Tracing flow of tagged funds on a blockchain

Abstract

A system for “tagging” funds identified on a blockchain and associating a weight value therewith. The tagging profile is developed into a propagation profile wherein weight values are inherited from the tagging profile s. Propagation profile funds may be diluted by combining with non-tagged funds, similar to how ink dilutes through water. A spending history of funds of interest is developed based on replaying the funds of interest against the global transaction history of the blockchain. It is determined whether the spending history intersects with the propagation profile, thus determining how closely the two sources of funds are economically to one another. Intersection triggers actions including alert notifications or transfer of funds on the blockchain.

1 - 20 . (canceled) 
     
     
         21 . A system for tracing flow of tagged funds on a blockchain, the system comprising:
 a blockchain network participant configured to obtain at least a portion of a blockchain ledger representing a global transaction history of funds on the blockchain;   a transmitter at which to receive an identifier of funds on the blockchain ledger and a tagging profile including a set of tagged transaction outputs on the blockchain ledger and weight values associated therewith pursuant to a request from the blockchain network participant,
 wherein each of the weight values is indicative of an amount of the funds included in a corresponding one of the set of tagged transaction outputs; and 
   at least one application program executable by the system and configured to:
 ascertain a spending history of the identifier of funds and a propagation profile; and 
 determine whether the spending history satisfies an intersection condition with respect to the propagation profile. 
   
     
     
         22 . The system of  claim 21 , wherein the at least one application program sends an alert notification to a market participant if the intersection condition is satisfied. 
     
     
         23 . The system of  claim 21 , wherein the tagging profile is based at least in part on an identification of stolen funds. 
     
     
         24 . The system of  claim 21 , wherein the tagging profile is based at least in part on funds associated with a market participant and the alert notification indicates an economic interaction between funds in the spending history of the identifier of funds with the market participant. 
     
     
         25 . The system of  claim 21 , wherein the blockchain network participant includes a node on the blockchain network and the global transaction history of funds on the blockchain is local to the node. 
     
     
         26 . The system of  claim 21 , wherein the identifier of funds and the spending history are equivalent. 
     
     
         27 . The system of  claim 21 , wherein the intersection condition is satisfied only if a weight value of a transaction output in the spending history of the identifier of funds intersects with a transaction output in the propagation profile having a weight value above a trigger threshold. 
     
     
         28 . The system of  claim 21 , wherein the transaction replayer assigns an equal weighting value to any outputs from a transaction in the global transaction history wherein at least one input to the transaction is associated with a weighting value. 
     
     
         29 . The system of  claim 21 , wherein the tagging profile includes a blacklist of transaction outputs. 
     
     
         30 . The system of  claim 21 , wherein the identifier of funds includes a set of transaction outputs derived from an extended public key (xpub). 
     
     
         31 . The system of  claim 21 , wherein the identifier of funds includes a block height on the blockchain. 
     
     
         32 . A system for tracing flow of tagged funds on a blockchain, the system comprising:
 a blockchain network participant configured to obtain at least a portion of a blockchain ledger representing a global transaction history of funds on the blockchain;   a transmitter at which to receive an identifier of funds on the blockchain ledger and a tagging profile including a set of tagged transaction outputs on the blockchain ledger and weight values associated therewith pursuant to a request from the blockchain network participant,
 wherein each of the weight values is indicative of an amount of the funds included in a corresponding one of the set of tagged transaction outputs; and 
   at least one application program that, when executed, replays the tagging profile against the global transaction history to yield a spending history of the identifier of funds and a propagation profile; and   determines whether the spending history of the identifier of funds satisfies an intersection condition with respect to the propagation profile.   
     
     
         33 . The system of  claim 32 , wherein said at least one application program blocks a requested transaction if the intersection condition is satisfied. 
     
     
         34 . The system of  claim 33 , wherein said at least one application program issues a new transaction so as to return funds associated with the requested transaction. 
     
     
         35 . The system of  claim 21 , wherein said at least one application program is further configured to block a requested transaction if the intersection condition is satisfied. 
     
     
         36 . The system of  claim 35  wherein said at least one application program is further configured to issue a new transaction so as to return funds associated with the requestion transaction.