Blockchain Payment Card System for Cost Reduction

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Solution Overview

Problem

The conventional payment card transaction process is overly complex and costly, with excessive fees imposed by intermediaries, and involves redundant validation, clearance, and settlement processes.

Innovation Solution

The implementation of blockchain-based payment cards that allow for token-based transactions, eliminating the need for intermediaries by using blockchain technology for validation, processing, and settlement, and enabling efficient, secure, and cost-effective transactions through digital wallets and biometric authentication.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If conventional payment card intermediaries are used, then transaction validation and clearance can be performed, but transaction costs increase and process complexity increases

Engineering Contradiction:

Improvetransaction validationVSAvoidprocess complexity

Core Design Contradiction:

ReliabilityVSDevice complexity

Solution Approach 1:

The patent extracts and eliminates intermediary entities from the payment transaction system, allowing direct peer-to-peer transactions between users through blockchain technology. This removes the complex multi-party validation and clearance processes while maintaining security and reliability through cryptographic verification and distributed consensus mechanisms.

Inventive Principle:

Principle #2Taking out (Extraction)

Solution Approach 2:

The patent introduces blockchain as a decentralized intermediary that replaces traditional financial intermediaries. The blockchain network provides validation and clearance services through distributed consensus, eliminating the need for centralized intermediaries while reducing process complexity and costs.

Inventive Principle:

Principle #24Intermediary (Mediator)

2Productivity

If conventional payment card intermediaries are used, then transaction processing can be performed, but transaction costs increase

Engineering Contradiction:

Improvetransaction processingVSAvoidtransaction costs

Core Design Contradiction:

ProductivityVSLoss of energy

Solution Approach 1:

The patent removes intermediary entities that impose fees on transactions, enabling direct user-to-user transfers. This eliminates interchange fees, processing fees, and other intermediary costs while maintaining efficient transaction processing through blockchain's native transfer mechanisms.

Inventive Principle:

Principle #2Taking out (Extraction)

Solution Approach 2:

The patent enables users to perform their own transaction validation and processing through cryptographic signatures and wallet-based authentication. This self-service approach eliminates the need for intermediary services that charge processing fees, reducing transaction costs while maintaining productivity.

Inventive Principle:

Principle #25Self-service

3Reliability

If conventional payment card validation processes are used, then transaction security can be ensured, but process time increases

Engineering Contradiction:

Improvetransaction securityVSAvoidprocess time

Core Design Contradiction:

ReliabilityVSLoss of time

Solution Approach 1:

The patent performs validation actions in advance by requiring users to set up cryptographic key pairs and wallet addresses before transactions occur. This preliminary setup enables instant transaction validation without time-consuming intermediary verification processes, as the blockchain network can immediately verify cryptographic signatures.

Inventive Principle:

Principle #10Preliminary action

Data Source

PatentUS20230230065A1Intelligent payment card solutions

Publication Date: 2023.07.20 TRADOVE INC

AI summary

Systems and methods are provided for processing credit token and debit token based transactions in a blockchain supported network.