Device, system, and method for transfer of commodities

Abstract

A device, system, and method transfer commodities using tokens. The method performed by a first entity includes receiving a first request from a second entity to transfer tokens from the second entity to a third entity, the tokens including data representing an ownership position of a commodity by the second entity, at least a portion of the commodity being in a physical possession of the first entity. The method includes receiving a second request from the third entity to transfer the tokens from the second entity to the third entity. The method includes when the first request matches the second request, verifying the ownership position of the tokens by the second entity. The method includes upon the successful verification of the ownership position of the tokens, updating the ownership position of the tokens from the second entity to the third entity.

1 . A method, comprising:
 receiving a first request to transfer tokens to a receiving entity, the tokens comprising data representing an ownership position of a commodity by the receiving entity;   receiving a second request from the receiving entity to transfer the tokens to the receiving entity;   when the first request matches the second request, verifying the ownership position of the tokens to yield a verification; and   when the verification is successful for the ownership position of the tokens, updating the ownership position of the tokens for the receiving entity, wherein the tokens are generated using a blockchain-based system in which a consensus algorithm operating on a plurality of distributed computer nodes updates a distributed ledger in which multiple copies of the distributed ledger exist across the plurality of distributed computer nodes, and the tokens being added to a block in the blockchain-base system according to the consensus algorithm and wherein updating the ownership position of the tokens to the receiving entity comprises at least in part adding a new block to the blockchain-based system.   
     
     
         2 . The method of  claim 1 , wherein the updating of the ownership position further comprises:
 temporarily preventing an update to the ownership position of the tokens; and   transmitting instructions to transfer funds from the receiving entity to another entity.   
     
     
         3 . The method of  claim 2 , further comprising:
 upon receiving a confirmation indicating that the funds from the receiving entity have been received, performing the following substeps:
 (a) removing the temporary preventing of the update to the ownership position of the tokens; 
 (b) updating ownership data of the tokens to the receiving entity to yield an updated ownership data; and 
 (c) transmitting the updated ownership data to predetermined recipients, the predetermined recipients comprising at least the receiving entity. 
   
     
     
         4 . The method of  claim 3 , wherein the updating of the ownership data further comprises:
 (i) encrypting the updated ownership data to yield encrypted data; and   (ii) transmitting the encrypted data to the predetermined recipients.   
     
     
         5 . The method of  claim 4 , wherein the predetermined recipients comprise at least one further entity uninvolved in the transfer of the tokens. 
     
     
         6 . The method of  claim 1 , wherein the verification of the ownership position of the tokens is performed using the consensus algorithm. 
     
     
         7 . The method of  claim 1 , further comprising:
 upon a failed verification of the ownership position of the tokens, removing the first request and the second request to an exception pool.   
     
     
         8 . The method of  claim 7 , further comprising:
 receiving satisfaction data to convert the failed verification to the verification being successful within a predetermined window; and   continuing to updated the ownership position of the tokens.   
     
     
         9 . The method of  claim 1 , wherein a first entity performs the steps of the method and is a chartered trust company, wherein a second entity originally holds the tokens and is a commodity dealer, and wherein the receiving entity is a further commodity dealer. 
     
     
         10 . The method of  claim 1 , wherein the commodity is gold. 
     
     
         11 . A device comprising:
 a non-transitory memory having a program stored thereon; and   a processor executing the program, wherein the execution of the program causes the processor to perform operations comprising:
 receiving a first request to transfer tokens to a receiving entity, the tokens comprising data representing an ownership position of a commodity by the receiving entity; 
 receiving a second request from the receiving entity to transfer the tokens to the receiving entity; 
 when the first request matches the second request, verifying the ownership position of the tokens to yield a verification; and 
 upon the verification of the ownership position of the tokens being successful, updating the ownership position of the tokens to the receiving entity, wherein the tokens are generated using a blockchain-based system in which a consensus algorithm operating on a plurality of distributed computer nodes updates a distributed ledger in which multiple copies of the distributed ledger exist across the plurality of distributed computer nodes, and the tokens being added to a block in the blockchain-base system according to the consensus algorithm and wherein updating the ownership position of the tokens to the receiving entity comprises at least in part adding a new block to the blockchain-based system. 
   
     
     
         12 . The device of  claim 11 , wherein the updating of the ownership position further comprises:
 temporarily preventing an update to the ownership position of the tokens; and   transmitting instructions to transfer funds from the receiving entity to another entity.   
     
     
         13 . The device of  claim 12 , wherein the processor performs further operations comprising:
 upon receiving a confirmation indicating that the funds from the receiving entity have been received, performing the following suboperations:
 (a) removing the temporary preventing of the update to the ownership position of the tokens; 
 (b) updating ownership data of the tokens to the receiving entity to yield an updated ownership data; and 
 (c) transmitting the updated ownership data to predetermined recipients, the predetermined recipients comprising at least the receiving entity. 
   
     
     
         14 . The device of  claim 13 , wherein the updating of the ownership data further comprises:
 encrypting the updated ownership data to yield encrypted data; and   transmitting the encrypted data to the predetermined recipients.   
     
     
         15 . The device of  claim 14 , wherein the predetermined recipients comprise at least one further entity uninvolved in the transfer of the tokens. 
     
     
         16 . The device of  claim 11 , wherein the verification of the ownership position of the tokens is performed using the consensus algorithm. 
     
     
         17 . The device of  claim 11 , wherein the processor performs further operations comprising:
 upon a failed verification of the ownership position of the tokens, removing the first request and the second request to an exception pool.   
     
     
         18 . The device of  claim 17 , wherein the processor performs further operations comprising:
 receiving satisfaction data to convert the failed verification to the verification being successful within a predetermined window; and   continuing to updated the ownership position of the tokens.   
     
     
         19 . The device of  claim 11 , wherein the device is operated by a first entity which is a chartered trust company, wherein a second entity originally holds the tokens and is a commodity dealer, and wherein the receiving entity is a further commodity dealer. 
     
     
         20 . The device of  claim 11 , wherein the commodity is gold.