Cross-Platform Payment Synchronization via Blockchain Reserve Holds
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Solution Overview
Problem
Digital currency platforms face challenges in synchronizing payments with external events, such as trade confirmations or asset movements on other platforms, due to difficulties in scheduling and payment uncertainty.
Innovation Solution
The implementation of systems and methods for cross-platform synchronized payment settlement, which involve receiving reserve funds instructions, validating them, generating blockchain transaction payloads, and submitting them to smart contracts for execution, along with the use of reserve and posting holds to manage funds.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If payments are made within a digital platform without external synchronization, then payment processing is simple and fast, but payment synchronization with external events (trade confirmations, asset movements) becomes difficult and uncertain
Solution Approach 1:
The patent introduces an intermediary system comprising a distributed application, orchestration engine, and smart contract that mediates between internal digital platform payments and external events. The orchestration engine receives external event notifications, validates them, and triggers appropriate payment actions, while the smart contract on the blockchain ensures committed funds are released only when external conditions are met. This intermediary layer enables reliable cross-platform synchronization without requiring direct integration between all platforms.
Solution Approach 2:
The patent implements preliminary action by requiring users to commit funds to a smart contract before the actual payment is executed. This preliminary commitment of funds creates a pre-arranged payment obligation that is automatically triggered when external events occur. The system performs preliminary validation of external events and prepares payment transactions in advance, ensuring that when synchronization is needed, the payment can be executed immediately without uncertainty.
2Measurement precision
If the system waits for external event confirmation before scheduling payment, then payment accuracy improves, but payment scheduling time increases
Solution Approach 1:
The system performs preliminary actions by committing funds to the smart contract and pre-validating payment instructions before external events occur. When an external event is confirmed, the payment is already prepared and can be executed immediately through automatic triggering, eliminating the need to wait for confirmation before scheduling.
Solution Approach 2:
The system implements feedback mechanisms where the orchestration engine continuously monitors for external event confirmations and automatically triggers payment execution when conditions are met. The smart contract provides feedback on fund commitment status, and the system adjusts payment scheduling based on real-time event status, enabling accurate timing without manual intervention or delays.
3Ease of operation
If the system uses traditional payment scheduling methods, then scheduling is straightforward, but payment uncertainty increases when external events are involved
Solution Approach 1:
The intermediary orchestration engine simplifies operation by automatically handling the complexity of external event monitoring and payment triggering. Users simply commit funds through the smart contract, and the system manages the rest - receiving external notifications, validating events, and executing payments automatically. This maintains ease of operation while eliminating payment uncertainty through automated reliability mechanisms.
Solution Approach 2:
The smart contract enables self-service by automatically managing fund commitments and release conditions without requiring manual intervention. The system autonomously validates external events, checks fund availability, and executes payments when conditions are met, providing both operational simplicity and payment certainty through automated self-service mechanisms.
Data Source
AI summary
A method may include: a distributed application on a digital banking and payment platform receiving, via an API, a reserve funds instruction from a first transaction party to hold a balance in a blockchain deposit account, the reserve funds instruction comprising a reserve hold amount; the distributed application validating the reserve funds instruction; the distributed application generating a blockchain transaction payload for the reserve funds instruction; the distributed application submitting the blockchain transaction payload to a smart contract that maintains a distributed ledger, validates that the blockchain deposit account has available funds sufficient for the reserve hold amount, and creates a reserve funds hold on the reserve hold amount in the blockchain deposit account; the distributed application receiving, in response to a successful reserve funds hold, a confirmation event from the smart contract; and the distributed application generating a first reserve identifier for the reserve funds hold.