The technology allows tZERO to verify the existence of previous trades and simultaneously produces an auditable and immutable record of those transactions. It can also link the settlement of tokenized blockchain-based securities on a public blockchain with legacy trading systems.
tZERO has successfully patented its Time Ordered Merkle Epoch (TOME) methodology, a base-layer technology that uses digital signatures to record and verify time-series data such as trades, executions, and settlements.
Awarded by the U.S. Patent and Trademark Office, the patent regards a technology that enables low-latency systems, including traditional matching engines or private blockchain ledgers, to be anchored into immutable public blockchain ledgers. The system allows tZERO to record incoming trades quickly and efficiently in a time-series, producing a hash at any time interval, which can be anchored on a public blockchain.
Saum Noursalehi, Chief Executive Officer at tZERO, commented:
“This technology, which is synergistic with the patent that we announced earlier this year, has many use-cases in our ecosystem. It can be used in our suite of products, as well as licensed to companies across various industries that are seeking to maintain a tamper-proof and auditable record of time-series-based data. Today’s announcement showcases our technological leadership in blockchain innovation and underscores the strength of tZERO’s intellectual property and its growing portfolio of strategic assets.”
TOME can also be utilized, together with a recent patent approved in January 2019, to link the settlement of tokenized blockchain-based securities on a public blockchain with legacy trading systems. It also can record and anchor the execution venue’s transactional data and the resulting on-chain settlement data into public blockchain ledgers.
Founded in 2014, the technology firm has focused on revolutionizing Wall Street and make financial processes switch from traditional institutional market structures towards blockchain technology.
tZERO has recently launched an Android version of its recent cryptocurrency mobile app, allowing investors to buy, sell and hold digital currencies directly on their mobile phone through the tZERO Crypto App, rather than using third-party exchanges for custody. The firm’s digital securities trading platform is designed to enable private resale transactions to accredited investors, consistent with U.S. securities law.
In late 2017, tZERO’s first-ever preferred equity security token sale attracted overwhelming cryptocurrency and traditional institutional interest, reaching over $100 million USD in commitments from investors in the first 12 hours. Over 10,000 subscribers registered for accreditation ahead of the token sale.