Crypto Integration Platform Protocol Translation
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Solution Overview
Problem
Existing trading systems face challenges in accommodating digital transactional items due to differences in market data storage and incompatible protocols for pre-trade communications, particularly when integrating with crypto exchanges.
Innovation Solution
The Crypto Integration Platform aggregates market information, translates orders into crypto-compatible formats, and uses cryptographic techniques for secure and instantaneous settlement of digital asset trades, ensuring compatibility between legacy systems and crypto exchanges through Crypto Adapter, Crypto Bridge, and Crypto Matching Component.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If existing trading systems use traditional protocols for pre-trade communications and execution, then compatibility with legacy systems is maintained, but compatibility with crypto exchanges deteriorates
Solution Approach 1:
The patent introduces a crypto integration platform as an intermediary system between legacy trading systems and crypto exchanges. This platform includes a crypto adapter that translates between traditional trading protocols (FIX) and crypto exchange protocols, and a crypto bridge that connects different data storage formats. The intermediary handles protocol translation and data format conversion, enabling compatibility without requiring changes to either legacy systems or crypto exchanges.
2Adaptability or versatility
If market data and ownership data are stored in different formats, then flexibility in data management is improved, but data integration and verification become more difficult
Solution Approach 1:
The crypto bridge component acts as an intermediary that connects and translates between different data storage formats. It converts market data from traditional formats to crypto-compatible formats and vice versa, while maintaining data integrity and enabling verification across different storage systems.
Solution Approach 2:
The system changes data format parameters to enable compatibility. It transforms market data from traditional centralized formats to distributed ledger formats, and converts ownership data representations to be compatible across different systems while maintaining the essential data characteristics.
3Productivity
If traditional trading protocols are used, then existing system operations are maintained, but instantaneous settlement and cryptographic verification are not achieved
Solution Approach 1:
The patent replaces traditional mechanical settlement processes with cryptographic verification mechanisms. Instead of relying on centralized clearinghouses and manual settlement processes, the system uses digital signatures, hash functions, and blockchain verification to automatically confirm and settle trades instantaneously.
Solution Approach 2:
The system performs preliminary cryptographic verification of trade details, ownership, and settlement conditions before execution. By pre-validating all necessary conditions through cryptographic proofs, the system enables instantaneous final settlement without subsequent verification delays.
Data Source
AI summary
A system, includes at least one processor; and at least one memory communicatively coupled to the at least one processor. The at least one processor is configured to receive an order to execute a trade of at least one transactional item associated with a first account, wherein the order, the first account, and a second account are associated with a common identifier; generate a first transaction to transfer the at least one transactional item from the first account to the second account; generate a second transaction that includes the order; verify that the first transaction was authorized by a same party as the second transaction; and authorize placement of the order on an exchange if the first transaction was authorized by the same party as the second transaction.