Cross-Border Digital Currency Issuance via Off-Chain Fund Deduction
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Solution Overview
Problem
The challenge of generating digital currency in a cross-border payment system is not adequately addressed by conventional technologies, necessitating a solution to simplify and enhance the efficiency of cross-border payment processes.
Innovation Solution
A transaction processing method involving an on-chain issuer node on a blockchain network that generates digital currency by deducting funds from local bank accounts or digital currency wallets of off-chain participants, connected to either an off-chain local payment system or digital currency system, ensuring efficient interaction with domestic financial infrastructure.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Device complexity
If digital currency is generated in a cross-border payment system using conventional technologies, then the cross-border payment process becomes more complex and requires redundant financial infrastructure construction, but the efficiency and simplicity of cross-border transactions deteriorate
Solution Approach 1:
The patent merges the off-chain local payment system and off-chain local digital currency system into a unified cross-border payment system. The off-chain issuer can selectively deduct funds from either local bank accounts or local digital currency wallets, and the on-chain issuer node generates cross-border digital currency on the blockchain network based on deduction success instructions from either system, eliminating the need for separate infrastructure constructions.
Solution Approach 2:
The cross-border payment system is designed with multi-functionality to interact with both off-chain local payment systems and off-chain local digital currency systems. The off-chain issuer and on-chain issuer node can process deduction instructions from either system type, making the infrastructure universal and avoiding redundant construction while maintaining high transaction efficiency.
2Adaptability or versatility
If separate off-chain local payment system and off-chain local digital currency system are maintained for cross-border transactions, then infrastructure redundancy increases, but system adaptability and interaction efficiency with domestic systems deteriorate
Solution Approach 1:
The system is designed with universal interfaces that can interact with both off-chain local payment systems and off-chain local digital currency systems. The off-chain issuer receives deduction requests from participants and can process them through either system type, while the on-chain issuer node accepts deduction success instructions from either system and generates corresponding cross-border digital currency, achieving high adaptability without infrastructure redundancy.
Solution Approach 2:
The off-chain issuer and on-chain issuer node act as intermediaries between the domestic financial infrastructure (local payment systems or digital currency systems) and the cross-border blockchain network. These intermediaries translate and coordinate between different system types, enabling efficient interaction with domestic systems while avoiding the need for redundant infrastructure construction.
Data Source
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AI summary
A transaction processing method, an apparatus, a device and a storage medium, relating to the technical field of payment transactions, and used for at least solving the problem in the related art of how to generate digital currency in cross-border payment systems. The technical solution of the present disclosure is as follows: receiving an issuing indication message sent by an off-chain transaction system, the issuing indication message comprising an off-chain participant identifier, a first target amount and a deduction success indication, and the deduction success indication being used for indicating that currency of the first target amount has been successfully deducted from a local bank account or a local digital currency wallet of the off-chain participant; and, in response to the issuing indication message, generating digital currency corresponding to the first target amount in a digital currency wallet of an on-chain participant node corresponding to the off-chain participant identifier of a block chain network.