Blockchain based transaction protocol

A computer system for processing a transaction between a customer and a merchant, the system comprising:

• a merchant device configured to perform the steps of:
• receiving a transaction request including customer information and a customer public key from a customer device associated with the customer, the customer public key being associated with an electronic wallet of the customer,
• verifying an identity of the customer using the customer public key,
• transmitting, to a Simplified Payment Verification server, a request to establish a secure communication channel between the customer and the merchant based on the customer information,
• receiving, from the Simplified Payment Verification server, a channel ID associated with the secure communication channel, wherein the Simplified Payment Verification server also transmits the channel ID to the customer device,
• generating a partial invoice transaction that is based on the customer information and includes at least one transaction output of an electronic wallet of the merchant,
• sending the partial invoice transaction to the customer device via the secure communication channel,
• receiving via the secure communication channel, a completed invoice transaction that is a completed version of the partial invoice transaction that includes at least one input transaction inserted by the customer device and including a Merkle proof determined from the electronic wallet of the customer and which has been authorised at the customer device,
• validating, by the merchant device, the transaction defined by the completed invoice transaction by determining a first Merkle root determined by the merchant device matches a second Merkle root determined from the Merkle proof of the at least one output transaction of the completed invoice transaction to create a validated transaction,
• broadcasting the validated transaction to a blockchain node to be submitted to a blockchain, and
• receiving at least one notification that the validated transaction has been validated by the blockchain node and included on the blockchain to execute the completed invoice transaction;
• the customer device;
• and
• a blockchain node which is one of a plurality of blockchain nodes that make up a blockchain network.

A computing device comprising a processor and memory, the memory including executable instructions that, as a result of execution by the processor, cause the device to perform a computer-implemented method processing a transaction between a customer and a merchant, comprising:

• receiving a transaction request by a merchant device, the transaction request including customer information and a customer public key from a customer device associated with the customer, the customer public key being associated with an electronic wallet of the customer;
• verifying an identity of the customer using the customer public key;
• transmitting, to a Simplified Payment Verification server, a request to establish a secure communication channel between the customer and the merchant based on the customer information;
• receiving, from the Simplified Payment Verification server, a channel ID associated with the secure communication channel, wherein the Simplified Payment Verification server also transmits the channel ID to the customer device;
• generating a partial invoice transaction that is based on the customer information and includes at least one transaction output of an electronic wallet of the merchant;
• sending the partial invoice transaction to the customer device via the secure communication channel;
• receiving via the secure communication channel, a completed invoice transaction that is a completed version of the partial invoice transaction that includes at least one input transaction inserted by the customer device and including a Merkle proof determined from the electronic wallet of the customer and which has been authorised at the customer device;
• validating, by the merchant device, the transaction defined by the completed invoice transaction by determining a first Merkle root determined by the merchant device matches a second Merkle root determined from the Merkle proof of the at least one output transaction of the completed invoice transaction to create a validated transaction;
• broadcasting the validated transaction to a blockchain node to be submitted to a blockchain;
• and
• receiving at least one notification that the validated transaction has been validated by the blockchain node and included on the blockchain to execute the completed invoice transaction.

A non-transitory computer-readable storage medium media having stored thereon executable instructions that, as a result of being executed by a processor of a computer, cause the computer to perform a method of:

• receiving a transaction request by a merchant device, the transaction request including customer information and a customer public key from a customer device associated with a customer, the customer public key being associated with an electronic wallet of the customer;
• verifying an identity of the customer using the customer public key;
• transmitting, to a Simplified Payment Verification server, a request to establish a secure communication channel between the customer and a merchant based on the customer information;
• receiving, from the Simplified Payment Verification server, a channel ID associated with the secure communication channel, wherein the Simplified Payment Verification server also transmits the channel ID to the customer device;
• generating a partial invoice transaction that is based on the customer information and includes at least one transaction output of an electronic wallet of the merchant;
• sending the partial invoice transaction to the customer device via the secure communication channel;
• receiving via the secure communication channel, a completed invoice transaction that is a completed version of the partial invoice transaction that includes at least one input transaction inserted by the customer device and including a Merkle proof determined from the electronic wallet of the customer and which has been authorised at the customer device;
• validating, by the merchant device, the transaction defined by the completed invoice transaction by determining a first Merkle root determined by the merchant device matches a second Merkle root determined from the Merkle proof of the at least one output transaction of the completed invoice transaction to create a validated transaction;
• broadcasting the validated transaction to a blockchain node to be submitted to a blockchain;
• and
• receiving at least one notification that the validated transaction has been validated by the blockchain node and included on the blockchain to execute the completed invoice transaction.