Blockchain Securitization with Smart Meters and Contracts

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Solution Overview

Problem

Current systems lack efficient methods for seamless securitization and management of infrastructure projects, particularly in blockchain environments, due to limitations in data transparency and capital management, which hinders investor returns and increases administrative costs.

Innovation Solution

The integration of smart meters and smart contracts with blockchain distributed ledgers to create digital securities, enabling transparent and predictable returns for investors by directly linking infrastructure data to capital formation and management processes, thereby reducing inefficiencies and costs.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Loss of information

If traditional securitization methods are used for infrastructure projects, then capital formation and management can be achieved, but data transparency and administrative efficiency are insufficient, leading to higher costs and reduced investor returns

Engineering Contradiction:

Improvedata transparencyVSAvoidsecuritization system complexity

Core Design Contradiction:

Loss of informationVSDevice complexity

Solution Approach 1:

The patent replaces traditional mechanical securitization systems with a blockchain-based digital system. Smart contracts automatically execute securitization terms without manual intervention, while distributed ledgers provide transparent, immutable recording of all transactions and data flows. This substitution achieves enhanced data transparency and automated capital management while reducing administrative overhead despite the technological complexity of blockchain implementation

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

Solution Approach 2:

The securitization system enables self-service through smart contracts that automatically perform capital formation, debt servicing, and data distribution functions. The system autonomously manages cash flows, calculates returns, and distributes payments to investors without requiring continuous human intervention, thereby reducing administrative costs while maintaining full transparency through on-chain recording

Inventive Principle:

Principle #25Self-service

2Reliability

If smart meters and smart contracts are integrated with blockchain distributed ledgers to create digital securities, then transparent and predictable returns are achieved, but system complexity increases

Engineering Contradiction:

Improveinvestor return predictabilityVSAvoidsystem integration complexity

Core Design Contradiction:

ReliabilityVSDevice complexity

Solution Approach 1:

The patent merges smart meters, smart contracts, and blockchain distributed ledgers into an integrated digital securities system. Smart meters capture infrastructure performance data, smart contracts encode return calculation logic and automatically execute payments, while the blockchain provides immutable recording. This merging creates a cohesive system where data flows seamlessly from physical infrastructure through digital contracts to financial settlements, achieving predictable investor returns through automated enforcement of contractual terms

Inventive Principle:

Principle #5Merging (Combining)

Solution Approach 2:

The blockchain distributed ledger serves as an intermediary that connects smart meter data with smart contract execution. It receives raw data from smart meters, validates it through consensus mechanisms, and provides it to smart contracts for automated return calculations and payment distributions. This intermediary layer ensures data integrity and trustlessness while maintaining system predictability despite the complexity of integrating multiple technological components

Inventive Principle:

Principle #24Intermediary (Mediator)

3Productivity

If real-time data-driven decision-making and payment processing are enabled, then administrative efficiency is improved, but infrastructure for data collection and processing must be significantly enhanced

Engineering Contradiction:

Improveadministrative efficiencyVSAvoiddata infrastructure complexity

Core Design Contradiction:

ProductivityVSDevice complexity

Solution Approach 1:

The patent implements continuous data collection through smart meters that operate 24/7, continuously feeding performance data to the blockchain network. Smart contracts continuously process this data, automatically calculating returns and initiating payments without interruption. This continuous operation eliminates administrative delays and manual processing steps, achieving high productivity while the distributed nature of the blockchain infrastructure prevents single-point failures despite the complexity of real-time data processing

Inventive Principle:

Principle #20Continuity of useful action

Data Source

PatentUS12141872B2Securitization of assets utilizing distributed-ledgers and smart meters and a user permission framework for information flow

Publication Date: 2024.11.12 TRIANGLE SYSTEMS INC

AI summary

Methods, systems and apparatus for using blockchain distributed ledgers to build and maintain infrastructure projects utilizing smart meters and smart contracts to increase information flow in the securitization of digital securities which are issued to fund and administer the infrastructure projects and to provide transparent and predictable returns to investors and efficient capital formation and infrastructure management to the digital security Issuers.