Browse Prior Art Database

System and Method for Ledger Journey Pathway

IP.com Disclosure Number: IPCOM000246608D
Publication Date: 2016-Jun-20
Document File: 3 page(s) / 222K

Publishing Venue

The IP.com Prior Art Database

Abstract

Disclosed is a system and method to improve the security and usefulness of ledger mechanisms by performing an analysis of ledger transactions, user information, and the transacted commodities.

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System and Method for Ledger Journey Pathway

As adoption of blockchain technology increases, the number of systems and services using this technology for secure transaction offerings is also expected to increase. The idea of blockchain can extend beyond the initial fintec offering (e.g., bitcoin) into other market types. As these markets become more popular, usage will increase.

The central component of blockchain is an immutable distributed ledger, which records

all transactions. Fraudulent activity in terms of suspicious transaction types requires attention; methods to mitigate the abuse of such ledgers are needed.

Existing art falls short in allowing a user to predict the path of a blockchain ledger. No art is known in the area of prediction via autoregressive, moving average, or markovian process types. No systems offer the ability to add prediction barriers to detect specific activity types and remedial actions.

Current mechanisms can have either public or private ledgers. The private ledger is considered the more secure option due to the idea that individuals are trusted and typically agree to a certain code of practice. Even with these mechanisms, there is still a need to know how transactions within the ledger will evolve over time. Having this insight is not only useful for audit purposes, but also helps a business manage outputs into the future. For example if a business knows how the transactions within the ledger

will evolve over time, then this can be used to infer future ledger throughput.

Additionally, inferring likely transaction patterns, either benign or suspicious, provides a business the information it needs to employ a set of barriers that can be used to remediate, if necessary.

The novel contribution is a system and method to improve the security and usefulness of ledger mechanisms by performing an analysis of ledger transactions, user information, and the transacted commodities. Forecasting methods predict the most likely pathway for a ledger over a given period. Intersecting the individual, commodity, and predicted ledger pathways, the system derives a ledger pathway coefficient (LPC). Using the LPC with a set of thresholds, a business can infer the likely journey of the ledger, which it can then use to gain additional insights (e.g., fraud detection, au...