Blockchain Smart Coupon Validation System
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Solution Overview
Problem
The adoption of digital coupons has been hindered by the risk of fraud and uncontrolled duplication, leading to retailers' reluctance to accept them, as existing systems lack effective mechanisms for validation and prevention of fraudulent transactions.
Innovation Solution
A computer-implemented electronic coupon system utilizing a blockchain to create and process smart coupons, ensuring validity through blockchain logic that publishes and verifies transaction records, preventing duplication and fraud by using smart coupon tokens and redemption tokens within a blockchain database.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If electronic coupons are implemented without blockchain validation, then ease of operation is improved, but reliability deteriorates due to fraud and duplication risks
Solution Approach 1:
The patent introduces a blockchain as an intermediary validation layer between the electronic coupon issuer and retailer. The blockchain stores immutable transaction records that serve as a trusted mediator to verify coupon authenticity and prevent duplication, resolving the contradiction by adding a security intermediary that maintains ease of use while ensuring reliability
2Reliability
If blockchain validation is implemented for electronic coupons, then reliability is improved, but device complexity increases
Solution Approach 1:
The patent segments the coupon validation system into distinct components: the blockchain network for storing transaction records, the issuing logic for creating coupons, and the redemption logic for validating them. This segmentation allows each component to be independently optimized and managed, reducing overall system complexity while maintaining reliability
3Reliability
If smart coupon tokens are used to prevent duplication, then reliability is improved, but manufacturing precision requirements increase
Solution Approach 1:
The patent uses cryptographic copying mechanisms where the blockchain creates immutable copies of transaction records. Each coupon redemption is recorded as an identical, verifiable copy in the blockchain ledger, ensuring precision in tracking without requiring complex physical manufacturing precision
Data Source
AI summary
A computer implemented electronic computer system using a blockchain method for creating, distributing, validating, and redeeming a secure electronic smartcoupon. A smartcoupon transaction record is highly secure and may comprise embedded business rules that define the requirements that consumers and retailers must meet for the smartcoupon to redeemed. Consumers may save or hold smartcoupons in a variety of different digital wallets. Retailers may redeem through their POS system by evaluating the embedded business rules in the smartcoupon against the consumer's purchase basket and if valid, completing the redemption process by publishing a redemption token to smartcoupon transaction record on the Blockchain database.