Granted Patent B1

US 11,909,860 · App. 17/446,371 · Granted Feb 20, 2024

Inventors: Michael So (Tenafly, NJ); Ira Auerbach (Arverne, NY); Daniel William Halley James (Brooklyn, NY); Cameron Howard Winklevoss (New York, NY); Tyler Howard Winklevoss (New York, NY); Anas Saidi (Brooklyn, NY); Jamie Chapman (New York, NY)

Assignee: Gemini IP, LLC

H04L9/0637G06F21/64G06Q20/065G06Q20/401G06Q40/04H04L9/3213H04L9/50H04L2209/56

Abstract

Claims (94)

1. A method comprising:

publishing, by an administrator system, a contract proposal including first contract information comprising:

(i) at least one collateral requirement,

(ii) a first leg identifier of the contract proposal, and

(iii) a second leg identifier of the contract proposal;

receiving, by the administrator system from a first user device associated with a first user, a first user response to the contract proposal comprising:

(i) first user information associated with the first user, and

(ii) first side information comprising the first leg identifier;

receiving, by the administrator system from a second user device associated with a second user, a second user response to the contract proposal comprising:

(i) second user information associated with the second user, and

(ii) second side information comprising the second leg identifier;

in response to receiving the first and second user responses, matching, by the administrator system, the first contract information with the first and second user responses;

generating, by the administrator system, a first smart contract that associates the contract proposal and the second user response to the contract proposal, the first smart contract associated with a first smart contract address, wherein generating the first smart contract includes generating a computer program having computer-executable instructions configured to be executed automatically upon determination, by at least one of the administrator system or one or more other devices, that a condition indicated by the first smart contract has been satisfied;

generating, by the administrator system, a first message to the first smart contract address associated with a distributed public transaction ledger maintained by a plurality of geographically distributed computer systems in a peer-to-peer network including the computer-executable instructions of the first smart contract associated with: (i) the contract proposal, (ii) the first user response, and (iii) the second user response, wherein the computer-executable instructions include:

(1) first authorization instructions regarding transferring a first digital asset from the first smart contract address, and

(2) calculating instructions regarding calculating collateral in excess of a nominal value associated with the contract proposal;

publishing, by the administrator system, the first message to the distributed public transaction ledger;

confirming, by the administrator system, that the computer-executable instructions are saved to the first smart contract address associated with the distributed public transaction ledger;

confirming, by the administrator system, receipt of a first amount of the first digital asset at the first smart contract address from a first user public address associated with the first user and associated with the distributed public transaction ledger in accordance with the at least one collateral requirement;

confirming, by the administrator system, receipt of a second amount of the first digital asset at the first smart contract address associated with blockchain from a second user public address associated with the second user and associated with the distributed public transaction ledger in accordance with the at least one collateral requirement;

generating trade instructions associated with the first smart contract;

generating, by the administrator system, a second message to the first smart contract address associated with the distributed public transaction ledger including the trade instructions associated with the first smart contract, wherein the trade instructions include execution instructions to execute a first trade between the first user and the second user based on:

(i) the first contract information,

(ii) the first user response, and

(iii) the second user response; and

publishing, by the administrator system, the second message to the distributed public transaction ledger, wherein the trade instructions, as generated by the administrator system, are configured to cause at least one of the computer systems of the plurality of geographically distributed computer systems in the peer-to-peer network to executed the first trade in accordance with the computer-executable instructions of the first smart contract associated with the first smart contract address.

2. The method of claim 1 , wherein the first user information further comprises a first user public address associated with the distributed public transaction ledger, and wherein the first user public address corresponds to a first user private key that is mathematically related to the first user public address.

3. The method of claim 2 , wherein the second user information further comprises a second user public address associated with the distributed public transaction ledger, and wherein the second user public address corresponds to a second user private key that is mathematically related to the second user public address.

4. The method of claim 1 , further comprising sending, by the administrator system to the first user device, a third message including instructions to transfer the first amount of the first digital asset to the first smart contract address.

5. The method of claim 4 , further comprising sending, by the administrator system to the second user device, a fourth message including instructions to transfer the second amount of the first digital asset to the first smart contract address.

6. The method of claim 1 , further comprising:

recalculating the first amount of the first digital asset based on the at least one collateral requirement and current benchmark information; and

determining a first additional amount of the first digital asset based on a difference between the recalculated first amount of the first digital asset and the first amount of the first digital asset.

7. The method of claim 6 , further comprising:

generating, by the administrator system, in response to a determination of the first additional amount, an alert including the first additional amount; and

sending, by the administrator system, to the first user device, the alert.

8. The method of claim 7 , further comprising:

monitoring, by the administrator system, the first smart contract address associated with the distributed public transaction ledger;

determining, by the administrator system, whether the first additional amount of the first digital asset is received by the first smart contract address;

generating, by the administrator system, a default notification in response to a determination that the first additional amount of the first digital asset is not received by the first smart contract address;

sending, by the administrator system, the default notification to the first user device, the second user device, and the first smart contract address;

generating, by the administrator system, a third message including instructions to transfer the first amount of the first digital asset and the second amount of the first digital asset in accordance with the computer-executable instructions of the first smart contract; and

publishing, by the administrator system, the third message to the distributed public transaction ledger.

9. The method of claim 1 , further comprising:

recalculating the second amount of the first digital asset based on the at least one collateral requirement and current benchmark information; and

determining a second additional amount of the first digital asset based on a difference between the recalculated second collateral amount and the second collateral amount.

10. The method of claim 9 , further comprising:

generating, by the administrator system, in response to a determination of the second additional amount, an alert including the second additional amount; and

sending, by the administrator system, to the second user device, the alert.

11. The method of claim 10 , further comprising:

monitoring, by the administrator system, the first smart contract address associated with the distributed public transaction ledger;

determining, by the administrator system, whether the second additional amount of the first digital asset is received by the first smart contract address;

generating, by the administrator system, a default notification in response to a determination that the second additional amount of the first digital asset is not received by the first smart contract address;

sending, by the administrator system, the default notification to the first user device, the second user device, and the first smart contract address;

generating, by the administrator system, a third message including instructions to transfer the first amount of the first digital asset and the second amount of the first digital asset in accordance with the first contract instructions; and

publishing, by the administrator system, the third message to the distributed public transaction ledger.

12. The method of claim 1 , wherein the contract proposal includes a contract duration, and the method further comprises:

determining, by the administrator system, at an end of the contract duration, a payout amount of the first digital asset based on at least the computer-executable instructions of the first smart contract;

generating, by the administrator system, a third message including payout instructions based at least on the first side information and the second side information; and

publishing, by the administrator system, the third message to the blockchain.

13. The method of claim 1 , further comprising:

generating, by the administrator system, a third message including excess collateral instructions;

publishing, by the administrator system, the third message to the blockchain, wherein the excess collateral instructions are executed by computer systems of the plurality of geographically distributed computer systems in the peer-to-peer network to:

(A) determine a first excess collateral amount of the first digital asset associated with the first user for the first trade in accordance with the computer-executable instructions of the first smart contract;

(B) determine a second excess collateral amount of the first digital asset associated with the second user for the first trade in accordance with the computer-executable instructions of the first smart contract;

(C) distribute the first excess collateral amount of the first digital asset in accordance with the trade instructions to the first user public address; and

(D) distribute the second excess collateral amount of the first digital asset in accordance with the trade instructions to the second user public address.

14. The method of claim 1 , further comprising:

generating, by the administrator system, a third message including remaining collateral instructions, wherein the remaining collateral instructions include

(1) determining a first remaining collateral amount of the first digital asset for the first trade in accordance with the computer-executable instructions of the first smart contract;

(2) determining a second remaining collateral amount of the first digital asset for the first trade in accordance with the computer-executable instructions of the first smart contract;

(3) distributing the first remaining collateral amount of the first digital asset for the first trade in accordance with the computer-executable instructions of the first smart contract; and

(4) distributing the second remaining collateral amount of the first digital asset for the first trade in accordance with the computer-executable instructions of the first smart contract.

15. The method of claim 1 , further comprising:

generating, by the administrator system, a third message including benchmark instructions to send a benchmark value to the first smart contract address; and

sending, by the administrator system to an oracle administrator system associated with an oracle, the third message.

16. The method of claim 1 , wherein publishing the contract proposal further comprises:

(A) generating, by the administrator system, graphical user interface information including at least one prompt for the first user to provide the contract proposal;

(B) sending, by the administrator system to the first user device, the graphical user interface information; and

(C) receiving, by the administrator system from the first user device in response to the at least one prompt, the contract proposal.

17. The method of claim 1 , wherein the contract information further comprises at least one of:

(iv) an inception date;

(v) an inception value;

(vi) benchmark identification information;

(vii) a contract duration;

(viii) derivative type information;

(ix) benchmark information;

(x) early termination information;

(xi) asset identification information;

(xii) pricing model information; or

(xiii) volatility information.

18. The method of claim 1 , wherein the distributed public transaction ledger is an Ethereum blockchain.

19. The method of claim 1 , wherein the first digital asset is a cryptographic token.

20. The method of claim 1 , wherein the contract information includes first transaction fee information.

Assignments (2)

Continuity (16)

Cited By (13)

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