Methods and systems of using a cryptocurrency system to manage payments and payment alternatives
Embodiments of the present invention are directed to methods and systems for the efficient management of a digital currency system using a cryptocurrency scheme. Embodiments utilize a payment processor computer to manage entities in the digital currency system, which have the rights to generate, distribute, transact with, and redeem units of a digital currency. In some embodiments, the digital currency may represent points in a loyalty program operated by an entity or organization. Transactions performed using the digital currency and rules governing the digital currency can be tracked and maintained in a master ledger maintained by the payment processor computer, and distributed as sub-ledgers to other entities within the digital currency system.
1 . A method comprising:
receiving, by a processor computer from a redeemer computer, a request message to perform a redemption of an amount of rewards points with a distributor computer, the request message digitally signed using a first key associated with the redeemer computer and including an amount of the rewards points to be redeemed;
validating, by the processor computer, the request message using a second key associated with the redeemer computer to determine an authenticity of the message as being from the redeemer computer;
based on validating the request message as being from the redeemer computer, retrieving, by the processor computer, a first data entry from a master ledger, the first data entry including a rule governing use of the amount of rewards points, wherein the rule includes an effective date for the rewards points, a limited-time value for the rewards points, a limit on the use of the rewards points, and/or a limit on an entity that can accept the rewards points, wherein the master ledger is a first blockchain including a plurality of entries;
determining, by the processor computer, that the redemption message satisfies the retrieved rule by determining that at least one of the effective date for the rewards points, the limited-time value for the rewards points, the limit on the use of the rewards points, and/or the limit on an entity that can accept the rewards points is satisfied;
based on determining that the redemption message satisfies the retrieved rule, updating, by the processor computer, the master ledger to include a second data entry, the second data entry indicating the redemption of the amount of the rewards points with the distributor computer;
generating and transmitting, by the processor computer, an update to a distributor sub-ledger and a redeemer sub-ledger, the update including the second data entry, wherein the distributor sub-ledger is a second blockchain including a sub-set of the plurality of entries in the master ledger such that the distributor sub-ledger does not store entire contents of the master ledger, wherein the distributor sub-ledger and the redeemer sub-ledger are encrypted such that only the distributor computer can decrypt the distributor sub-ledger and only the redeemer computer can decrypt the redeemer sub-ledger, and wherein generating the update to the distributor sub-ledger comprises:
replicating, by the processor computer, the second data entry in the master ledger,
generating, by the processor computer, a hash using the second data entry in the master ledger and a nonce, and
digitally signing, by the processor computer, the update using a public key of the distributor computer, such that the update to the distributor sub-ledger can only be decrypted using a corresponding private key of the distributor computer; and
initiating, by the processor computer, a settlement process using information for the redeemer computer stored in a profiles database.
2 . The method of claim 1 , wherein the rewards points were received by a redeemer operating the redeemer computer as part of a transaction with a holder operating a holder computer.
3 . The method of claim 1 , wherein the first key is a private key, and wherein the second key is a public key associated with the private key.
4 . The method of claim 1 , wherein the amount of rewards points is based on the request message and the rule.
5 . The method of claim 1 , wherein the distributor sub-ledger is a read-only copy of the master ledger.
6 . A processor computer comprising:
a data processor; and
a computer readable medium coupled to the data processor, the computer readable medium comprising code, executable by the data processor, to perform steps comprising:
receiving, from a redeemer computer, a request message to perform a redemption of an amount of rewards points with a distributor computer, the request message digitally signed using a first key associated with the redeemer computer and including an amount of the rewards points to be redeemed;
validating the request message using a second key associated with the redeemer computer to determine an authenticity of the message as being from the redeemer computer;
based on validating the request message as being from the redeemer computer, retrieving a first data entry from a master ledger, the first data entry including a rule governing use of the amount of rewards points, wherein the rule includes an effective date for the rewards points, a limited-time value for the rewards points, a limit on the use of the rewards points, and/or a limit on an entity that can accept the rewards points, wherein the master ledger is a first blockchain including a plurality of entries;
determining that the redemption message satisfies the retrieved rule by determining that at least one of the effective date for the rewards points, the limited-time value for the rewards points, the limit on the use of the rewards points, and/or the limit on an entity that can accept the rewards points is satisfied;
based on determining that the redemption message satisfies the retrieved rule, updating the master ledger to include a second data entry, the second data entry indicating the redemption of the amount of the rewards points with the distributor computer;
generating and transmitting, by the processor computer, an update to a distributor sub-ledger and a redeemer sub-ledger, the update including the second data entry, wherein the distributor sub-ledger is a second blockchain including a sub-set of the plurality of entries in the master ledger such that the distributor sub-ledger does not store the entire contents of the master ledger, wherein the distributor sub-ledger and the redeemer sub-ledger are encrypted such that only the distributor computer can decrypt the distributor sub-ledger and only the redeemer computer can decrypt the redeemer sub-ledger, and wherein generating the update to the distributor sub-ledger comprises:
replicating, by the processor computer, the second data entry in the master ledger,
generating, by the processor computer, a hash using the second data entry in the master ledger and a nonce, and
digitally signing, by the processor computer, the update using a public key of the distributor computer, such that the update to the distributor sub-ledger can only be decrypted using a corresponding private key of the distributor computer; and
initiating a settlement process using information for the redeemer computer stored in a profiles database.
7 . The processor computer of claim 6 , wherein the rewards points were received by a redeemer operating the redeemer computer as part of a transaction with a holder operating a holder computer.
8 . The processor computer of claim 6 , wherein the first key is a private key, and wherein the second key is a public key associated with the private key.
9 . The processor computer of claim 6 , wherein the amount of rewards points is based on the request message and the rule.
10 . The processor computer of claim 6 , wherein the distributor sub-ledger is a read-only copy of the master ledger.
11 . The method of claim 1 , wherein the master ledger comprises a plurality of transaction entries and a plurality of rules entries, and wherein the first data entry is one of the rule entries.
12 . The method of claim 1 , wherein prior to redemption the rewards points are stored as a value token in a mobile wallet associated with the redeemer.
13 . The method of claim 1 , wherein the settlement process comprises accessing a profiles database and retrieving information for the redeemer that was received as part of an enrollment process.
14 . The processor computer of claim 6 , wherein the master ledger comprises a plurality of transaction entries and a plurality of rules entries, and wherein the first data entry is one of the rule entries.
15 . The processor computer of claim 6 , wherein prior to redemption the rewards points are stored as a value token in a mobile wallet associated with the redeemer.
16 . The processor computer of claim 6 , wherein the settlement process comprises accessing a profiles database and retrieving information for the redeemer that was received as part of an enrollment process.