Blockchain Teller Network for Cardless Cash Access Verification
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Solution Overview
Problem
Conventional cash withdrawal methods, such as using automated teller machines (ATMs), are cumbersome, costly, and inconvenient, often requiring users to carry bank cards that can be lost or stolen, and are limited by affiliations with specific financial institutions.
Innovation Solution
A system utilizing an encryption-based shared architecture, such as blockchain, enables personal teller services by allowing users to access cash through a distributed network of nodes, including individual and organization entities, using geolocation and cryptographic verification to facilitate transactions without the need for cryptocurrency brokers or exchanges.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If automated teller machines (ATMs) are used for cash withdrawal, then cash access is provided, but users must carry bank cards that can be lost or stolen and are limited to specific financial institutions
Solution Approach 1:
The patent replaces the mechanical card-based authentication system with a cryptographic system using mobile devices. Instead of physically inserting a bank card into an ATM, users authenticate through cryptographic verification on their mobile devices, eliminating the physical card that can be lost or stolen while maintaining secure access to cash through the distributed network.
Solution Approach 2:
The patent creates a universal access system where any mobile device can function as a cash access tool through the distributed network, rather than being limited to specific bank cards and affiliated ATMs. The system allows users to access cash through any node in the distributed network using their mobile device, providing institution-independent functionality.
2Productivity
If conventional banking systems are used, then cash withdrawal is enabled, but the process is cumbersome and requires affiliation with specific financial institutions
Solution Approach 1:
The patent segments the centralized banking system into a distributed network of independent nodes. Instead of requiring users to interact with a single bank's ATM system, the functionality is distributed across multiple nodes in a peer-to-peer network, allowing users to access cash through any node without affiliation requirements and reducing system complexity for the end user.
Solution Approach 2:
The patent introduces a distributed network layer as an intermediary between users and the cash access functionality. This intermediary layer handles the complexity of node selection, cryptographic verification, and transaction coordination, allowing users to simply request cash access through their mobile device while the distributed network manages the backend complexity.
3Adaptability or versatility
If cryptocurrency exchanges or brokers are used to access cash, then liquidity is provided, but additional intermediaries increase cost and complexity
Solution Approach 1:
The patent extracts the cash access functionality from traditional centralized exchanges and brokers, creating a direct peer-to-peer mechanism within the distributed network. Users can convert their cryptocurrency holdings to cash through direct interaction with nodes in the distributed network, eliminating the need for external exchanges or brokers as intermediaries and reducing both cost and complexity.
Data Source
AI summary
Aspects of the present disclosure involve systems, methods, devices, and the like for enabling teller based services using an encryption based shared architecture. The teller based service is provided by at least one node or entity in a blockchain. A request and communication between the at least one node and a user, with indication of the node geolocation and ability to provide teller services is exchanged. The node provides access to cash, enables the verification of the user, and updates the ledger upon completion of the transaction.