Context-Based Payment System for Local Economic Support
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Solution Overview
Problem
Current economic conditions and systems make it difficult for consumers to effectively support their local economy and environment, as existing currency systems do not allow for the valuation of local production or environmental factors in monetary transactions.
Innovation Solution
A context-based payment system using location-dependent currency, where the value of currency and products is tied to specific geographical areas, enabling transactions only when both the product and currency are within their respective valid areas, facilitating the promotion of locally produced goods and services.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If consumers purchase locally produced goods to support local economy, then local economic impact is improved, but consumers face difficulty making such choices due to competitive pricing from distant producers
Solution Approach 1:
The currency system is segmented into different types: location-dependent currency (valid only in specific geographic areas) and universal currency. This segmentation allows consumers to choose location-dependent currency when they want to support local producers, making the intention to buy local actionable despite price disadvantages. The currency itself is divided into functional segments based on geographic validity.
Solution Approach 2:
Location-dependent currency has the property of being valid only in specific local areas, giving it local quality. This allows the currency to embody the consumer's intent to support local economy by restricting its acceptance to local producers within defined geographic boundaries, thereby enabling consumers to make a difference in their local economy through currency choice.
2Productivity
If location-dependent currency is used to promote local products, then local producer support is improved, but system complexity increases due to multiple currency types and validation requirements
Solution Approach 1:
A currency server acts as an intermediary between consumers, producers, and payment processors. The server stores information about different currency types, their valid geographic areas, and handles validation automatically during transactions. This intermediary manages the complexity of multiple currency types and validation rules, shielding users from the underlying system complexity while enabling location-dependent currency functionality.
Solution Approach 2:
The system performs preliminary actions by pre-defining currency types, their valid geographic areas, and storing this information in databases before transactions occur. Product information including geographic validity areas is pre-loaded, and currency rules are established in advance, allowing rapid validation during actual transactions without complex real-time computations.
3Productivity
If product location verification is implemented to ensure local production, then local production valuation is improved, but measurement difficulty increases due to location determination requirements
Solution Approach 1:
The system replaces manual or mechanical location verification methods with electronic location determination systems. GPS coordinates, geographic encoding in product identifiers, and automated geocoding substitute for physical verification methods. This electronic substitution makes location detection and measurement straightforward through digital data exchange and automatic coordinate comparison against predefined geographic areas.
Data Source
AI summary
Disclosed herein is a context based payment system. Electronic currency or coupons can be made dependent on context, and the context can be one of location or geography, time, date, distance, sound, or other devices. The value of the currency exists only if a pre-condition is fulfilled. For example, if the currency is location dependent, the value only exists in a defined area (currency value area). The goods or the service in the value-system are also context dependent, that is, they can only be sold or offered in a defined area (product value area). Accordingly, if the product value area and the currency value area overlap, a purchase and payment can be made.