Blockchain Trustable Transaction Services via Smart Contracts
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Solution Overview
Problem
Traditional transaction systems face challenges in establishing trust between international or cross-border transaction parties, leading to difficulties in ensuring that transaction terms are met, and hindering the ability of sellers to obtain financing based on trade orders.
Innovation Solution
A blockchain-based system that includes a network of trustable nodes, featuring a trading platform node and buyer/seller financial institution nodes, which utilize smart contracts to automate payment processes. This system verifies the trustworthiness of automatic payment services and undertaking services, ensuring that payments are made according to specified conditions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If escrow systems are used to ensure payment trust, then payment security is improved, but system complexity increases and parties cannot use their own financial accounts
Solution Approach 1:
The patent introduces a blockchain network as an intermediary that connects buyers and sellers through smart contracts. The blockchain acts as a neutral mediator that automatically executes payment terms when conditions are met, eliminating the need for complex escrow systems while maintaining payment security. Parties can use their own financial accounts through the blockchain network without requiring escrow accounts.
Solution Approach 2:
The smart contract system enables self-service by automatically executing payment transactions when predefined conditions are satisfied. The system autonomously verifies trade order fulfillment and triggers payments without requiring manual escrow management or third-party intervention, reducing system complexity while ensuring payment reliability.
2Reliability
If manual payment verification is used, then transaction control is maintained, but transaction efficiency decreases and trust establishment becomes difficult
Solution Approach 1:
The patent replaces manual payment verification mechanisms with automated smart contract execution on the blockchain. Instead of mechanical manual processes where buyers control and verify payments, the system uses programmed smart contracts that automatically verify trade order fulfillment and execute payments, establishing trust through code rather than manual processes while dramatically improving transaction efficiency.
Solution Approach 2:
The smart contract system implements automatic feedback loops where the completion of trade orders is continuously monitored and automatically triggers payment actions. This feedback mechanism ensures trust establishment through transparent, automated verification of payment conditions while maintaining high transaction efficiency without manual intervention.
3Adaptability or versatility
If buyers control payment timing, then buyer flexibility is improved, but seller trust and payment transparency deteriorate
Solution Approach 1:
The patent implements dynamic payment control through smart contracts that automatically adjust payment timing based on predefined conditions and triggers. Buyers maintain flexibility to set various payment conditions (immediate payment, payment after delivery, payment after inspection, etc.), while the system dynamically executes payments when conditions are met, ensuring seller trust through automatic enforcement rather than buyer control.
4Productivity
If trade orders are used for financing, then seller financing access is improved, but verification authenticity becomes difficult without trustable technology
Solution Approach 1:
The patent creates immutable digital copies of trade orders on the blockchain that serve as verified financing documents. These blockchain-based copies provide financial institutions with trustworthy verification of order authenticity without requiring complex verification processes, enabling sellers to access financing based on these verified digital copies of their trade orders.
Data Source
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AI summary
Disclosed herein are methods, systems, and apparatus, including computer programs encoded on computer storage media, for managing blockchain-based trustable transaction services. One of the methods includes: storing order data of an order between a buyer and a seller on a blockchain of a blockchain network, the order data including one or more payment conditions and data of a trustable undertaking (TU) service, generating a trustable undertaking certificate for the order based on the order data, storing the trustable undertaking certificate on the blockchain, and transmitting the trustable undertaking certificate to a seller financial institution to determine whether to approve a financing request of the seller based on the trustable undertaking certificate. The TU service is guaranteed by a buyer financial institution that automatically makes a payment based on a credit of the buyer in response to that a condition specified in a smart contract deployed on the blockchain is met.