryptocurrency wallet developer 64-2 established a cryptocurrency-based payment backing account 72-2 for payments from cryptocurrency wallet 68 and deposited system cryptocurrency 62-2 into the cryptocurrency-based payment backing account 72-2 for payments from cryptocurrency wallet 68. Source computing devices 12-2a to 12-2n each store cryptocurrency wallets 68-1 to 68-n for making cryptocurrency-based payments in cryptocurrency payment system 10, and the system cryptocurrency 62-2 stored in the cryptocurrency-based payment backing account 72-2 for payments from cryptocurrency wallet 68 secures those payments.

[0114] Cryptocurrency wallet developer 64-n developed cryptocurrency wallet 70. To make cryptocurrency wallet 70 usable in cryptocurrency payment system 10, cryptocurrency wallet developer 64-n established a cryptocurrency-based payment backing account 72-n for payments from cryptocurrency wallet 70 and deposited system cryptocurrency 62-n into the cryptocurrency-based payment backing account 72-n for payments from cryptocurrency wallet 70. Source computing devices 12-na to 12-nn each store cryptocurrency wallets 70-1 to 70-n for making cryptocurrency-based payments in cryptocurrency payment system 10, and the system cryptocurrency 62-n stored in the cryptocurrency-based payment backing account 72-n for payments from cryptocurrency wallet 70 secures those payments.

[0115] Figure 8B shows an example where an individual generates a cryptocurrency-based payment backing account with the cryptocurrency-based payment backing account device 20 to back up their own payments within the cryptocurrency payment system 10. For example, Figure 8B includes source computing devices 12-1 to 12-n, and each source computing device is associated with an individual user.

[0116] The source computing device 12-1 establishes a cryptocurrency-based payment backing account 74-1 for the payment of the source computing device 12-1 with the cryptocurrency-based payment backing account device 20, and deposits the system cryptocurrency 62-1 into the cryptocurrency-based payment backing account 74-1 for the payment of the source computing device 12-1 to back up the payment of the source computing device 12-1 itself within the cryptocurrency payment system 10. The source computing device 12-2 establishes a cryptocurrency-based payment backing account 74-2 for the payment of the source computing device 12-2 with the cryptocurrency-based payment backing account device 20, and deposits the system cryptocurrency 62-2 into the cryptocurrency-based payment backing account 74-2 for the payment of the source computing device 12-2 to back up the payment of the source computing device 12-2 itself within the cryptocurrency payment system 10.

[0117] Similarly, the source computing device 12-n establishes a cryptocurrency-based payment backing account 74-n for the payment of the source computing device 12-n with the cryptocurrency-based payment backing account device 20, and deposits the system cryptocurrency 62-n into the cryptocurrency-based payment backing account 74-n for the payment of the source computing device 12-n to back up the payment of the source computing device 12-n itself within the cryptocurrency payment system 10.

[0118] Typical users of the cryptocurrency payment system 10 may not have the funds to establish a cryptocurrency-based payment backing account for themselves, or may simply not wish to be involved in this process. However, for specific users who have funds and desire to set up individual accounts, they will receive direct rewards from the cryptocurrency-based payment backing account device 20 for their own successful transactions. Further, setting up individual accounts provides individual users with the freedom to use any cryptocurrency payment cryptocurrency wallet selected by the user.

[0119] FIG. 8C shows an example in which the destination computing device 14 generates a cryptocurrency-based payment backing account with the cryptocurrency-based payment backing account device 20 to back up payments received within the cryptocurrency payment system 10. For example, FIG. 8C includes destination computing devices 14-1 to 14-n. The destination computing device may be associated with individual users and / or retailers.

[0120] The destination computing device 14-1 establishes a cryptocurrency-based payment backing account 76-1 for the payment of the destination computing device 14-1 with the cryptocurrency-based payment backing account device 20, deposits the system cryptocurrency 62-1 into the cryptocurrency-based payment backing account 76-1 for the payment of the destination computing device 14-1, and secures the payments received by the destination computing device 14-1 within the cryptocurrency payment system 10. The destination computing device 14-2 establishes a cryptocurrency-based payment backing account 76-2 for the payment of the destination computing device 14-2 with the cryptocurrency-based payment backing account device 20, deposits the system cryptocurrency 62-2 into the cryptocurrency-based payment backing account 76-2 for the payment of the destination computing device 12-2, and secures the payments received by the destination computing device 14-2 within the cryptocurrency payment system 10.

[0121] Similarly, the destination computing device 14-n establishes a cryptocurrency-based payment backing account 76-n for the payment of the destination computing device 14-n with the cryptocurrency-based payment backing account device 20, deposits the system cryptocurrency 62-n into the cryptocurrency-based payment backing account 76-n for the payment of the destination computing device 14-n, and secures the payments received by the destination computing device 14-n within the cryptocurrency payment system 10.

[0122] There is little incentive for a destination computing device to set up a cryptocurrency-based payment backing account to verify received payments. The destination computing device will need funds to establish an account and trust payments received by a source computing device (e.g., a consumer in a retailer / consumer scenario). Moreover, the destination computing device will need to spend time setting up the account.

[0123] However, as previously discussed, a cryptocurrency-based payment backing account receives direct rewards from the cryptocurrency-based payment backing account device 20 for successful payments to the cryptocurrency-based payment backing account. Thus, while upfront setup may require effort and money, the destination computing device 14 will receive the long-term benefit of a percentage back on all successful payments. To establish a trustworthy payment, the destination computing device 14 can develop a customer loyalty program to gain knowledge about the customer before accepting a payment. If customer fraud is detected, the customer will lose their loyal customer status and will no longer be able to make cryptocurrency-based payments to the destination computing device 14.

[0124] FIG. 8D shows an example in which a cryptocurrency-based payment backing account is established to verify payments using a specific cryptocurrency wallet. For example, a cryptocurrency-based payment backing account 80-1 is established to verify payments using a wallet for cryptocurrency A, a cryptocurrency-based payment backing account 80-2 is established to verify payments using a wallet for cryptocurrency B, and a cryptocurrency-based payment backing account 80-n is established to verify payments using a wallet for cryptocurrency X.

[0125] Any user of the cryptocurrency payment system may establish any of the indicated accounts, and any user of the cryptocurrency payment system may deposit system cryptocurrency into any of the accounts. For example, computing devices 78-1 to 78-2 deposit cryptocurrency 62-1 into cryptocurrency-based payment backing account 80-1 for payments using cryptocurrency A, computing device 78-3 deposits cryptocurrency 62-2 into cryptocurrency-based payment backing account 80-2 for payments using cryptocurrency B, and computing device 78-n deposits cryptocurrency 62-n into cryptocurrency-based payment backing account 80-n for payments using cryptocurrency X.

[0126] Those who deposit system cryptocurrency into a cryptocurrency-based payment backing account receive a reward from cryptocurrency-based payment backing account device 20 for a successful payment associated with a specific cryptocurrency wallet. For example, a well-known and trusted cryptocurrency wallet such as a Bitcoin wallet may have a cryptocurrency-based payment backing account into which individual users can deposit system cryptocurrency to back Bitcoin payments. Thus, deposits into cryptocurrency-based payment backing account devices provide a financial incentive in exchange for the risks associated with making the deposit.

[0127] Figure 8E shows an example where any type of user of the cryptocurrency payment system can deposit system cryptocurrency into any cryptocurrency-based payment backing account in exchange for a financial incentive. In this example, it is shown that the cryptocurrency-based payment backing account device 20 has a cryptocurrency-based payment backing account 76-1 for the payment of the destination computing device 14-1 that stores the system cryptocurrency 62-1, a cryptocurrency-based payment backing account 80-2 for the payment using cryptocurrency B that stores the system cryptocurrency 62-2, and a cryptocurrency-based payment backing account 72-2 for the payment of the cryptocurrency wallet 68 that stores the system cryptocurrency 62-3.

[0128] It is shown that the computing device 78-1 deposits system cryptocurrency into the cryptocurrency-based payment backing account 76-1 for the payment of the destination computing device 14-1. For example, the destination computing device 14 can be a reliable retailer with a reliable customer loyalty program where the computing device 78-1 (e.g., an individual user) finds an opportunity for a financial return. The computing device 78-1 deposits system cryptocurrency into the account to receive a portion of the reward for the successful payment received by the destination computing device 14.

[0129] As another example, it is shown that the cryptocurrency wallet developer 64-1 deposits system cryptocurrency into the cryptocurrency-based payment backing account 80-1 for the payment using cryptocurrency B. The cryptocurrency wallet developer 64-1 may consider that the cryptocurrency B wallet is a popular and reliable cryptocurrency wallet, and thus deposits system cryptocurrency into the account to receive a portion of the reward for the successful payment made using cryptocurrency B.

[0130] As another example, it is shown that cryptocurrency wallet developer 64-n deposits system cryptocurrency into a cryptocurrency-based payment backing account 72-2 for payments of cryptocurrency wallet 68. Cryptocurrency wallet developer 64-n is not the wallet of cryptocurrency wallet developer 64-n itself, but it can be considered that cryptocurrency wallet 68 is a popular and reliable cryptocurrency wallet and deposits system cryptocurrency into the account in order to receive a portion of the reward for successful payments made using cryptocurrency wallet 68.

[0131] Figure 9 is a flowchart of an example of a method for execution by a cryptocurrency-based payment backing account device of a cryptocurrency payment system. This method starts at step 82, where the cryptocurrency-based payment backing account device receives a lock instruction from a network computing device of the cryptocurrency payment system to lock an amount of system cryptocurrency based on real-time payment information regarding a cryptocurrency-based payment from a source computing device to a destination computing device. The cryptocurrency-based payment backing account device includes a plurality of cryptocurrency-based payment backing accounts that store system cryptocurrency to back up real-time cryptocurrency-based payments of the cryptocurrency payment system.

[0132] The amount of the system cryptocurrency to be locked may be based on the amount of the real-time payment and / or one or more characteristics of the cryptocurrency-based payment backing account, the source computing device, and the destination computing device. For example, the amount of the system cryptocurrency to be locked is equal to the amount of the real-time payment. As another example, the amount of the system cryptocurrency to be locked is based on how much the source computing device typically spends. As another example, the amount of the locked system cryptocurrency is based on the type of goods sold by the destination computing device (e.g., a larger amount is locked for a retailer selling high-end goods).

[0133] The method continues at step 84, where the cryptocurrency-based payment backing account device determines the cryptocurrency-based payment backing account among a plurality of cryptocurrency-based payment backing accounts associated with the real-time payment information. For example, the real-time payment information includes a source ID associated with the cryptocurrency-based payment backing account for the cryptocurrency wallet of the source computing device. Additional examples of the type of cryptocurrency-based payment backing account are discussed with reference to FIGS. 8A-8E.

[0134] The method continues at step 86, where the cryptocurrency-based payment backing account device locks the amount of system cryptocurrency stored in the cryptocurrency-based payment backing account until a release instruction or a consumption instruction is received from the network computing device. When the cryptocurrency-based payment backing account device receives a release instruction at step 88, the method continues at step 90, where the cryptocurrency-based payment backing account device releases the amount secured by the system to the cryptocurrency-based payment backing account. The release instruction is received after the cryptocurrency payment from the source computing device is proven and the real-time cryptocurrency-based payment is successful, or after the payment start is terminated (e.g., the network computing device fails and / or is canceled before sending the payment to the destination computing device).

[0135] When the cryptocurrency-based payment backing account device receives a consumption instruction at step 92, the method continues at step 94, where the cryptocurrency-based payment backing account device sends the amount of system cryptocurrency to an account associated with the network computing device. The account associated with the network computing device may be stored in the cryptocurrency-based payment backing account device, in the network computing device, or in a stand-alone computing device. The consumption instruction is received when the cryptocurrency payment from the source computing device has not been successfully received and / or proven within a specific time threshold, but a real-time cryptocurrency payment is being made.

[0136] FIG. 10 is a schematic block diagram of an existing payment network 96 that includes consumer payment information 98, an existing retailer-consumer interface computing device 100, an existing retailer acquirer device 102, one or more existing retailer payment gateways 104, an existing retailer payment processor 106, an existing network / association 108, and an existing issuing bank device 110.

[0137] The existing retailer-consumer interface computing device 100 is a retail point of sale (POS) device (e.g., a register having one or more of a computer monitor, a touch screen, a payment terminal, a barcode scanner, a debit / credit card reader), a credit / debit card terminal, or an e-commerce platform. To initiate a payment in step 1, the consumer provides the consumer payment information 98 to the existing retailer-consumer interface computing device 100. For example, the consumer inserts or swipes a credit card or debit card at the POS device, or, if both devices use near field communication (NFC) technology, swipes or hovers a consumer device storing credit card or debit card information at the POS device. As another example, the consumer enters credit card or debit card information on the retailer's e-commerce website to initiate a purchase.

[0138] In step 2, the existing retailer - consumer interface computing device 100 sends consumer payment information to the existing retailer payment gateway 104. The existing retailer payment gateway 104 may be integrated with the existing retailer - consumer interface computing device 100 or may be a separate device (e.g., if the existing retailer - consumer interface computing device 100 is an e - commerce platform). The existing retailer payment gateway 104 functions as a communication channel between the existing retailer - consumer interface computing device 100 and an entity that approves or rejects debit / credit card payments.

[0139] In step 3, the existing retailer payment gateway 104 sends the consumer payment information to the existing retailer payment processor 106. In step 4, the existing retailer payment processor 106 processes the payment transaction and routes the payment transaction information to the existing network / association 108 (e.g., a credit card association). Some existing networks / associations 108 can approve or reject the payment transaction. For these existing networks / associations 108, in step 5, the existing network / association 108 approves or rejects the payment transaction and sends an approval / rejection confirmation response to the existing retailer payment processor 106.

[0140] Some existing networks / associations 108 are unable to approve or reject payment transactions. For those existing networks / associations 108, in step 4a, the existing network / association 108 transmits payment transaction information to the existing issuing bank device 110. The existing issuing bank device 110 approves or rejects the payment transaction in step 4b and transmits an approval / rejection confirmation response to the existing network / association 108. The existing network / association 108 transmits an approval / rejection confirmation response to the existing retailer payment processor 106 in step 5.

[0141] The existing retailer payment processor 106 transmits an approval / rejection confirmation response to the existing retailer payment gateway 104 in step 6, and the existing retailer payment gateway 104 pushes an approval / rejection confirmation response (ACK) to the existing retailer - consumer interface computing device 100 in step 7, where the consumer is notified whether the payment is approved or rejected.

[0142] Upon approval, the existing network / association 108 transmits the payment to the existing retailer acquirer device 102 (e.g., retailer bank) in step 8. The existing retailer acquirer device 102 may be associated with the existing retailer payment gateway 104 via a retailer account. Funds may be deposited into the retailer account and then bundled and deposited into the retailer bank at a predetermined time.

[0143] Accordingly, the existing payment network 96 involves transmitting payment information through multiple entities in a round - trip. Each step includes encrypting and decrypting consumer payment information. The existing payment network 96 is slow, involves many potential points of security violations and fraud, and requires fees for the roles of various entities in payment processing.

[0144] FIG. 11 is a schematic block diagram of another embodiment of a cryptocurrency payment system 10, including a consumer computing device 112, a network computing device 16, an interface means 18, a cryptocurrency payment backing account device 20, and a retailer computing device 122. FIG. 11 operates in the same manner as the cryptocurrency payment system 10 of FIGS. 1, 3, and 5, except that in FIG. 11, the source computing device 12 is referred to as the consumer computing device 112, and the destination computing device is the retailer computing device 122, which is refreshed to connect to the cryptocurrency payment system 10 and is also connected to an existing payment network (e.g., the existing payment network 96 of FIG. 10).

[0145] The retailer computing device 122 includes a refreshed point-of-sale (POS) device 114 and an existing payment network connection 124. The refreshed POS device 114 provides a cryptocurrency payment system connection point 120-1 to the network computing device 16 and thus includes refreshed retailer POS software 116 that connects the retailer computing device 122 to the cryptocurrency payment system 10.

[0146] For example, the refreshed retailer POS software 116 is a network application that connects the retailer POS device to the network computing device 16 and displays buttons on near-field communication (NFC) software for accepting payments via the cryptocurrency payment system. The refreshed POS device 114 includes existing POS hardware 118 (e.g., barcode scanners, card readers, etc.). The refreshed POS device 114 is operable to connect to the existing payment network connection 124 (e.g., via the existing retailer payment gateway 104) as discussed with reference to FIG. 10.

[0147] FIG. 12 is a schematic block diagram of another embodiment of a cryptocurrency payment system 10, including a consumer computing device 112, a network computing device 16, interface means 18, a cryptocurrency payment backing account device 20, and a retailer computing device 122. FIG. 12 operates in the same manner as the cryptocurrency payment system 10 of FIG. 11, except that the refreshed POS device 114 of the retailer computing device 122 includes refreshed retailer POS software 116 and refreshed retailer POS hardware 126.

[0148] For example, the refreshed POS device 114 includes a network application for generating and / or scanning codes (e.g., barcodes, two-part barcodes, etc.) related to payments of the cryptocurrency payment system, as well as refreshed hardware. For example, the refreshed POS device 114 generates a code for the consumer to scan. The consumer computing device 112 scans the code as a payment initiation.

[0149] In an example of a two-part barcode, the refreshed POS device 114 generates one piece of a barcode for the consumer to scan. The consumer computing device 112 generates and presents another piece of the barcode for the refreshed POS device 114 to scan. The refreshed POS device 114 is operable to scan the two pieces and interpret them as a payment initiation.

[0150] One or more of the updated retailer POS software 116 and the updated retailer POS hardware 126 connect the updated POS device 114 to the network computing device 16. In this embodiment, the updated retailer POS hardware 126 provides a cryptocurrency payment system connection point 120-2 to the network computing device 16, and thus connects the retailer computing device 122 to the network computing device 16.

[0151] FIG. 13 is a schematic block diagram of a cryptocurrency payment system 10 including a consumer computing device 112, a network computing device 16, an interface means 18, a cryptocurrency payment backing account device 20, and a retailer computing device 122.

[0152] FIG. 13 operates in the same manner as the cryptocurrency payment system 10 of FIGS. 11 and 12 in that the retailer computing device 122 includes the updated POS device 114. FIG. 13 shows the real-time payment steps involved when the updated POS device 114 is connected to the network computing device 16 (i.e., is part of the cryptocurrency payment system 10).

[0153] In steps 1a and 1b, the consumer computing device 112 and the updated POS device 114 provide real-time payment information to the network computing device 16. The real-time payment information includes consumer real-time payment information (e.g., a consumer identifier (ID) and the type of cryptocurrency that the consumer computing device 112 wishes to use for real-time payment to the retailer computing device 122), retailer real-time payment information (e.g., a retailer identifier (ID) and the type of currency that the retailer computing device 122 wishes to receive from the consumer computing device 112 for real-time payment), and the amount of the real-time payment.

[0154] When the network computing device 16 receives real-time payment information, the network computing device starts: 1) a real-time cryptocurrency-based payment process and a non-real-time verification process for verifying the cryptocurrency-based payment with the cryptocurrency-based payment backing account device 20. The verification of the cryptocurrency-based payment with the cryptocurrency-based payment backing account device 20 is performed within a time frame longer than that of the real-time cryptocurrency-based payment. Here, steps involving real-time cryptocurrency-based payments are shown. The verification of the cryptocurrency-based payment with the cryptocurrency-based payment backing account device 20 is performed in the same manner as the process described in the previous figure.

[0155] When the network computing device 16 receives the amount of cryptocurrency for use in a real-time cryptocurrency-based payment from the consumer computing device 112, a network confirmation response (ACK) for the receipt of the amount of cryptocurrency is generated, the cryptocurrency is exchanged for the retailer's desired currency, and payment is made to the retailer. The ACK is pushed to the refreshed POS device 114 in step 2. Compared to the process described in FIG. 10, the payment ACK is sent to the refreshed POS device 114 of FIG. 13 much faster and through the use of fewer entities.

[0156] FIG. 14 is a schematic block diagram of another embodiment of a cryptocurrency payment system 10, including a consumer computing device 112, a network computing device 16, interface means 18, a cryptocurrency payment backing account device 20, and a retailer computing device 122. FIG. 14 operates in the same manner as the cryptocurrency payment system 10 of FIGS. 11 and 12, except that the retailer computing device 122 includes an existing retailer-consumer interface computing device 100 (e.g., an existing POS device or e-commerce trading platform) and a refreshed retailer payment gateway 128. For example, a retailer may not wish to invest in refreshing the retailer's POS equipment or installing new software on an existing POS device or e-commerce trading platform, or may not be able to invest. However, the retailer can switch from an existing retailer payment gateway to use the refreshed retailer payment gateway 128 to process payments of the cryptocurrency payment system.

[0157] The refreshed retailer payment gateway 128 provides a cryptocurrency payment system connection point 120-3 to the network computing device 16 and thus includes software for connecting the retailer computing device 122 to the cryptocurrency payment system 10. The refreshed retailer payment gateway 128 is operable to connect to an existing payment network connection 124, as discussed with reference to FIG. 10.

[0158] FIG. 15 is a schematic block diagram of a cryptocurrency payment system 10, including a consumer computing device 112, a network computing device 16, interface means 18, a cryptocurrency payment backing account device 20, and a retailer computing device 122.

[0159] FIG. 15 operates similarly to the cryptocurrency payment system 10 of FIG. 14 in that the retailer computing device 122 includes an updated retailer payment gateway 128. FIG. 15 shows the real-time payment steps involved when the updated retailer payment gateway 128 is connected to the network computing device 16 (i.e., is part of the cryptocurrency payment system).

[0160] In steps 1a and 1b, the consumer computing device 112 and the updated retailer payment gateway 128 provide real-time payment information to the network computing device 16. The real-time payment information includes consumer real-time payment information (e.g., a consumer identifier (ID) and the type of cryptocurrency that the consumer computing device 112 wishes to use for real-time payment to the retailer computing device 122), retailer real-time payment information (e.g., a retailer identifier (ID) and the type of currency that the retailer computing device 122 wishes to receive from the consumer computing device 112 in real-time payment), and the amount of the real-time payment.

[0161] When the network computing device 16 receives the real-time payment information, the network computing device starts 1) a real-time cryptocurrency-based payment process and a non-real-time verification process for verifying the cryptocurrency-based payment with the cryptocurrency-based payment backing account device 20. The verification of the cryptocurrency-based payment with the cryptocurrency-based payment backing account device 20 is performed within a time frame that is longer than the time frame of the real-time cryptocurrency-based payment. Here, steps involving real-time cryptocurrency-based payment are shown. The verification of the cryptocurrency-based payment with the cryptocurrency-based payment backing account device 20 is performed in the same manner as the process described in the previous figures.

[0162] When the network computing device 16 receives the amount of cryptocurrency for use in real-time cryptocurrency-based payments from the consumer computing device 112, a network confirmation response (ACK) for the receipt of the amount of cryptocurrency is generated, the cryptocurrency is exchanged for the retailer's desired currency, and is paid to the retailer. The ACK is sent to the refreshed retailer payment gateway 128 in step 2 and pushed to the existing retailer-consumer interface computing device 100 in step 3 to complete the real-time payment process. Compared with FIG. 10, the payment ACK is sent to the existing retailer-consumer interface computing device 100 of FIG. 15 much faster and through the use of fewer entities.

[0163] FIG. 16 is a schematic block diagram of another embodiment of a cryptocurrency payment system 10, including a consumer computing device 112, a network computing device 16, an interface means 18, a cryptocurrency payment backing account device 20, and a retailer computing device 122. FIG. 16 operates in the same manner as the cryptocurrency payment system 10 of FIGS. 11, 12, and 14, except that the retailer computing device 122 includes an existing retailer-consumer interface computing device 100 (e.g., an existing POS device or an e-commerce platform), an existing retailer payment gateway 104, and a refreshed retailer payment processor 130. For example, a retailer may not wish to invest in refreshing the retailer's POS device or installing new software on an existing POS device or e-commerce platform, or may not be able to invest. Further, the existing retailer payment gateway is part of the retailer's POS device and may not be easily refreshed. However, the retailer can switch from the existing retailer payment processor to use the refreshed retailer payment processor 130 to process payments for the cryptocurrency payment system.

[0164] The refreshed retailer payment processor 130 provides a cryptocurrency payment system connection point 120-4 to the network computing device 16 and thus includes software for connecting the retailer computing device 122 to the cryptocurrency payment system 10. The refreshed retailer payment processor 130 is operable to connect to an existing payment network connection 124, as discussed with reference to FIG. 10.

[0165] FIG. 17 is a schematic block diagram of a cryptocurrency payment system 10 including a consumer computing device 112, a network computing device 16, interface means 18, a cryptocurrency payment backing account device 20, and a retailer computing device 122.

[0166] FIG. 17 operates similarly to the cryptocurrency payment system 10 of FIG. 16 in that the retailer computing device 122 includes a refreshed retailer payment processor 130. FIG. 17 shows the real-time payment steps involved when the refreshed retailer payment processor 130 is connected to the network computing device 16 (i.e., is part of the cryptocurrency payment system).

[0167] In steps 1a and 1b, the consumer computing device 112 and the refreshed retailer payment processor 130 provide real-time payment information to the network computing device 16. The real-time payment information includes consumer real-time payment information (e.g., a consumer identifier (ID) and the type of cryptocurrency that the consumer computing device 112 wishes to use for a real-time payment to the retailer computing device 122), retailer real-time payment information (e.g., a retailer identifier (ID) and the type of currency that the retailer computing device 122 wishes to receive in a real-time payment from the consumer computing device 112), and the amount of the real-time payment.

[0168] When the network computing device 16 receives real-time payment information, the network computing device starts: 1) a real-time cryptocurrency-based payment process and a non-real-time verification process for verifying the cryptocurrency-based payment with the cryptocurrency-based payment backing account device 20. The verification of the cryptocurrency-based payment with the cryptocurrency-based payment backing account device 20 is performed within a time frame longer than that of the real-time cryptocurrency-based payment. Here, steps involving real-time cryptocurrency-based payments are shown. The verification of the cryptocurrency-based payment with the cryptocurrency-based payment backing account device 20 is performed in the same manner as the process described in the previous figure.

[0169] When the network computing device 16 receives from the consumer computing device 112 the amount of cryptocurrency for use in a real-time cryptocurrency-based payment, a network confirmation response (ACK) for the receipt of the amount of cryptocurrency is generated, the cryptocurrency is exchanged for the currency desired by the retailer, and payment is made to the retailer. The ACK is sent in step 2 to the refreshed retailer payment processor 130, and the refreshed retailer payment processor 130 sends the ACK in step 3 to the existing retailer payment gateway 104, where the ACK is pushed in step 4 to the existing retailer - consumer interface computing device 100 to complete the real-time payment process. Compared with FIG. 10, the payment ACK is sent to the existing retailer - consumer interface computing device 100 of FIG. 17 more quickly and through the use of fewer entities.

[0170] FIG. 18 is a schematic block diagram of another embodiment of a cryptocurrency payment system 10 that includes a consumer computing device 112, a network computing device 16, interface means 18, a cryptocurrency payment backing account device 20, and a retailer computing device 122. FIG. 18 operates in the same manner as the cryptocurrency payment system 10 of FIGS. 11, 12, 14, and 16, except that the retailer computing device 122 includes a refreshed e-commerce platform device 132. For example, the refreshed e-commerce platform device 132 provides a cryptocurrency payment system connection point 120-5 to the network computing device 16 and thus includes software for connecting the retailer computing device 122 to the cryptocurrency payment system 10. The refreshed e-commerce platform device 132 is operable to connect to an existing payment network connection 124 as discussed with reference to FIG. 10.

[0171] FIG. 19 is a schematic block diagram of a cryptocurrency payment system 10 that includes a consumer computing device 112, a network computing device 16, interface means 18, a cryptocurrency payment backing account device 20, and a retailer computing device 122.

[0172] FIG. 19 operates in the same manner as the cryptocurrency payment system 10 of FIG. 18 in that the retailer computing device 122 includes a refreshed e-commerce platform device 132. FIG. 19 shows real-time payment steps that occur when the refreshed e-commerce platform device 132 is connected to the network computing device 16 (i.e., is part of the cryptocurrency payment system).

[0173] In steps 1a and 1b, the consumer computing device 112 and the refreshed e-commerce platform device 132 provide real-time payment information to the network computing device 16. The real-time payment information includes consumer real-time payment information (e.g., consumer identifier (ID), and the type of cryptocurrency that the consumer computing device 112 wants to use for real-time payment to the retailer computing device 122), retailer real-time payment information (e.g., retailer identifier (ID), and the type of currency that the retailer computing device 122 wants to receive from the consumer computing device 112 in real-time payment), and the amount of the real-time payment.

[0174] When the network computing device receives the real-time payment information, the network computing device starts 1) a real-time cryptocurrency-based payment process and a non-real-time verification process for verifying the cryptocurrency-based payment with the cryptocurrency-based payment backing account device 20. The verification of the cryptocurrency-based payment with the cryptocurrency-based payment backing account device 20 is performed within a time frame longer than the time frame of the real-time cryptocurrency-based payment. Here, steps involving real-time cryptocurrency-based payment are shown. The verification of the cryptocurrency-based payment with the cryptocurrency-based payment backing account device 20 is performed in the same manner as the process described in the previous figure.

[0175] When the network computing device 16 receives the amount of cryptocurrency for use in real-time cryptocurrency-based payments from the consumer computing device 112, a network confirmation response (ACK) for the receipt of the amount of cryptocurrency is generated, the cryptocurrency is exchanged for the retailer's desired currency, and is paid to the retailer. The ACK is pushed to the refreshed e-commerce platform device 132 in step 2. Compared with FIG. 10, the payment ACK is sent to the refreshed e-commerce platform device 19 through fewer entities and faster.

[0176] FIG. 20 is a flowchart of an embodiment of a method for processing cryptocurrency-based payments from a consumer computing device to a retailer computing device by a network computing device of the cryptocurrency payment system 10 of FIGS. 11-19. This method starts at step 134, where the network computing device receives real-time payment information regarding a cryptocurrency-based payment from the consumer computing device to the retailer computing device. The consumer computing device and the retailer computing device interact via a consumer-retailer interface device (e.g., a point-of-sale (POS) device, an e-commerce website, etc.).

[0177] For example, the consumer computing device sends consumer real-time payment information to the network computing device via a network application. The consumer real-time payment information includes a consumer identifier (ID) and the type of cryptocurrency that the consumer computing device wishes to use for real-time payment to the retailer computing device. The retailer computing device sends retailer real-time payment information to the network computing device via a first cryptocurrency payment system connection point among a plurality of cryptocurrency payment system connection points.

[0178] The plurality of cryptocurrency payment system connection points include a refreshed point-of-sale (POS) device, a refreshed e-commerce platform, a refreshed retailer payment gateway, and a refreshed retailer payment processor. The plurality of cryptocurrency payment system connection points provide retailer options for how to connect to the cryptocurrency payment system based on what is most suitable for the retailer's equipment needs, budget, and consumer interface requirements. As a specific example, the first cryptocurrency payment system connection point is a refreshed point-of-sale (POS) device having software to connect this point to a network computing device.

[0179] Retailer real-time payment information includes a retailer identifier (ID) and a type of selected currency (e.g., fiat currency, another cryptocurrency, etc.) that the retailer wishes to receive in real-time payment from a consumer computing device. One or more of the consumer real-time payment information and the retailer real-time payment information includes the amount of the real-time payment.

[0180] When a network computing device receives real-time payment information, the network computing device initiates: 1) a real-time cryptocurrency-based payment process; and 2) a non-real-time verification process for verifying the cryptocurrency-based payment with a cryptocurrency-based payment backing account device (e.g., a non-real-time cryptocurrency-based payment verification process). The verification of the cryptocurrency-based payment with the cryptocurrency-based payment backing account device is performed within a time frame that is longer than the time frame of the real-time cryptocurrency-based payment.

[0181] The real-time cryptocurrency-based payment process includes steps 136 to 144, and the non-real-time cryptocurrency-based payment verification process includes steps 146 to 152. The real-time cryptocurrency-based payment process starts at step 136, where the network computing device receives a cryptocurrency payment from the consumer computing device for use in a real-time cryptocurrency-based payment.

[0182] Following step 138, the real-time cryptocurrency-based payment process is where the network computing device generates a network confirmation response for the receipt of the cryptocurrency payment from the consumer computing device. Following step 140, the real-time cryptocurrency-based payment process is where the network computing device transmits the network confirmation response to the consumer-merchant interface device via the first cryptocurrency payment system connection point. For example, the first cryptocurrency payment system connection point is a refreshed point of sale (POS) device or a refreshed e-commerce platform. In either case, these points are also consumer-merchant interface devices such that the network confirmation response passes directly from the network computing device to the consumer-merchant interface device.

[0183] In another example, the first cryptocurrency payment system connection point is a refreshed merchant payment gateway. In that example, the network confirmation response passes from the network computing device to the refreshed merchant payment gateway and then to the consumer-merchant interface device. In another example, the first cryptocurrency payment system connection point is a refreshed merchant payment processor. In that example, the network confirmation response passes from the network computing device to the refreshed merchant payment processor, the refreshed merchant payment gateway, and then to the consumer-merchant interface device.

[0184] Following step 142, the real-time cryptocurrency-based payment process is where the network computing device exchanges the cryptocurrency payment received from the consumer computing device for a payment in the selected currency desired by the retailer computing device. Following step 144, the real-time cryptocurrency-based payment process is where the network computing device transmits the payment in the selected currency to the retailer computing device.

[0185] On the other hand, the non-real-time cryptocurrency-based payment verification process starts at step 146, where the network computing device instructs the cryptocurrency-based payment backing account device to lock the amount of system cryptocurrency associated with the real-time cryptocurrency-based payment. If the start of the payment is completed (e.g., within a certain period of time before the network computing device proceeds to the next step of the real-time cryptocurrency-based payment loop, the payment is canceled or fails), the network computing device sends a release instruction to the cryptocurrency-based payment backing account device to release the amount of system cryptocurrency.

[0186] Following step 148, the non-real-time cryptocurrency-based payment verification process is where the network computing device verifies the cryptocurrency payment received from the consumer computing device. For example, the network computing device connects to a consensus network that verifies the amount of cryptocurrency received from the consumer computing device. The consensus network implements a verification process that can take several minutes to several hours (e.g., the desired number of confirmations in an example of the Bitcoin blockchain).

[0187] When a network computing device proves a cryptocurrency payment received by a consumer computing device, the method continues at step 152, where the network computing device instructs a cryptocurrency-based payment backing account device to release an amount of system cryptocurrency associated with the real-time cryptocurrency-based payment. When the network computing device does not prove a cryptocurrency payment received by the consumer computing device, the method continues at step 150, where the network computing device instructs a cryptocurrency-based payment backing account device to consume an amount of system cryptocurrency associated with the real-time cryptocurrency-based payment.

[0188] Note that terms (or their equivalents) that may be used herein, such as bitstream, stream, signal sequence, etc., are used interchangeably to describe digital information corresponding to any of several desired types (e.g., data, video, speech, text, graphics, audio, etc., any of which may generally be referred to as "data").

[0189] As used herein, when applicable, the terms "substantially" and "about" provide an industry-acceptable tolerance with respect to the relativity between their corresponding terms and / or items. In some industries, the industry-acceptable tolerance is less than 1 percent, and in other industries, the industry-acceptable tolerance is 10 percent or more. Other examples of industry-acceptable tolerances range from less than 1 percent to 50 percent. Industry-acceptable tolerances correspond to, but are not limited to, component values, integrated circuit process variations, temperature variations, rise and fall times, thermal noise, dimensions, signaling errors, dropped packets, temperature, pressure, material composition, and / or performance metrics. Within an industry, the acceptable tolerance variations may be greater or less than the percentage level (e.g., a dimension tolerance of less than + / -1%). Some relativity between items may be in the range of a difference of less than a percentage level to a few percentage points. Other relativity between items may be in the range from a few percentage points to a difference in magnitude of the difference.

[0190] As also used herein, when applicable, the terms "configured to", "operatively coupled to", "coupled to", and / or "coupling" include direct and / or indirect coupling between items via intervening items (e.g., items include, but are not limited to, components, elements, circuits, and / or modules), and in an example of indirect coupling, the intervening item may adjust the current level, voltage level, and / or power level thereof without modifying the information of the signal. As further used herein, when applicable, inferred coupling (i.e., when one element is coupled to another element by inference) includes direct and indirect coupling between two items in the same manner as "coupled to".

[0191] As may be further used herein, the terms "configured to", "operable to", "coupled to", or "operably coupled to" indicate that an item, when activated, includes one or more of power connections, inputs, outputs, etc. for performing one or more corresponding functions and may further include an inferential connection to one or more other items. As may still be further used herein, the term "associated with" includes a direct and / or indirect coupling of separate items and / or that one item is embedded within another item.

[0192] As may be used herein, the term "advantageously compare" indicates that a comparison between two or more items, signals, etc. provides a desired relationship. For example, if the desired relationship is that signal 1 has a greater magnitude than signal 2, an advantageous comparison can be achieved when the magnitude of signal 1 is greater than the magnitude of signal 2, or when the magnitude of signal 2 is less than the magnitude of signal 1. As may be used herein, the term "disadvantageously compare" indicates that a comparison between two or more items, signals, etc. cannot provide a desired relationship.

[0193] As may be used herein, one or more claims may include, with respect to more or fewer elements than "a", "b", and "c", a particular form of the phrase "at least one of a, b, and c" of this general form, or a particular form of "at least one of a, b, or c" of this general form. In either phrasing, the phrase should be interpreted identically. In particular, "at least one of a, b, and c" shall be equal to "at least one of a, b, or c" and shall mean a, b, and / or c. As an example, it shall mean only "a", only "b", only "c", "a" and "b", "a" and "c", "b" and "c", and / or "a", "b", and "c".

[0194] As used herein, the terms "processing module", "processing circuit", "processor", "processing circuitry", and / or "processing unit" can be a single processing device or multiple processing devices. Such processing devices can be a microprocessor, a microcontroller, a digital signal processor, a microcomputer, a central processing unit, a field programmable gate array, a programmable logic device, a state machine, a logic circuit, an analog circuit, a digital circuit, and / or any device that operates on signals (analog and / or digital) based on hard coding and / or operational instructions of the circuit. The processing module, module, processing circuit, processing circuitry, and / or processing unit can be or further include a single memory device, multiple memory devices, and / or a memory and / or integrated memory element that can be an embedded circuit of another processing module, module, processing circuit, processing circuitry, and / or processing unit. Such memory devices can be a read only memory, a random access memory, a volatile memory, a non-volatile memory, a static memory, a dynamic memory, a flash memory, a cache memory, and / or any device that stores digital information. It should be noted that when the processing module, module, processing circuit, processing circuitry, and / or processing unit includes two or more processing devices, the processing devices can be centrally located (e.g., directly coupled together via a wired and / or wireless bus structure) or can be distributed (e.g., cloud computing via an indirect connection through a local area network and / or a wide area network).Furthermore, it should be noted that when a processing module, module, processing circuit, processing circuitry, and / or processing unit implements one or more of its functions via a state machine, analog circuit, digital circuit, and / or logic circuit, the memory and / or memory element storing the corresponding operation instructions may be embedded within or external to a circuit including the state machine, analog circuit, digital circuit, and / or logic circuit. Additionally, it should be noted that the memory element may store hard-coded instructions and / or operation instructions corresponding to at least some of the steps and / or functions shown in one or more of the figures, and the processing module, module, processing circuit, processing circuitry, and / or processing unit may execute them. Such a memory device or memory element may be included in a manufactured product.

[0195] One or more embodiments have been described above with the aid of method steps that illustrate the execution of specified functions and their relationships. The boundaries and orders of these functional building blocks and method steps are arbitrarily defined herein for the sake of convenience of description. Alternative boundaries and orders may be defined as long as the specified functions and relationships are properly executed. Accordingly, any such alternative boundaries or orders are within the scope and spirit of the claims. Furthermore, the boundaries of these functional building blocks are arbitrarily defined herein for the sake of convenience of description. Alternative boundaries may be defined as long as the particular significant functions are properly executed. Similarly, flow diagram blocks may also be arbitrarily defined herein to illustrate particular significant functions.

[0196] Within the scope of use, the boundaries and order of flowchart blocks may be defined differently, but can still perform certain important functions. Accordingly, such alternative definitions and orders of both functional building blocks and flowchart blocks are within the scope and spirit of the claims. One of ordinary skill in the art will also recognize that functional building blocks, and other exemplary blocks, modules, and components herein, can be implemented by, as illustrated, or by discrete components, application specific integrated circuits, a processor executing appropriate software, etc., or any combination thereof.

[0197] In addition, a flowchart may include indications of "start" and / or "continue". The indications of "start" and "continue" reflect that the presented steps may optionally be incorporated into or otherwise used with one or more other routines. Further, a flowchart may include indications of "end" and / or "continue". The indications of "end" and / or "continue" reflect that the presented steps may end as described and shown, or may optionally be incorporated into or otherwise used with one or more other routines. In this context, "start" indicates the beginning of the first presented step and may precede other activities not specifically shown. Further, the indication of "continue" reflects that the presented steps may be executed multiple times and / or may be inherited by other activities not specifically shown. Further, a flowchart shows a particular order of steps, but other orders are equally possible provided that the principle of causality is maintained.

[0198] One or more embodiments are used herein to illustrate one or more aspects, one or more features, one or more concepts, and / or one or more examples. Physical embodiments of an apparatus, article of manufacture, machine, and / or process may include one or more of the aspects, features, concepts, examples, etc. described with reference to one or more of the embodiments considered herein. Further, for each figure, embodiments may incorporate functions, steps, modules, etc. that are similarly or identically named using the same or different reference numbers, and thus, the functions, steps, modules, etc. may be the same or similar functions, steps, modules, etc. or different functions, steps, modules, etc.

[0199] Although the transistors in the figures above are shown as field effect transistors (FETs), as would be understood by one of ordinary skill in the art, the transistors may be implemented using any type of transistor structure including, but not limited to, bipolar, metal oxide semiconductor field effect transistors (MOSFETs), N-well transistors, P-well transistors, enhancement mode, depletion mode, and zero voltage threshold (VT) transistors.

[0200] Unless otherwise specified, signals to, from, and / or between elements of any of the figures presented herein may be analog or digital, continuous time or discrete time, and single-ended or differential. For example, if a signal path is shown as a single-ended path, that signal path also represents a differential signal path. Similarly, if a signal path is shown as a differential path, that signal path also represents a single-ended signal path. Although one or more specific architectures are described herein, other architectures using one or more data buses, direct connections between elements, and / or indirect couplings between other elements recognized by one of ordinary skill in the art may be implemented as well.

[0201] The term "module" is used in the description of one or more of the embodiments. A module may include a memory for storing operating instructions, or implement one or more functions via a device such as a processor or other processing device or other hardware that may operate in association with the memory. A module may operate independently and / or in cooperation with software and / or firmware. As also used herein, a module may include one or more sub-modules, and each of the sub-modules may be one or more modules.

[0202] When further used herein, a computer-readable memory includes one or more memory elements. The memory elements can be separate memory devices, multiple memory devices, or a set of memory locations within a memory device. Such memory devices can be read-only memory, random-access memory, volatile memory, non-volatile memory, static memory, dynamic memory, flash memory, cache memory, quantum registers or other quantum memory, and / or any device that stores data in a non-transitory manner. Further, the memory device can be in the form of solid-state memory, hard drive memory or other disk storage, cloud memory, thumb drive, server memory, computing device memory, and / or other non-transitory media for storing data. The storage of data includes temporary storage (i.e., data is lost when power is removed from the memory element) and / or persistent storage (i.e., data is retained when power is removed from the memory element). As used herein, a temporary medium is meant to include one or more of the following: (a) a wired or wireless medium for transferring data as a signal from one computing device to another for temporary storage or persistent storage; (b) a wired or wireless medium for transferring data as a signal within a computing device from one element of the computing device to another element of the computing device for temporary storage or persistent storage; (c) a wired or wireless medium for transferring data as a signal from one computing device to another for data to be processed by another computing device; and (d) a wired or wireless medium for transferring data as a signal within a computing device from one element of the computing device to another element of the computing device for data to be processed by another element of the computing device. When used herein, a non-transitory computer-readable memory is substantially equivalent to a computer-readable memory.A non-transitory computer-readable memory may also be referred to as a non-transitory computer-readable storage medium.

[0203] Specific combinations of various functions and features of one or more embodiments are explicitly described herein, but other combinations of these features and functions are equally possible. The present disclosure is not limited to the specific examples disclosed herein and explicitly incorporates these other combinations.

Claims

1. Receiving, by a network computing device of a cryptocurrency payment system, real-time payment information regarding a cryptocurrency-based payment from a source computing device to a destination computing device; Starting, by the network computing device, a real-time cryptocurrency-based payment process for payment in a currency selected by the destination computing device, wherein the payment of the selected currency to the destination computing device is made within a first time frame; Starting, by the network computing device, a non-real-time cryptocurrency-based payment verification process for verifying the cryptocurrency-based payment, wherein the verification of the cryptocurrency-based payment is performed within a second time frame, and the second time frame is longer than the first time frame; The real-time cryptocurrency-based payment process includes: Receiving, by the network computing device, an amount of cryptocurrency for use in the cryptocurrency-based payment from the source computing device; Exchanging, by the network computing device, the amount of the cryptocurrency for an amount of the selected currency; Transmitting, by the network computing device, the amount of the selected currency to the destination computing device; The non-real-time cryptocurrency-based payment verification process includes: Locking, by the network computing device, based on the real-time payment information, an amount of system cryptocurrency stored in a cryptocurrency-based payment backing account of a cryptocurrency-based payment backing account device of the cryptocurrency payment system, wherein the cryptocurrency-based payment backing account is associated with one or more of the source computing device, the destination computing device, and a type of cryptocurrency associated with the cryptocurrency-based payment; The network computing device uses a non-real-time proof process to prove the amount of the cryptocurrency received from the source computing device, When the amount of the cryptocurrency is proven, the network computing device releases the amount of the system cryptocurrency, If the amount of the cryptocurrency is not proven, the network computing device consumes the amount of the system cryptocurrency, and a method including this.

2. The real-time payment information is source real-time payment information, and the source real-time payment information includes source identifier (ID) and cryptocurrency type used for the cryptocurrency-based payment, source real-time payment information, destination real-time payment information, and the destination real-time payment information includes destination identifier (ID) and the selected currency, destination real-time payment information, The method according to claim 1, including the amount of the cryptocurrency-based payment.

3. The network computing device receives the source real-time payment information from the source computing device, The method according to claim 2, further including the network computing device receiving the destination real-time payment information and the amount of the cryptocurrency-based payment from one or more of the source computing device and the destination computing device.

4. When the start of the real-time cryptocurrency-based payment process ends before paying the destination computing device in the selected currency, The method according to claim 1, further including the network computing device releasing the amount of the system cryptocurrency.

5. The method according to claim 1, wherein the first time frame is in seconds and the second time frame is in minutes.

6. A computer-readable memory, and the computer-readable memory is A first memory element, when executed by a network computing device of a cryptocurrency payment system, causes the network computing device to store operation instructions for receiving real-time payment information regarding a cryptocurrency-based payment from a source computing device to a destination computing device; a first memory element A second memory element, when executed by the network computing device, causes the network computing device to start a real-time cryptocurrency-based payment process for paying with the currency selected by the destination computing device, wherein the payment of the selected currency to the destination computing device is made within a first time frame; a second memory element that stores operation instructions for causing the process to start A third memory element, when executed by the network computing device, causes the network computing device to start a non-real-time cryptocurrency-based payment verification process for verifying the cryptocurrency-based payment, wherein the verification of the cryptocurrency-based payment is performed within a second time frame, and the second time frame is longer than the first time frame; a third memory element that stores operation instructions for causing the process to start, and includes When the second memory element is executed by the network computing device, the network computing device receives the amount of cryptocurrency for use in the cryptocurrency-based payment from the source computing device; exchanges the amount of the cryptocurrency for the amount of the selected currency; and transmits the amount of the selected currency to the destination computing device, and further stores operation instructions for causing the real-time cryptocurrency-based payment process to be executed When the third memory element is executed by the network computing device, the network computing device Based on the real-time payment information, locking the amount of the system cryptocurrency stored in the cryptocurrency-based payment backing account of the cryptocurrency payment system, wherein the cryptocurrency-based payment backing account is associated with one or more of the source computing device, the destination computing device, and the type of cryptocurrency associated with the cryptocurrency-based payment; Using a non-real-time proof process to prove the amount of the cryptocurrency received from the source computing device; When the amount of the cryptocurrency is proven; Releasing the amount of the system cryptocurrency; and further storing an operation instruction for executing the non-real-time cryptocurrency-based payment verification process; When the third memory element is executed by the network computing device, causing the network computing device to; If the amount of the cryptocurrency is not proven; A computer-readable memory that further stores an operation instruction to consume the amount of the system cryptocurrency.

7. The real-time payment information is; Source real-time payment information, wherein the source real-time payment information includes a source identifier (ID) and a type of cryptocurrency used for the cryptocurrency-based payment; Destination real-time payment information, wherein the destination real-time payment information includes a destination identifier (ID) and the selected currency; The computer-readable memory according to claim 6, further comprising the amount of the cryptocurrency-based payment.

8. When the first memory element is executed by the network computing device, causing the network computing device to; Receive the source real-time payment information from the source computing device; The computer-readable memory according to claim 7, further storing an operation instruction for causing one or more of the source computing device and the destination computing device to receive the destination real-time payment information and the amount of the cryptocurrency-based payment.

9. When the third memory element is executed by the network computing device, the network computing device is caused to When the start of the real-time cryptocurrency-based payment process ends before paying the destination computing device in the selected currency, The computer-readable memory according to claim 6, further storing an operation instruction for releasing the amount of the system cryptocurrency.

10. The computer-readable memory according to claim 6, wherein the first time frame is in seconds and the second time frame is in minutes.

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