Cryptocurrency Rules Engine for Fast International Transfers

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Solution Overview

Problem

Existing money transfer systems face inefficiencies in transferring funds across borders due to reliance on traditional banking networks, which are time-consuming and costly, and lack effective identity verification and regulatory compliance mechanisms.

Innovation Solution

Implementing a blockchain-based system that utilizes cryptocurrency exchanges to facilitate money transfer transactions by selecting optimal cryptocurrencies and exchanges based on real-time data, and employing identity authentication through blockchain-recorded government IDs and biometrics to ensure regulatory compliance.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Speed

If traditional banking networks are used for international money transfers, then regulatory compliance and security are maintained, but transfer speed is slow and costs are high

Engineering Contradiction:

Improvetransfer speedVSAvoidsystem complexity

Core Design Contradiction:

SpeedVSDevice complexity

Solution Approach 1:

The patent introduces blockchain technology as an intermediary layer between traditional banking systems. The blockchain network acts as a mediator that enables direct peer-to-peer transactions while maintaining regulatory compliance through integrated KYC/AML verification mechanisms, thereby speeding up transfers without completely abandoning traditional banking infrastructure

Inventive Principle:

Principle #24Intermediary (Mediator)

Solution Approach 2:

The system segments the money transfer process into distinct modular components: identity verification module, cryptocurrency conversion module, blockchain transaction module, and traditional banking settlement module. This segmentation allows each component to operate independently and optimally, improving overall transfer speed while managing complexity through modular architecture

Inventive Principle:

Principle #1Segmentation

2Productivity

If blockchain-based cryptocurrency system is implemented, then transfer speed and cost-effectiveness are improved, but regulatory compliance and identity verification mechanisms are insufficient

Engineering Contradiction:

Improvetransfer efficiencyVSAvoidregulatory compliance

Core Design Contradiction:

ProductivityVSReliability

Solution Approach 1:

The system performs preliminary identity verification and KYC/AML checks before cryptocurrency transactions are initiated. User identities are verified and recorded on the blockchain in advance, ensuring that all subsequent transactions automatically comply with regulatory requirements without needing additional verification steps during the transfer process

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

The blockchain platform is designed with multi-functionality, serving both as a high-speed transaction ledger and as a regulatory compliance verification system. The same blockchain infrastructure that enables fast cryptocurrency transfers also hosts and verifies KYC/AML data, eliminating the need for separate compliance systems and ensuring reliability

Inventive Principle:

Principle #6Universality (Multi-functionality)

3Adaptability or versatility

If multiple cryptocurrencies and exchanges are monitored and selected dynamically, then optimal transfer routes are found, but system complexity and data processing requirements increase

Engineering Contradiction:

Improvecryptocurrency selection flexibilityVSAvoidrules engine complexity

Core Design Contradiction:

Adaptability or versatilityVSDevice complexity

Solution Approach 1:

The rules engine dynamically adjusts evaluation parameters for different cryptocurrencies based on real-time market conditions. It monitors and weights factors such as transaction fees, confirmation times, network congestion levels, and exchange liquidity, automatically changing which cryptocurrencies are deemed optimal for transfer without requiring manual intervention or complex hardcoded logic

Inventive Principle:

Principle #35Parameter changes

4Measurement precision

If real-time monitoring of cryptocurrency exchanges is performed, then optimal exchange selection is achieved, but data processing time and computational resources increase

Engineering Contradiction:

Improveexchange selection accuracyVSAvoiddata processing time

Core Design Contradiction:

Measurement precisionVSLoss of time

Solution Approach 1:

The system implements periodic monitoring of cryptocurrency exchanges at optimized intervals rather than continuous monitoring. The rules engine periodically queries exchange APIs for price and liquidity data at predetermined intervals, balancing the need for accurate exchange selection with the constraint of minimizing data processing time and computational resource consumption

Inventive Principle:

Principle #19Periodic action

Data Source

PatentUS11954732B2Rules engine and method for evaluating a plurality of cryptocurrencies

Publication Date: 2024.04.09 MONEYGRAM INTERNATIONAL INC

AI summary

A system and method is disclosed for evaluating a plurality of cryptocurrencies, the method comprising monitoring and storing volatility data for a plurality of cryptocurrency exchanges; analyzing the stored volatility data to generate one or more risk forecasts indicating risks associated with purchasing cryptocurrency through each of the cryptocurrency exchanges; determining a number of transaction factors for purchasing cryptocurrencies and selecting a cryptocurrency based on the transaction factors.