Systems and methods for electronically circulating a currency

Virtual currency notes may be derived from one or more currency notes deposited at a currency reserve and/or from an asset held by a depository institution. A transaction provider may provide for ownership and/or transfer of the notes by various entities. Ownership of virtual currency notes may be transferred between entities while the depository institution maintains the asset associated therewith. A virtual currency note may be transferred to a transfer account, which may cause an amount equivalent to the virtual currency note to be deposited therein. After the transfer to a transfer account, the transferred virtual currency note may be removed from electronic circulation and/or transferred to another entity.

TECHNICAL FIELD

This disclosure relates to payment transaction systems and, in particular, to systems and methods for electronically circulating a currency.

DETAILED DESCRIPTION

Various payment systems are available through which a payee may accept payment from a payer. Many of these payment systems impose transaction costs. For example, a credit card transaction may include fixed and percentage-based transaction costs payable to the credit card issuer and/or a credit card authorization service.

In addition, many conventional payment systems require that the payer and/or payee be registered with a payment service (transaction provider). For example, in order to pay via credit card, the payee must apply, and be approved for, a credit account with a credit card issuer. Similarly, the payee may be required to have a merchant account with the card issuer (or have some other arrangement for accepting credit card payments). Some potential payees may not wish to register with a credit card issuer and/or may not qualify for a credit line with the card issuer.

Furthermore, the transaction may require that the payer and payee provide personal information to the transaction provider. For example, the payer may be required to provide personal information in order to apply for an account with a transaction provider (e.g., credit card issuer), and the payee may be required to register a merchant account to receive payments through the transaction provider. Other transaction systems (e.g., bank transfers, many on-line transaction systems, and the like) may require that personal information be disclosed.

This private, personally-identifying information may be maintained in confidence by the transaction provider (e.g., credit card issuer). However, information leakage may occur. For example, merchants and transaction providers have experienced data breaches wherein customers' personal information has been exposed.

Moreover, the transaction between the payer and payee may require the payer to expose personal information. For example, in a credit card transaction, the payer may be required to provide a credit card number, verification number, and/or a signature. This information could be used at a later time to make fraudulent transactions using the payer's card.

The systems and methods disclosed herein may provide for electronically circulating a currency to thereby provide low-cost transactions, which may minimize the need for personal information to be exchanged between transacting entities. In addition, the transactions disclosed herein may be performed using little or no personally-identifying information.

FIG. 1Ais a block diagram of one embodiment of a system for electronically circulating a currency. The system100includes a currency reserve110, which may be a depository institution, such as a bank, a savings bank, a credit union, a financial institution, or any other entity capable of holding currency.

The currency reserve110may comprise a set of currency notes112that are dedicated for use by the currency circulation system100. The currency notes112may include any currency type in any denomination. For example, the currency notes112may include a plurality of United States dollars in one (1) dollar denominations, five (5) dollar denominations, ten (10) dollar denominations, and so on.

Each of the currency notes112may have certain attributes from which a unique identifier of the currency note may be derived (a unique currency note identifier or “UCNID”). For example, United States dollar currency notes may include a serial number, a series date, and other attributes. These attributes may be used to generate a UCNID for the note, which may uniquely identify the currency note.

The system100includes a transaction provider120. The transaction provider120may comprise one or more computing devices (e.g., server computers), each of which may comprise one or more processors (not shown), memory units (not shown), a computer-readable storage medium122, human-machine interface (HMI) components (e.g., input/output devices, displays, etc., (not shown)), communication interfaces124, and the like.

The transaction provider120may be implemented using one or more computer-readable instructions stored on a computer-readable storage medium (e.g., the computer-readable storage medium122). Therefore, portions of the transaction provider120may be embodied as discrete software modules on the computer-readable storage medium122. Other portions and/or components of the transaction provider120may be implemented using one or more hardware components and/or may be tied to particular hardware components. For example, the data structure126(discussed below) may be tied to the computer-readable storage medium, and/or the communication interface124may be tied to particular communications devices (e.g., network interface cards, wireless transmitters, etc.). Therefore, portions of the transaction provider120may be tied to a particular machine.

The transaction provider120may be communicatively coupled to the currency reserve110. The communication therebetween may be continuous and/or periodic. The transaction provider120may receive from the currency reserve a listing of currency notes112in the currency reserve. The listing may include attributes of the currency notes112, such as the denomination, serial number, and the like. The transaction provider120may be configured to derive respective UCNID for the currency notes112using this information. The transaction provider120may store a representation of each currency note112in a data structure126stored on the computer-readable storage medium122. As will be described below, the transaction provider120may use the data structure126to maintain a record of the currency notes112and/or to manage ownership of the currency notes112by one or more entities130. The transaction provider120may be in communication with the currency reserve110to periodically audit the currency notes112. An audit of the currency notes112may comprise verifying that the currency notes112represented in the data structure126are physically present at the currency reserve110. In addition, the transaction provider120may be coupled to the currency reserve110to manage transfer of currency into and/or out of the set of currency notes112dedicated to the electronic currency circulation system100.

The data structure126may include a representation of the currency notes112in the currency reserve110. The currency notes112may be represented using respective UCNIDs associated with each currency note112. As discussed above, the UCNID of currency note may be derived from one or more attributes of the currency notes112(e.g., the issuer of the currency note, a serial number of the currency note, issue date of the currency note, or the like). In some embodiments, the UCNID of a currency note112may be embodied as a uniform resource identifier (URI), a uniform resource locator (URL), a distinguished name (DN), a hash value, or the like. Use of a URI or URL may allow the currency note representations to be referenced on the communication network140(e.g., may allow one or more entities130to access ownership (and other) information about a currency note circulated by the transaction provider120using the URI/URL assigned to the currency note).

The transaction provider120may be communicatively coupled to one or more entities130via the communication network140, which may comprise any communication network and/or infrastructure known in the art (e.g., a TCP/IP network, the Internet, a virtual private network (VPN), a wide area network (WAN), a public switched telephone network (PSTN), a combination of networks, or the like).

As shown inFIG. 1A, the entities130may be communicatively coupled to the transaction provider120by the communication network140through respective computing devices. As used herein, an entity may refer to an individual person, an organization, a business organization (e.g., a limited liability company (LLC), a partnership, or any other business organization), a storefront, a group, a non-profit organization, or any other entity capable of entering into monetary transactions with other entities.

Each entity130may be identified using a respective identifier. The identifier for a particular entity130may be referred to as a unique entity identifier or “UEID.” A UEID may include, but is not limited to: an email address, a DN, a URI, a uniform name identifier (URN), an OpenID® identifier (registered trademark of the OpenID Foundation Corp., Portland, Oreg.), or any other identifier capable of uniquely identifying an entity (e.g., a legal name, a corporate name, a doing business as (DBA) name, or the like).

In some embodiments, one or more of the entities130may be associated with a third-party service150, which may be configured to authenticate the entities130and/or authenticate messages transmitted by the entities130. The third-party service150may include, but is not limited to: a certificate authority (e.g., an X.509 certificate authority), an authentication authority and/or identity provider (e.g., a Security Assertion Markup Language (SAML) authentication authority, a Liberty Alliance Authenticating Authority, an OpenID® provider, etc.), or any other service capable of authenticating the identity of an entity130and/or validating the authenticity of data transmitted thereby. In some embodiments, the transaction provider120may be configured to provide authentication and/or authorization services (e.g., may act as an authentication/authorization authority).

The transaction provider120may be configured to assign ownership of the currency notes112to one or more of the entities130. In some embodiments, assigning ownership may comprise associating a UCNID of a currency note with a unique identifier of the current owner of the currency note in the data structure126, while maintaining the currency notes112in the currency reserve110. The transaction provider120may use the data structure126to maintain the ownership associations. As will be discussed below, the entities130may enter into currency circulation transactions (e.g., transaction to transfer ownership of the currency notes (e.g., make payments, etc.)) using the transaction provider120. The transactions disclosed herein may take place without requiring the physical transfer of the currency notes112into and/or out of the currency reserve110, which may minimize transaction costs. Moreover, the transfers disclosed herein may take place using a third-party service150and, as such, minimal personally-identifying information about the entities130need be exposed to the transaction provider120.

The data structure126may be implemented using any data storage technique known in the art including, but not limited to: a file system, structured data (e.g., XML, as delimiter-separated values, etc.), a relational data store (e.g., a database), a directory (e.g., a Lightweight Directory Access Protocol (LDAP) directory, an X.509 directory, or the like), or the like. In theFIG. 1Aexample, the data structure126may be implemented using a Structured Query Language (SQL) database.

FIG. 2Ashows one example of a data structure (e.g., a database table)200, which may be used by a transaction provider (e.g., transaction provider120) to electronically circulate a currency note maintained in a currency reserve.

The table200includes a currency note identifier field210, which may be used to store the UCNID of a particular currency note (e.g., one of the currency notes112deposed in a currency repository110). The UCNID210may be used as a “primary key” of the table200and, as such, may be used to identify and/or reference a specific instance of the table200.

The table200may further include an owner field212. The owner field212may be used to store an identifier of the owner of the currency note (e.g., the UEID of the owner). The owner field212may be used as a “primary key” to index the table200(e.g., as a primary key, a foreign key, or other indexing data). This may allow for quick identification of the currency notes owned by a particular entity.

In other embodiments, the ownership field212may comprise a list of partial owners of the currency note. In this case, multiple owners may each own a portion (e.g., a percentage) of a currency note (e.g., two (2) owners may each own fifty (50) percent of a currency note). Each owner may be allowed to transfer his/her ownership interest in the currency note.

In some embodiments, the owner field212may comprise a list that may include the current owner of the currency note as well as any previous owners. For example, the current owner of the currency note may be placed at the head of the field212, with the following UEIDs being the previous owners of the currency note. Alternatively, or in addition, information regarding the ownership history of the currency note may be maintained in a separate field (not shown) of the table200. Other embodiments may selectively omit the ownership history of the currency note.

In addition, although not shown inFIG. 2A, the data structure200may include references (e.g., identifiers, foreign keys, etc.) to records of transaction in which the currency note was transferred between entities. As will be discussed below, a transaction provider may provide for transferring ownership of one or more currency notes from a first entity to a second entity. As transfers take place, the transaction provider may produce an electronic and/or tangible record of the transfer, which may identify the parties to the transaction, the currency notes transferred, the date of the transfer, and the like. The data structure200may include a field (not shown) referencing the transactions in which the currency note was transferred. This may allow for auditing and/or validation of particular transfers and/or for the transaction history of a particular set of currency notes to be traced.

The table200may include information describing the currency note. A field220may identify the currency note type and/or currency note issuer (e.g., identify the currency note as a United States dollar, a Euro, or the like). A field222may identify the denomination of the currency note (e.g., whether the note is a one (1) dollar bill, a five (5) dollar bill, and so on). Alternatively, or in addition, the UCNID of the currency note (stored in field210) may include the denomination information and/or may be used to validate the denomination information in the field222. In this way, the currency note denomination may be tied to the UCNID to thereby prevent the denomination field222from being tampered with and/or modified. Although not depicted inFIG. 2A, additional fields related to the currency note could be included, such as the date the currency note was deposited in the currency reserve (not shown), and the like.

In some embodiments, the table200may include information regarding the currency repository that holds the physical currency note. For example, a field230may provide a unique identifier of the currency repository (a unique currency repository identifier of “UCRID”). The UCRID may be a “foreign key” that identifies a table comprising information about the currency repository (not shown). A currency repository data structure (e.g., database table) could include an address of the currency repository, contact information for the currency repository, the date the currency note was verified to exist at the currency repository, auditing information (e.g., instructions for performing an audit of the currency repository to ensure that the physical currency note is present at the currency repository), and the like. Alternatively, the table200may include information regarding the currency repository directly in one of more fields (not shown).

Referring back toFIG. 1A, the transaction provider120may be configured to maintain a record of the ownership of one or more the currency notes112using inter alia the data structure126. An entity130may become the owner of a currency note in various ways, including, but not limited to: purchasing one or more currency notes112from a currency repository110and/or the transaction provider120, transferring one or more currency notes112into a currency repository110, receiving ownership of one or more currency notes112from another entity130(e.g., via a transfer), or the like.

For example, a particular entity132may purchase one or more currency notes112from a currency repository110. The purchase may be performed directly with the currency repository110(e.g., by exchanging currency, issuing a check, performing a wire transfer, a credit card transaction, or the like). Alternatively, the currency may be purchased through the transaction provider120. For example, the entity132may issue a request to the transaction provider120to purchase one or more currency notes112in a currency repository110. The transaction provider120may arrange a transfer of funds between the entity132and the currency repository110(e.g., via a currency exchange, check, wire transfer, credit card transaction, or the like). Purchasing a currency note by the entity132may not require that the currency notes112be relocated from the currency repository110. For example, a number of currency notes112may be owned by the currency repository110and/or the transaction provider120. Therefore, as the currency notes are purchased by the entity132, the ownership of the currency notes112may be updated, but no deposit or other physical handing of the notes112may be required. Alternatively, or in addition, the entity132may directly deposit one or more currency notes in the currency reserve110for inclusion in the currency notes112.

The currency notes deposited by the entity132may be registered with the transaction provider120. As described above, registration of a currency note may comprise the transaction provider120assigning respective UCNIDs to the currency notes and/or assigning ownership of the currency notes (e.g., to the depositor/purchaser of the currency notes, such as the entity132, the transaction provider120, and/or the currency reserve110itself). As discussed above, assigning ownership to a currency note112may comprise associating the UCNID of the current note with a unique identifier of the owner (e.g., a unique identifier of an entity130(the UEID of the entity130), an identifier of the currency reserve110, an identifier of the transaction provider120, or the like).

The transaction provider120may provide a mechanism whereby ownership of currency notes112may be transferred between the entities130. The transfer of ownership may be performed while maintaining the currency notes112in the currency reserve110.

The transaction provider120may be configured to receive a transfer request from an entity130, the request specifying one or more currency notes112to transfer to another entity130. The transaction provider120may authorize the request and, if the request is authorized, may transfer ownership of the one or more currency notes112. Transferring ownership may comprise the transaction provider120setting another entity130as the owner of the one or more currency notes in the data structure126.

As an illustrative example, the transaction provider120may receive a transfer request133from the first entity132to transfer a particular currency note114to a second entity134(e.g., make a payment to the second entity134) over the network140. The transfer request133may include an identifier of a currency note114to transfer (e.g., include the UCNID of the currency note114), the UEID of the first entity132, and an identifier of the second entity134.

The transaction provider120may authorize the transfer request133and, if the transfer request133is authorized, may transfer ownership of the currency note114to the second entity134. Authorizing the request may comprise verifying that the first entity132is the current owner of the currency note114. The transaction provider120may query the data structure126to determine ownership of the currency note114. The query may comprise accessing a data entry associated with the currency note114(e.g., the UCNID of the currency note114) in the data structure126(e.g., database table, such as table200ofFIG. 2A). Ownership may be determined by comparing the owner field of the data entry associated with the currency note (e.g., the value of the owner field212ofFIG. 2A) to the UEID of the first entity132. If the identifiers match, the transaction provider120may verify that the first entity132is the owner of the currency note114, and the requested transfer may proceed; otherwise, the transaction provider120may determine that the first entity132is not the owner, and the request may be rejected.

After authorizing the request, the transaction provider120may transfer the currency note114from the first entity132to the second entity134. As discussed above, transferring ownership may comprise associating the currency note114with the second entity134in the data structure126. In theFIG. 2Aexample, transferring may comprise setting the current owner field222to an identifier (e.g., a UEID) of the second entity134(as provided in the transfer request133).

In some embodiments, the transfer request133may not specify a particular currency note114, but instead, may request that ownership of a particular amount of currency (e.g., six (6) dollars) be transferred to the second entity134. In this case, the transaction provider120may be configured to identify currency notes112owned by the first entity132in the data structure126that amount to the requested transfer amount. If the currency notes can be identified (e.g., if the first entity132owns enough currency to fulfill the transfer request133), the transfer may proceed as described above (e.g., ownership in the identified currency notes may be transferred to the second entity134). Alternatively, or in addition, the transaction provider120may be configured to automatically exchange one or more currency notes owned by the first entity132for currency notes of the requested type and/or amounting to the requested transfer amount. For example, the transaction provider120may exchange a twenty (20) dollar currency note owned by the first entity132for one (1) ten dollar currency note, a five (5) dollar currency note, and five (5) one (1) dollar currency notes, and to transfer to the second entity134, the five (5) dollar currency note and one (1) one (1) dollar currency note. Other exchanges may be made. For instance, the transaction provider120may be configured to exchange United States currency for Canadian currency, to transfer partial ownership in one or more currency notes, and so on.

The transfer request133may comprise a unique identifier UEID of the transferee (e.g., the UEID of the second entity134). The UEID of the second entity134may be an email address of the second entity134, a DN of the second entity134, or any other identifier of the second entity134. Alternatively, or in addition, the second entity134may establish one or more aliases with the transaction provider120. The aliases may provide for redirection of transfers to a particular unique identifier to another unique identifier. For instance, an alias may specify that transfers directed to “john.doe@yahoo.com” be redirected to “john.doe@openid.org.” Therefore, a transfer request specifying a transfer to “john.doe@yahoo.com” may result in a transfer to “john.doe@openid.org.” The first entity132may or may not be informed of the alias.

After processing the transfer request133, the transaction provider120may be configured to transmit a record of the transaction to the first entity132, the second entity134, and/or the currency reserve110. In addition, the transaction provider120may store a record of the transaction in the data structure126(e.g., in a table or other data structure adapted to store transaction records) and/or may generate a tangible record of the transaction (e.g., a paper receipt). The transaction request133may specify how the record of the transaction is to be processed (e.g., may specify confirmation email addresses, a physical address where a receipt may be mailed, and so on). The transaction provider120may be configured to provide recording of transaction requests that are fulfilled and/or of transaction requests that are not fulfilled (e.g., due to insufficient funds, non-ownership of currency, or the like).

In some embodiments, authorizing a transfer request may further comprise authenticating the transfer request and/or validating that the transfer request was authorized by the transferor. The transaction provider120may use one or more third-party authentication/authorization services150to authenticate the entities130and/or to verify communications received therefrom (e.g., verify transfer requests received from the entities130). For instance, the first entity132may be associated with a particular third-party authentication/authorization service152, such as an OpenID® provider. In this case, the transaction provider120may be configured to receive information authenticating the identity of the first entity132from the third-party service152. For instance, the first entity132may provide an authentication credential to the service152, which may authenticate the identity of the first entity132to the transaction provider120(e.g., via an application programming interface (API), such as the OpenID API, SAML API, Simple Object Access Protocol (SOAP), WS-Security API, or the like). In this way, the transaction provider120may authorize a transaction without receiving sensitive information from either entity132and/or134.

Alternatively, or in addition to authenticating the identity of the entities130, the transaction provider120may be configured to verify that communications transmitted to the provider120were made by and/or authorized by a particular entity130and/or verify the integrity of the communications. In some embodiments, the transaction provider120may be configured to communicate with the entities130over a secure connection, such as Secure Socket Layer (SSL) connection, or the like. The communications layer may provide verification of the integrity of messages transmitted thereon (e.g., verify that the request133was not tampered with and/or modified). In addition, the communications layer may provide authentication services (e.g., mutually authenticated SSL). The communications themselves (e.g., the transfer request133) may include authentication/verification information, such as an HTTP AUTH header, a token, a digital signature, or the like. For example, the transfer request133may include a digital signature referencing a digital certificate issued to the first entity132. The transaction provider120may access a third-party server150(e.g., certification authority) to verify the authenticity of the signature/certificate. This operation may validate the integrity of the message133and verify that the message was transmitted by and/or authorized by the first entity132.

Alternatively, or in addition, the transaction provider120may be configured to authenticate one or more of the entities130directly. For example, the transaction provider120may provide for registration of one or more entities. Registration may comprise associating an identifier of the entity130(the UEID of the entity130) with an authentication credential, such as a login name and/or password. An entity130may provide the credential to the transaction provider120, which may use the credential to verify the identity of the entity130.

Although particular authentication and/or message verification techniques are discussed herein, the transaction provider130could be configured to implement and/or leverage any authentication and/or verification technique available in the art. Therefore, this disclosure should not be read as limited in this regard.

The transaction provider120may provide for additional transaction types (e.g., may provide for other means for electronically circulating a currency). For instance, the transaction provider120may allow an entity130to exchange a first set of currency notes for a second set of currency notes. For example, the first entity132may be the owner of a currency note114for twenty (20) United States dollars. The first entity132may submit an exchange request to the transaction provider120to exchange the currency note114for a second set of currency notes (e.g., two (2) ten (10) United States dollar currency notes). The transaction provider120may authorize the exchange request (e.g., by verifying that the request was submitted and/or authorized by the first entity132and/or determining that the first entity132is the owner of the currency note114). If the exchange request133is authorized, the transaction provider may transfer ownership of the currency note from the first entity132to another entity130, to the currency reserve110, and/or to the transaction provider120, and may transfer ownership of the second set of currency notes (e.g., two (2) ten (10) dollar currency notes) to the first entity132. The transaction provider120may provide for any type of currency exchange. For example, the first entity132may exchange United States currency for currency issued by another entity (e.g., Canadian currency, Euros, or the like). In this case, the currency reserve110may include currency notes112of many different types. Alternatively, or in addition, the transaction provider120may be communicatively coupled to additional currency reserves (not shown) in one or more foreign locales (e.g., in Canada, the European Union, and so on).

In some embodiments, the transaction provider120may provide an invoice data structure128, which may be used by the entities130to track and/or manage transfers within the system100. An invoice data structure128may be assigned an identifier (a unique invoice identifier (UIID)), which may correspond to a URI (e.g., a distinguished name, URL, or the like) and, as such, may be accessible to the entities via the network140. An invoice may identify a payee entity (transferee entity), a payer entity (transferor entity), and an invoice amount. The payee entity may be an entity130who is to receive a payment under the invoice, and the payer entity may be the entity130who is to a currency transfer under the invoice. The invoice amount may identify the amount of currency to be transferred under the invoice (including denomination, type, and the like).

An invoice data structure128may further include information describing a transaction related to the invoice, such as the sale of a product, procurement of a service, or the like. Accordingly, an invoice data structure128may include a link to an auction, a product description, a service description, provide terms of sale (e.g., delivery date, purchase terms), terms of service (license agreement, etc.), and the like.

The invoice payer may transfer one or more currency notes to the invoice. Transferring currency notes to an invoice may comprise transmitting a transfer request (e.g., request133) to the transaction provider comprising a UIID. Responsive to the request, the transaction provider may transfer ownership of the currency notes to the payee associated with the invoice, and may modify the invoice data structure128to indicate that the invoice has been paid (e.g., include UCIDs of the currency used to pay the invoice). Accordingly, when the payer pays an invoice (transfers the invoice amount thereto), the entity identified as the invoice payee may be given ownership of the transferred notes. The invoice data structure maintained by the transaction provider120may also include fields to record the UCIDs of currency notes transferred to the invoice (currency notes transferred to pay the invoice amount). Therefore, both the invoice payer and payee may determine when and how a particular invoice was paid. As such, invoices may be used to track inbound payments (e.g., for order fulfillment, accounts payable, etc.), as well as outbound payments (e.g., act as a proof of purchase, receipt, or the like).

FIG. 2Cprovides an example of an invoice data structure202, which may be maintained by a transaction provider, such as the transaction provider120ofFIG. 1A-B. The invoice data structure202may include a unique invoice identifier (UIID)250, which may be embodied and/or associated with a URL. The URL may allow entities to reference the invoice data structure250via the Internet (e.g., using a web browser or the like). An invoice amount field252may indicate the amount of currency that is to be transferred under the invoice. In some embodiments, the amount field may further include a list of preferred denominations, currency type, and so on.

An invoice payment field251may indicate if the invoice has been paid. The invoice payment field251may comprise a simple “true” or “false” indicator. Alternatively, or in addition, the payment field251may comprise the UCIDs of the currency notes transferred to pay the invoice, provide a date of payment, and so on.

An invoice details field254may provide a description of the invoice, including a detailed description of the invoice amount252. For example, the details field254may identify a product or service associated with the invoice (e.g., provide a link to an auction or catalog), may provide terms of a purchase, may provide terms of service, provide itemized cost information used to calculate the invoice amount252, and so on.

An invoice payee field256may comprise a UEID of the payee under the invoice (the entity who is to retain ownership of any currency notes transferred to the invoice). The invoice payer field258may comprise a UEID of the payer under the invoice (the entity from which the currency is to be transferred or the entity who ultimately transfers currency to the invoice). In some embodiments, the payer UEID field258may be populated when the invoice data structure202is created. In this case, the invoice202may be directed to a particular entity. Alternatively, the payer UEID field258may not be populated until the invoice is actually paid, at which point the payer UEID field256may be populated with the UEID of the entity who transferred the currency to pay the invoice. When processing a currency transfer to an invoice, a transaction provider may only accept payment from the entity identified in the payee field258(e.g., a first entity may not be allowed to pay the invoice of a second entity). Alternatively, the transaction provider may allow any entity to transfer currency to the invoice (e.g., a first entity may pay the invoice of a second entity). In some embodiments, the payee UEID256and/or the payer UEID258may or may not be visible to other entities (e.g., the invoice payer may not know the identity of the payee and vice versa).

Referring back toFIG. 1A, a first entity132may generate an invoice using the transaction provider. The invoice may include an invoice amount, invoice details, and so on. The invoice may identify the first entity132as the invoice payee. Alternatively, a different payee may be identified (e.g., the first entity132may generate the invoice on behalf of another entity130and/or as a purchaser).

In response to the request, the transaction provider may generate an invoice data structure128comprising a unique invoice identifier (UIID). The UIID may comprise and/or be associated with a URL, which may allow entities130to access the invoice via the network140.

In one example, an invoice data structure128may be generated by a first entity132to invoice a second entity134for a product or service. The invoice may include an invoice amount (field252ofFIG. 2C) and provide details regarding the transaction (e.g., identify a particular product, service, or the like in field254ofFIG. 2C). The second entity134may transfer currency notes to the invoice using inter alia a transfer request133to transfer currency notes in the amount specified in the invoice128to the UIID. The transfer request133may be handled similarly to the entity-to-entity transfer discussed above. The transaction provider120may perform the transfer by transferring ownership of the identified currency notes to the payee identified in the invoice data structure128(field256ofFIG. 2C) as described above. A payer field of the invoice data structure128(field258ofFIG. 2C) may be updated to indicate which entity130transferred the currency notes to pay the invoice. The transfer may further include the transaction provider120updating a payment field of the invoice data structure128(field251ofFIG. 2C) to indicate that the invoice has been paid (e.g., by setting a paid indicator to “true,” providing UCIDs of the currency notes used to pay the invoice, or the like).

In another example, the first entity132may generate an invoice data structure128that does not identify any particular entity130as the invoice payer. This type of invoice may represent an open “offer to sell” available to any entity130; any entity130may accept the offer by fulfilling the terms of the invoice (e.g., transferring the required invoice amount thereto). Therefore, any entity may transfer currency to the invoice (generate a transfer request133directed to the UIID). Upon receiving payment of the invoice, the first entity132may provide the specified product or service to the entity identified as the payer in the invoice data structure128(or as directed by the entity identified as the payer in the invoice data structure128).

The transaction provider120may provide for adding currency notes to the currency reserve110(e.g., a deposit transaction), withdrawing currency notes and/or exchanging currency notes from a currency reserve110, and so on. In some embodiments, the transaction provider120may provide for adding currency notes in a point-of-sale or kiosk device (not shown). Currency may be fed into the device by the entity (e.g., the first entity132). Equivalent currency notes may be assigned to the first entity132responsive to the deposit. The first entity132may then use the currency notes in electronic currency circulation transactions using the transaction provider120. Similarly, the first entity132may request disbursement of currency notes owned by the first entity (e.g., at a kiosk or other device). For example, the first entity132may transmit a request through the device for a particular note owned by the first entity132(e.g., currency note114). Upon authorizing the request, the transaction provider120may transfer ownership of the currency note114to the currency repository110and/or to the transaction provider120, and an equivalent currency note may be provided to the first entity132(e.g., dispensed from the device, provided as a redeemable receipt, or the like).

The transaction provider120may provide one or more user interface components to the entities130. In some embodiments, the user interface components may be provided as web pages accessible using web browser software. Therefore, the transaction provider120may comprise and/or be communicatively coupled to one or more web server computers (not shown) each comprising respective processors, memories, computer-readable storage medium, and the like. The transaction provider120may be implemented in a clustered configuration (e.g., may comprise a plurality of computing devices in a single location and/or distributed geographically). Although web-based user interface components are described herein, the transaction provider could provide user interface components using any mechanism known in the art (e.g., a dedicated software application, a TELNET portal, or the like). Therefore, the teachings of this disclosure should not be read as limited in this regard.

The interface components provided by the transaction provider120may allow the entities130to view the currency notes112owned thereby, allow for the exchange of currency notes112, transfer currency notes112to other entities130, view the ownership status of various currency notes112, view the ownership history of various currency notes112, view a record of transactions performed by the transaction provider120, and so on. Access to information regarding a particular entity130and/or to particular currency notes112may be restricted to particular entities130. For example, only the first entity132and/or those entities authorized by the first entity132may be allowed to view the currency notes112owned by the first entity132. Similarly, only the owner of a particular currency note114may be authorized to view the ownership status of the currency note114, view the ownership history of the note, or the like. In other embodiments, access to ownership information may be provided to all interested entities. Access to records of transactions performed by the transaction provider120may be restricted to the one or more entities130that were parties in the transaction (e.g., access to a record of a transfer of the currency note114from the first entity132to the second entity134may be restricted to the first entity132and the second entity134and/or to those entities130authorized by the first and/or second entities132and/or134). Alternatively, access may be open to all interested entities.

AlthoughFIG. 1Adepicts a system100in which actual currency notes are electronically circulated (currency notes114), the teachings of this disclosure are not limited in this regard. For example, the systems and methods disclosed herein may be adapted to circulate a “virtual currency,” derived from any asset having a monetary value, such as a deposit account, investment account, precious metal, or the like. Virtual currency notes may be generated and tied to the asset (e.g., account). Ownership of virtual currency notes may be transferred between entities130as described above. In some embodiments, virtual currency notes may be electronically circulated with “actual currency” notes in the same system. An example of a system for electronically circulating virtual currency notes (along with “actual” currency notes) is depicted inFIG. 1B.

FIG. 1Bis a block diagram of one embodiment of a system101for electronically circulating a virtual currency. In theFIG. 1Bexample, the transaction provider120may be configured to circulate a currency represented by an account111. The account111may comprise one or more currency notes113and/or may represent a balance at one or more depository institutions110. Accordingly, in some embodiments, the account111may not include a particular set of currency notes113, but instead may simply be assigned a monetary value (in a particular currency) by the depository institution110. The monetary value of the account111may be fixed and/or insured by the financial institution110(e.g., by FDIC insurance, or other insurance provider). The account111may be held by a custodian. As used herein, a custodian may refer to an individual, organization, group, or any other entity capable of owning and/or controlling an interest in the account111.

The transaction provider120may circulate currency represented by the account111. Accordingly, the transaction provider120may generate a set of “virtual” currency identifiers, which may be tied to (e.g., associated) with the account111. The virtual currency identifiers may be embodied as respective URLs, and may be maintained by the transaction provider120(in a data structure125). The data structure125may include a plurality of virtual “currency notes,” each corresponding to a particular currency denomination. The virtual currency notes maintained in the data structure125may sum to a value that is less than or equal to the value of the account111. For example, if the account111had a value of $50,000 USD, the data structure125could include a set of virtual currency notes totaling to $50,000 or less. The transaction provider120may transfer ownership of the virtual currency notes as described above.

The virtual currency notes associated with the account111may be circulated on a per-custodian basis. For example, the system101may include a plurality of different accounts111, each of which may be associated with another custodian. Each custodian may maintain the value of their respective accounts111at a particular level (e.g., maintained above a sum of the currency notes circulating in the system101). For instance, a sum of the values of the virtual currency notes associated with an asset (e.g., the account111) may be maintained so as to be less than or equal the value of the asset:

In Equation 1, Varepresents the value of the asset (account111), which is to be maintained greater than or equal to a sum of virtual currency notes associated therewith (in Equation 1, t represents the number of currency notes associated with the asset, and niis the denomination (value) of a particular electronically circulated current note).

In some embodiments, the transaction provider may allow a custodian to circulate different proportions of the value of the account. For example, an account111considered to be volatile (e.g., invested in the stock market), may circulate virtual currency totaling only ½ the value of the account. Alternatively, another account111may be allowed to circulate more than the value thereof (e.g., be leveraged). A leveraged account111may be expressed as follows:

In Equation 2, r represents a leverage ratio of an account. If r is less than one, the account may be allowed to circulate less than its value (e.g., the account may be highly volatile), if r is greater than one, the account may be leveraged (e.g., allowed to circulate more than its value).

The custodian of the account111may receive and/or transfer currency notes within the system101. The custodian may have ownership of one or more of the currency notes associated with the account111. These currency notes may not be counted against the “circulating value” of the account, since they are held by the custodian of the account111and, as such, do not necessarily represent a liability of the account111. The circulating value of the account111(or other asset) may, therefore, be calculated as a difference of a sum of the monetary value (denomination) of each virtual currency note associated with the account111(or other asset) in circulation within the system111(held by other entities and/or otherwise available for circulation) and the virtual currency notes held by the custodian of the account111:

In Equation 3, CVarepresents the circulating value of the account, terepresents the total number of virtual currency notes associated with the account, niis the denomination (value) of a particular, electronically circulating currency note, tcrepresents the number of currency notes associated with the account111that are owned by the account custodian, and nxis the denomination (value) of a particular currency note owned by the custodian. As illustrated in Equation 3, the circulating value CVa is a difference between the sum of all of the virtual currency notes associated with an account or asset and a sum of the currency notes owned by the custodian thereof.

Combining Equations 2 and 3, the amount of electronically circulating currency associated with an asset or account may be expressed as:

As illustrated inFIG. 4, the circulating value of the virtual currency notes of an asset (the sum of the virtual currency notes associated with the asset minus a sum of the virtual currency notes owned by the asset custodian), may be maintained to be less than or equal to the value of the asset (account Va) as scaled by a leverage factor r. The transaction provider120may be configured to enforce the relationship of Equation 4, which may comprise the transaction provider120preventing the custodian from withdrawing funds from the account111, preventing devaluation of the account111, prevent underinsurance of the account111, prevent circulation of additional currency, or the like.

AlthoughFIG. 1Bis described in connection with an account111in a depository institution110, the disclosure is not limited in this regard. Other types of assets may be used to back electronically circulating currency under the teachings of this disclosure including, but not limited to: physical assets, real property, intellectual property, bonds, stock, precious metals, options, and the like. The assets used to back electronically circulating currency may have a value, which may determine the total amount of electronically circulating currency that may be associated therewith (e.g., using Equations 1-4 as described above).

In some embodiments, the system101may include a transfer account115. A transfer account115may be any financial account known in the art including, but not limited to: a checking account, a savings account, a depository account, or the like. The transfer account115may be owned by a particular user130. The transfer account may be held by a financial institution114, such as a bank, credit union, or the like and may (or may not) include a balance117. A user130may own the account115and register it with the transaction provider, such that transaction provider120may transfer ownership of currency to/from the account115. The account115may be identified by a public identifier, such as a URL.

When ownership of a currency note (virtual or otherwise) is transferred to the account115, the transaction provider120may remove the transferred notes from electronic circulation and deposit the notes (or equivalent thereof) into the transfer account115. If virtual currency notes are transferred, the transfer may be implemented by removing the virtual notes from circulation (e.g., updating the data structure125to indicate that the virtual currency notes can no longer be transferred), and depositing the transferred amount into the account115(e.g., from account113into the account115). If actual currency notes are transferred, the data structure126may be updated to remove the currency notes from electronic circulation, the currency notes may be removed from the reserve114, and the currency (of equivalent) may be transferred into the account115. Alternatively, ownership of the transferred currency notes may pass to the transaction provider120(or another entity), and an equivalent amount of currency may be transferred to the account115(effectively increasing the amount of currency electronically circulated by the transaction provider120).

When ownership of a currency note is transferred from the account115into the system, the transaction provider120may add the transferred notes (or equivalents thereof) to the pool of electronically circulating currency. If account-based, virtual currency notes are used (as inFIG. 1B), the transfer may comprise transferring the currency from the account115into the account111, generating virtual currency notes in the data structure126, and transferring ownership of the virtual currency notes to a user130(effectively increasing the amount of currency electronically circulated by the transaction provider120). If an “actual” currency reserve is used (as inFIG. 1A), the transfer may comprise transferring the currency (or equivalent value) to the depository institution110, the institution adding currency to the reserve112, and transferring ownership of the currency notes112to a user130.

In some embodiments, the systems100and101ofFIGS. 1A and 1Bmay be combined, such that the transaction provider120electronically circulates a set of “actual” currency notes as well as a set of “virtual” currency notes.

FIG. 2Billustrates one example of a data structure for a virtual currency note. The data structure201may correspond to a virtual currency note to be circulated in association with a deposit account, such as the deposit account111ofFIG. 1B.

The virtual currency note data structure201may include a unique currency identifier (UCNID). Unlike the UCNID described above in conjunction withFIG. 2A, which may be based on a serial number of a particular currency note, the UCNID240may be “virtual,” in that it may not correspond to a serial number of an actual currency note. Rather, the UCNID240may be generated from a set of random data and/or from data configured to prevent an ID collision with an identifier generated from an “actual” currency note. In some embodiments, the UCNID of a “virtual” currency note may be indistinguishable (from the perspective of an end user) from that of a UCNID derived from an actual currency note. Alternatively, virtual UCNIDs may be readily distinguishable from UCNIDs tied to physical currency notes.

The virtual currency note data structure201may include a currency type field242and a denomination field244. The currency type242may indicate type and/or issuer of the virtual currency note. The currency type242may be determined by the account to which the virtual currency note is tied. For example, if the account is in United States dollars, the currency type of virtual currency notes tied thereto may be United States dollars, currency tied to an account in Euros may have a type of Euro, and so on. In some embodiments, the currency type242of a virtual currency note201may differ from the currency type of the associated account. However, in this case, insurance or other provisions may be required to prevent the account from becoming undervalued as a result of changes in currency exchange rates (e.g., if virtual currency notes are in Euros and the associated account is in USD, changes in the relative valuation of Euros to USD may cause the value of the virtual currency notes to exceed the value of the associated account). The denomination field244may indicate a denomination of the virtual currency note201. Since the currency note is “virtual” (e.g., not tied to a particular currency note, but rather an account), the denomination244need not be tied to actual denominations. Accordingly, a single virtual currency note may have a value of three dollars. However, in some embodiments, the denominations244of virtual currency notes201may be restricted to those available in the actual currency.

The account identifier field246may identify the account to which the virtual currency note201is tied. The account identifier may include the account number or other identifier associated with the account associated with the virtual currency note201. The account holder identifier AHID248may identify which depository institution holds the account (e.g., identify the bank, credit union, or other entity that holds the account). As described above, the UCNID240may be derived from the currency type242, the denomination244, the account identifier246, and/or the account holder identifier248to allow for detection of the modification thereof.

Ownership of a virtual currency note may be defined similarly to that of a physical currency note described above. For example, the UCNID240of the virtual currency note may be included in a data structure200(in field210), an owner may be assigned (in field212), and so on. The currency type220, denomination222, and other fields (e.g.,230) may be derived from the data structure201.

FIG. 3Ashows one embodiment of an interface provided by the transaction provider120. The interface300may comprise a web page310implemented using Hyper Text Markup Language (HTTP) adapted for display on a computing device (e.g., personal computer, cell phone, personal digital assistant (PDA), or the like) in a web browser application, such as Mozilla Firefox®, Microsoft Internet Explorer®, or the like. In some embodiments, access to the interface of a particular entity (e.g., the entity identified by the UEID318) may be restricted to the entity and/or to those authorized by the entity. Access may be controlled via an authentication interface (not shown), whereby the entity may authenticate his/her identity directly to the transaction provider, such as the transaction provider120and/or to a third-party service150ofFIGS. 1A and 1B(e.g., the transaction provider may be configured to accept an authentication credential verifying the identity of the entity from one or more of the third-party services150).

The interface300may be adapted to display information315regarding a particular entity318. The interface may include a listing (e.g., wallet320) of currency notes322A-322E owned by the entity318. The wallet320may display the total324value of the entity's currency notes322A-322E. Accordingly, access to the interface300may be restricted to the particular entity and/or to those authorized to access the interface300by the particular entity (e.g., access to the interface300may be controlled by an authentication step, which, as discussed above, may be implemented by a third-party service).

An action interface330may allow the user to electronically circulate the currency notes322A-322E, while maintaining the currency notes in respective currency reserve(s). Additionally, the interface330may allow the user to withdraw currency notes from a currency reserve and/or account. The action interface330may perform a selected action (e.g., action332-340) on one or more selected currency notes322A-322E. As shown inFIG. 3A, currency notes322A-322E may be selected using an interface component (e.g.,FIG. 3Ashows a checkbox interface component in which currency notes322B and322E are selected). However, the interface300could include any interface component and/or selection mechanism known in the art.

The transfer action332may cause a transfer request to be transmitted to the transaction service. Selection of the transfer action332may allow the user of the interface300to provide an identifier of the entity to which the selected currency notes are to be transferred (e.g., an email address, distinguished name, alias, or the like). In some embodiments, the interface300may provide a look-up mechanism, whereby an identifier of a particular entity may be found. The transfer action may transfer ownership of the selected currency notes to the specified entity (e.g., ownership of the currency notes322B and322E may be transferred to the specified entity).

The user access the interface330to withdraw currency notes from electronic circulation (e.g., transfer currency into another, non-electronically circulated account, such as a checking or savings account). In one embodiment, a user may establish an entity corresponding to transfer account (a “transfer entity”). The transfer account may correspond to any financial account known in the art, including a checking account, savings account, investment account, or the like. The transfer account may be assigned a public identifier (e.g., a URL). The transfer of ownership to a transfer entity (transfer to the public identifier of a transfer account) may cause the transaction provider to transfer the currency notes to (or transfer an equivalent amount of currency) into the identified transfer account. The ownership transfer to a transfer entity may effectively withdraw the currency from electronic circulation. Similarly, transferring currency from a transfer entity to another entity may cause currency notes to be entered into electronic circulation. In some embodiments, a transfer entity may be allowed to transfer non-managed currency into the system (e.g., from a checking account, deposit account, savings account, or the like). The transferred currency may be included (e.g., deposited) into an electronically circulated account (e.g., the account111ofFIG. 1B). Once transferred into the electronically circulated account, one or more virtual currency notes may be derived therefrom, and ownership of the currency may be transferred to the identified entity as described above. A transfer entity may, therefore, act as a quick and easy way of transferring money into and out of electronic circulation.

In some embodiments, the transfer action332may be configured to allow the user to enter a currency amount to be transferred (e.g., eight (8) U.S. dollars). Responsive to this request, a transaction provider (or other service) may be configured to automatically exchange one or more currency notes for the user to thereby obtain currency in the proper denomination(s) to transfer the requested amount. For example, the transaction provider may automatically exchange a U.S. twenty (20) dollar currency note for a ten (10) dollar currency note, a five (5) dollar currency note, and five (5) one (1) dollar currency notes. From these exchanged notes, the transaction provider may transfer the five (5) dollar currency note and three (3) one (1) dollar currency notes to the specified entity. If a currency note in the desired denomination does not exist (e.g., a transfer or fifty cents ($0.50) is requested), the transaction provider may provide for a transfer of a partial interest in a currency note (e.g., transfer of one-half ownership in a one (1) dollar currency note). Similarly, an automatic exchange to another currency type (e.g., from U.S. dollars to Euros) may be made.

The exchange action334may allow the entity to exchange the selected currency notes for one or more other currency notes. As discussed above, the exchange may be made for currency notes of another denomination. For instance, currency notes of a first type (e.g., United States dollars) may be exchanged for currency notes of another type (e.g., Euros). Selection of the exchange action may allow the user to specify the denomination and/or currency type to exchange.

The view history action336may allow the entity to view the ownership history of one or more selected currency notes. The ownership history may provide a listing of the one or more entities that have had ownership of the currency notes (e.g., the currency notes322B and322E).

The currency reserve information action338may display information regarding the currency reserve that holds the selected currency notes (e.g., currency notes322B and322E). As discussed above, the currency reserve information may provide contact information regarding the currency reserve where the physical currency notes are held. In addition, an audit information action340may provide information regarding an audit of the selected currency notes. The audit information may include the last date the currency note(s) were verified to be at the currency reserve or the like.

Although not shown inFIG. 3A, the interface300could include additional actions, such as reserve transfer action to request a transfer of selected currency notes out of a currency reserve, a fund action, which may be used to add currency notes by transferring funds into a currency reserve, view a transaction history of one or more currency notes (e.g., view a record of the transactions in which ownership the currency note(s) were transferred), or the like. As described above, in some embodiments, transfers into/out of the currency reserve may be performed using a transfer account. A transfer of ownership of currency to a transfer account may cause the transferred currency notes (or equivalent thereof) to be withdrawn from electronic circulation and deposited into the transfer account. Transfers from a transfer account to a particular entity may cause the transferred currency notes (or equivalent thereof) to be included in a pool of electronically circulated currency. As discussed above, a transfer account identifier may be represented by a public URL

As discussed above, each currency note may be assigned a UCNID, which, in some embodiments, may comprise a URL or URI. The currency notes listed in the wallet320each include respective URL identifiers322A-322E. The URI/URL identifiers may be referenced on a network (e.g., the Internet). A transaction provider (or other service) may make information about a currency note accessible using the UCNID of the currency note (e.g., the URL or URI of the currency note). For example, submitting the UCNID to the transaction provider (or other service) may cause an interface301to be displayed.

FIG. 3Bis an example of an interface301adapted to display information about an electronically circulated currency note. The interface301may be available from a transaction provider (or other service) through the URL or URI of the currency note311. In theFIG. 3Bexample, the interface301displays information regarding currency note322A. (The UCNID322A has been entered into the address field of the browser application310.)

The information display315provides currency note information350, which may include, but is not limited to: a display of the currency note identifier351, a display of the current owner of the currency note352, a display of the currency type353(e.g., United States dollars, Euros, etc.), a denomination indicator354, and/or information regarding the currency reserve355that holds the physical currency note.

The ownership information352may provide a display of an ownership history of the currency note360. The ownership history may include a listing of the previous owners362A-362C of the currency note322A. Although not shown inFIG. 3B, additional information, such as references to transactions in which ownership of the currency note was transferred, may be provided on the interface301.

As discussed above, the currency reserve information355may provide a link to additional information relating to the currency reserve holding the currency note. Such information may include, but is not limited to: an address of the currency reserve, contact information for the currency reserve, insurance status of the currency reserve (e.g., indicators as to whether the currency reserve is protected by the FDIC or some other organization), an audit status of the currency reserve (e.g., the date of the last currency audit at the currency reserve), and so on.

FIG. 3Cis an example of an interface302adapted to display information about an electronically circulated currency note associated with a custodial account, such as the account111ofFIG. 1B. The electronically circulated currency note may be identified by a URL322A, which may allow a transaction provider to uniquely identify the currency note within a pool of circulating currency notes. The URL322A may be accessible on a network (e.g., the Internet), to allow potential transacting entities to view and/or verify the ownership status of a particular, electronically circulated currency note. As described above, the currency note displayed in the interface302may be associated with a UCNID322A, which may be embodied as a URL.

Like the interface301described above, the interface302may include information about a currency note350, including, but not limited to: the currency note identifier351, currency owner identifier352, currency type indicator353, denomination indicator354, and the like.

The interface302may further include a custodial account identifier357, which may indicate that the electronically circulated currency note is not associated with a physical piece of currency, but instead is tied to a custodial account, such as the custodial account111ofFIG. 1B(e.g., the currency note is a “virtual” currency note, as opposed to a currency note derived directly from a physical currency note). The indicator357may provide for displaying additional information370about the custodial account associated with the currency note.

The custodial account display370may include an identifier372of the custodian who holds the account to which the currency note is tied. The identifier372may be used to reference and/or access information about the account custodian. A custodial account institution indicator374may provide an identifier of the institution that holds the account. The institution may be a bank, a credit union, an investment account holder, or the like. The identifier376may be used to reference and/or access additional information about the holder, such as the holder's address, financial statements, contact information, and the like. An indicator of the custodial account value376may be provided. The account value376may indicate the current value of the custodial account. As described above, the electronic circulation system (e.g., transaction provider) may require that the value of the custodial account be maintained at some value greater than the value of the circulating currency associated therewith. The custodial account value may also provide an indication of the value of the currency notes associated with the account (minus the currency notes that are owned by the custodian of the account per Equation 1 above). As described above, the transaction provider (or other electronic currency circulation provider) may require that the value of the circulating currency notes associated with the custodial account be less than or equal to the value of the custodial account. An indicator378may provide an indication of an insured value of the custodial account. As described above, in some embodiments, a transaction provider may require that custodial accounts be insured. The value of the insurance may be related to the value of the electronically circulating currency notes (insured for the full value of the electronically circulating currency notes, a fraction of the value, or the like).

FIG. 3Ddepicts one embodiment of an interface303adapted to display information regarding an invoice (e.g., data structure202ofFIG. 2C). As discussed above, an invoice may be associated with and/or assigned a unique invoice identifier (UIID), which may be embodied as and/or be associated with a URL311to allow the invoice to be referenced within a network, such as the Internet for display in a browser application310. The display area315of the interface303may include an invoice information display370. The display370may provide an indicator371of whether the invoice has been paid (whether currency notes in the amount specified in the invoice have been transferred thereto). If the invoice has been paid, the indicator371may display “paid,” or “fulfilled.” Alternatively, or in addition, the indicator371may provide links to the currency notes used to pay the invoice. Information regarding the one or more currency notes may be displayed in a display380as described above in conjunction withFIGS. 3Band/or3C (may include a UCID display351, currency owner indicator352, currency type indicator353, currency denomination indicator354, and so on).

The display370may further include invoice details372, which, as discussed above, may provide details regarding a product or service associated with the invoice (e.g., provide a link to an auction, identify a product or service, and so on). The invoice details may further include an invoice display382, which may provide additional detail regarding the invoice, such as an itemized listing of products in the invoice, terms or service, fulfillment details (e.g., tracking number for a product shipped to the payer), and so on.

The display370may also include indications of the invoice payee374and the invoice payer376. As discussed above, the payee374may be the entity who received ownership of the currency notes used to pay the invoice. The payer376may be entity to transferred currency notes to pay the invoice. In some embodiments, the invoice payee indicator374and/or the invoice payer indicator376may be omitted from the display370(e.g., the invoice payee and/or payer may remain anonymous).

FIG. 4is a flow diagram of one embodiment of a method for electronically circulating a currency. The method400may be implemented using one or more computer-readable instructions stored on a computer-readable storage medium. The instructions may be embodied as one or more distinct software modules on the computer-readable storage medium. In addition, one or more of the steps of the method400may be implemented using hardware components. Therefore, portions of the method400may be tied to particular machine components.

At step410, the method400may be initialized, which may comprise loading computer-readable instructions from a computer-readable storage medium, accessing one or more hardware components (e.g., communications interfaces, computer-readable data storage medium, and the like).

At step420, the method400may receive information regarding a set of currency notes. The currency notes may be disposed in one or more currency repositories and may be dedicated for use in the electronic currency circulation method400. The information may include, but is not limited to: the currency note type, currency note denomination, currency note serial number, a currency owner of the currency note, information regarding the currency repository of the note, and the like. Alternatively, the information may comprise information relating to an account, such as the account111ofFIG. 1B. The information may include the currency type in the account, a base value of the account (e.g., a minimum insured value, etc.), account holder information, and the like.

At step430, a UCNID for each of the currency notes may be determined. In the method400example, the UCNID may be derived from the serial number of the currency notes and may be embodied as a URI. Alternatively, if the currency is held in an account, a plurality of virtual currency identifiers may be generated. The virtual currency notes may be generated in any number of different denominations, total of which may sum to the value of the identified account.

At step440, the method400may record the currency note identifiers in a computer-readable storage medium (e.g., in a data structure, such as the data structures200or201described in conjunction withFIGS. 2A and 2B). In addition, at step440, the currency notes may be associated with respective owners. The owners may be one or more entities, the method400, the currency reserve, or the like. The association may be made in the computer-readable storage medium.

At step450, a request to transfer a currency note from a first entity to a second entity may be received. The request may identify the transferor (the first entity) using a UEID of the first entity, may identify the transferee (the second entity) using a UEID and/or alias of the second entity, and may identify the currency note to transfer using the UCNID of the note.

At step460, the request may be authorized. Authorizing the request may comprise verifying that the request was submitted by the first entity and/or authorized by the first entity, verifying that the request was not tampered with in transit, and/or verifying that the first entity is the owner of the currency note to be transferred. If the request is authorized, the flow may continue to step470; otherwise, the flow may terminate at step490.

At step470, ownership of the currency note may be transferred to the second entity. Transferring ownership may comprise associating the second entity (e.g., a UEID of the second entity) with the currency note in the computer-readable storage medium (e.g., in the data structure200ofFIG. 2). In addition, a UEID of the first entity may be added to a list of previous owners of the currency note. The transfer may occur while maintaining the physical currency note in the currency reserve. If the transfer involves a “virtual” currency note, the transfer may occur without modifying the contents of the account tied to the currency note (e.g., without withdrawing and/or transferring value into or out of the account).

At step470, the transfer may be to a “transfer entity,” which may correspond to a deposit account. As described above, the transfer to a transfer entity may cause the currency to be removed from electronic circulation and transferred into the account referenced by the transfer entity. As discussed above, the transfer may be made using “virtual” currency notes, or currency notes tied to actual currency notes. If the source of the transfer is a transfer entity, currency notes may be added into electronic circulation as described above.

In some embodiments, the transfer of step470may include a transfer to an invoice. The ownership transfer of step470may be made to the entity identified as the payee under the invoice (e.g., in a UEID field of the invoice, field256inFIG. 2C). In addition, a payment field of the invoice may be updated to reflect that the invoice has been paid and/or to identify the currency notes (e.g., by UCNID) used to pay the invoice.

At step490, the flow may terminate.

FIG. 5Ais a flow diagram of another embodiment of a method500for electronically circulating a currency. The method500may be implemented using one or more computer-readable instructions stored on a computer-readable storage medium. The instructions may be embodied as one or more distinct software modules on the computer-readable storage medium. In addition, one or more of the steps of the method500may be implemented using hardware components. Therefore, portions of the method500may be tied to particular machine components.

At step510, the method500may be initialized as described above.

At step520, a request to transfer a currency note from a first entity to a second entity may be received. The request may be transmitted by and/or authorized by a first entity, may identify one or more currency notes to be transferred (e.g., by UCNID of the currency notes), and may identity a transferee (e.g., the second entity) using a UEID of the second entity and/or an alias of the second entity.

At step530, the method500may authorize the request. Authorizing the request at step530may comprise determining whether the first entity transmitted the request and/or whether the first entity authorized the request to be transmitted. Step530may comprise receiving from the first entity a credential to authenticate the identity of the first entity. Alternatively, or in addition, step530may comprise receiving a credential authenticating the first entity from a third-party service (e.g., an authentication provider, such as an OpenID® provider). The credential may authenticate a session of the first entity with the method500. Alternatively, or in addition, the credential may be attached to the request itself (e.g., as an HTTP AUTH header, a digital signature, or the like). If the method500authenticates the identity of the first entity and/or determines that the first entity authorized the request, the flow may continue at step540; otherwise, the flow may terminate at step595.

At step540, the request may be further authorized, which may comprise verifying that the request has not been tampered with in transit. In some embodiments, the verification of step540may be performed by the communications channel used to transmit the request. For example, if the request was received over a secure communications protocol (e.g., SSL, or the like), the method500may verify that the request was not tampered with and/or modified in transit. Alternatively, or in addition, the request may include a signature or other data that may be used to verify the request. If the request is further authorized (e.g., verified to be free from tampering), the flow may continue at step550; otherwise, the flow may terminate at step595.

At step550, the request may be further authorized, which may comprise verifying that the first entity (the transferor) is the owner of the currency note(s) to be transferred. As discussed above, ownership may be determined by accessing ownership information associated with the currency notes in a data structure (e.g., by comparing an identifier of the first entity to the ownership information of the currency notes). If the first entity is the owner of the identified currency notes, the flow may continue to step560; otherwise, the flow may terminate at step595.

At step560, the method500may transfer ownership of the currency note(s) to the second entity. Transferring ownership may comprise associating a UCNID of the currency notes with the UEID of the second entity and/or an alias of the second entity in a data structure stored on a computer-readable storage medium, such as the data structure200ofFIG. 2A. In addition, if the method500is configured to maintain a record of the ownership history of currency notes, the first entity may be added to a list of previous owners of the transferred currency note(s). As described above, the transfer of step560may include transfer to/from a transfer account, which may involve adding and/or removing currency notes from electronic circulation.

At step570, a record of the transaction may be recorded. The record may be made on a computer-readable storage medium and/or on a tangible medium, such as a paper receipt. The record may be maintained by the method500and/or may be made available to the first entity and/or the second entity (e.g., via a user interface, by mail, or the like).

At step580, the method500may transmit a confirmation message to the first entity and/or the second entity. The confirmation message may include the details of the transfer, such as the currency notes transferred, the date and/or time of the transfer, and the like. The confirmation message may be authenticated by the method500(e.g., using a digital signature or the like) to allow a recipient of the message to verify the authenticity or the message and/or to verify that the message has not been tampered with.

At step595, the method may terminate without performing the transfer. In some embodiments, step595may include the method500recording a record of the failed transaction. The record may specify the reason(s) the transaction was aborted (e.g., failure to authenticate the request, first entity not the owner of the currency, etc.). The record may be recorded on a computer-readable storage medium and/or on a tangible medium (e.g., a paper receipt). Alternatively, or in addition, the record may be transmitted to one or more of the parties to the aborted transaction (e.g., first entity, the second entity, and/or a currency reserve holding the currency note(s)).

FIG. 5Bis a flow diagram of one embodiment of a method501for transferring currency notes to an entity using an invoice. The method500may be implemented using one or more computer-readable instructions stored on a computer-readable storage medium. The instructions may be embodied as one or more distinct software modules on the computer-readable storage medium. In addition, one or more of the steps of the method501may be implemented using hardware components. Therefore, portions of the method501may be tied to particular machine components.

At step511, the method501may be initialized as described above.

At step521, a request to transfer a currency note from a first entity to an invoice may be received. The request may be transmitted by and/or authorized by a first entity, may identify one or more currency notes to be transferred (e.g., by UCNID of the currency notes), and may identity an invoice to which the notes are to be transferred using a UIID and/or an alias thereof.

At steps531,541, and553, the information in the transfer request may be authenticated, transaction request integrity may be verified, and the ownership of the currency notes may be verified as described above. If any of the steps531,541, and/or553fails, the flow may terminate at step597as described above.

At step561, the currency notes identified in the transaction request received at step521may be associated with the invoice. The association of step561may comprise setting a payment field of an invoice data structure to the UCNIDs of the currency notes. The association may allow the invoice payer, invoice payee, and/or other entities, to view invoice payment details (e.g., verify that the invoice was paid, show which currency notes were used to pay the invoice, and so on).

At step563, ownership of the currency notes associated with the invoice may be transferred to entity identified as the payee under the invoice (e.g., the UEID of an invoice payee field). The ownership transfer make take place as described above.

At steps571,581, and591, a record of the transaction may be stored, confirmation may be transmitted, and the method501may terminate as described above.

Although the flow diagrams ofFIGS. 4,5A, and5B describe a transaction to transfer ownership of electronically circulated currency note(s), the methods could be adapted to perform any other electronic currency circulation task including, but not limited to: exchanging a first set of currency notes for a second set of currency notes (e.g., currency notes of another denomination, issued by another entity or state, and so on), viewing the ownership status of a currency note, viewing the ownership history of a currency note, viewing currency reserve information of a currency note, accessing audit information of a currency note, purchasing currency notes, redeeming currency notes, and so on. Therefore, the flow diagrams ofFIGS. 4 and 5should not be read as limited to any particular set of currency circulation functions.

The above description provides numerous specific details for a thorough understanding of the embodiments described herein. However, those of skill in the art will recognize that one or more of the specific details may be omitted, or other methods, components, or materials may be used. In some cases, operations are not shown or described in detail.

Furthermore, the described features, operations, or characteristics may be combined in any suitable manner in one or more embodiments. It will also be readily understood that the order of the steps or actions of the methods described in connection with the embodiments disclosed may be changed as would be apparent to those skilled in the art. Thus, any order in the drawings or Detailed Description is for illustrative purposes only and is not meant to imply a required order, unless specified to require an order.

Embodiments may include various steps, which may be embodied in machine-executable instructions to be executed by a general-purpose or special-purpose computer (or other electronic device). Alternatively, the steps may be performed by hardware components that include specific logic for performing the steps, or by a combination of hardware, software, and/or firmware.

It will be understood by those having skill in the art that many changes may be made to the details of the above-described embodiments without departing from the underlying principles of the invention.