Benefit Administration Platform Using ML and Blockchain
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Solution Overview
Problem
The administration of benefits such as unemployment benefits, social security benefits, and basic income payments is challenged by verifying eligibility, preventing fraud, and ensuring accurate distribution, particularly in the context of increasing automation leading to unemployment and financial crises.
Innovation Solution
A host platform integrated with machine learning processes and a blockchain network for verifying identity, income, and eligibility, ensuring secure and auditable payment disbursement, and maintaining an immutable record of transactions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Measurement precision
If manual verification processes are used to verify eligibility and prevent fraud, then accuracy of eligibility determination is improved, but administrative overhead and processing time increase
Solution Approach 1:
The patent replaces manual verification processes with automated machine learning models and blockchain technology. The system uses ML algorithms to automatically verify eligibility by analyzing application data against eligibility criteria, and blockchain to create immutable audit trails, eliminating the need for manual administrative review while maintaining or improving accuracy.
Solution Approach 2:
The patent introduces an intermediary verification layer between benefit applications and approval. The machine learning models act as intermediaries that automatically assess eligibility, and the blockchain serves as an intermediary ledger that records all transactions immutably, reducing the need for complex manual verification hierarchies.
2Productivity
If automated processing is implemented to reduce administrative overhead, then productivity is improved, but reliability of fraud prevention deteriorates
Solution Approach 1:
The patent replaces manual fraud detection with automated machine learning models trained to identify fraudulent patterns, and blockchain technology that provides cryptographic verification of transaction integrity. This automation maintains high processing speeds while improving reliability through consistent application of verification rules and immutable record-keeping.
Solution Approach 2:
The system incorporates feedback mechanisms where the machine learning models continuously learn from verified cases and fraudulent patterns, improving their detection accuracy over time. The blockchain provides feedback through its immutable ledger, allowing the system to track and analyze transaction patterns for ongoing fraud detection improvement.
3Measurement precision
If comprehensive verification processes are used to ensure accurate benefit distribution, then measurement precision is improved, but loss of time in processing applications increases
Solution Approach 1:
The patent performs preliminary verification actions by pre-loading eligibility criteria into the machine learning models and establishing blockchain verification protocols before applications are processed. This allows the system to rapidly evaluate applications against predetermined criteria without time-consuming manual review steps, maintaining high accuracy while reducing processing time.
Solution Approach 2:
The system replaces sequential manual verification steps with parallel automated processing using machine learning models that can simultaneously evaluate multiple eligibility criteria and blockchain verification that can validate multiple transaction aspects concurrently, significantly reducing processing time while maintaining comprehensive verification accuracy.
4Ease of operation
If traditional benefit administration systems are used, then ease of operation is maintained, but harmful factors from fraud increase
Solution Approach 1:
The patent introduces blockchain as an intermediary layer that sits between the benefit administration system and external transactions. This intermediary provides cryptographic verification and immutable record-keeping that prevents fraud without requiring changes to the underlying administration system's ease of use, as the blockchain layer handles security automatically.
Solution Approach 2:
The system replaces manual fraud detection mechanisms with automated machine learning-based fraud detection that operates in the background without requiring user action. The ML models automatically analyze application data and transaction patterns for fraudulent indicators, maintaining ease of operation while significantly improving fraud prevention capability.
Data Source
AI summary
Provided are systems and methods for verification and management of benefit administration. The system can determine the eligibility of users to receive basic income and other forms of benefits, grants, aid, etc. Furthermore, the system can automate and manage the distribution of such benefits while creating an immutable/auditable trail of the disbursements. Accordingly, the verification system described herein can prevent fraud and other forms of malfeasance within the benefit administration process.