Note: Descriptions are shown in the official language in which they were submitted.
CA 02886811 2015-04-02
Abstract:
A single, private, master key crypto-currency mobile payment and financial
transaction process whereby
an index, offset, or pointer into that unshared private master key is appended
to existing banking
routing information for payments and funds transfer.
Need:
There is a need for a secure mobile, electronic, secure payment and money
transfer system where only
the bank has the master key, that doesn't change the existing banking routing
system to any significant
degree, and that is easily adaptable to any framework or financial transfer
systems and can be readily
adapted to any other digital context that requires secrecy like medical
records transfers.
Background
Bitcoin is a cryptographic, crypto currency process. Because it requires
public key asymmetric processes
they are by definition vulnerable and breakable.
The bitcoin crypto currence process not address the issue that currency is a
sovereign value proposition
where the value of funds is guaranteed by the ability of a government to tax.
It is at odds with the entire
global financial system and tries to circumvent it.
CA 02886811 2015-04-02
Description
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Illustration 2 is of the process flow of Western Union which has a core
business of transferring funds in
the manner that you envision for the digital wallet.
The main thing to note is that it is underpinned by a credit card network.
This is the tie to the existing
banking system and ironically it is a massive point of inflated transactional
costs because the banks
aren't doing it by themselves. But it does everything else within the existing
infrastructure.
CA 02886811 2015-04-02
SENDER BUYS A WESTERN
UNION MONEY TRANSFER AT
BANK CHANNEL
ROUTES TO
Nos WESTERN UNION
i....,,:õ:,õ.:.......trip
illir Western Union API
M 0 .::.,li::.:lll_l!, , 1114 WESTERN SUBMITS I
I ON AGENT TRANSACTION
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0 Bank authenticates Sender. 0 Bank moves funds from 0 Personal Payments
API 0 MasterCard settlement
Sender provides instructions, Sender's account to the submits a
Send transaction i.,,,, moves funds from the Bank
pays for transfer at Bank. Bank's settlement account,
to the Western Union %OW to Western Union and .
Western Union sets fees and Bank submits transfer to Gateway
to provide payout distributes the commission
FX rate. Personal Payments API. instructions.
using modified settlement
process
*Product availability and channels vary by country
Alibaba succeeded to such massive extent because they hold funds until product
is delivered.
In the same way, bank(s) or a guarantor can assume the guarantee of the
transaction and take the role
that a credit card network is doing.
The bank has the assurance of the integrity of the crypto-currency. They act
as their own credit network.
What is the incentive for a bank to do it directly?
Right now all electronic clients are paying credit card processing rates plus
any additional clearing
charges.
If the bank(s) did this directly they could affordably and assuredly run it,
cut out the credit card
companies completely on these kinds of transactions, and it would be
fabulously profitable for them
while not exploiting those that can afford these costs the least. And,
protections such as FDIC remain in
play.
CA 02886811 2015-04-02
Description
This model is a process that the banks want. The system stays the same in
overall framework structure
but the bank retains their first in line place with their banking client and
gain arm's reach potential
clients in the persons that are having money transferred to them regardless of
where they are banking.
Instead of changing the bank system, adding a Whitenoise offset (preferable)
or any other offset for a
single, private key system, to the traditional routing numbers enables a
secure crypto payment process.
Each transaction and every Whitenoise key (token) and offset is unique and
secure. Everything moves
the same way it always has. But, since the offset is appended to traditional
routing numbers the bank
processing system immediately recognizes it as a unique electronic transfer
that is valid. The current
offset value is just another field in their databases for their clients.
There is NO risk to the bank to adopt the policy of guaranteeing instant value
to the recipient because
they KNOW whether the person transferring the funds, had the funds in the
first place since it is only
clients of their bank that can make such a transfer. And, the bank itself is
the only one that has the key
generator and master key that generated that Seraem-coin.
(Each bank can have their own branded mobile payment. Any bank can receive
such a transfer and there
is no waiting ¨ it can be cashed on the spot because it is guaranteed by the
bank originating the
transaction and they know it hasn't been compromised. At the beginning, the
early adopters will have a
competitive advantage versus other banks since they have secure, bank
guaranteed mobile payments
directly. They will steal clients for convenience until it is generally
adopted by banking system.)
And since they are doing it directly, while collecting a fee, they can
dramatically reduce the cost to the
beneficiary because it either not a credit card transaction and hence it can
be a reduced cost or they
simply remove at least one middle man while gaining more control.
Illustration 3
CA 02886811 2015-04-02
VNtAsittick**, 4/00i
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021003321 0001 1234567fta Seraem# 947857567600505857474739303
Same RBC routing numbers that have been RBC brand Seraem-coin token
used for a hundred years.
When the mobile device connects to make a payment, it goes to bank server
first to create and
distribute key that creates their own unique bitcoin.
The offset or index into the bank's private master key is appended to the end
or beginning of a bank
routing number. Note, it is not the key itself.
The electronic check or payment is sent to the receiving party.
Layers can be added where the receiving bank authenticates back to the issuing
bank server with
previously distributed and different authentication factors and their own
unique, private master key.
This means that during a transaction the bank is the only one with the master
key. The receiving end or
bank has their own unique, private keys, and the transfer is identified by a
offset into a cryptographic
key, preferably a Whitenoise key. Any interloper never has any access to
transmitted key information for
the transaction
Appending a offset value to a routing number has no negative affect at routing
with existing system.
Safe immediate acknowledgement of the financial transaction can be given
because the sender, the
bank, knows at the time of the transaction whether the client/account/person
sending the payment has
the funds to do so in the first place because it is their client.
