Blockchain Donation Tracking With Role-Based Wallet Auditability

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Solution Overview

Problem

Challenges exist in tracking and ensuring a 100% passthrough of merchant donations to consumer-selected beneficiaries, lacking auditable demonstrations and requiring trusted third-party mediation.

Innovation Solution

Utilizing blockchain technology with time-stamping and role-based digital wallets to create synchronized transactional blockchains for secure tracking of transactions and donations, ensuring transparency and compliance.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If traditional tracking methods are used to monitor merchant donations, then third-party mediation is required, but this increases system complexity and reduces transparency

Engineering Contradiction:

Improveauditable demonstration of donation passthroughVSAvoidtrusted third-party mediation

Core Design Contradiction:

ReliabilityVSDevice complexity

Solution Approach 1:

The patent extracts the trust function from a centralized third-party mediator and distributes it across the blockchain network. Each participant (merchant, consumer, beneficiary) has a digital wallet that independently verifies and records transactions, eliminating the need for a trusted intermediary while maintaining auditability through immutable blockchain ledgers

Inventive Principle:

Principle #2Taking out (Extraction)

Solution Approach 2:

The patent introduces blockchain technology as a new intermediary that enables peer-to-peer verification without traditional third-party mediation. The blockchain acts as a shared, transparent ledger that all participants can independently access and verify, replacing the need for centralized trust while maintaining system reliability

Inventive Principle:

Principle #24Intermediary (Mediator)

2Loss of information

If traditional tracking methods are used, then third-party mediation is required, but this reduces transparency and consumer trust

Engineering Contradiction:

Improvetransparency of donation trackingVSAvoidthird-party mediation system

Core Design Contradiction:

Loss of informationVSDevice complexity

Solution Approach 1:

The patent segments the information flow by creating separate, role-based digital wallets for each participant (consumer wallet, merchant wallet, beneficiary wallet). Each wallet independently stores and displays relevant transaction information, allowing consumers to fully track donation passthrough without requiring complex centralized systems

Inventive Principle:

Principle #1Segmentation

Solution Approach 2:

The blockchain serves as a transparent intermediary that provides consumers with direct access to complete transaction records. The shared ledger displays all donation transactions in real-time, eliminating information asymmetry and building consumer trust without requiring complex mediation systems

Inventive Principle:

Principle #24Intermediary (Mediator)

3Reliability

If blockchain technology is implemented for tracking, then transparency and auditability are improved, but system complexity increases

Engineering Contradiction:

Improve100% donation passthrough verificationVSAvoidblockchain infrastructure

Core Design Contradiction:

ReliabilityVSDevice complexity

Solution Approach 1:

The patent makes the blockchain infrastructure universal by designing a multi-functional system that handles transaction recording, verification, auditing, and consumer education simultaneously. The same blockchain network serves all these purposes, reducing overall system complexity compared to having separate specialized systems for each function

Inventive Principle:

Principle #6Universality (Multi-functionality)

Solution Approach 2:

The blockchain system performs self-verification through cryptographic hashing and distributed consensus mechanisms. Each transaction is automatically validated by the network without requiring manual audit or complex mediation, enabling 100% donation passthrough verification through automated peer-to-peer validation

Inventive Principle:

Principle #25Self-service

4Device complexity

If simple tracking is used, then system complexity is reduced, but the ability to provide auditable demonstration of 100% passthrough is lost

Engineering Contradiction:

Improvetracking systemVSAvoiddonation passthrough verification

Core Design Contradiction:

Device complexityVSMeasurement precision

Solution Approach 1:

The patent replaces manual or mechanical tracking methods with automated cryptographic verification. Digital signatures and blockchain hashing automatically verify the complete donation flow from merchant to beneficiary, providing precise measurement of 100% passthrough without requiring complex manual auditing systems

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

Data Source

PatentUS20260030661A1Blockchain Tracked Transaction Incented By Merchant Smart Contract Facilitated Donation

Publication Date: 2026.01.29 EDATANETWORKS

AI summary

Merchants provide incentives for customer transactions on accounts issued to them by issuers. Incentives include a merchant making a donation to entities with whom the merchants and/or the consumers have an affinity such as residence in the community. Each merchant can define the donation to be percentage of the transaction amount. Cryptographically secure chains are provided for uniquely labeling each such transaction and each such donation by way of incorporating role-based digital wallets and multiple synchronized transactional blockchains. Where the donations are used to purchase an Internet-of-Things (IOT) enabled system, real and/or near-real time usage information can be received and transmitted to the logical addresses of the customers and or the merchants so as to confirm efficacy of the donations.