Multi-Party Asset Exchange via Graph Cycle Detection
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Solution Overview
Problem
Existing two-way auction systems limit asset exchanges to direct transactions between buyers and sellers, preventing multi-party trading opportunities that could benefit bidders and sellers across different marketplaces.
Innovation Solution
A system that transforms two-way auction platforms into multi-party trading systems by translating bid representations into directed graphs, determining cycles, and transforming these cycles into offers among parties, enabling asset exchanges between multiple bidders and sellers across interconnected marketplaces.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If two-way auction systems are used for asset exchanges, then direct transactions between buyers and sellers are simplified, but multi-party trading opportunities are prevented
Solution Approach 1:
The patent segments the complex multi-party trading problem into manageable components by representing assets, bidders, and sellers as discrete vertices in a directed graph. This segmentation allows the system to handle multi-party trades by breaking down complex exchange relationships into individual graph nodes and edges, making the overall system tractable while enabling versatile trading opportunities.
Solution Approach 2:
The patent introduces an intermediary computing system that acts as a mediator between buyers and sellers. This intermediary transforms bid representations into graph structures, detects cycles automatically, and facilitates multi-party trades without requiring direct complex negotiations between all parties. The intermediary resolves the contradiction by managing system complexity centrally while enabling decentralized multi-party trading flexibility.
2Productivity
If multi-party trading systems are implemented, then trading opportunities are expanded, but system complexity increases
Solution Approach 1:
The patent replaces complex mechanical negotiation processes with an automated computational system. Instead of manual multi-party negotiations, the system uses graph theory algorithms to automatically detect trading cycles and execute trades. This substitution of mechanical processes with computational mechanisms enables expanded trading opportunities while managing system complexity through automation rather than manual coordination.
Solution Approach 2:
The patent changes the fundamental parameters of how trades are represented and processed by transforming bid data into graph theoretical parameters (vertices, edges, cycles). This parameter transformation allows the system to efficiently detect multi-party trading opportunities using cycle detection algorithms, improving productivity while keeping the underlying system complexity manageable through mathematical abstraction.
3Ease of operation
If direct two-way transactions are used, then transaction processing is simple, but trading opportunities across marketplaces are limited
Solution Approach 1:
The patent creates a universal graph-based representation that can handle multiple types of transactions and marketplace configurations simultaneously. The same graph structure and cycle detection algorithm work for direct two-way trades, multi-party trades, and cross-marketplace exchanges. This universality maintains ease of operation by using a consistent approach for all transaction types while dramatically expanding adaptability and marketplace connectivity.
Data Source
AI summary
In typical two-way trading systems, bidders cannot trade directly with other bidders, and sellers cannot trade directly with other sellers, resulting in possible missed trading opportunities. Methods, systems, devices, and networks for enabling two-way trading systems to perform multi-party exchanges are disclosed. Example embodiments allow multiple bidders (buyers), multiple sellers, or a seller and bidder of separate marketplaces to trade among themselves. Embodiments may discover, for bidders and sellers, opportunities to trade with other sellers or bidders, or both, without a time-consuming and limited process of searching and discovering relevant opportunities. Bidders and sellers may not find such opportunities on their own in typical two-way trading systems. The embodiments may be implemented as stand-alone systems or as add-ons that may be used to augment or enhance existing two-way trading systems.