Consortium Blockchain for Cross-Border CBDC Transaction Processing

Resolve Bottlenecks,
Find Innovative SolutionsGenerate Solutions

Solution Overview

Problem

Conventional transaction processes for central bank digital currency (CBDC) are inefficient and cumbersome, particularly across jurisdictions and currency formats, leading to high computational burdens and limited flexibility.

Innovation Solution

The implementation of a blockchain-based system that integrates domestic and cross-border transactions through consortium and subchain architectures, utilizing smart contracts and digital wallets to facilitate seamless account-based and cash-based transactions, while minimizing computational resources and enabling flexible transaction processing across different CBDC formats.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Productivity

If conventional transaction processes are used for cross-border CBDC transactions, then transaction processing can be performed, but computational burden increases and efficiency decreases

Engineering Contradiction:

Improvetransaction processing efficiencyVSAvoidcomputational burden

Core Design Contradiction:

ProductivityVSUse of energy by moving object

Solution Approach 1:

The patent divides the transaction processing system into multiple specialized components: consortium blockchains for cross-border transactions, subchains for specific transaction types, smart contracts for automated execution, and digital wallets for user interactions. This segmentation allows each component to handle specific tasks efficiently, reducing overall computational burden while improving processing throughput.

Inventive Principle:

Principle #1Segmentation

2Adaptability or versatility

If traditional currency exchange processes are used, then transactions between different currencies can be performed, but flexibility is limited and computational resources are consumed

Engineering Contradiction:

Improvetransaction flexibilityVSAvoidsystem complexity

Core Design Contradiction:

Adaptability or versatilityVSDevice complexity

Solution Approach 1:

The patent creates a universal CBDC transaction framework that can handle multiple transaction types (account-based and cash-based), multiple currencies through different central bank CBDCs, and multiple jurisdictions through consortium blockchains. This multi-functional design enables flexible cross-border transactions without requiring separate systems for each transaction type or currency pair.

Inventive Principle:

Principle #6Universality (Multi-functionality)

3Speed

If conventional transaction systems are used, then basic transaction processing is achieved, but transaction speed is limited

Engineering Contradiction:

Improvetransaction speedVSAvoidprocessing time

Core Design Contradiction:

SpeedVSLoss of time

Solution Approach 1:

The patent implements preliminary actions through smart contracts that are pre-programmed with transaction rules and validation logic. These smart contracts automatically execute when conditions are met, eliminating the need for manual processing and intermediate verification steps. Digital wallets also perform preliminary authentication and authorization, enabling faster transaction confirmation times.

Inventive Principle:

Principle #10Preliminary action

Data Source

PatentUS11915213B2Systems and methods for domestic and/or cross border blockchain transaction solutions involving central bank digital currency

Publication Date: 2024.02.27 TRADOVE INC

AI summary

Systems and methods are provided for processing global CBDC transactions in a blockchain supported network, where domestic and foreign banking institutions may provide mutual hosting of a consortium blockchain to allow more seamless and direct CBDC supported transactions, and CBDC exchanges in real-time or near-real time.