On 5th July, Western Union Company, an American Financial Services and Communication company filed a new patent with the US Patent and Trademark Office. The patent aims at ‘receiving and handling secure transfers’ in the electronic transfer network space which includes the transfer of cryptocurrency or digital currency from one device to another from different locations.
The patent describes that the ‘electronic transfer network’ could either be a cryptocurrency network or any other network. The network will use encryption protocols and techniques for performing transfers of cryptocurrencies. Furthermore, it refers to Bitcoin [BTC]’s peer-to-peer network [P2P] payment network, Litecoin [LTC] network and other cryptocurrency networks as an example for electronic transfer network.
In addition, for the sender or receiver to transfer cryptocurrency, the invention might use various computational devices used in the cryptocurrency network including client devices, management servers and external systems.
The following example is mentioned:
” A client device may securely store a private cryptographic key associated with a cryptocurrency account of a user, and may use specialized client software (e.g., cryptocurrency wallet application) to generate digital cryptographic signatures using the private cryptographic key and data identifying the details of the requested cryptocurrency transfer.”
According to the patent, in order to generate a hash value signature associated with the private key of a particular cryptocurrency account, the client application might implement a ‘cryptographic hash function.’
The patent further mentions:
“Recipient client devices, as well as other servers/systems in the network, may use the public key of the sender to decrypt the cryptographic signature and verify the authenticity of the requested cryptocurrency transfer. Some or all of the client devices, servers, and/or external systems may use databases or other secure storage to independently maintain and update electronic ledgers for tracking the current balances associated with cryptocurrency accounts”
In addition, the computing servers and devices of the cryptocurrency network could be used as miner systems. These systems will be configured to perform complex mathematical problems to create a new cryptocurrency.
Due to this, several client devices, servers and external systems could be implemented as cryptocurrency miners. This might include specialized cryptocurrency mining hardware and software systems/devices like Application Specific Integrated Circuits [ASICs].
In some cases, the computing devices will also be used to ‘generate and store universal public ledgers and/or transaction chains for the cryptocurrency network.’ The cryptocurrency network transaction chain may be ‘stored in a distributed database by multiple different data nodes at different servers within the network.’
For this, the patent gives the following example:
“Blockchain technology may be used to implement a decentralized distributed database which may be hosted by a combination of client devices, data management servers, and/or external systems. The blockchain may store a distributed electronic ledger and/or universal transaction chain for the cryptocurrency network. The blockchain may be accessed by individual client software (e.g., wallet applications) of client devices, which may propose a cryptocurrency value transfer to be added to the blockchain. After confirming that there is sufficient cryptocurrency value in the sender’s account, a miner node within the cryptocurrency network 100 may bundle the transfer with other transactions to create a new block to be added to the blockchain. In some cases, adding blocks to the blockchain may involve miner nodes repeatedly executing cryptographic hash functions, ensuring that the blockchain cannot be tampered with by any malicious systems within the network.”
Too Crypto to Quit, a Twitterati says:
“But … But … But why do we need Western Union to use Litecoin?! There should be no need for a middle man.”
Destro McShinyhead, another Twitterati says:
“I wanna like it. Oh, but banks are bad…”