Blockchain Transit Node Cross-Currency Settlement

The patent introduces a transit node as an intermediary that opens settlement accounts at both the first settlement node (inside territory) and the second settlement node (outside territory). This intermediary structure enables cross-currency settlement by mediating between the two different banking systems, allowing funds to be settled through the transit node's dual accounts rather than requiring direct interaction between the two settlement nodes with different accounting times.

The patent segments the cross-currency settlement process into separate on-chain and off-chain components. The off-chain funds are frozen and represented by blockchain assets on the blockchain network, while the actual fund settlement occurs through the blockchain asset transfers. This segmentation allows the system to leverage blockchain's real-time settlement capability for the critical asset exchange while maintaining compatibility with traditional off-chain banking systems.

The transit node serves as a mediator that simplifies the system architecture by providing a single point of coordination. Instead of requiring direct real-time coordination between the first settlement node and the second settlement node (which have different accounting times), all settlement operations go through the transit node, which has pre-established settlement accounts at both nodes. This intermediary approach reduces system complexity while enabling real-time settlement.

The transit node performs preliminary actions by opening settlement accounts at both the first settlement node and the second settlement node before the actual cross-currency settlement occurs. These pre-established accounts and the freezing of off-chain funds in advance create a ready-to-execute settlement structure, eliminating the need for complex real-time coordination during the actual settlement process.