AU2016100059A4 - integratedCONTRACT is a process of embedding dynamic data characteristics into financial and other instruments using Blockchain technology and a unique method for transacting on online peer to peer and marketplace exchanges. - Google Patents

Abstract

An integratedCONTRACT is a computer program. It is a digital representation of the mutual agreements contained in a traditional contract as lines of software code that self-execute and self enforce. It has the power to move funds between bank accounts, transfer property titles and reconcile payments and receipts. At any time, an integratedCONTRACT can be converted to a traditional contract form for legal and ledger form for accounting purposes. Initial contract negotiations can be conducted in writing between counterparties prior to conversion to digital form or online.

Description

Editorial Note 2016100059 There is only one page of description Description: An integratedCONTRACT is a process of embedding dynamic data characteristics into financial and other instruments using Blockchain technology and a unique method for transacting on online peer to peer and marketplace exchanges.

Claims (2)

1. Debt Funding Traditional Approach: Lenders and Borrowers transact with each other or via intermediaries to lend money in the expectation of earning interest and a return of the original money by the end of the loan term. The transaction is a contract or instrument which is capable of being secured or backed by assets to support the instrument. The transaction has a finite life or term. The records of the transaction and the performance of the instrument are generally maintained and monitored by the Lender or Intermediary. The Borrower has an obligation to comply with the terms of the contract. New Approach: METHOD: integratedCONTRACTS between lenders and borrowers are prepared on the integratedPRIVATE Cloud Platform and recorded and maintained on the integratedPRIVATE blockchain. Access to the system is via the integratedPRIVATE Platform and for the duration of the transaction. The common characteristics making up each finance instrument are as follows: Lender Name Borrower Name Date of transaction Amount of Loan Repayment Term Interest Rate Currency Principal repayments Interest repayments Actual repayments Security Register Security Location Security Value Loan to Value Ratio Lender Bank Details Borrower Bank details Each characteristic can be turned off or on and customized. Once complete, the total of the transaction is hashed and encrypted for distribution on a blockchain. The borrower and the lender maintain private keys which other stakeholders receive only public keys to verify but not modify the contract.

2. Capital Funding Traditional Approach: Entities issue capital shares or units to shareholders and investors directly or via intermediaries in exchange for long term, no fixed term funding. The shareholder and investor contract to acquire an ownership interest in the shares or unit instruments which generally carry with them income earning rights to dividend or distributions of income during the life of contract. The records of the transaction, changes to ownership of shares and units, recording of income and payment thereof are generally maintained by the Corporation and multiple intermediaries. New Approach: METHOD: integratedCONTRACTS between Entities and Shareholders and Investors are prepared on the integratedPRIVATE Cloud Platform and recorded and maintained on the integratedPRIVATE Blockchain. Funding is issued in integratedCAPITAL Units or CAPS for the term of issue and transferrable on the integratedEXCHANGE between willing buyers and sellers. The common characteristics making up each instrument are as follows: Entity type Entity Name Shareholder type Shareholder Name Investor type Investor Name Currency Term Security Register Security Fully / Partly Paid Calls Ranking Each characteristic can be turned off or on and customized. Once complete, the total of the transaction is hashed and encrypted for distribution on a Blockchain. The Entity and the Shareholder / Investor maintain private keys which other stakeholders receive only public keys to verify but not modify the contract. Access to the system is via the integratedPRIVATE Platform and for the duration of the transaction. Definitions: integratedCONTRACT (Trademark pending) An integratedCONTRACT is a computer program embedded or encoded with the financial characteristics of the funding transaction and run on distributed cloud based systems which dynamically execute and maintain the performance of the instrument throughout its term. Multi factor, private (encryption) keys allocated to the primary stakeholders ensures true peer to peer control. Because these characteristics are dynamic and held within a unique identifier or internet address of the instrument itself, no one party or intermediary is required to maintain the record of the transaction. Accordingly, the need for intermediaries to maintain multiple ledgers and centralized control become redundant as the instruments themselves are self-contained. integratedPRIVATE (Trademarked) A financial services business providing technology and finance services. integratedPRIVATE Cloud Platform The integratedPRIVATE Platform is the cloud based platform on which applications such as integratedCONTRACTS are built and maintained. Traditional operating systems, databases and Windows applications are available as well as all public cloud applications. integratedPRIVATE Blockchain (Trademark pending) The integratedPRIVATE Blockchain is a consortium Blockchain where the consensus process is controlled by a pre-slected set of nodes; for exarnple, one might imagine a consortium of entities, each of which operates a node and of which a two thirds majority must sign every block in order for the block to be valid. On a case by case basis, the right to read the Blockchain may be public, or restricted to the participants, and there are also hybrid routes such as the root hashes of the blocks being public together with an APi that allows members of the public to make a limited number of queries and get back cryptographic proofs of sorne parts of the Blockchain state. This Blockchain can be considered "partially decentralized" distributed ledger, The rights to read, transact and effect changes are controlled by the integratedCONTRACT programming. integratedCAPITAL (Trademark pending) integratedCAPITAL is a marketplace or peer to peer debt funding and capital funding system built on the integratedPRIVATE Platform. The system is available for use on a month to month basis for any term. The platform makes use of units of capital known as integratedCAPITAL Units or CAPS. Any fiat currency or cryptocurrency can be assigned to a CAP when the integratedCONTRACT is prepared. integratedEXCHANGE (Trademark pending) The nature of the integratedCONTRACT allows for an intrinsic value to be dynamically calculated and assigned to a contract. The integratedEXCHANGE is a trading exchange for will buyers and sellers to exchange ownership in integratedCONTRACTS. The integratedEXCHANGE is available from the integratedPRIVATE Platform. Additionally, integrated EXCHANGE has facilities to convert from fiat currencies ( AUD, USD, EUR) to cryptocurrencies ( BTC, ETH, CAP) and vice versa to facilitate platform transactions such as posting transactions on the Public blockchains.