Blockchain Wallet System for Inter-Bank Settlement Reduction
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Solution Overview
Problem
In situations where consumers lack a transaction account, receiving payments is inconvenient due to the need for prepaid cards or cash, and existing solutions like controlled payment numbers lack control and convenience for payees receiving payments from multiple sources.
Innovation Solution
A system utilizing blockchains for incremental updates, where payments are held on the payer's account, credited to a payee's credit blockchain, and updated periodically, allowing payees to access all payments through a single wallet without requiring a transaction account, thereby minimizing inter-bank settlement and reducing fees.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If a payee uses prepaid cards or cash to receive payments without a transaction account, then they can conduct transactions, but it is inconvenient especially for regular payments or large amounts
Solution Approach 1:
The patent segments the payment receiving process into multiple components: controlled payment numbers for different payment sources, a wallet system for aggregation, and incremental balance updates. This allows payees to receive payments from multiple sources without a traditional transaction account while maintaining convenience and capacity for large amounts.
Solution Approach 2:
The patent introduces a wallet as an intermediary between the payment sources and the payee. The wallet aggregates funds from multiple controlled payment numbers and manages balances, providing a convenient interface for payees to receive and use payments without needing a traditional transaction account.
2Adaptability or versatility
If a payer uses controlled payment numbers with spending limits, then they can control payment amounts, but the controls can be adjusted at any time by the payer, reducing the payee's ability to control their own money
Solution Approach 1:
The patent implements preliminary action by having payees pre-approve spending limits and conditions for each controlled payment number before receiving payments. These pre-set controls remain fixed unless the payee explicitly changes them, ensuring that payees maintain control over their received payments while still allowing flexible configuration of payment terms.
Solution Approach 2:
The patent incorporates feedback mechanisms where payees receive notifications about incoming payments and can review or adjust spending controls before funds are released. This allows payees to maintain control over their money while still benefiting from the flexibility of controlled payment numbers.
3Adaptability or versatility
If a payee receives payments from multiple sources with varying amounts, then they can aggregate payments, but they may have several controlled payment numbers to maintain, making transacting difficult
Solution Approach 1:
The patent merges multiple controlled payment numbers into a single wallet that aggregates all received payments. The wallet provides a unified interface for managing funds from multiple sources, eliminating the need for payees to individually track and manage each controlled payment number while still maintaining the benefits of controlled payments.
Solution Approach 2:
The patent creates a universal wallet system that can handle payments from multiple controlled payment numbers with different sources and amounts. The wallet performs multiple functions including aggregation, balance management, and transaction processing, providing a single versatile tool for payees to manage all received payments.
4Ease of operation
If traditional settlement systems are used for payments to payees without transaction accounts, then inter-bank settlement occurs, but this increases fees and overall payment network traffic
Solution Approach 1:
The patent implements self-service by enabling direct settlement between payers and payees through the controlled payment number and wallet system, bypassing traditional inter-bank settlement processes. Payments are settled directly through the payment system infrastructure, reducing the need for inter-bank transactions and associated fees while maintaining the ability to pay payees without traditional transaction accounts.
Data Source
AI summary
A method for minimizing inter-bank settlement through incremental updates stored via blockchains includes storing three blockchains: a balance blockchain updated periodically that includes an available balance for a plurality of blockchain wallets, a credit blockchain that includes credits made to a blockchain wallet, and a debit blockchain that includes payments made from the blockchain wallet. Holds are placed on related transaction accounts to enable the blockchain wallets to utilize payments made thereto without the need for a transaction account, where the holds are only updated when necessary based on periodic updates to the balance blockchain, thus minimizing settlements performed by the issuing institutions, thus reducing inter-bank settlements and enabling payees to receive payments from a transaction account without their own.