IBM issues patents related to tokens to record offline transactions

According to Cointelegraph reported on January 29, technology giant IBM has been awarded a patent to develop a token, which is mainly used to record offline transactions.

4406341989_b6502eb5a4_b (Image source: flickr )

In a patent document filed with the US Patent and Trademark Office, IBM mentioned that the system it developed involved the processing of financial data on electronic money platforms and the processing of e-commerce tokens involving offline transactions. In order to track and record events for offline transactions, the system generates "self-aware tokens".

Track and verify offline transactions

IBM mentioned in a patent document that it has developed an ledger-based payment system that makes it easier for individual users, businesses, and governments to track transactions made using cryptocurrencies. The device called "Self-Aware" token is designed to record all transaction data, and IBM applied for a patent for a payment platform in 2012. When the token rejoins the platform ecosystem at a later stage, it will automatically upload data from any "offline transactions".

When talking about "self-aware tokens", the document details:

If a platform user conducts offline transactions involving a platform token, then it needs a system to allow the token to continue to be reviewed, verified, and rated by the platform when it comes back online at a later time. We believe that such a system will greatly improve the efficiency of financial data processing.

Patent documents further link the system to the platform described by IBM in its July 2012 patent application for tracking and verifying electronic currency tokens. The platform can provide services such as lifetime tracking of tokens, real-time transaction support, secure authentication and verification. This concept can build a "complete life cycle" for a token, which can include data about the payment location and transaction amount, as well as any information about previous token holders. The token itself cannot store transaction data, but it can be stored on some kind of personal device, such as a phone or laptop, or a specially constructed database.

For IBM, better ability to determine tokens can help "enhance trust and viability" in the new economy based on tokens. Enterprises can confirm that the token has not been used for any criminal activities, users can ensure that the token has not been forged or tampered with at any stage, and administrators or supervisory agencies can establish files of all parties to enforce relevant laws and regulations.

IBM said the token could facilitate exchanges between different asset classes. With the development of many types of cryptocurrencies, how to achieve payment between different forms of assets has become increasingly important. By recording these transaction data, "electronic money can operate in different economic systems."

New Token Standard

Last November, the Token Classification Program (TTI) announced a standardized token structure framework. TTI's members include major technology, finance, software, and blockchain companies such as IBM, Microsoft, Intel, and Analysys, Ernst & Young, Winsun and JP Morgan.

Microsoft's Blockchain Cloud Service Microsoft Azure also announced a new type of tokenization and blockchain data management service. This service simplifies the definition, creation and management of tokens and is designed to meet industry standards.