Cryptocurrency Payment Platform for Automated Error Correction
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Solution Overview
Problem
Existing systems fail to address the unique challenges of cryptocurrency transactions, including control issues, volatility, finality, and exchange-rate-disparity, leading to underpayments, overpayments, and late payments, which hinder merchant adoption of cryptocurrency as a viable payment method.
Innovation Solution
A digital currency payment platform and method that enables recipients to automatically process cryptocurrency payments, making programmatic decisions based on logic and thresholds to determine underpayments, overpayments, or late payments, and adjust transactions accordingly.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If cryptocurrency transactions are made irreversible to prevent fraud, then security is improved, but the ability to correct payment errors is worsened
Solution Approach 1:
The patent introduces a payment processing platform as an intermediary between payor and payee. This platform receives cryptocurrency payments, monitors them for errors, and coordinates corrections through automated workflows. The intermediary enables the irreversible blockchain transaction to be part of a reversible correction process by capturing payment metadata and enabling coordinated refunds or top-ups without requiring blockchain transaction reversals.
2Speed
If cryptocurrency payments are processed instantly to improve speed, then transaction speed is improved, but the ability to verify payment accuracy is worsened
Solution Approach 1:
The patent implements preliminary actions by capturing and storing payment metadata (expected amount, exchange rate, timestamp) before the cryptocurrency transaction is finalized on the blockchain. The system prepares correction workflows in advance and monitors incoming payments against pre-established criteria, enabling immediate detection and correction of errors without delaying the original transaction.
3Productivity
If automated payment processing is implemented to improve efficiency, then productivity is improved, but the complexity of the system is worsened
Solution Approach 1:
The patent implements feedback mechanisms where the payment processing platform continuously monitors incoming cryptocurrency payments, compares actual payments against expected payments using stored metadata, and automatically triggers correction workflows when discrepancies are detected. The system provides notifications to merchants and automatically executes refunds or top-ups based on pre-configured rules, creating a closed-loop system that improves efficiency while managing complexity through automation.
Data Source
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AI summary
As disclosed herein is a novel cryptocurrency payment platform and a method of use thereof. The cryptocurrency payment platform includes an application programming interface (API) that allows for the recipient of a cryptocurrency payment from a payor to be able to accept a payment that is different from the amount of cryptocurrency invoiced. The platform also provides the recipient the ability to make programmatic decisions whether to accept or refund cryptocurrency amounts and provide, via the API, the ability to then accept or refund the cryptocurrency. The cryptocurrency payment platform API further permits merchant to be made aware when a late payment has been made, become informed of the amount in fiat currency that the late payment is worth at that point in time, and provide the ability to accept or refund the cryptocurrency.