AU2021221594A1

AU2021221594A1 - Blockchain-based payment rail

Info

Publication number: AU2021221594A1
Application number: AU2021221594A
Authority: AU
Inventors: Jeremy Hastings; Kathryn McCORMACK; Tommy NG; Edward TINKER
Original assignee: Rsmart Pty Ltd
Current assignee: Rsmart Pty Ltd
Priority date: 2020-10-26
Filing date: 2021-08-25
Publication date: 2022-05-12

Abstract

The present disclosure provides new and innovative systems and methods for securely executing transactions and generating transaction logs. In an example, a computer implemented transaction system includes a database storing system data including at least user data for a plurality of users, bank account data for one or a plurality of bank accounts, and contract data for contract(s) between the users, a blockchain comprising one or more secure tokens, and at least one processor in communication with the database and the blockchain and configured to determine that funds have been received in a first bank account, create secure tokens representative of the funds, as cryptographic assets in the blockchain, and associated with a first user, apply one or more rules based on the contract data to transfer the funds from the first bank account to at least one second bank account, associated with at least one second user, and cryptographically signing the blockchain to associate the secure tokens with the at least one second user. 1/7 300 Legend 110 O Internal Service Banking Partner o Blended Service o External Service 1200 Frontend Serve 400 CDN, Static Files] / lckhi (WbBUser) Microservices (WebBrower)Banking Integration, - Blockchain Integration 130 Block Explorer -- 0 130 140 Backend Service Cloud Func~ons Database 120 Figure 1

Description

1/7

300 Legend 110 O Internal Service Banking Partner o Blended Service o External Service

Frontend Serve 400 CDN, Static Files] / lckhi

(WbBUser) Microservices (WebBrower)Banking Integration, - Blockchain Integration

130 -- 0 130 Block Explorer 1200 140

Backend Service Cloud Func~ons Database

120

Figure 1

SYSTEMS AND METHODS FOR EXECUTING AND AUDITING TRANSACTIONS USING DISTRIBUTED LEDGERS

Technical Field

[0001] The present invention relates to a computerised transaction system and more specifically to computer systems that automatically execute secure and traceable transactions.

Background

[0002] Any discussion of the prior art throughout the specification should in no way be considered as an admission that such prior art is widely known or forms part of the common general knowledge in the field.

[0003] In the real estate industry, rental properties are frequently managed by property managers. The managers are typically real estate agents who act on behalf of the property owners (landlords), to relieve the administrative and managerial burdens associated with renting out a property - whether it be a residential property or a commercial property.

[0004] Among their various duties, property managers typically ensure that tenants pay the rent on the property in a timely fashion, usually into a trust account. The property manager holds the funds in the trust account before passing them on to the landlord. Licensed real estate agents have important legal and fiduciary responsibilities in relation to the management of a trust account. The removal of money from a trust account for reasons other than an authorised purpose is a criminal offence. There are regulations in place in all jurisdictions that require the strict maintenance of a formal set of trust account records to show at any time the state of the real estate agent's trust account.

[0005] Property managers are often managing many properties on behalf of many different property owners. Accordingly, they are handling significant amounts of money, which is being transferred between many renters and many landlords. This results in a significant administrative burden, to ensure that all received funds are accounted for, that payments are made by tenants and passed on to property owners, and to identify when payments have been missed or are overdue.

[0006] Because of the significant amounts of money that property managers may handle, government regulations (in many jurisdictions) impose obligations regarding record keeping and handling of those funds. Property managers may be subjected to government audits to ensure compliance with these regulations either at regular intervals, or randomly. Complying with an audit can be an expensive task for property managers, due to the extensive record keeping requirements.

[0007] Receiving timely notification that a deposit or rent has been received is critical to both tenants and property managers. With traditional banking processes, funds can take between 1-3 business days to appear in a trust account. When a tenant applies for a rental property, many property managers require a deposit (advance rent) to be paid before countersigning the tenancy agreement. The delay caused by movement of funds results in loss of rental income from non occupancy during that time.

[0008] Overall, current systems are cumbersome and inefficient with a high level of administrative load on real estate businesses. For example, trust documents and records that should be maintained include: a record of money received for or on behalf of any other person; trust receipt books register; duplicates of every completed trust account deposit form; trust account journals; trust ledgers; trust cheque books' register; records of trust money payments; bank statements of trust moneys; register of securities; trust account reconciliation statements; requests for the issue of bank cheques; requests for the opening of separate interest bearing trust accounts; and any other books, accounts or records otherwise kept by an agent at their discretion relating to trust money.

[0009] In addition to the administrative burden and delays, existing systems have other inherent risks including fraud and theft (case with the highest amount in NSW was in 2019 with $3.6m stolen by an agent), the complexity of a real estate agency closing down (often unveiling issues with the trust monies), unclaimed trust monies, and annual audit of trust accounts (discrepancies are sometimes not detected for years).

[0010] There is accordingly a need for systems or methods which address some or all of the above issues, or at least provide an alternative to conventional systems for managing funds for rental properties, or in other situations that involve the need for frequent or ad hoc transfers of funds between parties.

Summary

[0011] The present disclosure provides new and innovative systems and methods for securely executing transactions and generating transaction logs. In an example, a computer implemented transaction system includes a database storing system data including at least user data for a plurality of users, bank account data for one or a plurality of bank accounts, and contract data for contract(s) between the users, a blockchain including one or more secure tokens, and at least one processor in communication with the database and the blockchain and configured to determine that funds have been received in a first bank account, create secure tokens representative of the funds, as cryptographic assets in the blockchain, and associated with a first user, apply one or more rules based on the contract data to transfer the funds from the first bank account to at least one second bank account, associated with at least one second user, and cryptographically signing the blockchain to associate the secure tokens with the at least one second user.

[0012] In another example, the processor may be further configured to burn the secure token in the blockchain when the funds are withdrawn from bank accounts in the database.

[0013] In another example, a bank transaction ID is included in the blockchain upon creation of the secure tokens.

[0014] In another example, an auditing interface may be provided to display information from the database and the blockchain, whereby an auditor can verify that funds have been processed in accordance with the contract data.

[0015] In another example, the contract data may include data defining a rental agreement between the first user and the second user, wherein the first user is a tenant and the second user is a landlord.

[0016] In a second example, a computer-implemented method for processing a transaction includes determining that funds have been received in a first bank account, creating secure tokens representative of the funds, as cryptographic assets in a blockchain, associated with a first user, applying one or more rules based on contract data stored in a database, to transfer the funds from the first bank account to at least one second bank account, associated with at least one second user, and cryptographically signing the blockchain to associate the secure tokens with the at least one second user.

[0017] In another example, the method further includes burning the secure token in the blockchain when the funds are withdrawn from all bank accounts referred to in the contract data.

[0018] In a third example, a computer implemented transaction system includes at least one processor and a memory in communication with the at least one processor, configured with instructions for directing the processor to perform the method of the second example.

[0019] In a fourth example, a computerised rental payment management system for managing rental payments including a database storing system data including at least user data for a plurality of users, including a tenant and a landlord, bank account data for one or a plurality of bank accounts, and contract data for rental contract(s) between the tenant and the landlord, a blockchain including one or more secure tokens, and at least one processor in communication with the blockchain and configured to determine that funds have been received in a first bank account from the tenant, create secure tokens representative of the funds, as cryptographic assets in the blockchain, and associated with the tenant, apply one or more rules based on the contract data to transfer the funds from the first bank account to at least one second bank account, associated with the landlord, and cryptographically signing the blockchain to associate the secure tokens with the landlord.

[0020] In a fifth example a computer-implemented rental payment management method including determining that funds have been received from a tenant in a first bank account, creating secure tokens representative of the funds, as cryptographic assets in a blockchain, associated with the tenant, applying one or more rules based on contract data stored in a database, to transfer the funds from the first bank account to at least one second bank account, associated with a landlord, and cryptographically signing the blockchain to associate the secure tokens with the landlord.

[0021] Embodiments of the present invention provide a payment rail for rental payments that has advantages in relation to transparency, efficiency, automation, auditability, real-time settlement, and regulation compliance. Embodiments of the present invention leverage blockchain technology to achieve the above advantages, using logic in smart contracts to decide how money moves through the system, and to provide a platform for auditing to minimise manual effort and maximise efficiency.

[0022] The computer system may be implemented using mobile computing device(s), such as apps on mobile phones or tablets, using internet browsers, or through dedicated applications on other computers. It will be appreciated that, unless otherwise stated, details and variations described with respect to one aspect of the invention equally apply to other aspects of the invention.

[0023] A detailed description of one or more embodiments of the invention is provided below along with accompanying figures that illustrate by way of example the principles of the invention. While the invention is described in connection with such embodiments, it should be understood that the invention is not limited to any embodiment. On the contrary, the scope of the invention is limited only by the appended claims and the invention encompasses numerous alternatives, modifications and equivalents. For the purpose of example, numerous specific details are set forth in the following description in order to provide a thorough understanding of the present invention.

[0024] The present invention may be practiced according to the claims without some or all of these specific details. For the purpose of clarity, technical material that is known in the technical fields related to the invention has not been described in detail so that the present invention is not unnecessarily obscured.

Brief Description of the Drawings

[0025] The description will be more fully understood with reference to the following figures, which are presented as exemplary aspects of the disclosure and should not be construed as a complete recitation of the scope of the disclosure, where:

[0026] Figure 1 is an overall system diagram according to an embodiment of the present invention;

[0027] Figures 2 to 8 sequentially depict examples of a transaction and associated blockchain updates, in accordance with embodiments of the present invention;

[0028] Figure 9 is a conceptual diagram showing in more detail the features and interactions of a system according to an embodiment of the present invention; and

[0029] Figure 10 illustrates a flowchart of a process for executing transactions according to an embodiment of the present invention.

Detailed Description

[0030] Turning now to the drawings, new and innovative systems and methods for securely executing transactions and generating transaction logs are disclosed. Figure 1 depicts a computer system 100 according to an exemplary embodiment of the present invention. The computer system 100 interacts with a blockchain 200, an external banking system 300, and one or more users 400. The overall architecture of this system 100 includes multiple sub modules, such as a front end 110 for primary interaction with users 400, a back end 120, and a microservice handler 130 to integrate with the external (or blended) services such as the banking system 300 or blockchain 200. The system 100 has particular application to "smart contracts" for rental agreements. Transaction protocols for a rental agreement may be implemented using standardised recurring subscriptions on the blockchain, for example using formats compliant with the EIP 1337 interface. This allows users (e.g., a landlord and a tenant) to agree to a frequency and amount for the rent with a single authorisation.

[0031] In operation, the user 400 interacts with the front end 110 to send requests to the system 100. The user 400 may interact with system 100 utilising various devices of their own, including mobile computing devices (such as a mobile phone, tablet computer, or laptop) and/or desktop computing devices. In a variety of embodiments, users may include landlords, tenants and individual property managers. The database may store details of each user, including their name and their role within the system (e.g. landlord, property manager, tenant). Users may interact with system 100 using, for example, a dedicated application on their computing device, a web browser, and/or any other interface. The back end 120 is able to receive requests from the web frontend 110 and respond with the correct action and/or query the database 140 or other services to generate and return the correct result to the user 400. The database 140 can store data regarding users of the system 100, and bank account data specifying details of accounts relating to rental transactions. This information may include details of the bank accounts (bank, account names, account numbers), as well as transaction data (e.g. date, amount, description) for relevant transactions that take place through those bank accounts. The database 140 also stores contract data from contracts between users - e.g. an amount and frequency of rental payments. Various other types of data may be stored in the database 140, including contact details for the parties for automating communications such as confirming payments or late-payment notices.

[0032] In a variety of embodiments, bank accounts for which bank account data is stored within database 140 include an interface account 310, a working capital account 320 (e.g., for a property manager), a cold storage account 330 (e.g., for a property manager), one or more landlord accounts 340, and a trust account 350 (e.g., for a property manager). In some embodiments, more or fewer bank accounts may be utilised. Contract data is stored within database 140 and may include various terms of a contract, such as the parties involved (e.g., users), the address of the rental property, the amount and frequency of payments (potentially including specific due dates), and/or any contract termination date. Where the parties mutually agree to make amendments to a contract, each of the relevant versions can be recorded and stored such that a history of the different contract variations is preserved. Details of relevant bank accounts associated with the users may be already stored as part of the user and bank account data can be stored in the database. In several embodiments, account information is stored within database 140 instead of on the blockchain 200 due to privacy considerations. Debit card, credit card and other similar banking information can be stored and managed in compliance with PCI-DSS requirements. In many embodiments, users may not have all of their data stored; for example payees who receive money may not have their bank account information stored.

[0033] In a variety of embodiments, the microservice handler 130 provides various microservices, including banking integration, blockchain integration and a block explorer. The banking integration microservice can connect to the database 140 in order to share state with the rest of the system 100. For outbound operations, the microservice handler 130 can provide a lambda function triggered by a simple queue service (SQS) topic. The lambda function can include instructions to read and process data within the SQS topic, execute application programming interface (API) calls to the bank, and store the results into database 140. For incoming operations, the microservice handler 130 can provide an API (e.g. a web service) that the bank (or any other computing device) can use to notify the system 100 when events happen. Separating the banking integration into its own microservice enables the system 100 to better control portions of the database 140 for only the banking integration microservice. For example, access can be restricted to authorised users. This also allows simpler control over access to the bank accounts - for example, if there is ever any concern around withdrawals made from bank accounts, withdrawal functions can be suspended whilst an investigation occurs.

[0034] A blockchain integration microservice is also provided which also connects to the database 140 in order to share state information with the rest of the system 100. The blockchain integration microservice can provide key storage and signature functionality and/or business logic. In a variety of embodiments, the key storage is strictly controlled, and may even be secured in its separate database (not shown) with strict access controls, rather than in database 140. The business logic is unable to sign transactions on its own, and is never provided with keys. Instead, when a blockchain transaction needs to be signed, the transaction can be sent to the key storage/signature service, which signs the transaction with the correct key, then returns the signed transaction to the business logic so it can be broadcast to the blockchain network. Key generation for new keys can occur entirely within the key storage/signature service, which uses a cryptographically secure random number generator to generate the keys, which never leave the service. Users are also able to authenticate directly with the signature service, which helps prevent user impersonation. Once the broadcasted transaction has been included in a block, the integration can update the record in the database to show the corresponding transaction hash. In this way, the security of the blockchain, the blockchain integration microservice, and the system 100 can be improved. A block explorer service can provide a graphical interface to the blockchain network 200, for ease of maintenance.

[0035] The blockchain 200 may be a private blockchain service and/or a decentralised public blockchain service, wherein secure tokens are used to track transactions between users of the system 100. The blockchain 200 can maintain a distributed ledger across one or more nodes of the blockchain 200. A node can include one or more computing devices capable of storing some or all of the distributed ledger and/or executing transactions provided to the node. The distributed ledger can store a record of transactions performed on the blockchain 200. A transaction can indicate a particular smart contract, any values associated with the transaction, the node(s) initiating the transaction, the node(s) involved in the transaction, the time the transaction was initiated and/or executed, and/or any other data related to the transaction as appropriate. As described in more herein, the blockchain tokens are mintable and burnable. Minting a token can include creating one or more tokens on the blockchain 200, where a token represents a value, such as a corresponding amount of fiat currency. Burning a token can include removing one or more token from circulation (e.g. usage) within the blockchain 200.

Removing a token from circulation can include marking the token as out of circulation, deleting the token from the blockchain 200, and the like. When money enters the working capital account from the interface account, a corresponding number of blockchain tokens can be minted. When the blockchain tokens are burned, a corresponding amount of money can be transferred to the interface account. After each transaction settles, the balance of working capital account and the cold storage account should correspond to the number of blockchain tokens in existence. The blockchain may utilise various encryption standards. In a variety of embodiments, the blockchain may utilise an ERC223 tokens as its cryptographic asset. Keys for access to accounts in the system may be managed within the system and/or managed by the devices associated with users 400.

[0036] Rental payments can be initiated within system 100 as a subscription relayer using a scheduled job defined in a smart contract. This can be customised depending on the particular needs of different users. For example, if a weekly rental agreement is desired, the rental agreement smart contract could be set up as a daily subscription, but the relayed payments would only be scheduled to run once a week. One advantage of this arrangement would be that there is some flexibility to, for example, alter the day of the week that payments are executed or other non essential alterations to the rental arrangement without altering the basis of the agreement between the landlord and the tenant. Multi-party rental agreements could also be implemented in various embodiments of the invention. For example, with a multiple signature smart contract behind the rental agreement. In a variety of embodiments, smart contracts allow payments from multiple parties with different bank accounts to occur simultaneously or at the times directed by the smart contract.

[0037] Funds will generally be received initially from the tenant into the interface account 310. When the system 100 becomes aware of them through the interface 130 with bank 300, the system validates the incoming payment, ensuring that references and other identifying information matches what is expected within the terms of the smart contract.

[0038] If the identifying information does not match the contract data stored in database 140, in some cases a ticket may be queued for an administrator to review the payment. However, if the identifying information is sufficient for the system 100 to determine who the funds should be credited to (generally a landlord user), the system 100 automatically initiates a transfer from the interface account 310 to the working capital account 320. In a variety of embodiments, this transfer coincides with an identical amount of cryptographic asset creation whereby 1 token is equivalent to 1 cent. For example, if $500.00 is received, 50,000 tokens are minted on the blockchain. Identifying information such as the bank's transaction ID may be referenced in the blockchain when upon creation of the secure tokens, for later audit tracing. The tokens can be pegged to a fiat currency, such as Australian Dollars (AUD), US Dollars (USD), Euros (EUR), the price of gold, and/or any other currency as appropriate. When a user wishes to withdraw funds from the system, they initiate the burning of the tokens. When the system 100 obtains the request to burn the tokens, the system 100 can initiate a transfer from the working capital account 320 to the interface account 310. The system 100 can also generate a memo indicating the transfer is complete. This memo can be recorded on the distributed ledger maintained by the blockchain.

[0039] The system 100 may have rules to determine if the withdrawal can be approved and executed automatically. If the withdrawal is approved automatically, the system 100 can initiate a transfer from the interface account 310 to the user's bank account 340 using bank data such as BSB /Account Number, BPay details, SWIFT details, Credit Card details, and the like stored in the database 140. Alternatively, if further review is required, a notification can be generated and transmitted to an administrator to review the transaction. In many embodiments, to protect against loss, funds can be transferred to and from the cold storage account 330. A business banking UI can be used with multiple signatories to move funds from the working capital account 320 to the cold storage account 330 and/or to move funds from the cold storage account 330 to the working capital account 320. Movement of funds from the working capital account to the cold storage account 330 and vice versa is effectively transparent to the blockchain system 200.

[0040] Where a property manager wishes to integrate their trust account into the system 100, transfers between the interface account 310 and the property manager's trust account 350 can be controlled by a separate microservice, which stores credential separately to the rest of the system 100.

[0041] The operation of the blockchain in the context of a "smart contract" transaction protocol system will now be described in more detail, with reference to Figures 2 to 8. Although these processes are described with reference to the illustrations of Figures 2 to 8, it will be appreciated that many other methods of performing the acts associated with the processes may be used. For example, the order of some of the operations may be changed, certain operations may be combined with other operations, one or more operations may be repeated, and some of the operations described are optional. The operations may be performed by processing logic that may include hardware (circuitry, dedicated logic, etc.), software, or a combination of both.

[0042] As shown in Figure 2, money is deposited into the interface account 310. The system 100 validates the incoming payment against contract data stored in the database 140. If there are any issues (e.g. insufficient payment), the system 100 may generate reminder notices or defect notices in accordance with the contract data. Upon validation by the system 100, it moves to the working capital account 320 and is credited to the tenant in the blockchain system 200, as shown in Figure 3, with the creation of a corresponding amount of tokens, preferably referencing the bank's transaction ID for subsequent auditing and traceability. The system then processes the rental payment, either automatically in accordance with its smart contract rules, or on initiation by the tenant, as shown in Figure 4. In many embodiments, the smart contract for the rental agreement forwards the proceeds to the property manager's trust account 350 as depicted in Figure 5. The system 100 recognises that there is a transfer into a trust account 350 and moves the money in the banking system 300 to match. As shown in Figure 6, the landlord is paid the rent at a time as directed by the smart contract or the agreement between the property manager and the landlord. As shown in Figure 7, when the landlord wishes to withdraw the rent, they burn the secure tokens in their account, which transfers the funds to the interface account 310 and schedules a transfer out of the interface account 310 and to the landlord's account 340. As shown in Figure 8, the scheduled transfer has occurred.

[0043] The systems and methods described herein can provide near real-time access to all blockchain transactions and balances, represented in a block explorer, all bank transactions and balances, and/or various other reporting functions based on the transaction data, contract data and user data stored in databases and on the secure blockchain. The reporting advantages of the present invention allow auditors to see an overview of the system at a high level and then spot check any number of transactions efficiently by viewing the various entries side by side, making it much simpler for a property manager to meet their auditing obligations. It allows the collection of audit data to be largely automated: the auditor is able to run their own blockchain node to monitor overall actions on the network and ensure that the blockchain never forks unexpectedly. By using a distributed ledger stored using a blockchain to record the audit data corresponding to the transactions, the system 100 therefore provides a high degree of transparency and traceability on every action.

[0044] The code defining the smart contracts can also be audited readily, and verified to ensure all rental agreements in the system use audited code. The database can be audited with database logs; the code can be audited by reviewing git history and deployment logs; the blockchain transactions can be audited by reviewing the code in the smart contracts, and by tracing money through the system, from deposit into the bank account, through the smart contracts, and out the other side to the landlord; a blockchain node could even be deployed at the auditor's premises so they can detect any attempt to fork the blockchain network or otherwise undo the protections provided by the smart contracts; the bank accounts can be audited by examining bank access controls and policies and procedures around access to the accounts. This can save substantial time and money for property managers in complying with auditing requests and their consequent obligations.

[0045] Figure 10 illustrates a flowchart of a process for executing transactions according to an embodiment of the present invention. Although the example process 1000 is described with reference to the flowchart illustrated in Figure 10, it will be appreciated that many other methods of performing the acts associated with the process 1000 may be used. For example, the order of some of the blocks may be changed, certain blocks may be combined with other blocks, one or more blocks may be repeated, and some of the blocks described are optional. The process 1000 may be performed by processing logic that may include hardware (circuitry, dedicated logic, etc.), software, or a combination of both.

[0046] Fund deposit data can be obtained (1010). The fund deposit data can be provided by a computing device associated with a user and/or a bank. The fund deposit data can indicate that funds associated with a first user or a first banking account have been provided to the first banking account. The first user and/or first banking account can be associated with a first account maintained using a blockchain. In a variety of embodiments, the first user, first banking account, and/or first account are associated with a smart contract.

[0047] Tokens can be generated (1012). The tokens can be generated based on the fund deposit data. The tokens can be generated on a blockchain or other distributed computing platform. In many embodiments, generating the tokens includes minting a number of tokens corresponding to the value indicated in the fund deposit data. The tokens can have a fixed value and/or a variable value. For example, if $750 is indicated in the fund deposit data, 750 tokens, each representing a value of $1, can be minted. If the tokens represent a variable value, a single token having a value of $750 can be minted. In a variety of embodiments, the tokens are generating by executing the smart contract to cause the blockchain to mint the tokens. The generated tokens can be stored using the first account. In many embodiments, minting and/or storing the tokens causes a record of these actions to be stored using an audit log.

[0048] Transaction execution data can be obtained (1014). The transaction execution data can be provided by a computing device associated with a user and/or a bank. The transaction execution data can indicate that the funds are to be transferred from the first banking account to a second banking account. The second banking account can be associated with a second user. In a variety of embodiments, the second user or second banking account are associated with the smart contract. A second account corresponding to the second user and/or second banking account can be maintained using the blockchain.

[0049] Tokens can be transferred (1016). Tokens can be transferred based on the transaction execution data. The tokens can be transferred from the first account to the second account. In many embodiments, the tokens are transferred by executing the smart contract to initiate the transfer of the tokens from the first account to the second account. In a variety of embodiments, transferring the tokens causes a record of the transfer to be created and stored using the audit log.

[0050] Fund withdrawal data can be obtained (1018). The fund withdrawal data can be provided by a computing device associated with a user and/or a bank. The fund withdrawal data can indicate that the funds are to be withdrawn from the second banking account. In many embodiments, withdrawing the funds from the second banking account includes transferring the funds from the second banking account to a third banking account associated with the second user.

[0051] Tokens can be retired (1020). Tokens can be retired based on the fund withdrawal data. Retiring the tokens can include marking the tokens as unused so that they are not used in later transactions on the blockchain. In a variety of embodiments, retiring the tokens includes burning the tokens such that they are removed from the blockchain. In many embodiments, retiring and/or burning the tokens causes a record of these actions to be stored using the audit log.

[0052] The audit log can be stored (1022). The audit log can be stored using a distributed ledger maintained using the blockchain. In many embodiments, storing the audit log is caused by executing one or more commands defined in the smart contract. The audit log can be stored by causing one or more nodes in the blockchain to process and record the audit log on the distributed ledger.

[0053] There are various advantages provided by the various embodiments of the invention, including that smart contracts can be coded directly from the physical contract that two or more parties have entered into (general tenancy agreement, agent agreement, sale of land and property). This means the source of truth for the movement of funds is the legally binding agreement between the parties. A variety of embodiments of the invention automate transactions through the trust account for the agency, meaning that funds are moved only through the smart contract, reducing the risk of fraud and theft. In a variety of embodiments, manual transactions inside the fiat environment do not take place, although ad hoc transactions may be allowed, they preferably also have to be facilitated through a one-time smart contract so that an immutable record and audit trail is still adhered to and maintained. Capturing all of these records digitally inhibits the chances of records being changed, falsified, lost or destroyed. This also provides the additional benefit of all transactions being easily audited as they live in the blockchain. In the event a real estate business closes there is no impact on the records of financial transactions.

[0054] It should be noted that, in many embodiments, users can continue to trade in fiat currency. In a variety of embodiments, the system tokenises fiat currency in a corresponding cryptocurrency which is then operated as a stable coin for the smart contract to direct the movement of these assets between the parties. The crypto asset is then burnt when the fiat currency is released to the correct party. This approach means that advantages of a smart contract and stable coin cryptocurrency solution can be harnessed in a private permissioned blockchain without exposing the parties to the downside risks of publicly traded cryptocurrencies. In a variety of embodiments, the party in transaction maintains ownership of the asset at all times, from fiat to cryptocurrency then back to fiat currency. The platform can readily be independently audited to ensure agencies can meet their specific trust obligations, without having to carry the same level of cost and burden of traditional paper-based audits on their business. This results in a step change in efficiency for their business as it significantly reduces the likelihood that they will need to pay audit fees, employ people to undertake the administrative function of maintaining their trust accounts or be exposed to the risk and cost of fraud and theft.

[0055] Although the invention described herein is described primarily with respect to rental or properties in the real estate industry, the present invention can be utilized in any environments or applications where a "smart contract" system is desirable. Throughout this specification and the claims that follow unless the context requires otherwise, the words 'comprise' and 'include' and variations such as 'comprising' and 'including' will be understood to imply the inclusion of a stated integer or group of integers but not the exclusion of any other integer or group of integers.

[0056] It will be appreciated that all of the disclosed methods and procedures described herein can be implemented using one or more computer programs, components, and/or program modules. These components may be provided as a series of computer instructions on any conventional computer readable medium or machine-readable medium, including volatile or non-volatile memory, such as RAM, ROM, flash memory, magnetic or optical disks, optical memory, or other storage media. The instructions may be provided as software or firmware and/or may be implemented in whole or in part in hardware components such as ASICs, FPGAs, DSPs, or any other similar devices. The instructions may be configured to be executed by one or more processors, which when executing the series of computer instructions, performs or facilitates the performance of all or part of the disclosed methods and procedures. As will be appreciated by one of skill in the art, the functionality of the program modules may be combined or distributed as desired in various aspects of the disclosure.

[0057] Although the present disclosure has been described in certain specific aspects, many additional modifications and variations would be apparent to those skilled in the art. In particular, any of the various processes described above can be performed in alternative sequences and/or in parallel (on the same or on different computing devices) in order to achieve similar results in a manner that is more appropriate to the requirements of a specific application. It is therefore to be understood that the present disclosure can be practiced otherwise than specifically described without departing from the scope and spirit of the present disclosure. Thus, aspects of the present disclosure should be considered in all respects as illustrative and not restrictive. It will be evident to the annotator skilled in the art to freely combine several or all of the aspects discussed here as deemed suitable for a specific application of the disclosure. Throughout this disclosure, terms like "advantageous", "exemplary" or "preferred" indicate elements or dimensions which are particularly suitable (but not essential) to the disclosure or an embodiment thereof, and may be modified wherever deemed suitable by the skilled annotator, except where expressly required. Accordingly, the scope of the invention should be determined not by the embodiments illustrated, but by the appended claims and their equivalents.

Claims

CLAIMS WHAT IS CLAIMED IS:

1. A computer implemented transaction system comprising: a database storing system data including at least: user data for a plurality of users; bank account data for one or a plurality of bank accounts; and contract data for contract(s) between the users; a blockchain comprising one or more secure tokens; and at least one processor in communication with the database and the blockchain and configured to: determine that funds have been received in a first bank account; create secure tokens representative of the funds, as cryptographic assets in the blockchain, and associated with a first user; apply one or more rules based on the contract data to transfer the funds from the first bank account to at least one second bank account, associated with at least one second user; and cryptographically signing the blockchain to associate the secure tokens with the at least one second user.

2. The computer implemented transaction system of claim 1, wherein the processor is further configured to burn the secure token in the blockchain when the funds are withdrawn from bank accounts in the database.

3. The computer implemented transaction system of any preceding claim, wherein a bank transaction ID is included in the blockchain upon creation ofthe secure tokens.

4. The computer implemented transaction system of any preceding claim, further comprising an auditing interface to display information from the database and the blockchain, whereby an auditor can verify that funds have been processed in accordance with the contract data.

5. The computer implemented transaction system of any preceding claim, wherein the contract data comprises data defining a rental agreement between the first user and the second user, wherein the first user is a tenant and the second user is a landlord.

6. A computer-implemented method for processing a transaction, the method comprising: determining that funds have been received in a first bank account; creating secure tokens representative of the funds, as cryptographic assets in a blockchain, associated with a first user; applying one or more rules based on contract data stored in a database, to transfer the funds from the first bank account to at least one second bank account, associated with at least one second user; and cryptographically signing the blockchain to associate the secure tokens with the at least one second user.

7. The computer implemented method of claim 6, further comprising burning the secure token in the blockchain when the funds are withdrawn from all bank accounts referred to in the contract data.

8. The computer implemented method of claim 6 or 7, wherein a bank transaction ID is included in the blockchain upon creation of the secure tokens.

9. The computer implemented method of any one of claims 6 to 8, further comprising displaying information from the database and the blockchain, whereby an auditor can verify that funds have been processed in accordance with the contract data.

10. The computer implemented transaction system of any preceding claim, wherein the contract data comprises data defining a rental agreement between the first user and the second user, wherein the first user is a tenant and the second user is a landlord.

11. A computer implemented transaction system comprising: at least one processor; a memory in communication with the at least one processor, configured with instructions for directing the processor to perform the method of any one of claims 6 to 10.

12. A computerised rental payment management system for managing rental payments, the system comprising: a database storing system data including at least: user data for a plurality of users, including a tenant and a landlord; bank account data for one or a plurality of bank accounts; and contract data for rental contract(s) between the tenant and the landlord; a blockchain comprising one or more secure tokens; and at least one processor in communication with the database and the blockchain and configured to: determine that funds have been received in a first bank account from the tenant; create secure tokens representative of the funds, as cryptographic assets in the blockchain, and associated with the tenant; apply one or more rules based on the contract data to transfer the funds from the first bank account to at least one second bank account, associated with the landlord; and cryptographically signing the blockchain to associate the secure tokens with the landlord.

13. A computer-implemented rental payment management method comprising: determining that funds have been received from a tenant in a first bank account; creating secure tokens representative of the funds, as cryptographic assets in a blockchain, associated with the tenant; applying one or more rules based on contract data stored in a database, to transfer the funds from the first bank account to at least one second bank account, associated with a landlord; and cryptographically signing the blockchain to associate the secure tokens with the landlord.