IBM has been awarded a patent for the development of a “self-aware token” designed to record events of an offline transaction.
The patent describes a system, which relates to financial data processing in an electronic currency platform, as well as to processing e-commerce tokens, which have involved offline transactions.
Tracking Offline Transactions
The patent presents a ledger-based system for payments, a system that makes tracking and tracing crypto transactions easier for governments, businesses and individuals too. It’s designed to record transactions even when not being used, on the payment platform patented by IBM back in 2012. When the token gets back to this platform’s ecosystem afterwards, the data of offline transactions is immediately uploaded.
The patent document wrote:
“In the event a user of the platform makes an off-line transaction involving a token from the platform, then a system is needed to allow a token to re-appear on-line at a later time and continue to be authenticated, validated, and rated by the platform. It is believed such a system would constitute a significant improvement to the art of financial data processing.”
For IBM, the ability to determine the provenance of a token can help “bolster trust and viability” within a new token-based economy. Businesses can confirm tokens have not been used for any criminal activities, users can ensure they haven’t been falsified or corrupted at any stage and administrators or regulators can build profiles on parties to enforce relevant laws and regulations.
IBM said the token could facilitate exchanges between different asset classes. As more cryptocurrencies develop, the more significant it is for businesses to have a know-how to enable payments between diverse forms of digital assets. By recording this transaction data, “e-Currencies could operate across disparate economic systems, fostering easier participating alongside sovereign currencies and other non-standard currencies.”