Asynchronous Programmatic Adapters for Cross-Medium Transaction Settlement

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Solution Overview

Problem

The foreign exchange market faces inefficiencies due to the need for nostro accounts, which result in significant undeployed funds, transaction delays, and exposure to exchange rate volatility, leading to increased costs and complexity.

Innovation Solution

A computing system utilizing digital currency and decentralized ledgers to facilitate on-demand liquidity for cross-medium transactions, enabling real-time gross settlement and reducing reliance on traditional nostro accounts by using a client interface for dynamic exchange rate lookups and maintaining a client pool for volatility management.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If traditional nostro accounts are used for cross-medium transactions, then liquidity is provided for continuous trading, but significant undeployed funds are held and transaction delays occur

Engineering Contradiction:

Improveliquidity provisionVSAvoidtransaction delay

Core Design Contradiction:

ReliabilityVSLoss of time

Solution Approach 1:

The patent replaces the traditional mechanical nostro account system with an asynchronous event-driven architecture using programmatic adapters. These adapters publish events to message queues and consume events asynchronously, eliminating the need for continuous fund holding in nostro accounts while maintaining transaction reliability through event-based settlement confirmation.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

Solution Approach 2:

The patent introduces programmatic adapters as intermediary components between trading systems and settlement systems. These adapters act as mediators that decouple the trading and settlement processes, allowing transactions to be initiated without immediately blocking funds in nostro accounts, thereby reducing transaction delays while maintaining liquidity provision.

Inventive Principle:

Principle #24Intermediary (Mediator)

2Ease of operation

If nostro accounts are maintained for cross-medium transactions, then transaction facilitation is enabled, but exposure to exchange rate volatility increases

Engineering Contradiction:

Improvetransaction facilitationVSAvoidexchange rate volatility exposure

Core Design Contradiction:

Ease of operationVSObject-affected harmful factors

Solution Approach 1:

The patent replaces the traditional nostro account mechanism with an asynchronous event processing system. This substitution eliminates the need to hold significant balances in foreign currencies, thereby removing the exposure to exchange rate volatility while maintaining ease of transaction facilitation through automated adapter events.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

3Productivity

If programmatic adapters with asynchronous event processing are implemented, then transaction speed and efficiency are improved, but system complexity increases

Engineering Contradiction:

Improvetransaction speedVSAvoidsystem architecture complexity

Core Design Contradiction:

ProductivityVSDevice complexity

Solution Approach 1:

The patent segments the transaction processing system into independent programmatic adapters that handle specific functions. Each adapter publishes and consumes events independently, allowing parallel processing and improving transaction speed. The segmentation also modularizes complexity, making each component simpler while the overall system becomes more efficient.

Inventive Principle:

Principle #1Segmentation

Solution Approach 2:

The patent introduces event queues and message brokers as intermediary layers between system components. These intermediaries simplify communication between adapters by standardizing event-based interactions, reducing the complexity of direct point-to-point connections while enabling asynchronous processing and improving transaction throughput.

Inventive Principle:

Principle #24Intermediary (Mediator)

Data Source

PatentUS20230214799A1Network computing system executing programmatic adapters to implement asynchronous communications

Publication Date: 2023.07.06 RIPPLE LABS INC

AI summary

A computing system can establish asynchronous network communications with exchanges to facilitate cross-medium transactions between originating and recipient clients. Such communications can result in filtering out errant responses that would otherwise cause an open transaction to fail.