CBDC Card Payment Validation Without Full Blockchain Overhead

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Solution Overview

Problem

Existing consumer payment infrastructure does not support token-based transactions for central bank digital currencies (CBDCs), making it difficult to use CBDCs for card-based payments at merchant points-of-sale.

Innovation Solution

A distributed ledger system with a protocol framework enables CBDC transactions by allowing parties to agree on and validate transactions without relying on a blockchain, using a decentralized approach with protocol flows, messaging, checkpoint, and deterministic virtual machine services to ensure secure and efficient transaction processing.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If blockchain is used to support CBDC transactions, then transaction security and decentralization are improved, but computational and storage resources required are excessive for existing payment infrastructure

Engineering Contradiction:

Improvetransaction securityVSAvoidcomputational resources

Core Design Contradiction:

ReliabilityVSUse of energy by moving object

Solution Approach 1:

The patent extracts the essential transaction validation functionality from the blockchain system, separating it from the full blockchain infrastructure. The protocol framework implements a simplified consensus mechanism that validates CBDC transactions without requiring the complete blockchain protocol, thereby reducing computational and storage resources while maintaining security.

Inventive Principle:

Principle #2Taking out (Extraction)

Solution Approach 2:

The patent applies local quality by implementing a tailored protocol framework that is optimized specifically for CBDC transactions rather than using the general-purpose blockchain protocol. This localized approach allows the system to use only the necessary security and validation features needed for CBDC, reducing overall resource requirements.

Inventive Principle:

Principle #3Local quality

2Reliability

Engineering Contradiction:

Improvetransaction securityVSAvoidstorage resources

Core Design Contradiction:

ReliabilityVSVolume of stationary object

Solution Approach 1:

The patent extracts only the essential transaction validation and consensus functionality from the blockchain system, eliminating the need to store and process the entire blockchain ledger. The protocol framework maintains security through distributed validation without requiring full ledger replication at each node.

Inventive Principle:

Principle #2Taking out (Extraction)

Solution Approach 2:

Instead of requiring full blockchain infrastructure with complete ledger replication, the patent inverts the approach by using a protocol framework where validation rules and consensus mechanisms are defined separately from the ledger storage, allowing lightweight implementation.

Inventive Principle:

Principle #13The other way round (Inversion)

3Ease of operation

If existing consumer payment infrastructure is used, then ease of operation is maintained, but support for token-based CBDC transactions is lacking

Engineering Contradiction:

Improvecard-based payment convenienceVSAvoidCBDC transaction support

Core Design Contradiction:

Ease of operationVSAdaptability or versatility

Solution Approach 1:

The patent implements a protocol framework that provides multi-functionality by enabling both traditional payment processing and CBDC token-based transactions through the same infrastructure. The framework acts as a universal layer that adapts to different transaction types without requiring separate systems.

Inventive Principle:

Principle #6Universality (Multi-functionality)

Solution Approach 2:

The patent introduces a protocol framework as an intermediary layer between the existing payment infrastructure and the CBDC token system. This mediator enables CBDC transactions to occur through conventional payment channels, maintaining ease of operation while adding CBDC capability.

Inventive Principle:

Principle #24Intermediary (Mediator)

Data Source

PatentUS12591870B2Secure processing of central bank digital currency (CBDC) card payments

Publication Date: 2026.03.31 R3 LTD

AI summary

Central bank digital currency (CBDC) tokens are used for payment in a transaction initiated by a payment card at an acquirer's point-of-sale. To facilitate these transactions, a card issuer node in a distributed ledger environment receives a payment message from a payment terminal. The payment message, comprising a request to conduct a CBDC-based transaction, contains a signature transmitted to the payment terminal by a payment card. The card issuer node generates a signature data structure that contains the signature. The card issuer node also generates a transaction message containing components of the transaction, such as a number of tokens to be transferred, a current owner of the tokens to be transferred, an intended acquirer of the tokens, a currency type of the tokens, and/or instructions for validating the transaction. The transaction is validated based at least in part on the signature data structure in the transaction message.