Bank-driven model for preventing double spending of digital currency transferred between multiple DLT networks using a trusted intermediary
A method for preventing the double-spending of digital currency that transfers between multiple distributed ledger technology (DLT) networks. The method includes receiving a message including a smart contract and executing the smart contract. The method further includes detecting a transaction request to transfer the first digital currency from the first DLT network to the second DLT network. The method further includes destroying the digital currency and creating, based on the unit of fiat currency, a second digital currency of a second type on the second DLT network. The method further includes transferring, responsive to detecting the transaction request, the first digital currency from the first DLT network to the second DLT network.
1. A method, comprising:
detecting, by a node of a first distributed ledger technology (DLT) network and via a smart contract, a transaction request to transfer a first digital currency from the first DLT network of a first type to a second DLT network of a second type, wherein the transaction request is received by the node of the first DLT from the first DLT network or the second DLT network;
receiving, by the node of the first DLT network, a message from an exchange node indicating that the first digital currency is to be destroy;
transferring, by the node of the first DLT network, the first digital currency from the first DLT network to the second DLT network via the exchange node, wherein the transferring comprises:
in response to receiving the message, destroying, by the node of the first DLT network, the first digital currency from the first DLT network;
creating, by the node of the first DLT network, a second digital currency of the second type on the second DLT network.
2. The method of claim 1 , further comprising sending, by the node of the first DLT network via the exchange node and responsive to transferring the first digital currency from the first DLT network to the second DLT network, a confirmation request to the second DLT network.
3. The method of claim 1 , further comprising receiving, by the node of the first DLT network via the exchange node, the confirmation from the second DLT network indicating whether the transfer of the first digital currency from the first DLT network to the second DLT network has completed.
4. The method of claim 1 , further comprising receiving, by the node from the first DLT network from the exchange node, a destruction command to destroy the first digital currency from the first DLT network.
5. The method of claim 1 , wherein creating the second digital currency of the second type on the second DLT network comprises attaching, by the node of the first DLT network via the exchange node, a serial number to the second digital currency.
6. The method of claim 1 , wherein the first digital currency is associated with a created state or destroyed state and the second digital currency is associated with the other of the created state or the destroyed state.
7. The method of claim 1 , wherein the first digital currency of the first type and the second digital currency of the second type are different types of digital currency.
8. A system of a first distributed ledger technology (DLT) network, comprising:
at least one processing circuit configured to:
detect, via a smart contract, a transaction request to transfer a first digital currency from the first DLT network of a first type to a second DLT network of a second type, wherein the transaction request is received by the system of the first DLT from the first DLT network or the second DLT network;
receive a message from an exchange node indicating that the first digital currency is to be destroy;
transfer the first digital currency from the first DLT network to the second DLT network via the exchange node, wherein the transferring comprises:
in response to receiving the message, destroy the first digital currency from the first DLT network;
create a second digital currency of the second type on the second DLT network.
9. The system of claim 8 , wherein the at least one circuit is further configured to send via the exchange node and responsive to transferring the first digital currency from the first DLT network to the second DLT network, a confirmation request to the second DLT network.
10. The system of claim 8 , wherein the at least one circuit is further configured to receiving, by the node of the first DLT network via the exchange node, the confirmation from the second DLT network indicating whether the transfer of the first digital currency from the first DLT network to the second DLT network has completed.
11. The system of claim 8 , wherein the at least one circuit is further configured to receive from the exchange node a destruction command to destroy the first digital currency from the first DLT network.
12. The system of claim 8 , wherein creating the second digital currency of the second type on the second DLT network comprises attaching, by the node of the first DLT network via the exchange node, a serial number to the second digital currency.
13. The system of claim 8 , wherein the first digital currency is associated with a created state or destroyed state and the second digital currency is associated with the other of the created state or the destroyed state.
14. The system of claim 8 , wherein the first digital currency of the first type and the second digital currency of the second type are different types of digital currency.
15. One or more non-transitory computer-readable storage media having instructions stored thereon that, when executed by one or more processing circuits, cause the plurality of processing circuits to:
detect, via a smart contract, a transaction request to transfer a first digital currency from the first DLT network of a first type to a second DLT network of a second type, wherein the transaction request is received by the system of the first DLT from the first DLT network or the second DLT network;
receive a message from an exchange node indicating that the first digital currency is to be destroy;
transfer the first digital currency from the first DLT network to the second DLT network via the exchange node, wherein the transferring comprises:
in response to receiving the message, destroy the first digital currency from the first DLT network;
create a second digital currency of the second type on the second DLT network.
16. The non-transitory computer-readable storage media of claim 15 , wherein the one or more processing circuits are further configured to send via the exchange node and responsive to transferring the first digital currency from the first DLT network to the second DLT network, a confirmation request to the second DLT network.
17. The non-transitory computer-readable storage media of claim 15 , wherein the one or more processing circuits are further configured to receiving, by the node of the first DLT network via the exchange node, the confirmation from the second DLT network indicating whether the transfer of the first digital currency from the first DLT network to the second DLT network has completed.
18. The non-transitory computer-readable storage media of claim 15 , wherein the one or more processing circuits are further configured to receive from the exchange node a destruction command to destroy the first digital currency from the first DLT network.
19. The non-transitory computer-readable storage media of claim 15 , wherein creating the second digital currency of the second type on the second DLT network comprises attaching, by the node of the first DLT network via the exchange node, a serial number to the second digital currency.
20. The non-transitory computer-readable storage media of claim 15 , wherein the first digital currency is associated with a created state or destroyed state and the second digital currency is associated with the other of the created state or the destroyed state.