Blockchain Transaction System with Self-Custodial Wallets
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Traditional computing systems for transactions, such as those using credit cards, are resource-intensive, prone to technical errors, opaque, and vulnerable to fraud, with inefficient fee structures and reliance on fixed billing cycles and third-party intermediaries.
Innovation Solution
A blockchain-based computing system with multiple computing nodes that facilitate transactions through a distributed ledger, utilizing smart contracts, self-custodial wallets, and stablecoin tokens, enabling decentralized and transparent transactions with variable billing cycles and settlement dates, and integrating local on/off currency ramps for fiat and stablecoin conversion.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If traditional credit card systems are used for transactions, then third-party intermediaries can facilitate transactions between buyers and sellers, but the system becomes resource-intensive, opaque, and vulnerable to fraud with inefficient fee structures
Solution Approach 1:
The patent extracts and removes third-party intermediaries from the transaction system by implementing a peer-to-peer blockchain network where buyers and sellers transact directly. The distributed ledger technology eliminates the need for centralized processors, banks, and other intermediaries that traditionally facilitated transactions, thereby reducing system resource consumption while maintaining security through cryptographic verification.
Solution Approach 2:
The system enables self-service transactions where buyers and sellers independently verify and execute transactions using self-custodial wallets and smart contracts. The blockchain network automatically validates transactions through consensus mechanisms without requiring external intermediaries, allowing participants to serve themselves while maintaining security and transparency.
2Adaptability or versatility
If traditional computing systems with fixed billing cycles are used, then settlement dates can be predetermined, but the system lacks flexibility and requires time-consuming middlemen
Solution Approach 1:
The patent implements dynamic billing cycles through smart contracts that can adapt to varying payment terms, credit periods, and settlement schedules. Instead of fixed billing cycles, the system allows customizable payment plans where buyers can negotiate and execute variable payment terms directly with sellers through programmable smart contracts on the blockchain, eliminating the need for time-consuming intermediary negotiations.
3Reliability
If centralized transaction processors are used, then transactions can be facilitated through a single point of control, but the system becomes opaque and vulnerable to technical errors and outages
Solution Approach 1:
The patent segments the centralized transaction processor into multiple distributed computing nodes across the blockchain network. Each node maintains an independent copy of the distributed ledger and can independently validate transactions. This segmentation eliminates single points of failure and opacity, as the system remains operational as long as a majority of nodes are functional, and all transactions are transparently recorded on the immutable blockchain ledger accessible to all participants.
4Ease of operation
If third-party intermediaries are relied upon for transactions, then transaction facilitation can occur between buyers and sellers, but excessive fees and inefficient fee structures result
Solution Approach 1:
The patent extracts and eliminates third-party intermediaries that impose excessive fees by implementing direct peer-to-peer transactions through blockchain technology. Buyers and sellers transact directly using self-custodial wallets, with minimal network fees paid to blockchain validators, eliminating the层层 fees charged by banks, payment processors, and other intermediaries while maintaining ease of operation through user-friendly wallet interfaces and automated smart contract execution.
Data Source
AI summary
A computing system for facilitating transactions includes a plurality of computing nodes participating in a distributed ledger on a blockchain that stores transaction blocks and smart contracts. One of the smart contracts is a lending pool smart contract. Each computing node is configured to store and maintain a respective copy of the distributed ledger. A transaction processor is connected to computing nodes and participates in the distributed ledger and transacts between a buyer self-custodial wallet on a buyer computing device and a supplier self-custodial wallet on a supplier computing device. The supplier self-custodial wallet generates and uploads invoices to the transaction processor, which mints the invoices as non-fungible tokens on the blockchain. The buyer self-custodial wallet pays the invoices to buy items via a loan provided by the lending pool smart contract.