ELECTRONIC TRADING AND SETTLEMENT SYSTEM FOR BLOCKCHAIN-INTEGRATED CRYPTOGRAPHIC DIFFICULTY-BASED FINANCIAL INSTRUMENTS

A financial instrument trading system is provided which allows for the establishment and trading of cryptographic difficulty-based financial instruments using physical delivery of the underlying cryptocurrency. The cryptographic difficulty-based financial instruments are based on an expected value i...

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Bibliographic Details
Main Authors MCGLAWN, Joseph, TRUDEAU, Matthew, CHIPPAS, Thomas
Format Patent
LanguageEnglish
French
German
Published 19.10.2022
Subjects
CALCULATING
COMPUTING
COUNTING
DATA PROCESSING SYSTEMS OR METHODS, SPECIALLY ADAPTED FORADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL, SUPERVISORYOR FORECASTING PURPOSES
PHYSICS
SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE,COMMERCIAL, FINANCIAL, MANAGERIAL, SUPERVISORY OR FORECASTINGPURPOSES, NOT OTHERWISE PROVIDED FOR
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Summary:A financial instrument trading system is provided which allows for the establishment and trading of cryptographic difficulty-based financial instruments using physical delivery of the underlying cryptocurrency. The cryptographic difficulty-based financial instruments are based on an expected value including the predetermined reward per block of cryptocurrency, a predetermined hashrate, a predetermined financial instrument length, the predetermined nonce value of the underlying cryptocurrency, and the current difficulty level employed by the underlying cryptocurrency, and may vary as the difficulty level varies. The clearinghouse settlement system calculates daily variation margin in valuation of the financial instrument and provides for physical delivery of the underlying cryptocurrency to satisfy the variation margin.
Bibliography:Application Number: EP20200898573