Blockchain Transaction Routing with Direct Participant Authorization
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Solution Overview
Problem
Current payment processes are costly, time-consuming, and inefficient due to extensive coordination among multiple entities, leading to high fees, delays, and security concerns, with traditional frameworks imposing excessive fees and requiring unnecessary intermediaries.
Innovation Solution
Implementing blockchain technologies with QR code and point-of-sale mechanisms to facilitate direct communication between network participants, eliminating intermediaries and reducing fees by enabling direct transaction authorization, authentication, and settlement without card network coordination.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If traditional payment processing framework with multiple intermediaries is used, then transaction coordination and security are ensured, but transaction costs increase and processing efficiency decreases
Solution Approach 1:
The patent extracts and removes unnecessary intermediary entities from the traditional payment processing framework. By implementing a blockchain-based system where transacting entities communicate directly, it eliminates intermediaries such as card networks, acquiring processors, and other coordination entities while maintaining transaction security through cryptographic verification and distributed consensus mechanisms.
Solution Approach 2:
The patent introduces a blockchain network as a new type of intermediary that replaces traditional payment processing intermediaries. This blockchain intermediary provides security and coordination through decentralized consensus mechanisms, smart contracts, and cryptographic verification, reducing the need for multiple traditional intermediaries while maintaining or enhancing transaction reliability.
2Reliability
If traditional payment processing framework with multiple intermediaries is used, then transaction coordination is achieved, but processing time increases
Solution Approach 1:
The patent removes multiple intermediary entities from the transaction coordination process, eliminating the sequential processing delays inherent in traditional frameworks. By enabling direct peer-to-peer communication between transacting entities through blockchain, transactions can be coordinated and settled in real-time or near-real-time without waiting for multiple intermediaries to process and forward transaction data.
Solution Approach 2:
The patent implements preliminary actions through blockchain mechanisms such as pre-established trust relationships, pre-validated entity identities, and pre-programmed smart contracts that automatically execute transaction coordination rules. This eliminates the need for real-time coordination with multiple intermediaries, as the coordination logic is already embedded and ready to execute when transaction conditions are met.
3Adaptability or versatility
If traditional payment processing framework is used, then comprehensive transaction processing is provided, but transaction fees increase
Solution Approach 1:
The patent extracts and eliminates fee-imposing intermediaries from the transaction processing framework. By implementing direct peer-to-peer transactions on a blockchain network, it removes card networks, acquiring processors, and other entities that impose processing fees, interchange fees, and other charges, thereby significantly reducing or eliminating transaction fees while maintaining comprehensive transaction processing capabilities through smart contracts and blockchain protocols.
Solution Approach 2:
The patent enables transacting entities to self-service their own transaction processing needs through direct blockchain communication and automated smart contract execution. This eliminates the need to pay intermediaries for processing services, as the entities themselves can initiate, track, and settle transactions autonomously using blockchain-based mechanisms, thereby reducing or eliminating transaction fees while maintaining full processing capability.
Data Source
AI summary
A system includes computing nodes coupled and communicating within a peer-to-peer network in a point-to-point manner. The computing nodes are part of a distributed routing network or a centralized routing platform. The computing nodes receive, via a communications subsystem, from one or more upstream entities, a record of a transaction between the one or more upstream entities, recording, within the distributed routing network or the centralized routing platform, a log entry, route, in a point-to-point manner, the log entry to one or more downstream entities, receive, from the one or more downstream entities, an authorization of the transaction, route, to the one or more upstream entities, the authorization of the transaction, and updating the record of the transaction at the distributed routing network or a centralized routing platform by appending the authorization of the transaction and to provide a guarantee of validity of the transaction.