Blockchain Escrow Control Using Multisignature Refund and Payment Logic
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Solution Overview
Problem
Cryptocurrency transactions are untraceable, unrecallable, and volatile, posing challenges in secure and reliable online payments, especially in regions lacking established banking systems.
Innovation Solution
Implementing multisignature smart contract code on a blockchain, requiring signatures from a buyer, seller, and an intermediary to create a secure, traceable, and non-volatile payment system using multisignature transaction blocks, including refund and payment mechanisms.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If cryptocurrency is used for transactions, then payment speed and cost are improved, but traceability and reliability deteriorate
Solution Approach 1:
The patent introduces a multisignature escrow contract as an intermediary between buyer and seller. This contract requires multiple signatures (buyer, seller, and escrow agent) to execute transactions, creating a traceable and reliable payment system while maintaining the speed and cost benefits of cryptocurrency. The escrow contract acts as a mediator that ensures transaction transparency without sacrificing efficiency.
2Loss of energy
If cryptocurrency is used for transactions, then transaction cost is reduced, but recallability deteriorates
Solution Approach 1:
The patent implements preliminary action by requiring the escrow agent's signature in advance before funds can be transferred. This preliminary control mechanism allows for potential recall or reversal of transactions before they are finalized, maintaining low costs while enabling transaction recallability through the pre-configured multisignature requirement.
3Reliability
If traditional banking systems are used, then transaction security is improved, but accessibility and speed deteriorate
Solution Approach 1:
The patent replaces the mechanical banking system with a cryptographic blockchain-based multisignature escrow system. This substitution maintains security through cryptographic verification and distributed consensus while eliminating the speed limitations and accessibility barriers of traditional banking infrastructure.
4Reliability
If multisignature smart contracts are implemented, then transaction reliability is improved, but system complexity increases
Solution Approach 1:
The patent segments the transaction control into distinct signature requirements for different parties (buyer, seller, escrow agent). This segmentation of authority into modular signature components simplifies the overall system by breaking down complex transaction logic into manageable, independent verification steps that can be executed sequentially on the blockchain.
Data Source
AI summary
Technologies are shown for controlling a transaction on a blockchain. A first block is created on a blockchain for a transaction involving a seller entity associated with a first key, a buyer entity associated with a second key, and an intermediary entity associated with a third key. Funds for the transaction are associated with the first block. A second block storing refund code is created and linked to the first block. The refund code is executable to refund the funds when a seller digital signature using the first key and/or an intermediary digital signature using the third key are received. A third block storing payment code is created and linked to the first block. The payment code is executable to transfer the funds when a buyer digital signature using the second key and/or an intermediary digital signature using the third key are received.