Multi-layer cryptocurrency conversions using available blockchain outputs
Methods and systems described herein may implement blockchain cryptocurrency transactions in a variety of environments. An online transaction processor may provide operations for cryptocurrency conversions. The transaction processor may detect that a user is involved in a cryptocurrency transaction with another entity, which is requested to be processed using an amount of cryptocurrency and using an off-chain amount of the cryptocurrency. The transaction processor may determine that the entity does not have a digital wallet, node, or the like on a layer two network to receive and/or process the off-chain balance for the cryptocurrency. The transaction processor may then, after a risk assessment, determine that the user may access the amount of the cryptocurrency from an on-chain balance available to a digital wallet of the cryptocurrency. The transaction processor may make that on-chain amount available and may request repayment via the user's off-chain balance.
1 . A computing system comprising:
a non-transitory memory; and
one or more hardware processors coupled to the non-transitory memory and configured to read instructions from the non-transitory memory to cause the computing system to perform operations comprising:
receiving, by a service provider from a device of a user, a request to transfer, via a cryptocurrency protocol, an amount of cryptocurrency in a first digital wallet of the user to a second digital wallet associated with an entity;
determining that the first digital wallet transacts on a layer two network associated with a cryptocurrency protocol;
identifying one or more processing nodes available to the entity for processing cryptocurrency transactions associated with the cryptocurrency protocol based at least on the second digital wallet;
determining that the entity does not have a node available on the layer two network associated with the cryptocurrency protocol based on the one or more processing nodes;
performing a risk assessment of at least the user, wherein the risk assessment is performed at least in part based on a difference between the amount of cryptocurrency and unspent transaction outputs (UTXO) of a third digital wallet associated with the service provider;
determining, based on the risk assessment, whether the user qualifies for an access to utilize the UTXO of the third digital wallet;
providing, based on a determination that the user qualifies for the access to utilize the UTXO of the third digital wallet, the user with the access to utilize the third digital wallet associated with the service provider, wherein the access is provided with a usage limitation on the third digital wallet;
processing a transaction between the first digital wallet and the third digital wallet via the layer two network associated with the cryptocurrency protocol, wherein the transaction corresponds to a transfer associated with the amount of cryptocurrency from the first digital wallet to the third digital wallet via the layer two network;
accessing one or more private encryption keys for the amount of cryptocurrency from the third digital wallet based on the transaction;
digitally signing one or more cryptocurrency transactions from the third digital wallet to the second digital wallet using the one or more private encryption keys on the layer one network independent of interacting with the first digital wallet on the layer two network;
transferring the amount of cryptocurrency to the second digital wallet of the entity based on the digitally signing and the one or more private encryption keys; and
updating the second digital wallet based on the one or more cryptocurrency transactions to reflect the transfer for the amount of cryptocurrency from on the layer one network.
2 . The computing system of claim 1 , wherein the operations further comprise:
performing a further risk assessment of at least one of the request or the first digital wallet,
wherein the providing the user with the access is in response to the further risk assessment meeting or exceeding a positive risk threshold.
3 . The computing system of claim 1 , wherein the providing the user with the access is performed on the layer one network for the cryptocurrency protocol.
4 . The computing system of claim 1 , wherein the amount of cryptocurrency transferred from the third digital wallet to the second digital wallet and transferred from the first digital wallet to the third digital wallet via the layer two network are matching amounts, and wherein the providing the user with the access does not require a reimbursement transaction for an excess amount.
5 . The computing system of claim 1 , wherein the amount of cryptocurrency transferred from the third digital wallet to the second digital wallet and transferred from the first digital wallet to the third digital wallet via the layer two network are different amounts requiring a reimbursement transaction for an excess amount provided to one of the user or the entity, and wherein the operations further comprise:
implementing the reimbursement transaction for the excess amount from the user.
6 . The computing system of claim 1 , wherein the operations further comprise:
processing the transaction for the amount of cryptocurrency via the layer two network of the cryptocurrency protocol.
7 . The computing system of claim 1 , wherein the receiving the request comprises one of:
receiving a payment request for the amount of cryptocurrency from the user to the entity on the layer one network of the cryptocurrency protocol; or
receiving a conversion request of at least a portion of the amount of cryptocurrency for the transaction from the device of the user via the first digital wallet.
8 . The computing system of claim 7 , wherein a processing of the transaction via the layer one network for the cryptocurrency protocol requires an amount of time exceeding a processing of the transaction via the layer two network, and wherein the amount of cryptocurrency is unavailable to the first digital wallet on the layer one network.
9 . The computing system of claim 1 , wherein the first digital wallet corresponds to an account of the user with the service provider.
10 . A method, comprising:
receiving, by a service provider from a device of a user, a request to transfer, via a cryptocurrency protocol, an amount of cryptocurrency in a first digital wallet of the user to a second digital wallet associated with an entity;
determining that the first digital wallet transacts on a layer two network associated with the cryptocurrency protocol;
identifying one or more processing nodes available to the entity for processing cryptocurrency transactions associated with the cryptocurrency protocol based at least on the second digital wallet;
determining that the entity does not have a node available on the layer two network associated with the cryptocurrency protocol based on the one or more processing nodes;
performing a risk assessment of at least the user, wherein the risk assessment is performed at least in part based on a difference between the amount of cryptocurrency and unspent transaction outputs (UTXO) of a third digital wallet associated with the service provider;
determining, based on the risk assessment, whether the user qualifies for an access to utilize the UTXO of the third digital wallet;
providing, based on a determination that the user qualifies for an access to utilize the UTXO of the third digital wallet, the user with the access to utilize the third digital wallet associated with the service provider, wherein the access is provided with a usage limitation on the third digital wallet;
processing a transaction between the first digital wallet and the third digital wallet via the layer two network associated with the cryptocurrency protocol, wherein the transaction corresponds to a transfer associated with the amount of cryptocurrency from the first digital wallet to the third digital wallet via the layer two network;
accessing one or more private encryption keys for the amount of cryptocurrency from the third digital wallet based on the transaction;
digitally signing one or more cryptocurrency transactions from the third digital wallet to the second digital wallet using the one or more private encryption keys on the layer one network independent of interacting with the first digital wallet on the layer two network;
transferring the amount of cryptocurrency to the second digital wallet of the entity based on the digitally signing and the one or more private encryption keys; and
updating the second digital wallet based on the one or more cryptocurrency transactions to reflect the transfer for the amount of cryptocurrency from on the layer one network.
11 . The method of claim 10 , further comprising:
performing a further risk assessment of at least one of the request or the first digital wallet,
wherein the providing the user with the access is in response to the further risk assessment meeting or exceeding a positive risk threshold.
12 . The method of claim 10 , wherein the providing the user with the access is performed on the layer one network for the cryptocurrency protocol.
13 . The method of claim 10 , wherein the first digital wallet corresponds to an account of the user with the service provider.
14 . The method of claim 10 , wherein the amount of cryptocurrency transferred from the third digital wallet to the second digital wallet and transferred from the first digital wallet to the third digital wallet via the layer two network are matching amounts, and wherein the providing the user with the access does not require a reimbursement transaction for an excess amount.
15 . A non-transitory machine-readable medium having stored thereon machine-readable instructions executable to cause a machine to perform operations comprising:
receiving, by a service provider from a device of a user, a request to transfer, via a cryptocurrency protocol, an amount of cryptocurrency in a first digital wallet of the user to a second digital wallet associated with an entity;
determining that the first digital wallet transacts on a layer two network associated with the cryptocurrency protocol;
identifying one or more processing nodes available to the entity for processing cryptocurrency transactions associated with the cryptocurrency protocol based at least on the second digital wallet;
determining that the entity does not have a node available on the layer two network associated with the cryptocurrency protocol based on the one or more processing nodes;
performing a risk assessment of at least the user, wherein the risk assessment is performed at least in part based on a difference between the amount of cryptocurrency and unspent transaction outputs (UTXO) of a third digital wallet associated with the service provider;
determining, based on the risk assessment, whether the user qualifies for an access to utilize the UTXO of the third digital wallet;
providing, based on a determination that the user qualifies for the access to utilize the UTXO of the third digital wallet, the user with the access to utilize the third digital wallet associated with the service provider, wherein the access is provided with a usage limitation on the third digital wallet;
processing a transaction between the first digital wallet and the third digital wallet via the layer two network associated with the cryptocurrency protocol, wherein the transaction corresponds to a transfer associated with the amount of cryptocurrency from the first digital wallet to the third digital wallet via the layer two network;
accessing one or more private encryption keys for the amount of cryptocurrency from the third digital wallet based on the transaction;
digitally signing one or more cryptocurrency transactions from the third digital wallet to the second digital wallet using the one or more private encryption keys on the layer one network independent of interacting with the first digital wallet on the layer two network;
transferring the amount of cryptocurrency to the second digital wallet of the entity based on the digitally signing and the one or more private encryption keys; and
updating the second digital wallet based on the one or more cryptocurrency transactions to reflect the transfer for the amount of cryptocurrency from on the layer one network.
16 . The non-transitory machine-readable medium of claim 15 , wherein the operations further comprise:
performing a further risk assessment of at least one of the request or the first digital wallet,
wherein the providing the user with the access is in response to the further risk assessment meeting or exceeding a positive risk threshold.
17 . The non-transitory machine-readable medium of claim 15 , wherein the providing the user with the access is performed on the layer one network for the cryptocurrency protocol.
18 . The non-transitory machine-readable medium of claim 15 , wherein the amount of cryptocurrency transferred from the third digital wallet to the second digital wallet and transferred from the first digital wallet to the third digital wallet via the layer two network are matching amounts, and wherein the providing the user with the access does not require a reimbursement transaction for an excess amount.
19 . The non-transitory machine-readable medium of claim 15 , wherein the receiving the request comprises one of:
receiving a payment request for the amount of cryptocurrency from the user to the entity on the layer one network of the cryptocurrency protocol; or
receiving a conversion request of at least a portion of the amount of cryptocurrency for the transaction from the device of the user via the first digital wallet.
20 . The non-transitory machine-readable medium of claim 15 , wherein the first digital wallet corresponds to an account of the user with the service provider.