Fractional Security Asset Payment System
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Solution Overview
Problem
Security assets, such as stocks and bonds, are not commonly used for everyday payments due to longer transaction times, fluctuating values, and high transaction costs, making them impractical for merchants and customers.
Innovation Solution
A payment service system that allows users to manage and transfer security assets in fractions of their base units, facilitating purchases, sales, and payments using ledgers to record ownership interests, thereby reducing costs and improving efficiency.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If security assets are used as payment instruments, then investment diversification is improved, but transaction time increases
Solution Approach 1:
The patent segments security assets into fractional units, allowing payments to be made in fractions of base units rather than requiring whole units. This segmentation enables faster, more flexible transactions while maintaining investment diversification benefits, as users can transfer smaller, divided portions of security assets without waiting for full unit accumulation.
Solution Approach 2:
The payment service system acts as an intermediary between security asset holders and merchants, facilitating direct payment transactions. This intermediary platform enables real-time settlement and transfer of security assets, eliminating the time delays associated with traditional security transfer processes while allowing users to maintain diversified investment portfolios.
2Adaptability or versatility
If security assets are used for payments, then asset utilization is improved, but transaction costs increase
Solution Approach 1:
By enabling fractional transfers of security assets, the system allows users to make precise payments matching exact transaction amounts without needing to transfer entire base units. This reduces unnecessary transaction costs that would arise from transferring larger amounts than needed, while still achieving high asset utilization for everyday payments.
Solution Approach 2:
The patent changes the parameter of transferability from whole units only to fractional units, allowing arbitrary specified quantities. This parameter change enables more efficient asset utilization by matching payment amounts precisely to transaction needs, reducing excess transfers and associated costs while maintaining security asset liquidity.
3Stability of the object's composition
If security assets are transferred in whole units only, then exchange rules are maintained, but payment precision deteriorates
Solution Approach 1:
The patent divides security assets into fractional units while maintaining the integrity of the underlying asset structure. This segmentation allows precise payment amounts to be specified and transferred in fractions of base units, achieving payment precision without violating exchange rules, as the fractional representation still corresponds to valid ownership interests in the underlying security assets.
Solution Approach 2:
The system creates digital representations (copies) of security asset ownership in fractional units within the payment service system. These digital copies enable precise tracking and transfer of fractional interests without affecting the original whole-unit security structures maintained by exchanges, thus preserving exchange rules while achieving payment precision.
Data Source
AI summary
In one embodiment, techniques include a method of handling transactions for a pack of security assets. The method includes identifying a subset of a set of security assets for inclusion in the pack of security assets to be recommended to a user based on an analysis of one or more criteria associated with the user. The method includes causing an electronic device to display a user interface to facilitate a purchase of the pack. The method includes, in response to determining a user selection corresponding to a request to purchase the pack and a specified value of currency: calculating a number of base units of each security asset based on the existing value of a base unit of each security asset, including a fractional portion of the base unit; and assigning, for each security asset, ownership of the calculated number of base units of each security asset to the user.