Perpetually Stable Cryptocurrency Coinage Algorithm

Abstract

An algorithm for creating a cryptographic token or coin which maintains a significantly stable value to be used on a blockchain whereby the cryptographic coinage removes market volatility by being pegged to an index of multiple world currencies thereby maintaining a more stable international value to help facilitate worldwide adoption of blockchain technology and commerce.

Claims

1. An algorithm including an index of multiple currencies whereby the index generates a value, whereby the value is pegged as a valuation to cryptographic coinage.

2. The algorithm of claim 1. whereby each currency's percentage of inclusion in the index is predicated on that currency's percentage of the world's total wealth.

3. The algorithm of claim 1. whereby a value is assigned to cryptographic coinage pegging the world's total wealth to 100% of the value of the cryptographic coinage.

4. The algorithm of claim 1. whereby a value is assigned to cryptographic coinage pegging the world's total wealth adjusting in real time to 100% of the cryptographic coinage adjusting in real time.

5. The algorithm of claim 1. whereby each currency's valuation in the index fluctuates pursuant to its market capitalization weighted dominance in the world at a given time.

6. The algorithm of claim 1. whereby the inclusion of each currency's valuation in the index contributes to the cryptographic coinage stability of value.

7. The algorithm of claim 1. whereby the algorithm creates a market capitalization weighted index of multiple currencies for use on a blockchain.

1. The index of claim 1. wherein each currency's inclusion in the index is predicated on a market capitalization weighted dominance of the world's total wealth.

9. The cryptographic coinage of claim 1. wherein its intending use is for trading.

10. The cryptographic coinage of claim 1. wherein its intending use is for transactions.

11. The cryptographic coinage of claim 1. wherein its intending use is for transactions on a blockchain.

12. The cryptographic coinage of claim 1. wherein its intending use is for transactions recorded on a centralized blockchain.

13. The cryptographic coinage of claim 1. wherein its intending use is for transactions recorded on a decentralized blockchain.

14. The cryptographic coinage of claim 1. whereby its intrinsic value is determined by a market capitalization weighted index of the valuation of multiple currencies.

15. The cryptographic coinage of claim 1. wherein the cryptographic coinage intrinsic value is determined by a market capitalization weighted index of the valuation of multiple fiat currencies.

16. The cryptographic coinage of claim 1. wherein the cryptographic coinage intrinsic value matches the valuation of a market capitalization weighted index of the valuation of multiple world currencies.

17. An algorithm including an index of multiple currencies whereby the index generates a value consistent with the world's total wealth whereby that value is pegged to the valuation of cryptographic coinage.

18. The cryptographic coinage of claim 17. wherein the cryptographic coinage intrinsic value matches the valuation of a market capitalization weighted index of the valuation of multiple world currencies.

19. The cryptographic coinage of claim 17. wherein its intending use is for transactions on a blockchain.

Description

BRIEF DESCRIPTION OF THE OF THE DRAWINGS

[0028] The features, aspects, and advantages of the exemplary embodiments are understood when the Detailed Description is read with reference to the accompanying drawings, wherein:

[0029] FIG. 1) illustrates a simplified mechanism of stability for cryptographic coinage.

[0030] FIG. 2) illustrates a simplified method for cryptographic coinage indexing of multiple currencies.

[0031] FIG. 3) illustrates the portion of the claimed algorithm showing market capitalization weighted indexing of multiple currencies for stabilization of cryptographic coinage.

[0032] FIG. 4) illustrates the claimed algorithm of market capitalization weighted indexing of multiple currencies for stabilization of cryptographic coinage.

[0033] FIG. 5) illustrates the use of the claimed algorithm and its adoption of use on a blockchain.

DETAILED DESCRIPTION OF THE DRAWINGS

[0034] The listed exemplary embodiments will now be described more fully hereinafter with reference to the accompanying drawings. Exemplary embodiments may however be embodied in many different forms and should not be construed as limited to the embodiments set forth herein. These embodiments are provided so that this disclosure will be thorough and complete and will fully convey exemplary embodiments to those of ordinary skill in the art. Moreover, all statements herein reciting embodiments, as well as specific drawing examples thereof, are intended to encompass both structural and functional equivalents thereof. Additionally, it is intended that such equivalents include both currently known equivalents as well as equivalents developed in the future (i.e., any elements developed that perform generally the same function, regardless of structure or origin, including but not limited to, additional currencies.)

[0035] Thus, for example, it will be appreciated by those of ordinary skill in the art that the diagrams, schematics, illustrations, and the like represent conceptual views or processes illustrating exemplary embodiments. The functions of the algorithm and its various elements shown in the figures may be provided through the use of dedicated hardware or software as well as hardware capable, of executing associated software. Those of ordinary skill in the art further understand that the exemplary hardware, software, processes, methods, and/or operating systems described herein are for illustrative purposes and, thus, are not intended to be limited to any particular manufacturer of hardware or software or to be limited to centralized or decentralized blockchain and is not intended to restrict the claims to any one blockchain or currency but rather to include all blockchains and all currencies either now in use, developed, or yet to be developed.

[0036] It is understood that any percentages, currencies, any valuation of either percentages or currencies are included in the drawing for reference purposes only and should not restrict the invention and the invention should not be limited by these indicated values, percentages, currencies. These values, percentages, and currencies are only used to help illustrate the invention without departing from the teachings of the disclosure.

FIG. 1)

[0037] Illustrates a simplified mechanism of stability for cryptographic coinage. The first block (#1) indicates a basic cryptographic coin. The second block (#2) indicates the first block being linked to an index consisting of multiple currencies. The third block (#3) indicates the now much more stable coin.

FIG. 2)

[0038] Illustrates a simplified methodology for cryptographic coinage indexing of multiple currencies. The first block (#1) indicates a basic cryptographic coin. The three middle blocks (#2) indicates the first block being linked to an index consisting of multiple currencies. The third block (#3) indicates the now much more stable coin.

FIG. 3)

[0039] Illustrates an algorithmic methodology for cryptographic coinage market cap weighted indexing, according to exemplary embodiments. The first block (#1), indicates a basic cryptographic coin. The column of blocks to the right (#2), represent the indexing of certain currencies, (the included currencies and their allocations are for example purposes only), the percentages listed (#3) accompanying the individual currencies indicate, (for example purposes only), that each currency in the index will have allocations based on their economic standing at any given time.

[0040] The algorithm will adjust according to changes in both the economic standing and percentage of valuation as well as actual valuation of that given currency and will be calculated to derive the index value for the cryptographic coinage shown here as the lower block (#4).

FIG. 4)

[0041] Illustrates the use of the algorithmic methodology for cryptographic coinage market cap weighted indexing and its adoption of use on a blockchain.

[0042] The first block (#1), indicates a basic cryptographic coin. The second block down (#2), represents the indexing of certain world currencies utilizing the real-time market cap weighted index of those currencies. The third block (#3), represents the cryptographic coinage now having been valued by the claimed algorithmic methodology, having an internationally and perpetually stable valuation to the world economy. The fourth and final block/graphic (#4), indicates the use of the now exemplary stable cryptographic coin on a blockchain ledger system.

FIG. 5)

[0043] Illustrates an exemplary embodiment of the algorithm for perpetual stabilization of cryptographic coinage as claimed in this application. [0044] Block 5-A. represents a basic cryptographic coin. [0045] Column 5-B. represents the indexing and inclusion in the index of world currencies utilizing a real-time market capitalization weighted index of currencies. [0046] Column 5-C. represents each currency's percentage valuation of weight in the index which fluctuates pursuant to each currency's market capitalization weighted dominance in the world at a given time. [0047] Column 5-D. represents each currency's fiscal valuation in the index which fluctuates pursuant to each currency's market capitalization weighted dominance in the world at a given time. [0048] Block 5-E. represents that the index of currencies is equal to 100 percent of the world's total wealth at a given time. [0049] Line 5-F. represents the pegging of 100 percent of the currencies in the index fiscal valuations at a given time. [0050] Block 5-G. represents the cryptographic coinage after being pegged to the index determined value. [0051] Line 5-H. represents the use of the now perpetually stable cryptographic coinage on a blockchain. [0052] Block 5-I. represents a blockchain utilizing the cryptographic coinage after being pegged to the index determined value.