Blockchain Coupon Clearinghouse with Smart Contracts
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Solution Overview
Problem
The existing coupon processing system relies on manual sorting and central databases, which are prone to corruption and inefficiencies, particularly in the role of clearinghouses that validate coupon transactions, leading to delays and lack of trust between manufacturers and retailers.
Innovation Solution
A blockchain-based system that uses smart coupon contracts and distributed consensus mechanisms to validate and manage coupon transactions, eliminating the need for a central clearinghouse by allowing manufacturers and retailers to directly manage and process coupons through a network of nodes, ensuring transparency and immutability.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If a central clearinghouse is used to validate coupon transactions, then trust and validation between manufacturers and retailers is established, but the system becomes complex, manual, and prone to delays
Solution Approach 1:
The patent replaces the mechanical manual clearinghouse system with a cryptographic blockchain system. Instead of physical coupon handling and manual validation by clearinghouses, the system uses distributed ledger technology with cryptographic hashing and consensus algorithms to automatically validate and process coupon transactions, eliminating the need for complex manual intermediary systems
Solution Approach 2:
The patent introduces a blockchain network as a decentralized intermediary that replaces traditional clearinghouses. The blockchain acts as a trusted mediator between manufacturers and retailers, using distributed consensus mechanisms to validate transactions without requiring complex centralized clearinghouse infrastructure
2Reliability
If manual sorting and processing of coupons is performed, then coupon validation can be carried out, but productivity is reduced and time delays increase
Solution Approach 1:
The patent replaces manual sorting and processing operations with automated electronic verification. Coupon data is stored on the blockchain and automatically verified through cryptographic validation, eliminating the need for physical sorting, scanning, and manual processing that characterized traditional systems
Solution Approach 2:
The patent performs preliminary actions by pre-storing coupon data, terms, and conditions on the blockchain before transactions occur. This allows for immediate automated validation during transaction processing, eliminating the need for subsequent manual sorting and processing that delays traditional systems
3Ease of operation
If central databases are used to store coupon information, then data access is simplified, but security and immutability are compromised due to potential corruption
Solution Approach 1:
The patent segments the centralized database into a distributed network of nodes, each maintaining a copy of the blockchain. This segmentation eliminates the single point of failure inherent in centralized databases while maintaining data accessibility through the distributed network structure
Solution Approach 2:
The blockchain acts as an intermediary layer between data storage and access. Instead of directly accessing centralized databases that are vulnerable to corruption, participants interact through the blockchain's cryptographic validation mechanism, which ensures data integrity and immutability while maintaining accessibility
Data Source
AI summary
Systems and methods are disclosed for manipulating and accessing a blockchain containing coupon authentication information for coupon processing services to process a coupon maintained by a network of nodes including a first node and a second node. A method may include generating, by the first node, a first coupon transaction that includes a smart coupon contract and broadcasting the first coupon transaction to the second node communicatively coupled to the network. The second node is configured to apply a set of consensus rules to validate the smart coupon contract included in the first coupon transaction prior to adding the first coupon transaction onto the blockchain, causing any one of the network of nodes to execute the smart coupon contract against input data after the first coupon transaction is validated and added onto the blockchain.