Blockchain Exchange Item Marketplace for Gift Card Fraud Detection
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Solution Overview
Problem
Gift cards often go unused, resulting in billions of dollars in unspent value, and there is a lack of standardized numbering systems and formats, making fraud detection and redemption processes inefficient in existing marketplace networks.
Innovation Solution
A blockchain-based exchange item marketplace network that verifies and secures transactions, utilizes digital representations of exchange items, and implements rules for utilization and redemption, ensuring secure and efficient processing of gift cards and other closed-loop financial instruments.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If gift cards are distributed with diverse numbering systems and formats, then gift card issuance flexibility is improved, but fraud detection difficulty increases
Solution Approach 1:
The patent implements a universal standardized numbering system that can handle multiple gift card formats and types through a single standardized structure. This allows the system to maintain flexibility in issuing different gift card varieties while ensuring all cards follow the same verification protocol, thereby resolving the contradiction between issuance flexibility and fraud detection difficulty
Solution Approach 2:
The patent changes the parameter structure of gift card numbering from diverse, non-standardized formats to a unified standardized format with specific segments for issuer identification, serial numbering, and validation codes. This parameter standardization enables automated fraud detection while preserving the ability to issue various gift card types
2Loss of energy
If gift cards are purchased but remain unused, then consumer spending is reduced, but gift card value retention increases
Solution Approach 1:
The patent implements dynamic redemption rules that automatically adjust based on time elapsed since purchase, usage patterns, and market conditions. This allows the system to incentivize usage over time through expiring values or discounts, converting retained gift card value into actual consumer spending while maintaining flexibility for genuine users
Solution Approach 2:
The system provides feedback mechanisms that monitor gift card usage patterns and communicate with cardholders about redemption opportunities, expiration notices, and usage incentives. This feedback loop encourages conversion of retained value into spending by keeping cardholders engaged and informed about their gift card status
3Ease of operation
If traditional gift card processing is used, then transaction simplicity is maintained, but redemption efficiency decreases
Solution Approach 1:
The patent implements preliminary validation and verification steps during gift card issuance and registration that automatically set up redemption pathways and verify card authenticity in advance. This preliminary processing reduces the complexity of actual redemption transactions while significantly improving processing efficiency by eliminating manual verification steps
Data Source
AI summary
A method includes receiving, by a marketplace server, a sharing request regarding an exchange item from a first computing device, where the sharing request indicates a sharing approach for sharing the exchange item with one or more other computing devices and includes dynamic exchange item information generated by the first computing device. The method further includes verifying, by the marketplace server, the dynamic exchange item information received from the first computing device. When the verification is favorable, the method includes generating shared exchange item security parameters for the one or more other computing devices, generating shared exchange item information in accordance with the sharing approach, and sending the shared exchange item security parameters and the shared exchange item information to the one or more other computing devices for facilitating utilization of the exchange item by the one or more other computing devices in accordance with the shared approach.