Cryptographic Ledger Real-Time Telecommunications Settlement
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Solution Overview
Problem
The current telecommunications billing system is time-consuming and creates barriers to entry for new providers due to the need for substantial upfront payments, as settlements are typically made on a monthly basis.
Innovation Solution
Implementing a real-time settlement system using a cryptographic ledger and cryptocurrency wallets to manage payments for telecommunications channels, allowing for immediate tracking and settlement of usage, facilitated by a channel monitor that generates and signs payment transactions at regular intervals and publishes them on a distributed ledger.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Loss of time
If monthly billing settlement is used, then billing accuracy is maintained, but settlement time is excessive and barriers to entry are high
Solution Approach 1:
The patent replaces the traditional mechanical billing system with a cryptographic ledger system. Instead of monthly batch processing and manual reconciliation, the system uses blockchain technology to automatically record and settle payments in real-time as telecommunications services are consumed, eliminating the time delay while maintaining accuracy through cryptographic verification
Solution Approach 2:
The cryptographic ledger system enables self-service billing where the network automatically generates transactions, records usage, and settles payments without human intervention. The channel monitor automatically creates payment transactions on the blockchain as services are consumed, and the system self-reconciles without requiring manual billing operations
2Productivity
If real-time settlement is implemented, then operational efficiency is improved, but system complexity increases
Solution Approach 1:
The cryptographic ledger serves multiple functions simultaneously: it acts as a transaction record, a settlement mechanism, a reconciliation system, and a payment verification database. This multi-functionality enables real-time billing efficiency while consolidating what would otherwise require multiple separate complex systems into a single unified blockchain infrastructure
3Adaptability or versatility
If monthly billing cycle is used, then financial control is maintained, but new providers face high entry barriers
Solution Approach 1:
The system requires providers to pre-fund their cryptocurrency wallets before providing services. This preliminary action replaces the need for large monthly retainers with a smaller upfront cryptocurrency deposit, enabling new providers to enter the market with less capital while maintaining financial control through the blockchain record
Data Source
AI summary
Described is cryptographically managed telecommunications settlement occurring in real time with generation and termination of a telecommunications channel. Upon the generation of a communications channel, a contract fund is established between two or more telecommunications services and recorded on a cryptographic ledger. Over the course of regular intervals of channel service, cryptocurrency is released from the contract fund. Upon termination of the communications channel, the released amount of the contract fund is transferred to the receiving provider telecommunications, the remainder back to the requesting telecommunications service. Transactions between cryptocurrency wallets are all published to the cryptographic ledger.