US 2019/0378128 A1 · Cryptographic Contract Payment and Dispute Resolution System

Abstract

Disclosed embodiments may include systems and methods for the creation of self-executing smart contract computer programs (“Smart Contracts”) recorded on one or more blockchains as “on chain” contracts comprising machine extracted terms from non-blockchain recorded (“off chain”) digital contracts. Disclosed systems include means of conversion of fiat currencies to cryptographically generated and unique tokens (“crypto-tokens”) at a pre-set market exchange rate that does not fluctuate after the initial exchange and until directly exchanged back to the original fiat currency. Disclosed systems facilitate automated digital performance of the payment terms of off-chain contracts via on-chain smart contracts and crypto-tokens. Upon the performance of an on-chain self executing smart contract, the system will automatically release crypto-tokens or other consideration that is either held in escrow or held by an interested party. In case of a contract dispute, the system will issue a judgment using electronic data, pre-defined rules and machine logic.

Claims15

Dependent claims

A method of contract formation, electronic payment, and contract performance using an on-chain self executing smart contract, the on-chain self executing smart contract defined and created upon an electronic block-chain system, the method comprising the steps of:

a) a network and computer creating an off chain contract by either network-based digital document assembly or file upload through the network to the computer;
b) digital signatures by parties to the off chain contract created or uploaded via the network into the computer, the digital signatures recorded as part of the on-chain self executing smart contract;
c) payment terms of the off chain contract are extracted by the computer with the payment terms then added as conditions to the on-chain self executing smart contract computer program;
d) the computer generates, issues and records crypto tokens after receiving consideration from the parties;
and
e) in response to the on-chain self executing smart contract receiving data confirming performance of the on-chain self executing smart contract, the computer releases crypto tokens to one or more of the parties.

3 more elements

Dependencies are inferred from the claim text.

Cryptographic Contract Payment and Dispute Resolution System

Life of this patent

Cryptographic Contract Payment and Dispute Resolution System

Life of this patent

Abstract

Claims15