Distributed-Ledger Road User Charges With Smart Contract Settlement
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Solution Overview
Problem
Existing road-use fee collection systems are inadequate for vehicles using non-petroleum energy sources, lack standardization across propulsion types, and are geographically fixed, relying on centralized infrastructure, leading to inefficiencies and high latency.
Innovation Solution
A decentralized, infrastructure-agnostic framework using Distributed Ledger Technology (DLT) for Road User Charges (RUC) that segments trips into jurisdiction-specific segments, utilizing smart contracts and AI for real-time pricing adjustments, enabling secure, auditable, and scalable fee collection across any roadway.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If centralized tolling systems with physical infrastructure are used, then fee collection is established for specific roads, but the system becomes geographically fixed and infrastructure-dependent
Solution Approach 1:
The patent replaces physical toll infrastructure (gantries, plazas, mechanical barriers) with a digital system based on distributed ledger technology. Road user charges are collected through software-based smart contracts that execute automatically on the DLT network, eliminating the need for physical toll collection infrastructure while maintaining reliable fee collection across all geographic locations.
Solution Approach 2:
The distributed ledger system provides a universal platform that can collect road user charges across multiple jurisdictions and roadway types without requiring separate physical infrastructure for each location. The same digital currency system and smart contract mechanism serve all toll authorities and geographic areas, enabling the system to adapt to any location rather than being fixed to specific physical sites.
2Reliability
If traditional tolling systems are used, then fees are collected for limited-access roads, but the system cannot charge vehicles using non-petroleum energy sources
Solution Approach 1:
The system changes the fundamental parameter of what constitutes valid payment from petroleum-based fuel tax to a universal digital currency that can be held and transferred by any vehicle regardless of propulsion type. Electric vehicles, hydrogen fuel cell vehicles, and other alternative propulsion vehicles can all participate by holding digital currency in their wallets, enabling the system to adapt to all propulsion types while maintaining reliable fee collection.
3Device complexity
If centralized billing systems are used, then fee collection is simplified, but latency increases and memory requirements become unbounded
Solution Approach 1:
The patent segments the centralized billing system into distributed smart contracts deployed across multiple nodes in the DLT network. Each jurisdiction and toll authority has its own smart contract instances that process transactions locally, eliminating the need for all transactions to travel to a central billing system. This segmentation reduces latency by enabling parallel processing across the distributed network while maintaining simplified fee collection through automated smart contract execution.
4Ease of manufacture
If manual reporting and generic blockchain transactions are used, then system implementation is straightforward, but communication overhead increases and efficiency decreases
Solution Approach 1:
The smart contracts are programmed to automatically execute fee collection and disbursement operations without requiring manual reporting or intervention. When a vehicle passes through a toll zone, the smart contract automatically detects the event, calculates the applicable fee based on pre-programmed rate structures, deducts the charge from the vehicle owner's digital wallet, and transfers funds to the appropriate toll authority. This self-service automation eliminates communication overhead associated with manual reporting while maintaining ease of implementation through standardized smart contract templates.
Data Source
AI summary
A system and method for facilitating collection of Road User Charges (RUC) using a digital currency within a Distributed Ledger Technology (DLT) network are disclosed. The system generates secure digital wallets for Road Users and Facility Owners, receives trip, position, distance, and cost data from vehicles, sensors, and facility systems, and encodes settlement logic into smart contracts. These contracts automatically execute jurisdiction-specific disbursements across blockchain, directed acyclic graph (DAG), or hashgraph frameworks, ensuring scalability and auditability without reliance on centralized tolling infrastructure. An AI Activity Module processes multi-source telemetry—including vehicle sensors, GNSS/PNT data, roadside infrastructure, and third-party traffic feeds—to detect congestion, forecast conditions, optimize routing, and dynamically adjust segment-level RUC pricing in real time. The integration of AI-driven adaptive pricing with distributed ledger settlement provides a decentralized, infrastructure-agnostic framework for secure, transparent, and verifiable road use fee collection across multiple jurisdictions, distinct from conventional tolling systems.