US-20260127669-A1 - SYSTEMS AND METHODS USING EDGE ARTIFICIAL INTELLIGENCE COMPUTING DEVICES AND SYSTEMS FOR FACILITATING A DECENTRALIZED EXCHANGE OF CRYPTOASSETS

Abstract

A system for managing and carrying out trading and swaps of spot cryptoasset index tracking weighted asset benchmark prices (SCAITWABPs). The system makes use of a plurality of edge artificial intelligence computing devices (EAICDs) for powering peer-to-peer (P2P) marketplaces. The EAICDs facilitate processor computer driven decentralized exchanges (DEX) of SCAITWABPs whose spot index cryptoasset values track market prices and algorithm-driven performance analytics of referenced weighted average benchmark (WAB) sets of tradable assets, whereby each asset specified in the WAB set qualifies for transactions physically settled over counterpart marketplaces. A plurality of dongles are used with each being independently operably associated with a specific one of said EAICDs. Each one of the EAICDs includes: artificial intelligence (AI); machine learning (ML) and dongle authentication processes. These components advance carrying out decentralized finance with controls over access to price discovery and analytics data streamed to and from a remote hybrid paradigm price discovery database (HPPDD), as well as an electronic, self-custodial wallet and operations pertaining to the electronic, self-custodial wallet.

Inventors

• Michael B. ROHLFS

Assignees

• Michael B. ROHLFS

Dates

Publication Date

20260507

Application Date

20251031

Claims (19)

1. 1 . A system comprising: a plurality of edge artificial intelligence (AI) computing devices (EAICDs) for powering peer-to-peer (P2P) marketplaces which facilitates processor or computer driven decentralized exchanges (DEX) of spot index cryptoasset pairs whose values track market prices and algorithm-driven performance analytics of referenced weighted average benchmark (WAB) sets of tradable assets, whereby each one of the tradable assets specified in the WAB set qualifies for transactions physically settled over counterpart marketplaces; a plurality of dongles, each one of said plurality of dongles being independently operably associated with a specific one of said EAICDs; wherein each one of said plurality of EAICDs includes: an artificial intelligence (AI) module; a machine learning (ML) module; dongle authentication process modules to advance carrying out decentralized finance with controls over: access to price discovery and analytics data streamed to and from a remote hybrid paradigm price discovery database (HPPDD); and an electronic self-custodial wallet configured to store operations pertaining to the electronic, self-custodial wallet carried out by at least one of human traders, BOT traders, liquidity providers, trade validators, price reporting services; and links to trade identity verification gateways insuring KYC/AML compliance; order matching and execution integrating off-chain HPPDD with on-chain DEX protocols; consensus mechanisms consuming less time and expense than legacy proof-of-work and proof-of-stake types; and requisite proof of reserves compilations.
2. 2 . The system of claim 1 , wherein the EAICDs includes at least one of: the electronic, self-custodial wallets, smart phones, tablets, personal digital assistants, trading terminals, Internet of Things routers and servers, and emerging AI Personal Computers implemented to coordinate the use of CPU, GPU, and NPU chips to optimize speed, productivity, security and efficiency.
3. 3 . The system of claim 1 , wherein both AI and ML are employed by the EAICDs to incorporate and automatically update dynamic encryption systems aimed at achieving robust protection via the use of algorithms analyzing vast amounts of data in real time to be more adaptable, intelligent, and able to learn, evolve and identify suspicious activities before they escalate into security breaches.
4. 4 . The system of claim 1 , wherein AI and ML processes are provided in dongle authentication hardware and software included in the dongle authentication modules, including authentication tokens built on top of an attendant blockchain, thereby employing unique digital code generating and verifying AI algorithms to regulate identity and access management, plus detect, and even predict, anomalous behavior threatening security.
5. 5 . The system of claim 4 , wherein AI and ML used by the EAICDs are synergistic with open-source digital twins technology.
6. 6 . The system of claim 1 , wherein the HPPDD executes computer processes merging the effects of: remote cloud-based price discovery database servers aimed at optimizing the cumulative liquidity of each and all WAB-qualified physical assets dealt globally over affiliated networks, subnetworks and trading platforms; and accretive cross-liquidity derived from decentralized P2P marketplaces dealing in spot index cryptoasset pairs.
7. 7 . The server of claim 6 , wherein the HPPDD employs a server connected to a network, with said server comprising a processor and memory storing instructions used for spot cryptoasset indexes tracking weighted average benchmark prices (SCAITWABP) referencing attendant spot indexes listed for P2P DEX pair trading in real-time, with data for both the short and long sides of the cryptoasset pair trade coming from the same affiliated HPPDD.
8. 8 . The system of claim 1 , wherein risks attendant to Blockchain Oracle problems (BOP) are mitigated by combining security taking place at affiliated HPPDD in the cloud, which are used for market price discovery and related analytics data, with user-controls at the EAICD level, described as follows: all users of the EAICD must be HPPDD subscribers authenticated to access and connect with its streaming data feeds; all of the electronic, self-custodial wallets employed for DEX transactions, whether internal (i.e., a component of the user's EAICD) or external (i.e., connected to EAICD via authorized dongle) must be disconnected from the internet unless switched on by the EAICD; and once the EAICD indicates it has received a requisite off-chain HPPDD feed and is ready to transact, the electronic, self-custodial wallet is authorized to connect with the internet for interaction with on-chain smart contracts in conformance with instructions created to effectuate desired DEX transactions.
9. 9 . The systems of claim 1 , wherein the matching of P2P trader orders involves the integration of dual processes uniquely enabling authorized users to access off-chain HPPDD information while applying on-chain DEX control protocols that regulate: generation and distribution of cryptoassets so that authorized user activity can be transparent, permissionless and automated, when and as needed, without the expensive friction of intermediaries and counterparty risks prevalent with centralized exchange (CEX) platforms operating over permissioned networks; selection and conduct of entities authorized to validate trades resulting from the execution of order matching processes; use of distributed consensus mechanisms developed to safeguard validated blocks of transactions, which in this case may benefit by applying AI, ML and open-source solutions with directed acyclic graph data structures to consume less time and expense than legacy Proof-of-Work and Proof-of-Stake types known to create network bottlenecks which, if left unchecked, will stunt high-growth trajectories expected for the field of DeFi.
10. 10 . The system of claim 1 , wherein the EAICD is configured to: purchase an online CEX-listed SCAITWABP where it can be maintained by a CEX custodial wallet; execute a CEX-to-DEX conversion (via encryption) using a suitable stored program or software module; transfer the converted SCAITWABP to a user-customer's electronic, self-custodial wallet where it can be engaged in direct trading over the computerized DEX marketplace, and ultimately swapped for another, new SCAITWABP acquired from the computerized DEX marketplace; and execute a DEX-to-CEX conversion, via encryption, to facilitate the new SCAITWABP's transfer to a custodial wallet at the CEX where it is maintained for future CEX trading online, including sale(s) of the new SCAITWABP for cash.
11. 11 . The system of claim 1 , wherein a native token created for a specific blockchain network created by the system serves a utility role within an ecosystem created by the system to pay transaction fees, participate in governance functions and otherwise run attendant DEX operations, without any prior permission being required, through smart contracts built on top of the specific blockchain network.
12. 12 . The system of claim 1 , wherein the system further includes and combines microsegmentation with AI and ML to control the streaming of oracles, which can enhance integrity of data streams and provide even further protection of certain specified security interests needing more robust protection against manipulation or corruption of the data streams.
13. 13 . A system comprising: a plurality of edge artificial intelligence computing devices (EAICDs) for powering peer-to-peer (P2P) marketplaces which facilitates processor or computer driven decentralized exchanges (DEX) of spot index cryptoasset pairs whose values track market prices and algorithm-driven performance analytics of referenced weighted average benchmark (WAB) sets of tradable assets, whereby each one of the tradable assets specified in the WAB set qualifies for transactions physically settled over counterpart marketplaces; a plurality of dongles, each one of said plurality of dongles being independently operably associated with a specific one of said EAICDs; wherein each one of said plurality of EAICDs includes: an artificial intelligence (AI) module; a machine learning (ML) module; dongle authentication process modules to enable and/or advance carrying out decentralized finance with controls over at least one of access to price discovery or analytics data streamed to and from a remote hybrid paradigm price discovery database (HPPDD); and the system further including an electronic, self-custodial wallet configured to store operations pertaining to the electronic, self-custodial wallet carried out by at least one of human traders, BOT traders, liquidity providers, trade validators, price reporting services; and links to trade identity verification gateways insuring KYC/AML compliance; order matching and execution integrating off-chain HPPDD with on-chain DEX protocols; consensus mechanisms consuming less time and expense than legacy proof-of-work and proof-of-stake types; and requisite proof of reserves compilations; and the EAICDs further being configured to incorporate and automatically update dynamic encryption systems aimed at achieving robust protection via the use of algorithms analyzing vast amounts of data in real time to be more adaptable, intelligent, and able to learn, evolve and identify suspicious activities before said suspicious activity escalates into a security breach.
14. 14 . The system of claim 13 , wherein the EAICDs are configured to automatically update dynamic encryption systems aimed at achieving robust protection via the use of stored algorithms analyzing data in real time to be even more adaptable, intelligent, and able to learn, evolve and identify suspicious activities before said suspicious activities escalate into security breaches.
15. 15 . The system of claim 13 , wherein: the HPPDD executes computer processes merging the effects of: remote cloud-based price discovery database servers aimed at optimizing the cumulative liquidity of each and all WAB-qualified physical assets dealt globally over affiliated networks, subnetworks and trading platforms; and accretive cross-liquidity derived from decentralized P2P marketplaces dealing in spot index cryptoasset pairs.
16. 16 . The system of claim 13 , wherein: the HPPDD employs a server connected to a network, with said server comprising: a processor; and a memory storing instructions used for spot cryptoasset indexes tracking weighted average benchmark prices (SCAITWABP) referencing attendant spot indexes listed for P2P DEX pair trading in real-time, with data for both the short and long sides of the cryptoasset pair trade coming from the same affiliated HPPDD.
17. 17 . The system of claim 13 , wherein: risks attendant to Blockchain Oracle problems (BOP) are mitigated by combining security taking place at affiliated HPPDD in the cloud, which are used for market price discovery and related analytics data, with user-controls at the EAICD level, described as follows: all users of the EAICD are required to be HPPDD subscribers authenticated to access and connect with its streaming data feeds; all of the electronic, self-custodial wallets employed for DEX transactions, whether internal (i.e., a component of the user's EAICD) or external (i.e., connected to EAICD via authorized dongle) must be disconnected from the internet unless switched on by the EAICD; and once the EAICD indicates it has received a requisite off-chain HPPDD feed and is ready to transact, the electronic, self-custodial wallet is authorized to connect with the internet for interaction with on-chain smart contracts in conformance with instructions created to effectuate desired DEX transactions.
18. 18 . The system of claim 13 , wherein matching of P2P trader orders involves an integration of dual processes uniquely enabling authorized users to access off-chain HPPDD information while applying on-chain DEX control protocols that regulate: generation and distribution of cryptoassets so that authorized user activity can be transparent, permissionless and automated, when and as needed, without the expensive friction of intermediaries and counterparty risks prevalent with centralized exchange (CEX) platforms operating over permissioned networks; selection and conduct of entities authorized to validate trades resulting from the execution of order matching processes; and use of distributed consensus mechanisms developed to safeguard validated blocks of transactions, which in this case may benefit by applying AI, ML and open-source solutions with directed acyclic graph data structures to consume less time and expense than legacy Proof-of-Work and Proof-of-Stake types known to create network bottlenecks which, if left unchecked, will stunt high-growth trajectories expected for the field of DeFi.
19. 19 . A method for managing and carrying out trading and swaps of spot cryptoasset index tracking weighted asset benchmark prices (SCAITWABPs), wirelessly between remotely located parties or entities, the method comprising: using a plurality of edge artificial intelligence (AI) computing devices (EAICDs) for powering peer-to-peer (P2P) marketplaces to facilitate computerized decentralized exchanges (DEX) of spot index cryptoasset pairs whose values track market prices and algorithm-driven performance analytics of referenced weighted average benchmark (WAB) sets of tradable assets, whereby each one of the tradable assets specified in the WAB set qualifies for transactions physically settled over counterpart marketplaces; using a plurality of dongles, each one of said plurality of dongles being independently operably associated with a specific one of said EAICDs; wherein each one of said plurality of EAICDs includes: an artificial intelligence (AI) module; a machine learning (ML) module; dongle authentication process modules to advance carrying out decentralized finance with controls over: access to price discovery and analytics data streamed to and from a remote hybrid paradigm price discovery database (HPPDD); and using an electronic, self-custodial wallet configured to store operations pertaining to the electronic, self-custodial wallet carried out by at least one of human traders, BOT traders, liquidity providers, trade validators, price reporting services; and links to trade identity verification gateways insuring KYC/AML compliance; order matching and execution integrating off-chain HPPDD with on-chain DEX protocols; consensus mechanisms consuming less time and expense than legacy proof-of-work and proof-of-stake types; and requisite proof of reserves compilations.

Description

CROSS-REFERENCE TO RELATED APPLICATIONS This application claims the benefit of U.S. Provisional Application No. 63/717,618, filed on Nov. 7, 2024. The entire disclosure of the above application is incorporated herein by reference. FIELD The present disclosure relates to systems and methods for facilitating the trading of financial instruments, and more particularly to systems and methods which make use of edge artificial intelligence computing devices to power a permissionless, peer-to-peer marketplace which facilitates a decentralized exchange of offsetting long and short spot index cryptoasset pairs whose market prices are in each case geared to track those of a referenced Weighted Average Benchmark linked to a specified set of tradable real world assets. BACKGROUND The statements in this section merely provide background information related to the present disclosure and may not constitute prior art. At the present time there are only limited solutions for Blockchain Oracle Problems (“BOP”), which impact the rapidly evolving and aggressively growing field of Decentralized Finance (“DeFi”). Oracles serve as middleware facilitating communications between on-chain blockchain smart contracts and off chain crypto transaction reporting systems processed for a primary blockchain by a secondary layer or other chain outside of the blockchain for price discovery purposes aimed at speeding up processing times and reducing transaction costs. For background concerning BOP, it should be noted that blockchain infrastructure does not pull in data from, or push data out to, any external system as built-in functionality. That is because blockchains are designed as isolated networks, akin to a computer sans internet connection. Although that creates some security and reliability in a micro sense, financial smart contracts, like those used in this invention and other crypto markets, need reliable market price information. Facilitating connections between blockchain smart contracts (“on chain”) and the outside (“off-chain”) world for that purpose requires the additional oracle infrastructure. Oracle-based DEX's are DeFi trading venues typically relying on one or more oracle price discovery feeds to help price assets being exchanged. Market pricing for assets is thus imported from external venues rather than deduced via organic price discovery. Risks exist with that arrangement, such as cases of oracle front-running and price manipulation of assets having low liquidity. Some BOP are security-based. Some reports have revealed that nearly two-thirds of DeFi hacks in the field are linked to oracle exploitation. Furthermore, even though these types of applications are considered by their users to be decentralized, their oracles use centralized and trusted third parties providing data through unverified and unsecured channels; therefore, calling them “decentralized” is a euphemism that comes with risks. Accordingly, there is a strong need for a new system and method which reduces BOP risks by providing security at affiliated Hybrid Paradigm Price Discovery Databases (“HPPDD”) used for market price discovery and related analytics data generated for all physical assets referenced by attendant spot index crypto asset pairs listed for P2P DEX trading. And unlike most crypto trades, data for both the short and long sides come from the same affiliated HPPDD. Combining security measures at the HPPDD level with user-authentication controls at the edge artificial intelligence computing device (“EAICD”) level, would guard against BOP risks with a high level of confidence. The latter level would ideally contain the following features: (i) all EAICD users must be authenticated HPPDD subscribers to access and connect with its data feeds; (ii) all electronic, self-custodial wallets employed for DEX transactions, be they internal (i.e., a component of the user's EAICD) or external (i.e., connected to EAICD via authorized dongle), must be disconnected from the internet unless switched on by the EAICD-a security process designed to preclude potentially malicious intrusions; (iii) once the user's EAICD indicates it has received requisite off-chain HPPDD feed and is ready to transact, the electronic, self-custodial wallet is cleared for internet connection culminating in interaction with on-chain smart contracts specified to effectuate desired DEX transactions. Furthermore, as will be appreciated from the above, at the present time Cryptoassets use cryptography, P2P networks and a distributed ledger technology to create, verify and secure transactions. However, present day systems are limited in their ability to handle DEX trading instruments listable in nascent cryptoasset markets, particularly those targeted by this invention: long and short spot index cryptoasset pairs whose market prices are in each case geared to track those of a referenced Weighted Average Benchmark (“WAB”) linked using algorithm-driven systems and methods to a specified set of