Distributed Ledger Ownership Transfer for In-Transit Goods
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Solution Overview
Problem
Current systems lack efficient solutions for tracking and transferring ownership of goods in transit over long distances, particularly for commercial shipments, leading to inaccuracies in liability and payment timing due to reliance on fixed lead times rather than actual distance traveled, and lack real-time tracking and invoicing capabilities.
Innovation Solution
Implementing a decentralized ledger system integrated with IoT sensors and Edge Computing to track the physical movement of goods in real-time, using GPS and other sensors to determine milestones and trigger smart contracts for ownership transfer and freight invoicing based on actual distance covered.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If fixed lead time is used to determine ownership transfer, then simplicity of process is maintained, but accuracy of ownership transfer timing deteriorates
Solution Approach 1:
The patent replaces the mechanical/time-based system of fixed lead time tracking with a distributed ledger system that uses GPS coordinates and blockchain technology to automatically determine ownership transfer. This substitution enables precise tracking of actual shipment progress while maintaining automated process execution through smart contracts.
Solution Approach 2:
The distributed ledger acts as an intermediary between the shipment tracking system and the ownership transfer mechanism. It receives GPS data, verifies milestone achievement, and triggers ownership transfer automatically, eliminating the need for manual timing calculations while ensuring accuracy.
2Measurement precision
If real-time tracking with IoT sensors is implemented, then accuracy of shipment progress monitoring is improved, but device complexity increases
Solution Approach 1:
The distributed ledger system serves multiple functions: it tracks shipment progress, verifies milestone achievement, triggers ownership transfer, and records invoicing events. This multi-functionality reduces the need for separate systems for each function, thereby managing complexity while maintaining high monitoring accuracy.
Solution Approach 2:
The system uses the existing GPS infrastructure already present in modern vehicles and shipping containers. Rather than deploying new specialized tracking devices, the patent leverages universally available GPS technology, reducing device complexity while maintaining real-time tracking accuracy.
3Reliability
If ownership transfer is based on actual distance covered, then alignment of liabilities with shipment progress is improved, but difficulty of detecting and measuring increases
Solution Approach 1:
The patent replaces manual measurement and verification processes with automated GPS-based distance calculation and blockchain verification. This substitution makes it easier to detect and measure actual progress while ensuring reliable alignment of liabilities with shipment milestones.
Solution Approach 2:
The distributed ledger serves as an intermediary that automatically calculates distance based on GPS coordinates, verifies milestone achievement, and triggers ownership transfer. This eliminates the need for manual measurement while ensuring accurate and reliable tracking of shipment progress.
4Reliability
If decentralized ledger system is implemented, then transparency and security of ownership transfer are improved, but device complexity increases
Solution Approach 1:
The distributed ledger system is self-managing and self-verifying. Once deployed, it automatically processes milestone verification and ownership transfer without requiring ongoing manual intervention or complex management infrastructure, thereby reducing operational complexity while maintaining high security and transparency.
Solution Approach 2:
The decentralized ledger system performs multiple critical functions including milestone verification, ownership transfer execution, and invoicing trigger events. This consolidation of functions into a single system reduces overall complexity compared to having separate systems for each function, while maintaining transparency and security.
Data Source
AI summary
In a distributed ledger (DLT) network, a transaction, related to movement of a monitored entity from a first party's location to a second party's location, is monitored. The transaction is associated with a respective real-time status and with at least a first predetermined milestone. Sensor outputs from an IoT enabled sensor that is operably coupled to the monitored entity, are received while the monitored entity is located remotely from the first and second parties during its movement from the first location to the second location. Updates to a real-time status of the monitored entity, relating to progress towards a milestone, are determined based on the received sensor outputs. The transaction is updated, in real time, on the DLT network when the milestone is reached. Information is communicated relating to the update of the transaction and the first predetermined milestone, in real-time, to the first party and the second party.