Overstock's tZERO Patents Tech for Recording Trades on Public Blockchains

Security token trading platform tZERO has been awarded a patent for a way of recording trading data on public blockchains.

"TOME is a base-layer technology that uses digital signatures to record and verify time-series data such as trades, executions and settlements. This technology enables low-latency systems, including traditional matching engines or private blockchain ledgers, to be anchored into immutable public blockchain ledgers," the company's announcement says.

The technology will allow tZERO to record trades as hashes anchored on a public blockchain, verify previous trades and keep an immutable record of the transactions on its platform, according to the announcement.

It can also link the settlement of tokenized securities on a public blockchain with legacy trading systems and anchor data about the resulting on-chain settlements into public blockchains, the company said.

Off-chain trade data and on-chain settlement data occurring on an Ethereum mainnet can be combined and anchored into the Bitcoin blockchain for added resiliency, security and transparency," tZERO explained.

TZERO, launched for trading in January, is designed as an alternative trading system, a limited version of a securities exchange to trading tokenized private equity.

The platform has so far seen meager trading volumes, as only the accredited investors could register and only one token has been available to trade.

Overstock CEO Patrick Byrne previously told CoinDesk he expected to see a boost in trading activity on tZERO after that point.

On August 8, Overstock will conduct a Q2 earnings call where the Overstock and tZERO leadership will share the company's current state and future plans.

The company has previously won a similar patent outlining how it could merge legacy trading systems with cryptocurrencies and digital asset tech.