This application claims priority to and the benefit of the filing date of U.S. Application Serial No. 14/933,506, filed November 5, 2015, which is hereby incorporated by reference in its entirety.

FIELD

The present disclosure relates to the use of a blockchain in conjunction with a transaction processing network, specifically the posting of transaction message data in a blockchain verified using a transaction processing network and the verification and transmission of blockchain transaction data using a transaction processing network.

BACKGROUND

Transaction processing networks, also known as payment networks, involve significant hardware and infrastructure that are specifically configured to quickly process payment transactions from anywhere in the world using a vast, interconnected network. Transaction processing networks often operate using detailed rules and standards, to ensure accuracy, security, efficiency, and otherwise maintain order in the processing of potentially trillions of transactions every year. While such networks are often highly sophisticated, transaction processors are often constantly developing new technologies to further increase the sophistication of these networks, to provide for even more security to protect against fraud and to provide peace of mind to consumers.

Thus, there is a need for a technical solution to further increase the security involved in the processing of payment transactions using a transaction processing network. The use of blockchams as an alternative for transaction processing has become more desirable in recent years, due to privacy and security concerns, where some consumers value the seemingly complete confidentiality and anonymity of blockchain transactions over an established, centralized processing network. The decentralized nature of a blockchain may be detrimental for a number of consumers, for example, such as due to the lack of security of digital wallets, the instability of blockchain currency, lack of processing speed, etc. However, it may be useful when used in conjunction with a transaction processing network to provide for added verification of traditionally processed transactions, and for increased performance and processing speed of blockchain transactions. Thus, there is a need for a technical solution where a payment transaction network may be used in conjunction with a blockchain network for increased processing of both types of transactions.

SUMMARY

The present disclosure provides a description of systems and methods for validating electronic transactions using a private blockchain.

A method for validating electronic transactions using a private blockchain includes: storing, in a memory of a processing server, a blockchain, wherein the blockchain is a distributed database that includes a plurality of data records, each data record being associated with a processed electronic transaction; receiving, by a receiving device of the processing server, a transaction message, wherein the transaction message is associated with an electronic transaction, is formatted based on one or more standards, and includes at least a message type indicator indicative of a type of transaction and a plurality of data elements, each data element configured to store a transaction data value; generating, by a generation module of the processing server, a data record, wherein the data record is associated with the electronic transaction and includes at least the message type indicator and one or more transaction data values stored in the plurality of data elements included in the received transaction message; updating, by an updating module of the processing server, the blockchain to include the generated data record; electronically

transmitting, by a transmitting device of the processing server, the received transaction message to a payment network for processing; and electronically transmitting, by the transmitting device of the processing server, the updated blockchain to a plurality of transaction processing devices for validation.

A system for validating electronic transactions using a private blockchain includes: a memory of a processing server configured to store a blockchain, wherein the blockchain is a distributed database that includes a plurality of data records, each data record being associated with a processed electronic transaction; a receiving device of the processing server configured to receive a

transaction message, wherein the transaction message is associated with an electronic transaction, is formatted based on one or more standards, and includes at least a message type indicator indicative of a type of transaction and a plurality of data elements, each data element configured to store a transaction data value; a generation module of the processing server configured to generate a data record, wherein the data record is associated with the electronic transaction and includes at least the message type indicator and one or more transaction data values stored in the plurality of data elements included in the received transaction message; an updating module of the processing server configured to update the blockchain to include the generated data record; and a transmitting device of the processing server configured to electronically transmit the received transaction message to a payment network for processing, the updated blockchain to a plurality of transaction processing devices for validation.

BRIEF DESCRIPTION OF THE DRAWING FIGURES

The scope of the present disclosure is best understood from the following detailed description of exemplary embodiments when read in conjunction with the accompanying drawings. Included in the drawings are the following figures:

FIG. 1 is a block diagram illustrating a high level system architecture for validating electronic payment transactions and blockchain transactions via usage of both blockchain networks and transaction processing networks in accordance with exemplary embodiments.

FIG.2 is a block diagram illustrating the processing server of FIG. 1 for the validation of blockchain transactions and electronic payment transactions in accordance with exemplary embodiments.

FIG.3 is a flow diagram illustrating a process for validating an electronic transaction using a private blockchain using the system of FIG. 1 in accordance with exemplary embodiments.

FIG.4 is a flow diagram illustrating a process for validating a blockchain transaction using a transaction processing network using in the system of FIG. 1 in accordance with exemplary embodiments.

FIG. 5 is a flow chart illustrating an exemplary method for validating electronic transactions using a private blockchain in accordance with exemplary embodiments.

FIG. 6 is a flow chart illustrating an exemplary method for validating blockchain transactions using a transaction processing network in accordance with exemplary embodiments.

FIG.7 is a flow diagram illustrating the processing of a payment transaction in accordance with exemplary embodiments.

FIG. 8 is a block diagram illustrating a computer system architecture in accordance with exemplary embodiments.

Further areas of applicability of the present disclosure will become apparent from the detailed description provided hereinafter. It should be understood that the detailed description of exemplary embodiments are intended for illustration purposes only and are, therefore, not intended to necessarily limit the scope of the disclosure.

DETAILED DESCRIPTION

Glossary of Terms

Payment Network - A system or network used for the transfer of money via the use of cash-substitutes. Payment networks, also referred to herein as transaction processing networks, may use a variety of different protocols and procedures in order to process the transfer of money for various types of transactions. Transactions that may be performed via a payment network may include product or service purchases, credit purchases, debit transactions, fund transfers, account withdrawals, etc. Payment networks may be configured to perform transactions via cash-substitutes, which may include payment cards, letters of credit, checks, transaction accounts, etc. Examples of networks or systems configured to perform as payment networks include those operated by MasterCard*, VISA* Discover®,

American Express*, PayPal*, etc. Use of the term "payment network" or "transaction processing network" herein may refer to both the payment network as an entity, and the physical payment network, such as the equipment, hardware, and software comprising the payment network.

Blockchain - A public ledger of all transactions of a blockchain-based currency. One or more computing devices may comprise a blockchain network, which may be configured to process and record transactions as part of a block in the blockchain. Once a block is completed, the block is added to the blockchain and the transaction record thereby updated. In many instances, the blockchain may be a

ledger of transactions in chronological order, or may be presented in any other order that may be suitable for use by the blockchain network. In some configurations, transactions recorded in the blockchain may include a destination address and a currency amount, such that the blockchain records how much currency is attributable to a specific address. In some instances, additional information may be captured, such as a source address, timestamp, etc. In some embodiments, a blockchain may also consist of additional, and in some instances arbitrary, data that is confirmed and validated by the blockchain network through proof of work and/or any other suitable verification techniques associated therewith. In some cases, such data may be included in the blockchain as part of transactions, such as included in additional data appended to transaction data. In some instances, the inclusion of such data in a blockchain may constitute a transaction. In such instances, a blockchain may not be directly associated with a specific digital, virtual, fiat, or other type of currency. System for Validation of Transactions via Blockchain and Transaction Processing Networks

FIG. 1 illustrates a system 100 for the validation of electronic payment transactions via assistance of a blockchain network with a transaction processing network, as well as the validation of blockchain transactions via assistance of the transaction processing network with the blockchain network.

The system 100 may include a processing server 102. The processing server 102, discussed in detail below, may be configured to assist in the validation of both electronic payment transactions processed using a payment network 106 and blockchain transactions associated with a blockchain network 114. The processing server 102 may be part of a computing system of the payment network 106 or may be external to the payment network 106 but configured to communicate with the payment network 106 using the payment rails, which herein may refer to

infrastructure associated with the payment network 106 used in the processing of payment transactions and the communication of transaction messages and other similar data between the payment network 106 and other entities interconnected with the payment network, such as the processing server 102. The payment rails may be comprised of the hardware used to establish the payment network and the

interconnections between the payment network and other associated entities, such as financial institutions, gateway processors, etc. In some instances, the processing server 102 may be a transaction processing device 108, which may be a computing

device associated with the payment network 106 used in the processing of electronic payment transactions using traditional methods. Additional detail regarding payment networks 106 and transaction processing devices 108 is discussed below with respect to the process 700 illustrated m FIG. 7.

The processing server 102 may be configured to communicate with a financial institution 104. In some instances, the processing server 102 may be a part of a computing system of the financial institution 104. In other instances, the processing server 102 may communicate with the financial institution 104 using a suitable communication network, such as the Internet, a local area network, a wireless area network, a radio frequency network, etc. The financial institution 104 may be an entity involved in the conducting and processing of payment transactions, such as a participant (e.g., payer or payee), an account holder, gateway processor, etc. In some cases, the financial institution 104 may be an issuer 110, which may be a financial institution, such as an issuing bank, that issues a transaction account used to fund a payment transaction. In other cases, the financial institution 104 may be an acquirer 112, which may be a financial institution, such as an acquiring bank, that issues a transaction account used to receive funds in a payment transaction. In some instances, a financial institution 104 may be both an issuer 110 and acquirer 112, and, in some cases, may participate in a transaction as both issuer 110 and acquirer 112. As illustrated in FIG. 1, each processing server 102 and transaction processing device 108 may be configured to communicate with one or more financial institutions 104, issues 110, acquirers 112, and other entities involved in the processing of electronic payment and blockchain transactions.

In some embodiments, the processing server 102 may be a node in the blockchain network 114. As a node in the blockchain network 114, the processing server 102 may be configured to post blockchain transactions to a blockchain associated with the blockchain network 114, and may also be configured to validate transactions posted to the blockchain. Methods for validating transactions posted to a blockchain will be apparent to persons having skill in the relevant art, and may include, for example, proof of work calculations and confirmations. In some instances, transaction processing devices 108 may be configured as nodes for a blockchain network 114. In some embodiments, the processing server 102 and one or more transaction processing devices 108 may comprise a blockchain network 114. Such a blockchain network 114 may be herein referred to as a "private" blockchain network 114 or "trusted" blockchain network and may be associated with a "private" or "trusted" blockchain. In some cases, a processing server 102 may be a priority node in a blockchain network 114 such that transactions posted to the blockchain from the processing server 102 may be verified with a higher priority or may be considered pre-verified by the processing server 102 for faster adding to the associated blockchain as a result of the processes discussed herein.

In some instances, the processing server 102 may be configured to validate electronic payment transactions processed via the payment network 106 via the use of a private blockchain associated with a blockchain network 114 such as may include the processing server 102 and transaction processing devices 108. As used herein, "private" blockchain may refer to a blockchain mat is not publicly accessible such that only authorized computing devices and/or systems may be configured to post transactions to the blockchain.

In a traditional electronic payment transaction, an acquirer 112 associated with a merchant involved in the payment transaction may submit a transaction message to the payment network 106 via a transaction processing device 108. The transaction message may be a specially formatted data message that is formatted based on one or more standards governing the exchange of financial transaction messages, such as the International Organization of Standardization's ISO 8583 standard. Transaction messages may include a plurality of data elements configured to store data as set forth in the associated standard, such as data elements configured to store a primary account number used to fund the payment transaction, a transaction amount, a geographic location, a merchant identifier, an acquirer identifier, an issuer identifier, financial institution data, currency data, point of sale data, and other data associated with the payment transaction that may be useful in the processing thereof. In some instances, a transaction message may also include a message type indicator, which may be indicative of a type for the transaction message. For example, the message type indicator may indicate the transaction message as an authorization request, authorization response, clearing record, settlement request, settlement record, etc.

The transaction message may be electronically transmitted by the acquirer 112 to the transaction processing device 108 and then to the payment network 106 using the payment rails or a suitable alternative communication network configured for the secure transmission of transaction messages. The payment network

106 or transaction processing device 108 may be configured to forward the transaction message to the processing server 102 for enhanced validation using the private blockchain. In some instances, the transaction message may be forwarded to the processing server 102 prior to traditional processing of the payment transaction using the payment network 106. In other instances, the payment transaction may be processed (e.g., approved by an associated issuer 110 and an authorization response returned to the acquirer 112) prior to forwarding of the transaction message to the processing server 102.

The processing server 102 may receive the transaction message, which may include a plurality of data elements each configured to store a transaction data value associated with the related payment transaction. The processing server 102 may be configured to generate a data record, which may correspond to a blockchain transaction to be posted to the private blockchain. The data record may include the message type indicator included in the transaction message as well as one or more of the transaction data values stored in the corresponding data elements in the transaction message. The data record may then be posted to the private blockchain by the processing server 102. The data record may be subsequently verified by one or more nodes included in the associated blockchain network 114, such as the transaction processing devices 108 comprising the blockchain network 114. The data record may then be a part of the blockchain, which may thus be independently verifiable by any entity configured to access the blockchain, such as the acquirer 112 and/or issuer 110 involved in the electronic payment transaction, a third party financial institution 104, a consumer or merchant involved in the electronic payment transaction, etc. The private blockchain may thus be used as a secure and confidential, yet publicly accessible, record of processed payment transactions for third party verification.

For example, the data record posted to the blockchain may include transaction data values that may be beneficial for use in additional verification of the associated electronic payment transaction, such as transaction amount, transaction time and/or date, geographic location, merchant name, etc. In some instances, the generated data record may not include transaction account numbers. In some cases, one or more transaction data values may be hashed, such that the values may be verified via the generated data record, without the underlying transaction data values being obtainable. For example, the primary account number associated with the transaction account used to fund the payment transaction may be hashed such that the payer may be verified using the hashed primary account number, but without the actual primary account number being obtainable via the data record posted to the private blockchain.

Along with being configured to use a private blockchain to validate a payment transaction processed using the payment network 106, the processing server 102 may also be configured to validate blockchain transactions posted to a blockchain associated with the blockchain network 114 via the payment network 106 and associated payment rails. In such embodiments, the processing server 102 may receive a transaction message via the payment rails from the payment network 106, a transaction processing device 108, a financial institution 104, the blockchain network 114, or other suitable entity. The transaction message may be formatted based on one or more standards, such as the ISO 8S83 standard, and include a plurality of data elements configured to store data including transaction data values and blockchain data.

The blockchain data may be data associated with a blockchain transaction, such as a sender address, destination or recipient address, network identifier, a network address, a currency amount, etc. In some embodiments, each data value in the blockchain data may be stored in a separate data element in the received transaction message. In other embodiments, all of the blockchain data may be stored in a single data element In some instances, data elements configured to store blockchain data may be reserved for private use as indicated in the associated formatting standards.

The processing server 102 may store a plurality of transaction rules for the verification and authentication of payment and blockchain transactions. The transaction rules may include authentication rules configured to authenticate transaction data values stored in corresponding data elements in a transaction message, as well as verification rules configured to verify blockchain data associated with a blockchain transaction. Upon receipt of the transaction message including the blockchain data, the processing server 102 may be configured to apply the authentication rules to the transaction data values stored therein and the verification rules to the blockchain data stored therein to generate authentication and verification scores, respectively. The authentication score may indicate a likelihood of fraud, such as based on a comparison of a merchant identifier to a geographic location, a transaction amount to a blockchain currency amount, etc. The verification score may indicate a likelihood of fraud for the blockchain transaction, such as based on the currency amount and the sender address (e.g., if the sender address has access to sufficient currency based on prior blockchain transactions).

The processing server 102 may generate a data message that includes the blockchain data from the transaction message as well as the identified authentication and verification scores, and may electronically transmit the data message to the blockchain network 114. The blockchain network 114 may evaluate the blockchain data for posting to the associated blockchain depending on the authentication and verification score. For example, the blockchain network 114 may have a threshold that the verification score and/or authentication score must exceed to proceed with posting the blockchain data to the blockchain as a new transaction. In some instances, the blockchain network 114 may have a separate threshold for the authentication score and the verification score. In some cases, one blockchain network 114 may have different thresholds from a different blockchain network 114, such as in instances where the processing server 102 may be configured to provide enhanced validation of blockchain transactions using the payment network 106 for more than one blockchain.

Methods and systems discussed herein enable the processing server 102 to provide additional validation of electronic payment transactions via the use of a private, trusted blockchain, as well as additional validation of blockchain transactions via the use of transaction messages electronically transmitted in a trusted payment network. The processing server 102 may therefore provide for enhanced validation of both electronic payment transactions and blockchain transactions, resulting in higher security for both types of transactions and decreased fraud, while protecting and maintaining a high level of consumer privacy.

Processing Server

FIG.2 illustrates an embodiment of the processing server 102 of the system 100. It will be apparent to persons having skill in the relevant art mat the embodiment of the processing server 102 illustrated in FIG.2 is provided as illustration only and may not be exhaustive to all possible configurations of the processing server 102 suitable for performing the functions as discussed herein. For example, the computer system 800 illustrated in FIG. 8 and discussed in more detail below may be a suitable configuration of the processing server 102.

The processing server 102 may include a receiving device 202. The receiving device 202 may be configured to receive data over one or more networks via one or more network protocols. In some embodiments, the receiving device 202 may be configured to receive data over the payment rails, such as using specially configured infrastructure associated with payment networks 106 for the transmission of transaction messages that include sensitive financial data and information. In some instances, the receiving device 202 may also be configured to receive data from financial institutions 104, payment networks 106, transaction processing devices 108, issuers 110, acquirers 112, blockchain networks 114, and other entities via alternative networks, such as the Internet. In some embodiments, the receiving device 202 may be comprised of multiple devices, such as different receiving devices for receiving data over different networks, such as a first receiving device for receiving data over payment rails and a second receiving device for receiving data over the Internet The receiving device 202 may receive electronically data signals that are transmitted, where data may be superimposed on the data signal and decoded, parsed, read, or otherwise obtained via receipt of the data signal by the receiving device 202. In some instances, the receiving device 202 may include a parsing module for parsing the received data signal to obtain the data superimposed thereon. For example, the receiving device 202 may include a parser program configured to receive and transform the received data signal into usable input for the functions performed by the processing device to carry out the methods and systems described herein.

The receiving device 202 may be configured to receive data signals from the transaction processing devices 108, payment networks 106, and financial institutions 104, which may be superimposed with transaction messages, and may also be electronically transmitted via the payment rails. The transaction messages may be formatted based on one or more standards, such as the ISO 8S83 standard, and may include a plurality of data elements. Bach data element may be configured to store transaction data values as set forth in the associated standard. In some instances, one or more data elements may also be configured to store blockchain data associated with a blockchain transaction. In some instances, a transaction message may also include a message type indicator, which may be indicative of a type of the transaction message, such as an authorization request or response, a clearing record, or a settlement record. The receiving device 202 may also be configured to receive

blockchain data from a blockchain network 114. The blockchain data may comprise a blockchain and the associated data records included in the blockchain.

The processing server 102 may also include a communication module 204. The communication module 204 may be configured to transmit data between modules, engines, databases, memories, and other components of the processing server 102 for use in performing the functions discussed herein. The communication module 204 may be comprised of one or more communication types and utilize various communication methods for communications within a computing device. For example, the communication module 204 may be comprised of a bus, contact pin connectors, wires, etc. In some embodiments, the communication module 204 may also be configured to communicate between internal components of the processing server 102 and external components of the processing server 102, such as externally connected databases, display devices, input devices, etc. The processing server 102 may also include a processing device. The processing device may be configured to perform the functions of the processing server 102 discussed herein as will be apparent to persons having skill in the relevant art. In some embodiments, the processing device may include and/or be comprised of a plurality of engines and/or modules specially configured to perform one or more functions of the processing device, such as a generation module 216, updating module 218, validation module 220, verification module 222, authentication module 224, etc. As used herein, the term "module" may be software or hardware particularly programmed to receive an input, perform one or more processes using the input, and provide an output The input, output, and processes performed by various modules will be apparent to one skilled in the art based upon the present disclosure.

In some embodiments, the processing server 102 may include a blockchain 206. The blockchain 206 may be configured to store a plurality of data records 208 using a suitable data storage format and schema. The blockchain 206 may be formatted in any suitable method, such as stored as a relational database mat utilizes structured query language for the storage, identification, modifying, updating, accessing, etc. of structured data sets stored therein. Each data record 208 in the blockchain 206 may be associated with a blockchain transaction and include blockchain data associated therewith, such as a sender address, destination address, and currency amount

The processing server 102 may also include a rules database 210. The rules database 210 may be configured to store a plurality of authentication rules 212 and verification rules 214 using a suitable data storage format and schema. In some instances, the rules database 210 may be a relational database mat utilizes structured query language for the storage, identification, modifying, updating, accessing, etc. of structured data sets stored therein. The authentication rules 212 may be structured data sets that include rules that are applicable to transaction data values stored in data elements of a transaction message for the generation of an authentication score based thereon. The verification rules 214 may be structured data sets that include rules that are applicable to blockchain data for the generation of a verification score based thereon. The authentication score and verification score may be indicative of a likelihood of fraud or other value measured by the corresponding rules for the related payment transaction.

In some embodiments, the processing server 102 may include a querying module. The querying module may be configured to execute queries on databases to identify information. The querying module may receive one or more data values or query strings, and may execute a query string based thereon on an indicated database, such as the blockchain 206 or rules database 210, to identify information stored therein. The querying module may men output the identified information to an appropriate engine or module of the processing server 102 as necessary. The querying module may, for example, execute a query on the rules database 210 to identify authentication rules 212 and verification rules 214 to be applied to data stored in a received transaction message for scoring prior to forwarding of included blockchain data to an associated blockchain network 114.

The processing server 102 may also include an updating module 218.

The updating module 218 may be configured to receive update data and an indication of data to be updated, and may be configured to update the indicated data accordingly. In some instances, the updating module 218 may utilize the querying module, such as by executing a query on a database that includes the date indicated for updating. For example, the updating module 218 may execute a query to update the blockchain 206 by adding one a data record 208 corresponding to a new blockchain transaction for which blockchain data is received (e.g., in a transaction message received by the receiving device 202). In some instances, the updating module 218 may output a

notification to one or more modules of the processing server 102 indicating that the update process was completed.

The processing server 102 may also include a validation module 220. The validation module 220 may be configured to validate data received by the receiving device 202 and/or stored in the processing server 102. For example, the receiving device 202 may receive a new data record 208 to be updated in the blockchain 206 by the updating module 218. The validation module 220 may be configured to validate the new data record 208 using one or more suitable methods, such as a proof of work method associated with the corresponding blockchain 206. The validation module 220 may receive the data to be validated, may perform the appropriate validation methods, and may output an indication of success or failure for the validation. For example, if the validation of the new data record 208 is successful, the validation module 220 may indicate thusly, which may result in the adding of the new data record 208 to the blockchain 206 (e.g., by the updating module 218) and/or the transmission of a notification to the corresponding blockchain network 114 and/or one or more nodes in the corresponding blockchain network 114.

The processing server 102 may also include a verification module 222. The verification module 222 may be configured to calculate a verification score for a blockchain transaction. The verification module 222 may receive blockchain data as an input, and may be configured to calculate a verification score for the blockchain data via the application of one or more verification rules 214 to the blockchain data. In some instances, the verification rules 214 may be provided to the verification module 222 for use. In other instances, the verification module 222 may be configured to identify the verification rules 214 for use, such as based on the blockchain data. The resulting verification score may be output by the verification module 222 to a transmitting device 226 for transmission to a corresponding blockchain network 114.

The processing server 102 may also include an authentication module 224. The authentication module 224 may be configured to calculate an authentication score for an electronic payment transaction. The authentication module 224 may receive transaction data values as input, and may be configured to calculate an authentication score for the transaction data values via the application of one or more authentication rules 212 to the transaction data values. In some instances, the authentication rules 212 may be provided to the authentication module 224 for use. In other instances, the authentication module 224 may be configured to identify the authentication rules 212 for use, such as based on the transaction data values. The resulting authentication score may be output by the authentication module 224 to the transmitting device 226 for transmission to a corresponding blockchain network 114.

The transmitting device 226 may be configured to transmit data over one or more networks via one or more network protocols. In some embodiments, the transmitting device 226 may be configured to transmit data over the payment rails, such as using specially configured infrastructure associated with payment networks 106 for the transmission of transaction messages that include sensitive financial data and information, such as identified payment credentials. In some instances, the transmitting device 226 may be configured to transmit data to financial institutions 104, payment networks 106, transaction processing devices 108, issuers 110, acquirers 112, blockchain networks 114, and other entities via alternative networks, such as the Internet In some embodiments, the transmitting device 226 may be comprised of multiple devices, such as different transmitting devices for transmitting data over different networks, such as a first transmitting device for transmitting data over the payment rails and a second transmitting device for transmitting data over the Internet The transmitting device 226 may electronically transmit data signals that have data superimposed that may be parsed by a receiving computing device. In some instances, the transmitting device 226 may include one or more modules for superimposing, encoding, or otherwise formatting data into data signals suitable for transmission.

The transmitting device 226 may be configured to electronically transmit data signals to blockchain networks 114 for the posting of new blockchain transactions to the blockchain network 114. The data may include authentication and verification scores calculated by the authentication module 224 and verification module 222, respectively, as well as blockchain data stored in data elements) included in a transaction message received by the receiving device 202. In some instances, the transmitting device 226 may be configured to electronically transmit data to multiple blockchain networks 114. In such instances, a blockchain network 114 may be identified for transmission based on a network identifier associated with the blockchain network 114 included in the blockchain data. The transmitting device 226 may also be configured to transmit validation data to a blockchain network 114 and to nodes (e.g., transaction processing devices 108) associated with a blockchain network 114, such as for newly added data records 208.

The processing server 102 may also include a memory 228. The memory 228 may be configured to store data for use by the processing server 102 in performing the functions discussed herein. The memory 228 may be configured to store data using suitable data formatting methods and schema and may be any suitable type of memory, such as read-only memory, random access memory, etc. The memory 228 may include, for example, encryption keys and algorithms,

communication protocols and standards, data formatting standards and protocols, program code for modules and application programs of the processing device, and other data that may be suitable for use by the processing server 102 in the performance of the functions disclosed herein as will be apparent to persons having skill in the relevant art.

Process for Validating Payment Transactions via Private Blockhain

FIG. 3 illustrates a process for the validation of an electronic payment transaction via the use of a private blockchain.

In step 302, the receiving device 202 of the processing server 102 may receive a transaction message. The transaction message may be electronically transmitted to the processing server 102 via the payment network 106, and may be formatted based on one or more standards, such as the ISO 8S83 standard, and include a plurality of data elements including at least data elements configured to store transaction data values for an electronic payment transaction. The data values may include, for example, transaction amount, transaction time, transaction data, geographic location, primary account number, consumer data, merchant data, issuer data, acquirer data, point of sale data, loyalty data, reward data, offer data, product data, etc. In some embodiments, the transaction message may also include a message type indicator indicative of an authorization request.

In step 304, the generation module 216 of the processing server 102 may generate a data record. The data record may be a data record suitable for inclusion in a private blockchain and include data suitable for use in validation of the related electronic payment transaction. The included data may comprise transaction data values stored in the data elements included in the transaction message. In some embodiments, one or more of the transaction data values included in the generated

data record may be hashed and/or encrypted using one or more suitable hashing and encryption algorithms, respectively.

In step 306, the updating module 218 of the processing server 102 may update a private blockchain by adding the generated data record to the blockchain. In some instances, the private blockchain may be locally stored, such as the blockchain 206 locally stored in the processing server 102. In other instances, the private blockchain may be associated with a blockchain network 114, where the updating of the private blockchain may include the submission of the generated data record to the blockchain network 114 and/or one or more nodes associated therewith for verification and adding to the private blockchain.

In step 308, the transmitting device 226 of the processing server 102 may electronically transmit the transaction message to the payment network 106 for processing. In step 310, the payment network 106 may receive the transaction message and, in step 312, may process the related electronic payment transaction using the transaction message. The payment network 106 may utilize traditional methods for the processing of the payment transaction that will be apparent to persons having skill in the relevant art, such as the process 700 illustrated in FIG. 7 and discussed in more detail below.

In step 314, the transmitting device 226 of the processing server 102 may electronically transmit a data signal superimposed with the updated blockchain to a transaction processing device 108. In such an embodiment, the transaction processing device 108 may be a node in the blockchain network 114 associated with the private blockchain, which may include the processing server 102. In some instances, step 314 may include the transmitting of a notification to the transaction processing device 108 that the transaction has been posted to the private blockchain. In such instances, the notification may comprise one or more transaction data values suitable for use in identifying the new data record corresponding to the electronic payment transaction, such as a transaction identifier.

In step 316, the transaction processing device 108 may receive the updated private blockchain. In instances where the processing server 102 provides a notification of the updating of the private blockchain, step 316 may include the retrieval of the private blockchain from the blockchain network 114 using a suitable method. In step 318, the transaction processing device 108 may identify the generated data record that has been added to the private blockchain and may validate the electronic payment transaction. Validation of the electronic payment transaction may include confirmation transaction data values stored in the transaction message or a related transaction message, such as by confirming a transaction amount included in the data record with a transaction amount included in a clearing record. In some instances, the transaction processing device 108 may provide results of the validation, such as to the processing server 102 or to an entity involved in the electronic payment transaction.

Process for Validating Blockchain Transactions via Payment Networks

WHAT IS CLAIMED IS:

1. A method for validating electronic transactions using a private blockchain, comprising:

storing, in a memory of a processing server, a blockchain, wherein the blockchain is a distributed database that includes a plurality of data records, each data record being associated with a processed electronic transaction;

receiving, by a receiving device of the processing server, a transaction message, wherein the transaction message is associated with an electronic transaction, is formatted based on one or more standards, and includes at least a message type indicator indicative of a type of transaction and a plurality of data elements, each data element configured to store a transaction data value;

generating, by a generation module of the processing server, a data record, wherein the data record is associated with the electronic transaction and includes at least the message type indicator and one or more transaction data values stored in the plurality of data elements included in the received transaction message;

updating, by an updating module of the processing server, the blockchain to include the generated data record;

electronically transmitting, by a transmitting device of the processing server, the received transaction message to a payment network for processing; and

electronically transmitting, by the transmitting device of the processing server, the updated blockchain to a plurality of transaction processing devices for validation.

2. The method of claim 1, wherein the type of transaction is one of: authorization, clearing, or settlement.

3. The method of claim 1, wherein the one or more standards includes the ISO 8S83 standard.

4. The method of claim 1, wherein the transaction data value included in a data element of the plurality of data elements is one of: transaction amount, transaction time, transaction date, primary account number, merchant identifier, issuer identifier, acquirer identifier, processor identifier, and geographic location.

5. The method of claim 1 , wherein the generated data record includes the received transaction message.

6. The method of claim 1, further comprising:

receiving, by the receiving device of the processing server, a further updated blockchain from a transaction processing device, wherein the further updated blockchain includes the plurality of data records, the generated data record, and a new data record; and

validating, by a validation module of the processing server, the new data record.

7. The method of claim 6, further comprising:

storing, in the memory of the processing server, one or more validation algorithms, wherein

the new data record is validated based on application of the one or more validation algorithms to data included in the new data record.

8. The method of claim 6, further comprising:

electronically transmitting, by the transmitting device of the processing server, a data signal superimposed with a confirmation of validation of the new data record to the transaction processing device.

9. The method of claim 1 , wherein the processing server is a transaction processing device associated with the payment network.

10. The method of claim 1, wherein each of the plurality of transaction processing devices is associated with the payment network.

11. A system for validating electronic transactions using a private blockchain, comprising:

a memory of a processing server configured to store a blockchain, wherein the blockchain is a distributed database that includes a plurality of data records, each data record being associated with a processed electronic transaction;

a receiving device of the processing server configured to receive a transaction message, wherein the transaction message is associated with an electronic transaction, is formatted based on one or more standards, and includes at least a message type indicator indicative of a type of transaction and a plurality of data elements, each data element configured to store a transaction data value;

a generation module of the processing server configured to generate a data record, wherein the data record is associated with the electronic transaction and includes at least the message type indicator and one or more transaction data values stored in the plurality of data elements included in the received transaction message; an updating module of the processing server configured to update the blockchain to include the generated data record; and

a transmitting device of the processing server configured to electronically transmit

the received transaction message to a payment network for processing, and

the updated blockchain to a plurality of transaction processing devices for validation.

12. The system of claim 11, wherein the type of transaction is one of: authorization, clearing, or settlement

13. The system of claim 11 , wherein the one or more standards includes the ISO 8S83 standard.

14. The system of claim 11 , wherein the transaction data value included in a data element of the plurality of data elements is one of: transaction amount, transaction time, transaction date, primary account number, merchant identifier, issuer identifier, acquirer identifier, processor identifier, and geographic location.

15. The system of claim 11, wherein the generated data record includes the received transaction message.

16. The system of claim 11 , further comprising:

a validation module of the processing server, wherein

the receiving device of the processing server is further configured to receive a further updated blockchain from a transaction processing device, wherein the further updated blockchain includes the plurality of data records, the generated data record, and a new data record, and

the validation module of the processing server is configured to validate the new data record.

17. The system of claim 16, wherein

the memory of the processing server is further configured to store one or more validation algorithms, and

the new data record is validated based on application of the one or more validation algorithms to data included in the new data record.

18. The system of claim 16, wherein the transmitting device of the processing server is further configured to electronically transmit a data signal

superimposed with a confirmation of validation of the new data record to the transaction processing device.

19. The system of claim 11 , wherein the processing server is a transaction processing device associated with the payment network.

20. The system of claim 11 , wherein each of the plurality of transaction processing devices is associated with the payment network.