Blockchain Invoicing via Smart Contract Automation
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Solution Overview
Problem
Centralized databases face issues such as single points of failure, dependency on network connectivity, and limited access to data, which hinder efficient invoicing processes in supply chains, particularly due to the need for simultaneous access and the delay in processing invoices with varying prices.
Innovation Solution
A decentralized blockchain system is implemented, allowing multiple nodes to maintain data copies and enabling smart contracts to automate the processing of incremental charges and invoices, reducing finalization time through real-time reconciliation and dispute resolution.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If a centralized database is used to store invoice data, then data management and security control are simplified, but the system has a single point of failure and limited access concurrency
Solution Approach 1:
The patent segments the centralized database into multiple distributed nodes across a blockchain network. Each node maintains a copy of the invoice data, eliminating the single point of failure while preserving data management capabilities through distributed consensus mechanisms.
Solution Approach 2:
The patent creates multiple identical copies of the invoice data across different blockchain nodes. These copies ensure that if one node fails, the data remains accessible from other nodes, thereby improving system availability while maintaining data integrity through cryptographic verification.
2Productivity
If all invoice prices are processed at once, then the invoice is generated completely, but the processing time from invoice generation to payment remittance is increased
Solution Approach 1:
The patent performs preliminary processing of invoice prices as they become applicable, rather than waiting until all prices are determined. This allows the invoice to be generated and processed incrementally, reducing the overall finalization time while maintaining complete price coverage.
Solution Approach 2:
The patent segments the invoice processing into multiple incremental stages, where prices are processed and added to the invoice as they become available. This segmentation allows parallel processing of different price components, improving throughput while reducing the total time to complete invoice finalization.
Data Source
AI summary
An example operation may include one or more of monitoring, by a blockchain node, a delivery of a service to a first node from a second node based on a service contract and an order retrieved from a blockchain, determining, by the blockchain node, an incremental charge for a partial delivery of the service based on the monitoring, and executing, by the blockchain node, a smart contract to issue the incremental charge for the partial delivery of the service, and responsive to a resolution of a dispute raised for the incremental charge, add the incremental charge to an incremental invoice.