tZERO, a subsidiary of Overstock, was recently awarded a patent for its TOME Technology. This system will allow the trading platform to record trades on public blockchains. The platform described TOME technology as being able to leverage digital signatures for data recording and verification. This data includes that related to executions, settlements, and trades.
How it will Work
TOME or Time Ordered Merkle Epoch, will aggregate different types of data from private blockchains and traditional matching engines, which will then be recorded in a public blockchain. This system will record data on trades and utilize it to establish a hash at a chosen time interval. In the patent filing, tZERO specified that this would be an enterprise-level solution. In short, it will most likely be used by trading venues and crypto exchanges to report trading activities. Additionally, regulators will find it useful when conducting audits. According to tZERO, this technology will prove useful when verifying previous trades and creating an auditable record of previous transactions.
A Growing List of Patents
This patent adds to a growing list of patents that the platform has been able to amass. At the start of 2019, the platform was awarded a patent for a crypto integration platform for digital assets trading. In the patent, tZERO explained that the technology would allow the traditional trading platforms to be integrated with crypto exchanges.
tZERO claimed that the system would allow the creation of trading order for various digital assets such as digital shares, tokens, and cash equivalents from brokers. These orders would then be translated into crypto orders on crypto exchanges. It would apparently aggregate data from the crypto exchanges and find the best prices for the digital assets involved in each transaction.
Before an order is matched, this system would apparently secure each transaction item with a cryptographic signature. It then verifies the availability of digital assets and funds before it settles the transaction, according to the patent filing. For verification, the platform would purportedly use blockchain technology. Besides that, tZERO explained this platform could be used for ICOs and other securities offerings regulated by the SEC.
tZERO Unveils a List of New Hires
According to the tZERO CEO, the TOME technology works in synergy with the patent they had announced at the start of the year. It will have a lot of use cases once integrated into their ecosystem. The CEO further explained that it could also be licensed to third parties in various industries, which want to maintain an immutable and auditable record of data.
The company has been on a hiring spree. It recently unveiled a number of executive-level appointments. The hires include Michael Mougias, who will head the investor relations department, Alexandra Sotiropoulos, who will be in charge of the communications department, and Brooke Navarro who will be in charge of issuance.
These new hires come just as tZERO plans to launch its broker-dealer arm. The retail brokerage service will include electronic execution, sales trading, and portfolio execution for the buy and sell-side once it is launched.