Blockchain Intermediary for Cross-Retailer Reward Point Exchange

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Solution Overview

Problem

Existing reward programs face challenges in exchanging points across different platforms due to the need for significant support, time-consuming processes, and difficulty in agreeing on point values, making it impractical for multiple retailers to participate without establishing relationships with each other.

Innovation Solution

A system utilizing digital ledger technology, specifically blockchain, to create an intermediary that manages point exchanges across various reward programs, allowing for authentication, tracking, and monitoring of exchange rates, and using a centralized monetary system to facilitate real-time point value exchanges without requiring retailers to set up relationships with each other.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If retailers establish direct relationships with each other for point exchanges, then authentication and trust are improved, but device complexity and operational costs increase significantly

Engineering Contradiction:

ImproveauthenticationVSAvoidsystem complexity

Core Design Contradiction:

ReliabilityVSDevice complexity

Solution Approach 1:

The patent introduces a blockchain-based intermediary system that acts as a neutral mediator between retailers. This blockchain network provides decentralized authentication and consensus mechanisms, allowing point exchanges without direct retailer relationships. The intermediary layer resolves the contradiction by maintaining reliability through cryptographic verification while avoiding the complexity of direct peer-to-peer relationships.

Inventive Principle:

Principle #24Intermediary (Mediator)

2Ease of operation

If multiple retailers participate in point exchanges without establishing relationships, then ease of operation is improved, but reliability and authentication become problematic

Engineering Contradiction:

Improveease of participationVSAvoidauthentication

Core Design Contradiction:

Ease of operationVSReliability

Solution Approach 1:

The blockchain intermediary provides automated authentication and verification services that enable retailers to participate without establishing direct relationships. The system uses cryptographic signatures, consensus protocols, and smart contracts to ensure reliability while maintaining ease of operation.

Inventive Principle:

Principle #24Intermediary (Mediator)

Solution Approach 2:

The patent replaces manual relationship-building and trust-establishment mechanisms with automated cryptographic verification and blockchain consensus. This substitution of mechanical/trust-based systems with algorithmic systems enables easy participation while maintaining high reliability through mathematical proofs rather than interpersonal trust.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

3Measurement precision

If point exchanges are processed manually with significant support, then authentication accuracy is improved, but productivity and speed decrease

Engineering Contradiction:

Improveauthentication accuracyVSAvoidexchange speed

Core Design Contradiction:

Measurement precisionVSProductivity

Solution Approach 1:

The patent replaces manual authentication processes with automated cryptographic verification and blockchain consensus mechanisms. This substitution maintains high authentication accuracy through cryptographic proofs while dramatically increasing processing speed and productivity through automation. The system can validate transactions in seconds rather than requiring manual review.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

Solution Approach 2:

The blockchain system enables self-service authentication where each participant independently verifies transactions through cryptographic signatures and consensus protocols. This eliminates the need for manual support while maintaining accuracy, as the system automatically validates authenticity through mathematical verification rather than human judgment.

Inventive Principle:

Principle #25Self-service

4Measurement precision

If retailers agree on point values through direct negotiation, then measurement precision is improved, but time consumption and productivity decrease

Engineering Contradiction:

Improvepoint value agreementVSAvoidnegotiation time

Core Design Contradiction:

Measurement precisionVSLoss of time

Solution Approach 1:

The patent replaces negotiable point value agreements with algorithmic valuation based on blockchain market data and consensus. The system automatically determines point values through transparent cryptographic calculations and market-based pricing mechanisms, eliminating lengthy negotiations while maintaining precision through objective, verifiable valuation methods.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

Data Source

PatentUS11436626B2Authenticated account interaction via cellular text message

Publication Date: 2022.09.06 BREAD FINANCIAL PAYMENTS INC

AI summary

A computer system comprises a memory, a cellular telephony communications device configured for sending and receiving cellular text messages, and a processor coupled with the memory and the cellular telephony communications device. The processor is configured to: receive, via the cellular telephony communications device, a cellular text message sent from a cellular telephone of an accessing entity, wherein the cellular text message includes a cellular telephone number of the cellular telephone, an instruction regarding reward points, and an image file; use the cellular telephone number to identify a reward program account; extract an authentication token embedded in data of the image file; authenticate access to the reward program account based upon the authentication token; and in response to authenticating access to the reward program account, execute the instruction.