Real-time Cryptocurrency Backed Payment with Code Initiation

Abstract

A method includes providing, by a merchant computing device, a code representative of real-time cryptocurrency backed payment information to a user computing device to initiate a real-time cryptocurrency backed payment with the user computing device. The user computing device provides a first cryptocurrency to use in the real-time cryptocurrency backed payment, and the merchant computing device accepts a desired fiat currency. The method further includes verifying, by the user computing device, the code. The verification initiates the real-time cryptocurrency backed payment. The method further includes facilitating, by the network computing device, locking an amount of collateral cryptocurrency required to back the real-time cryptocurrency backed payment, instantly providing an amount of the desired fiat currency to the merchant computing device, and when receipt of an amount of the first cryptocurrency from the user computing device to cover the real-time cryptocurrency backed payment is confirmed, releasing the amount of the collateral cryptocurrency.

What is claimed is: 
     
         1 . A method comprising:
 providing, by a merchant computing device of a cryptocurrency collateral system, a code representative of real-time cryptocurrency backed payment information to a user computing device of the cryptocurrency collateral system to initiate a real-time cryptocurrency backed payment with the user computing device, wherein the user computing device provides a first cryptocurrency to use in the real-time cryptocurrency backed payment, and wherein the merchant computing device accepts a desired fiat currency;   verifying, by the user computing device, the code using a user authentication method, wherein the verification initiates the real-time cryptocurrency backed payment;   facilitating, by the network computing device, locking an amount of collateral cryptocurrency required to back the real-time cryptocurrency backed payment;   instantly providing, by the network computing device, an amount of the desired fiat currency to the merchant computing device to complete the real-time cryptocurrency backed payment; and   when receipt of an amount of the first cryptocurrency from the user computing device to cover the real-time cryptocurrency backed payment is confirmed by the network computing device:
 releasing, by the network computing device, the amount of the collateral cryptocurrency. 
   
     
     
         2 . The method of  claim 1 , wherein the user computing device stores the first cryptocurrency in a digital wallet associated with the network computing device. 
     
     
         3 . The method of  claim 1 , wherein the merchant computing device is associated with the network computing device. 
     
     
         4 . The method of  claim 1 , wherein the network computing device determines the amount of the collateral cryptocurrency based on one or more of:
 characteristics of the real-time cryptocurrency backed payment;   characteristics of the user computing device;   characteristics of the merchant computing device; and   characteristics of the collateral cryptocurrency.   
     
     
         5 . The method of  claim 1  further comprises:
 when the user computing device does not verify the code representative of the real-time cryptocurrency backed payment information:
 terminating, by the network computing device, the initiation of the real-time cryptocurrency backed payment. 
 
 
     
     
         6 . The method of  claim 1 , wherein the instantly providing the amount of the desired fiat currency to the merchant computing device comprises:
 sending, by the network computing device, the amount of the desired fiat currency to a merchant banking computing device associated with the merchant computing device for deposit therein.   
     
     
         7 . The method of  claim 1  further comprises:
 when receipt of the amount of the first cryptocurrency from the user computing device is not confirmed by the network computing device:
 using, by the network computing device, the amount of the collateral cryptocurrency to cover the real-time cryptocurrency backed payment. 
 
 
     
     
         8 . The method of  claim 1 , wherein the user computing device stores collateral cryptocurrency for backing real-time cryptocurrency backed payments in a smart contract associated with the network computing device. 
     
     
         9 . A computer readable memory comprises:
 a first memory element that stores operational instructions that, when executed by a merchant computing device of a cryptocurrency collateral system, causes the merchant computing device to:
 provide a code representative of real-time cryptocurrency backed payment information to a user computing device of the cryptocurrency collateral system to initiate a real-time cryptocurrency backed payment with the user computing device, wherein the user computing device provides a first cryptocurrency to use in the real-time cryptocurrency backed payment, and wherein the merchant computing device accepts a desired fiat currency; 
   a second memory element that stores operational instructions that, when executed by the user computing device, causes the user computing device to:
 verify the code using a user authentication method, wherein the verification initiates the real-time cryptocurrency backed payment; and 
   a third memory element that stores operational instructions that, when executed by a network computing device of the cryptocurrency collateral system, causes the network computing device to:
 facilitate locking an amount of collateral cryptocurrency required to back the real-time cryptocurrency backed payment; 
 instantly provide an amount of the desired fiat currency to the merchant computing device to complete the real-time cryptocurrency backed payment; and 
 when receipt of an amount of the first cryptocurrency from the user computing device to cover the real-time cryptocurrency backed payment is confirmed:
 release the amount of the collateral cryptocurrency. 
 
   
     
     
         10 . The computer readable memory of  claim 9 , wherein the user computing device stores the first cryptocurrency in a digital wallet associated with the network computing device. 
     
     
         11 . The computer readable memory of  claim 9 , wherein the merchant computing device is associated with the network computing device. 
     
     
         12 . The computer readable memory of  claim 9 , wherein the third memory element further stores operational instructions that, when executed by the network computing device causes the network computing device to determine the amount of the collateral cryptocurrency by one or more of:
 characteristics of real-time cryptocurrency backed payment;   characteristics of the user computing device;   characteristics of the merchant computing device; and   characteristics of the collateral cryptocurrency.   
     
     
         13 . The computer readable memory of  claim 9 , wherein the third memory element further stores operational instructions that, when executed by the network computing device, causes the network computing device to:
 when the user computing device does not verify the code representative of the real-time cryptocurrency backed payment information:
 terminate the real-time cryptocurrency backed payment. 
   
     
     
         14 . The computer readable memory of  claim 9 , wherein the third memory element further stores operational instructions that, when executed by the network computing device, causes the network computing device to instantly provide the amount of the desired fiat currency by:
 sending the amount of the desired fiat currency to a merchant banking computing device associated with the merchant computing device for deposit therein.   
     
     
         15 . The computer readable memory of  claim 9 , wherein the third memory element further stores operational instructions that, when executed by the network computing device, causes the network computing device to:
 when receipt of the amount of the first cryptocurrency from the user computing device is not confirmed by the network computing device:
 use the amount of the collateral cryptocurrency to cover the real-time cryptocurrency backed payment. 
   
     
     
         16 . The computer readable memory of  claim 9 , wherein the user computing device stores collateral cryptocurrency for backing real-time cryptocurrency backed payments in a smart contract associated with the network computing device.