20240046255. COMPUTERIZED DISTRIBUTED LEDGER SYSTEM SUPPORTING FIXED-VALUE RESOURCE UNITS simplified abstract (CONCEPT HEDGING LLC)
COMPUTERIZED DISTRIBUTED LEDGER SYSTEM SUPPORTING FIXED-VALUE RESOURCE UNITS
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COMPUTERIZED DISTRIBUTED LEDGER SYSTEM SUPPORTING FIXED-VALUE RESOURCE UNITS - A simplified explanation of the abstract
This abstract first appeared for US patent application 20240046255 titled 'COMPUTERIZED DISTRIBUTED LEDGER SYSTEM SUPPORTING FIXED-VALUE RESOURCE UNITS
Simplified Explanation
The patent application describes methods and systems for maintaining a digital ledger where a first resource, such as a cryptocurrency, is backed by a second resource, such as a fiat currency, and can be exchanged for the second resource at a set per-unit value. Interface nodes are used to maintain pools of the resources within set thresholds, allowing for the exchange of one resource for another at any time.
- The patent application proposes a system for backing a digital resource with a government-issued resource, enabling exchangeability at a fixed value.
- Interface nodes are utilized to manage pools of the resources, ensuring availability for exchange.
- The per-unit value of the first resource is set, establishing the exchange rate between the two resources.
- The system allows for real-time exchange between the first and second resources, providing liquidity and flexibility.
Potential applications of this technology:
- Cryptocurrency exchanges could utilize this system to provide stable and reliable trading pairs with fiat currencies.
- Cross-border transactions could be facilitated by using a cryptocurrency backed by a government-issued resource, reducing the need for currency conversions.
- Digital wallets and payment platforms could integrate this system to offer seamless conversion between cryptocurrencies and fiat currencies.
Problems solved by this technology:
- Volatility: By backing a digital resource with a stable government-issued resource, the system addresses the issue of price fluctuations commonly associated with cryptocurrencies.
- Liquidity: The use of interface nodes and maintained pools ensures that there is always a sufficient amount of resources available for exchange, enhancing liquidity in the market.
- Trust and security: The system provides a transparent and auditable ledger, reducing the risk of fraud and increasing trust in digital transactions.
Benefits of this technology:
- Stability: The backing of a digital resource with a government-issued resource provides stability and reduces the risk of value depreciation.
- Flexibility: Users can exchange the first resource for the second resource at any time, allowing for seamless transactions and increased convenience.
- Increased adoption: By addressing the issues of volatility and trust associated with cryptocurrencies, this technology may encourage wider adoption of digital currencies in various industries.
Original Abstract Submitted
methods and systems of maintaining a digital ledger are provided in which a first resource, such as a cryptocurrency or other value-bearing resource, is backed by a second resource, such as a fiat currency or other government-issued resource, and exchangeable for the second resource at a set per-unit value. after setting a per-unit value of the first resource, interface nodes are used to maintain pools of the resources within set thresholds such that one resource can be exchanged for another at any time.
