Blockchain Fund Tagging With Weight Propagation for Taint Tracing
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Solution Overview
Problem
Existing blockchain systems struggle to track and identify tainted or classified funds due to the UTXO model's structure, where funds are discrete and not fractionally spendable, making it difficult to determine if a particular unit of funds should be accepted for business purposes, especially when funds are combined with clean funds, complicating the acceptance decision.
Innovation Solution
A method is disclosed to trace the flow of funds on a blockchain by generating a propagation profile from a tagging profile, which assigns weight values to funds, allowing network participants to track the movement and dilution of funds over time, enabling the detection of intersections with a minimum weight threshold to determine if funds should be accepted or rejected based on risk profiles.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Measurement precision
If manual tracking of donated funds is used, then donors can monitor fund usage, but the process is time-consuming and inefficient
Solution Approach 1:
The patent replaces the manual mechanical tracking system with an automated blockchain-based system. Smart contracts automatically record and track fund flows from donation to final usage, eliminating manual spreadsheet tracking while providing real-time, immutable records that donors can access anytime.
Solution Approach 2:
The patent introduces blockchain technology as an intermediary layer between donors and charitable organizations. This decentralized ledger acts as a neutral mediator that transparently records all fund transactions, enabling direct verification without requiring donors to manually follow funds through multiple organizational layers.
2Adaptability or versatility
If multiple intermediaries are involved in fund distribution, then funds reach more charitable organizations, but transparency and traceability are reduced
Solution Approach 1:
The patent implements continuous feedback loops where each transaction is recorded on the blockchain and immediately visible to relevant parties. Donors receive real-time updates about fund status and usage, while charitable organizations can verify incoming funds. This creates a transparent feedback mechanism that maintains traceability even as funds move through multiple intermediaries.
Solution Approach 2:
The patent adds a new dimension of transparency by implementing multi-level tracking capabilities. Donors can view fund flows at different granularities - from overall campaign progress to individual transaction details - without compromising the ability to track funds through multiple organizational layers. This dimensional approach preserves traceability while enabling broad distribution.
3Ease of manufacture
If traditional fund tracking systems are used, then implementation is simple, but verification of fund usage is unreliable
Solution Approach 1:
The patent implements preliminary action by pre-programming smart contracts with verified charitable organization identities and fund allocation rules before donations occur. This upfront verification of organizational credentials and fund usage parameters ensures reliability from the start, while the automated nature of smart contracts maintains implementation simplicity through code-based enforcement rather than manual processes.
Data Source
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AI summary
A system for "tagging" funds identified on a blockchain and associating a weight value therewith. The tagging profile is developed into a propagation profile wherein weight values are inherited from the tagging profile s. Propagation profile funds may be diluted by combining with non-tagged funds, similar to how ink dilutes through water. A spending history of funds of interest is developed based on replaying the funds of interest against the global transaction history of the blockchain. It is determined whether the spending history intersects with the propagation profile, thus determining how closely the two sources of funds are economically to one another. Intersection triggers actions including alert notifications or transfer of funds on the blockchain.