Method and system for prevention of fraudulent gift cards via blockchain

1. A method for secure usage of a gift card via blockchain, comprising:

receiving, by a first node in a blockchain network, from a retailer computing device of a retailer, a registration request including a specific data value related to a gift card, said specific data value including a gift card number and a first blockchain address associated with the retailer;

registering, by the first node in the blockchain network, the gift card on a blockchain associated with the retailer, wherein the blockchain network comprises a plurality of nodes, wherein each node of the blockchain network stores the blockchain and wherein registering the gift card includes (i) generating a first new block including said specific data value, (ii) adding the first new block to the blockchain, and (iii) provisioning the first new block to each of the nodes in the blockchain;

receiving, by a receiving device of a processing server, the first new block from the first node, wherein the processing server is a second node in the blockchain network;

storing, in a memory of the processing server, the blockchain, wherein

the blockchain includes a plurality of blocks including the first new block,

each block in the blockchain includes at least a block header and one or more data values,

each block header includes at least a timestamp, block reference value, and data reference value, and

the first new block includes the specific data value related to the gift card and includes at least the gift card number and the first blockchain address;

provisioning, by the processing server, a first private key, of a key pair, to a gifter computing device of a gifter;

receiving, by the receiving device of the processing server, a first transfer request from the first blockchain address, wherein the first transfer request is associated with a transfer of the gift card from the retailer to the gifter, wherein the first transfer request includes at least the gift card number, a first digital signature of the retailer, a device identifier associated with the retailer computing device, a device identifier associated with the gifter computing device, and a second blockchain address associated with the gifter;

verifying, by a verification module of the processing server, the first blockchain address based on the first digital signature and verifying the device identifier associated with the retailer computing device;

in response to verifying the first blockchain address and verifying the device identifier associated with the retailer computing device, generating, by a generation module of the processing server, a new data value for the blockchain comprising at least the gift card number, the device identifier associated with the gifter computing device, and the second blockchain address, and generating a second new block in the blockchain including the new data value, wherein the new data value is associated with the first private key;

electronically transmitting, by a transmitting device of the processing server, the generated second new block to each of the nodes in the blockchain;

receiving, by the receiving device of the processing server, a second transfer request from the gifter computing device, wherein the second transfer request is associated with a transfer of the gift card from the gifter to a recipient and includes (i) at least the gift card number, (ii) a device identifier associated with a recipient computing device of the recipient, (iii) a second digital signature of the gifter, (iv) the device identifier associated with the gifter computing device, and (v) a third blockchain address associated with the recipient;

verifying, by the verification module of the processing server, the second blockchain address based on the second digital signature and verifying, by the verification module of the processing server, the device identifier associated with the gifter computing device;

in response to verifying the second blockchain address and verifying the device identifier associated with the gifter computing device, recording, by the generation module of the processing server, the transfer of the gift card from the gifter to the recipient by

generating a second new data value for the blockchain, the second new data value (i) including the gift card number, the device identifier associated with the recipient computing device, and the third blockchain address, and (ii) indicating transfer of the gift card from the second blockchain address to the third blockchain address, and

generating a third new block in the blockchain including the second new data value;

in response to recording the transfer of the gift card from the gifter to the recipient in the blockchain,

electronically transmitting, by the transmitting device of the processing server, the generated third new block to each of the nodes in the blockchain, and

electronically transmitting, by the transmitting device of the processing server, a notification to the gifter computing device and the recipient computing device, said notification indicating a successful transfer of the gift card from the gifter to the recipient.

2. The method of claim 1 , further comprising:

generating, by the generation module of the processing server, a key pair comprised of a second private key and a public key, wherein the key pair is associated with the third blockchain address; and

electronically transmitting, by the transmitting device of the processing server, the second private key to the recipient computing device.

3. The method of claim 2 , further comprising:

generating, by the generation module of the processing server, the third blockchain address using the public key.

4. The method of claim 1 , wherein the specific data value further includes a gift card balance.

5. The method of claim 4 , further comprising:

receiving, by the receiving device of the processing server, a redemption request that includes a transaction amounal and verifying, by the verification module of the processing server, that the gift card balance is at least equal to the transaction amount.

6. The method of claim 5 , further comprising:

receiving, by the receiving device of the processing server, a transaction confirmation, wherein the transaction confirmation includes at least the gift card number and the transaction amount;

generating, by the generation module of the processing server, an updated data value comprising at least the gift card number and an updated balance amount based on the gift card balance and the transaction amount; and

electronically transmitting, by the transmitting device of the processing server, the generated updated data value to a node in the blockchain.

7. A system for secure usage of a gift card via blockchain, comprising:

a first node, in a blockchain network, said first node:

receives, from a retailer computing device of a retailer, a registration request including a specific data value related to a gift card, said specific data value including a gift card number and a first blockchain address associated with the retailer; and

registers the gift card on a blockchain associated with the retailer, wherein the blockchain network comprises a plurality of nodes, wherein each node of the blockchain network stores the blockchain, and wherein the first node registers the gift card by (i) generating a first new block including said specific data value, (ii) adding the first new block to the blockchain, and (iii) provisioning the first new block to each of the nodes in the blockchain;

a processing server including a memory storing instructions thereon, and a processing device coupled to the memory, wherein said processing server is a second node in the blockchain network, and wherein said processing server executes said instructions, said instructions causing said processing server to:

provision a first private key, of a key pair, to a gifter computing device of a gifter;

receive the first new block, from the first node;

store, in the memory, the blockchain, wherein

the blockchain includes a plurality of blocks including the first new block,

each block in the blockchain includes at least a block header and one or more data values,

each block header includes at least a timestamp, block reference value, and data reference value, and

the first new block includes the specific data value related to the gift card and includes at least the gift card number and the first blockchain address;

receive a first transfer request from the first blockchain address, wherein the first transfer request is associated with a transfer of the gift card from the retailer to the gifter, wherein the first transfer request includes at least the gift card number, a first digital signature of the retailer, a device identifier associated with the retailer computing device, a device identifier associated with the gifter computing device, and a second blockchain address associated with the gifter;

verify the first blockchain address based on the first digital signature and verify the device identifier associated with the retailer computing device;

in response to verifying the first blockchain address and verifying the device identifier associated with the retailer computing device, generate, a new data value for the blockchain comprising at least the gift card number, the device identifier associated with the gifter computing device, and the second blockchain address, and generate a second new block in the blockchain including the new data value, wherein the new data value is associated with the first private key;

electronically transmit the generated second new block to each of the nodes in the blockchain;

receive a second transfer request from the gifter computing device, wherein the second transfer request is associated with a transfer of the gift card from the gifter to a recipient and includes at least (i) the gift card number, (ii) a device identifier associated with a recipient computing device of the recipient, (iii) a second digital signature of the gifter, (iv) the device identifier associated with the gifter computing device, and (v) a third blockchain address associated with the recipient;

verify the second blockchain address based on the second digital signature and verify the device identifier associated with the gifter computing device;

in response to verifying the second blockchain address and verifying the device identifier associated with the gifter computing device, record, in the blockchain, the transfer of the gift card from the gifter to the recipient by

generating a second new data value for the blockchain, the second new data value (i) including the gift card number, the device identifier associated with the recipient computing device, and the third blockchain address, and (ii) indicating transfer of the gift card from the second blockchain to the third blockchain address, and

generating a third new block in the blockchain including the second new data value;

in response to recording the transfer of the gift card from the gifter to the recipient in the blockchain,

electronically transmit the generated third new block to each of the nodes in the blockchain, and

electronically transmit a notification to the gifter computing device and the recipient computing device, said notification indicating a successful transfer of the gift card from the gifter to the recipient.

8. The system of claim 7 , wherein the processing device is further configured to

generate a key pair comprised of a second private key and a public key, wherein the key pair is associated with the third blockchain address; and

electronically transmit the second private key to the recipient computing device.

9. The system of claim 8 , wherein the processing device generates the third blockchain address using the public key.

10. The system of claim 7 , wherein the specific data value further includes a gift card balance.

11. The system of claim 10 , wherein the processing device is further configured to

receive a redemption request that includes a transaction amount; and

verify that the gift card balance is at least equal to the transaction amount.

12. The system of claim 11 , wherein the processing server is further configured to

receive a transaction confirmation, wherein the transaction confirmation includes at least the gift card number and the transaction amount;

generate an updated data value comprising at least the gift card number and an updated balance amount based on the gift card balance and the transaction amount and electronically transmit the generated updated data value to a node in the blockchain.