Distributed Ledger Energy Transaction Smart Contract Automation
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Solution Overview
Problem
Legacy transaction management systems in energy production are slow, susceptible to cyber incursions, and hinder timely information flow, preventing new revenue opportunities and efficient asset use.
Innovation Solution
Implementing distributed ledger technology (DLT) and interactive smart contracts to facilitate the origination, negotiation, and execution of energy transactions, enabling secure, instant, and efficient processing across a network, while monitoring and updating contracts to comply with changing requirements.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If legacy transaction management systems are used, then existing infrastructure can be maintained, but processing speed is slow and security is vulnerable to cyber incursions
Solution Approach 1:
The patent replaces legacy mechanical transaction management systems with a distributed ledger technology (blockchain) system. This substitution eliminates centralized vulnerabilities while maintaining processing capability through distributed network nodes, simultaneously improving security and processing speed.
Solution Approach 2:
The patent introduces smart contracts as intermediary automated agreements that mediate between transaction parties. These self-executing contracts embedded in the blockchain system eliminate manual processing steps, enhance security through cryptographic verification, and accelerate transaction finalization.
2Productivity
If legacy transaction management systems are used, then current operational procedures can be maintained, but information flow is delayed and revenue opportunities are lost
Solution Approach 1:
The patent implements continuous real-time transaction processing and monitoring through the distributed ledger system. Information is updated and propagated across the network continuously as transactions occur, eliminating batch processing delays and enabling immediate visibility of transaction status for all participants.
Solution Approach 2:
The patent employs smart contracts that automatically execute transaction terms without human intervention. The system self-manages verification, validation, and settlement processes, eliminating manual information exchange delays and enabling instantaneous completion of transaction workflows.
3Adaptability or versatility
If manual contract monitoring and updating is performed, then compliance with requirements can be tracked, but operating costs are high and updates are delayed
Solution Approach 1:
The patent implements automated feedback mechanisms where smart contracts continuously monitor transaction compliance against encoded requirements and regulations. The system automatically detects deviations, triggers alerts, and executes corrective actions, providing real-time compliance feedback without manual intervention and reducing management complexity.
Data Source
AI summary
Methods and systems for improved creation, monitoring, and updating of energy transactions are provided. In one embodiment, a method is provided that includes receiving a request to originate a contract for an energy transaction. Transaction information concerning the energy transaction may be received and may identify a type of energy resource and parties for the energy transaction. A requirement for the energy transaction may be identified within the contract codex and at least one condition may be determined based on the requirement. An updated contract may be generated by adding the at least one condition to the contract. Information regarding the updated contract may be stored on the distributed ledger.