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System and Method for Aggregated Blockchain Credibility

IP.com Disclosure Number: IPCOM000249067D
Publication Date: 2017-Jan-31
Document File: 3 page(s) / 56K

Publishing Venue

The IP.com Prior Art Database

Abstract

Disclosed is a method and system to address risks for illegal or unethical behavior in virtual currency transactions. The novel solution applies user-assigned and/or autonomously assigned credibility scores to transactions in the specific currency to help manage the risk of unethical transactions.

This text was extracted from a PDF file.
This is the abbreviated version, containing approximately 40% of the total text.

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System and Method for Aggregated Blockchain Credibility

Transactions with virtual currencies require a higher degree of anonymity than classic financial fund transfers require, and therefore engage the risk that users apply virtual currency for illegal or unethical transactions.

Currently, no system is available to manage such risks associated with virtual currency transactions. A manual work-around, which is prone to error, involves the currency owner requiring users and entities to register personal details and have other parties access the systems to perform a heavy-weight and laborious review process. That manual work around is rarely used because it is not feasible in today’s high-speed transaction marketplace.

A method or system is needed to ensure both anonymity and legal/ethical transaction behavior while maintaining system speed and accuracy.

The novel solution is a method and system to apply user-assigned credibility scores to transactions in the specific currency. This approach provides a user confidence that financial transactions address the ethical concerns, both concerning the currency in previous and for future transactions.

The user can manually apply a credibility score (e.g., 4 stars out of a possible 5 stars) to a transaction. Alternatively, the "good" rating on transactions may be applied based on "similar transactions". Note that within a specific blockchain currency, this system is likely to create higher demand for specific coins within that currency (e.g., if a virtual currency user makes an online purchase, the seller may deem that a specific buyer may become a preferred buyer based on the coins that the user possesses, because of the rating of those coins).

The system is implemented using ledgers that in turn are linked to active users (e.g., users on online shopping sites, electronic payment accounts, social media, etc.). The users do not have to specifically set what and who should/should not be involved in transactions. Instead, the users can rate the transaction. The information gained from that interaction may be used in concert with social network information (e.g., a group certificate) to ascertain whether the digital should be graded a high rating (e.g., ethical) based on the transaction.

The system can add a social certificate or group certificate to the blockchain in a manner that does not excessively identify a user. Creation of the social group may be manual or automatic (e.g., pull all groups over 5,000 members and assign each a default rating that can be maintained by a group policy). That policy may denote when a member can use the group policy to stamp a transaction with a rating.

The backward and forward stamping of the currency-use can be from one user to another group or multiple groups on the same blockchain. The rating of the currency-use can be a partial or full. For example, entity3 is 97% ethical, based on

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social group validation; therefore, a purchase recommendation is offered using this...