System and method for managing transactions in dynamic digital documents

1. One or more computer systems for enhancing confidentiality of, preventing double spending of, and ensuring authorization of transactions for changing dynamic electronic documents, the one or more computer systems comprising:

one or more computer-readable storage mediums storing computer-executable instructions for controlling a first computer system of a first user to:

access a dynamic electronic document stored on a first portion of a private distributed ledger as a first transaction, the dynamic electronic document comprising a state object having contract code and one or more parameters;

send, by the first computer system to a second computer system of a second user, the first transaction and a second transaction comprising a reference to the first transaction, a transaction command to alter a parameter of the state object, and a signature of a first user that is generated using a private key of a public/private key pair of the first user;

receive, from the second computer system, a notarized second transaction that has been

validated by the second computer system executing the contract code of the state object,

notarized by a notary service that

ensures that output of the first transaction that is input to the second transaction has not been consumed,

uses the public key of the first user to ensure that the second transaction is signed by the first user, and

signs the second transaction using a private key of a public/private key pair of the notary service, and

stored on a second portion of the private distributed ledger; and

update, by the first computer system, the state object by storing the notarized second transaction on the first portion of the private distributed ledger wherein the first user controls access to the first portion of the private distributed ledger and the second user controls access to the second portion of the private distributed ledger; and

one or more processors for executing the computer-executable instructions stored in one or more computer-readable storage mediums.

2. The one or more computer systems of claim 1 wherein the computer-executable instructions further include instructions that control a notary computer system of the notary service to:

access a third transaction with a date-time stamp that references the second transaction;

access a fourth transaction with a date-time stamp that references the second transaction;

identify which of the third transaction or the fourth transaction has the earlier date-time stamp; and

create a notarized identified transaction based on the identified transaction.

3. The one or more computer systems of claim 2 wherein each transaction is identified with a cryptographic hash.

4. The one or more computer systems of claim 2 wherein the state object identifies the notary service.

5. The one or more computer systems of claim 1 wherein the state object is associated with legal prose outlining terms of a contract.

6. The one or more computer systems of claim 5 wherein the legal prose includes undefined fields whose values are defined by the one or more parameters.

7. The one or more computer systems of claim 1 wherein the notarized second transaction includes a signature of the first user, the second user, and the notary service.

8. A method performed by a first computer system for enhancing confidentiality of, preventing double spending by, and ensuring authorization of transactions that change dynamic electronic documents, the method comprising:

accessing a dynamic electronic document stored on a first portion of a private distributed ledger as a first transaction, the dynamic electronic document comprising a state object having code and a parameter, the private distributed ledger not being a blockchain distributed ledger;

sending to a second computer system a second transaction comprising a reference to an output of the first transaction, a transaction command to alter a parameter of the state object, and a first signature of a first entity based on a first public/private key pair of the first entity;

receiving a notarized second transaction that has been notarized by a notary service that executes the code of the state object, ensures that the output of the first transaction has not been consumed, and adds to the second transaction a notary signature based on a notary public/private key pair, the notarized second transaction having a second signature of the second entity based on the second public/private key pair of a second entity; and

updating the state object by storing the notarized second transaction on the first portion of the private distributed ledger wherein the first user controls access to the first portion of the private distributed ledger.

9. The method of claim 8 wherein the notary service:

accesses a third transaction with a date-time stamp that references the notarized second transaction;

accesses a fourth transaction with a date-time stamp that references the notarized second transaction;

identifies which of the third transaction or the fourth transaction has the earlier date-time stamp; and

adds to the identified transaction a notary signature based on the notary public/private key pair.

10. The method of claim 8 wherein the state object identifies the notary service.

11. The method of claim 8 wherein each transaction is identified with a cryptographic hash.

12. The method of claim 8 wherein the second computer system sends the second transaction to a notary computer system of the notary service and receives from the notary computer system the notarized transaction.