Digital Holding Account Bridging Protocol for Payment Ecosystems
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Solution Overview
Problem
Existing digital payment systems are incompatible due to proprietary technologies, communication protocols, and data structures, making seamless interactions between different payment ecosystems challenging, particularly at merchant POS terminals.
Innovation Solution
A bridging protocol and digital holding account system that uses machine executable instructions to orchestrate communication between incompatible digital payment systems, validate transactional integrity, and facilitate currency transfers across multiple digital wallet systems, employing a unique identifier and distributed ledger technology to ensure secure and compatible transactions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If proprietary payment technologies and communication protocols are used in digital payment systems, then each system can maintain its own security and functionality, but compatibility and seamless interaction between different payment ecosystems deteriorate
Solution Approach 1:
The patent implements a bridging protocol that acts as an intermediary layer between incompatible digital payment systems. This protocol translates communication protocols, data structures, and transaction formats between different proprietary ecosystems, enabling seamless interaction while preserving each system's original security and functionality. The bridging protocol receives transactions from source payment systems, converts them to compatible formats, and forwards them to destination systems, thus resolving the compatibility issue without compromising system integrity
2Speed
If direct currency transfer between incompatible digital wallet systems is attempted, then transaction speed may be maintained, but transactional integrity and security validation deteriorate
Solution Approach 1:
The patent implements preliminary validation actions through the bridging protocol before transactions are finalized. The protocol performs transactional integrity checks, validates data formats, verifies cryptographic signatures, and ensures compliance with both source and destination system requirements before allowing currency transfer. This preliminary validation maintains security and integrity without significantly impacting transaction speed, as the validation processes are integrated into the transaction flow
3Adaptability or versatility
If a bridging protocol is implemented to enable communication between incompatible systems, then compatibility and seamless interaction improve, but system complexity increases
Solution Approach 1:
The patent implements a universal bridging protocol that can handle multiple digital payment systems through a single standardized interface. The protocol is designed to be multi-functional, supporting various communication protocols, data structures, and transaction types across different proprietary ecosystems. This universal approach reduces overall system complexity by providing a single translation layer rather than requiring separate integration mechanisms for each payment system pair
Data Source
AI summary
As the world progresses towards a cashless payment society, there has been a rise in the various forms of emerging payment technologies. Such technologies may include digital wallet payment systems. There is a need for a bridging protocol and conversion engine that would connect gaps between these various emerging payment technologies and their respective proprietary ecosystems. There is also a need for a digital holding account that provides a protective layer to fund transfers between cashless ecosystems. The digital holding account may hold and monitor currency processed by the conversion engine. Such currency would not be transferred directly into checking account. The digital holding account may be subject to rigorous validations to scrutinize the source and destination of transferred currency. Validation may include checking distributed ledger transaction records of prior transfers of the received currency.