Invented by John Everett Creighton, IV, Joseph Burke Forster, Domus Tower Inc
The market for blockchain technology to settle transactions is expected to reach $7.7 billion by 2024, according to a report by MarketsandMarkets. This growth is being driven by the increasing adoption of blockchain technology by financial institutions and the growing demand for secure and transparent transactions.
One of the key benefits of blockchain technology is its ability to eliminate intermediaries from the transaction process. This means that transactions can be settled faster and at a lower cost than traditional methods. Blockchain technology also provides greater transparency and security, as all transactions are recorded on a decentralized ledger that is accessible to all parties involved.
The financial industry has been quick to recognize the potential of blockchain technology, with many banks and financial institutions investing in blockchain-based solutions. For example, JPMorgan Chase has developed its own blockchain platform, Quorum, which is being used to settle securities transactions. Other financial institutions, such as Santander and HSBC, are also exploring the use of blockchain technology for settlement and other financial services.
In addition to the financial industry, other sectors are also exploring the use of blockchain technology for settlement. For example, the real estate industry is using blockchain technology to streamline the process of buying and selling properties. Blockchain technology is also being used in supply chain management to track the movement of goods and ensure transparency and security in the process.
Despite the potential benefits of blockchain technology, there are still challenges that need to be addressed. One of the biggest challenges is scalability, as the current blockchain infrastructure is not capable of handling the volume of transactions required for widespread adoption. There are also concerns around regulation and standardization, as the lack of a unified regulatory framework can make it difficult for businesses to adopt blockchain technology.
Overall, the market for blockchain technology to settle transactions is growing rapidly, driven by the increasing adoption of blockchain-based solutions by financial institutions and other industries. While there are still challenges to be addressed, the potential benefits of blockchain technology are too great to ignore. As the technology continues to evolve and mature, we can expect to see even greater adoption and innovation in the years to come.
The Domus Tower Inc invention works as follows
This article describes the expedited settlement of securities traded on an Exchange. An order for equity can be cleared by receiving a clearing instruction. A cryptographic signature can be included in the clearing instruction. To include the order and cryptographic signature, a data block can be created within a blockchain. A fast-track settlement process can be used to process an order if the cryptographic signature has been validated.
Background for Blockchain technology to settle transactions
When securities trades are executed on major exchanges, they go through a settlement process in which the equity (e.g. securities) are given to the other party, usually in exchange for money to satisfy a contractual obligation. The traditional settlement process can be costly, time-consuming and error-prone. The settlement date for marketable stock in the United States is typically three business days following execution of a trade. There are many risks that can occur during this settlement period. Some trades may also be disputed or never settled. These transactions fail are costly for the financial industry.
The settlement process? The buying, selling, and delivery of securities is accelerated by the various embodiments described herein. By using cryptographic hashes. This means that different embodiments allow for real-time or near-real-time gross settlement of trades.
Brokers or traders first include cryptographically-signed instructions with their order. Cryptography structures can be built on private and public keys that identify traders and brokers. An exchange is an organized market that trades commodities and securities. It processes trades and generates trade reports that summarize the transaction. Clearing instructions can then be processed according to certain embodiments and sent to the appropriate clearing brokers. The trade report and cryptographically-signed instructions can be bundled into an append-only, cryptographic, ledger which is an electronic record of the transaction.
A single primary ledger can be distributed to multiple nodes, allowing for unlimited side ledgers that represent subsets of global trade assets ownership and orders. Each data block of the primary ledger has a unique cryptographic haveh. Each data block in the primary ledger contains a unique cryptographic hash. This can be made accessible to all authorized parties (e.g. brokers, traders, custodians and exchanges) and can also be used to provide an audit or summary of settlement.
Transactions can be verified using cryptographic signatures. This means that brokers, traders, and others no longer need to wait for order information to be reviewed or disputed. Matching (i.e. valid) signatures are a guarantee that the trade was authorized and generated by a specific broker.
Traditional trade settlements using in by financial industry can take upto three days to complete as illustrated by FIGS. 1-4. FIG. FIG. 1 shows what happens on the day that the trade is completed (also known as?T’). An exchange can be made between brokers, also known as buyers or sellers (e.g. of equities). Brokers may, for example, agree to trade equity (stock) in a company for cash. A trade report is created once an exchange has been reached.
In certain instances, the trade reports are sent to a clearing broker (or clearing house) that acts as a liaison between broker(s), and clearing corporation. Clearing broker ensures that the trade is properly settled and that the transaction goes smoothly. The clearing house can then transmit the trade report to the National Securities Clearing Corporation. Sometimes, the trade report can be sent directly to NSCC without clearing house involvement. The NSCC offers clearing, settlement, information, and other services to equities. The NSCC also offers multilateral netting, which allows brokers to offset buy and sale positions into one payment obligation.
FIG. “FIG. Clearing batches are then sent to the brokers. They have the opportunity to review and submit contra reports if necessary. This can lead to significant delays as brokers have one business day to manually dispute potential trades and review them.
A broker could dispute a trade for a variety of reasons. The broker might not be aware of the trade or have forgotten it. These trades are often referred to by the?DK?d acronym. Trades that are not known by the broker. The trade. DK’d trades are common in industry because it is hard to determine who caused the incorrect information. Although brokers may generate new orders every second, which are then matched by an exchange, the exchange doesn’t have the time to verify order instructions or match trades efficiently.
FIG. 3. illustrates what happens two business days after trade day (also known as?T+2′). The NSCC receives reconciliation batches directly from the exchanges or through a clearing house/broker. FIG. 4 shows how the NSCC sends settlement instructions to Depository Trust Company (DTC), three business days following the trade. 4.
Below are brief definitions of terms and abbreviations used in this application.
For the purposes of disclosure, the term “node?” Refers to a contributor to a distributed network. A node can be either a computer or server. A node is the physical device that is used to connect to the network. “Node” can also be used to refer to the software or programming on the physical device that allows it to communicate with other devices and contribute to the network. The programming or software that allows a physical device to connect with other devices and participate in the network can also be called “node”.
For the purposes of disclosure, the terms ‘immutable? “Append-only” or?immutable? are used for disclosure purposes. Referring to ledgers means that data cannot be changed once it has been entered. Data is added to correct errors in the ledger. The ledger can be archived or truncated, even though it cannot be modified.
Refer in this specification only to?one embodiment?” or ?an embodiment? It means that at least one embodiment contains a specific feature, structure, or characteristic related to the embodiment. It is possible to see the phrase “in one embodiment” in multiple places in the specification. The various instances of the phrase “in one embodiment” in the specification do not necessarily refer to the same embodiment. They also may refer to different or alternate embodiments that are mutually exclusive of each other. There are many features that may be displayed by different embodiments than others. Similar to the previous paragraph, different requirements may be required for certain embodiments and not other embodiments.
Unless the context requires otherwise, the words ‘comprise? are used throughout the description and claims. ?comprising,? The terms?comprising? and the like should be understood in an inclusive rather than an exclusive or exhaustive sense. That is, in the sense?including, but certainly not limited to. The terms “connected” and “coupled” are used herein. ?coupled,? “Coupled” or any variant of it, refers to any connection or coupling between two or more elements. The coupling between elements can be either physical, logical, or a combination of both. Two devices can be connected directly or through one or more intermediary channels. Another example is that devices can be connected in a way that allows information to be shared between them, but not having any physical connection. The words “herein”,? also apply. ?above,? ?below,? When used in this application, words of similar import shall refer to the entire application and not any specific portions. If the context allows, the plural or singular number can be used in the Detailed Description. The word “or” is used in the following context: When referring to a list with two or more items, the word?or’ can be used for any of the following meanings: all of the listed items, all of them, or any combination of them all.
If the specification mentions a component/feature?may? ?can,? ?could,? ?could? be included or possess a characteristic. However, the particular feature or component is not required to be included.
Module” is a generic term that refers to software, hardware, firmware or any combination thereof. “Module” can refer to any combination of software, hardware, firmware, or both. Modules are functional components that can produce useful data or other output with specified inputs. Modules can be self-contained or not. Application program, also known as an “application” An application program (also known as an?application?) can contain one or more modules or one or more applications.
The Detailed Description’s terminology is to be interpreted as broadest possible, even though it is used with some examples. The terms in this specification have the same meanings as the art. This applies to both the disclosure and the particular context in which each term is used. Certain terms can be highlighted for convenience. Highlighting does not affect the meaning or scope of a term. It is irrelevant whether it is highlighted. You will see that the same element can be described in multiple ways.
Alternative language and synonyms can be used for any of the terms discussed herein. No special significance should be attached to whether or not a term has been elaborated or discussed in this article. Some terms have synonyms. The mere recital of one or more synonyms does NOT preclude the use of other synonyms. This specification does not limit the scope or meaning of the disclosure. Examples, including those of terms discussed herein, are used only for illustration purposes. The disclosure does not limit to the various embodiments described in this specification.
System Topology Overview
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