Cryptocurrency Payment Allocation via Batch Processing
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Solution Overview
Problem
Cryptocurrencies face limited adoption due to long transaction times and security concerns related to anonymous identities, which deter merchants from accepting them, leading to poor transaction security and exposure to money laundering risks.
Innovation Solution
Integration of a payment processing platform with a peer-to-peer (P2P) payment platform to facilitate real-time transactions and differentiate payment allocations, using APIs and SDKs to associate cryptocurrency wallet accounts with merchant accounts, allowing for fiat currency conversion into cryptocurrency on a batch basis to reduce computational costs and improve network efficiency, while enabling merchants to postpone conversion for favorable exchange rates.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If cryptocurrencies are used for transactions, then direct peer-to-peer transactions are enabled, but transaction confirmation time becomes impractically long
Solution Approach 1:
The patent segments the transaction confirmation process into two parts: (1) immediate P2P transfer of cryptocurrency funds between parties, and (2) subsequent batch processing of a subset of transactions for blockchain recording. This segmentation allows the time-critical payment function to occur instantly while the time-consuming blockchain verification happens asynchronously in batches, resolving the contradiction between direct transaction capability and confirmation time.
Solution Approach 2:
The system performs preliminary actions by pre-selecting and prioritizing certain transactions for batch processing before others. High-priority transactions are identified and processed first in the batch, ensuring that critical payments receive expedited blockchain confirmation while maintaining the overall batch processing efficiency. This preliminary selection mechanism resolves the time contradiction by creating differentiated processing paths.
2Reliability
If cryptocurrency transactions are processed individually on the blockchain, then transaction security is maintained, but computational costs and network congestion increase
Solution Approach 1:
The patent merges multiple individual cryptocurrency transactions into consolidated batches for blockchain processing. Instead of recording each transaction separately on the blockchain, the system groups transactions into batches and processes them together as a single batch operation. This merging maintains the security of individual transactions while dramatically improving network efficiency and reducing computational costs by minimizing the number of separate blockchain operations required.
Solution Approach 2:
The system implements self-service mechanisms where the batch processing platform automatically selects, prioritizes, and processes transactions without requiring manual intervention for each individual transaction. The platform autonomously manages the batch creation, selection criteria application, and blockchain submission processes, resolving the contradiction by enabling efficient automated processing that maintains security while improving productivity.
3Loss of information
If all transactions are recorded on the blockchain in real-time, then transaction transparency is achieved, but processing speed becomes impractically slow
Solution Approach 1:
The patent implements periodic batch processing of transactions instead of continuous real-time blockchain recording. Transactions are collected over a predetermined time period and then processed together in periodic batches. This periodic approach maintains transaction transparency by eventually recording all transactions on the blockchain while achieving practical processing speeds through the efficient utilization of batch operations and prioritization mechanisms.
Solution Approach 2:
The batch processing platform serves as an intermediary layer between individual cryptocurrency transactions and the blockchain network. This intermediary consolidates multiple transactions, applies prioritization logic, and submits them to the blockchain as optimized batches. The intermediary resolves the contradiction by decoupling the speed of transaction initiation from the speed of blockchain recording, maintaining transparency while enabling fast processing.
4Reliability
If cryptocurrency wallet accounts are directly integrated with merchant accounts, then transaction security is improved, but system complexity increases
Solution Approach 1:
The patent introduces a batch processing platform as an intermediary system that manages the integration between cryptocurrency wallet accounts and merchant accounts. This intermediary layer handles the complex tasks of transaction selection, prioritization, batch creation, and blockchain submission, while presenting a simplified interface to both wallet users and merchants. The intermediary resolves the contradiction by encapsulating the system complexity within a dedicated management layer while maintaining security through controlled access and verification processes.
Data Source
AI summary
Techniques for integrating a payment processing platform (PPP) and a payment making platform (PMP) for differentiated payment allocations using cryptocurrency is described. In response to an indication to allocate a first portion of funds generated from payment received for transaction(s) processed by the PPP to a cryptocurrency wallet account for a user, the PMP can receive a request for first account information associated with the cryptocurrency wallet account. The PMP can send the first account information to the PPP, wherein the first account information is associated with second account information of a merchant account of the user. The PMP can receive, from the PPP, a request to deposit a first portion of the funds into the cryptocurrency wallet account, wherein a second portion of funds is retained by the PPP for deposit into the merchant account as fiat currency.