Frozen Digital Currency Payment via Smart Contract Verification

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Solution Overview

Problem

In existing pre-payment scenarios, users are unable to refund pre-paid currency if the service provider terminates the service before the user completes their service, leading to reduced transaction security and unprotected user interests.

Innovation Solution

A digital currency-based payment method and system utilizing pre-configured smart contracts to freeze pre-paid digital currency, ensuring it cannot be used by the service provider until verified, and allowing for the generation and return of unused digital currency to the user.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Ease of operation

If pre-paid currency is directly paid to service provider account, then service provider can use the currency freely, but user cannot refund and transaction security is reduced

Engineering Contradiction:

Improveservice provider's ability to use pre-paid currencyVSAvoidtransaction security and user refund capability

Core Design Contradiction:

Ease of operationVSReliability

Solution Approach 1:

The patent applies preliminary action by creating a frozen digital currency state before the service is actually provided. The pre-payment deposit smart contract freezes the digital currency in a predetermined state, preventing the service provider from using it until the service conditions are met. This resolves the contradiction by allowing the service provider to receive and manage the funds (ease of operation) while the freezing mechanism ensures they cannot spend it prematurely (transaction security).

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

The patent implements dynamics by introducing multiple states for digital currency (frozen state, available state, revoked state) that can transition based on service fulfillment. The pre-payment verification smart contract dynamically changes the currency state from frozen to available only when service conditions are met, or from frozen to revoked if service is not provided. This dynamic state management resolves the contradiction between provider access and user protection.

Inventive Principle:

Principle #15Dynamics

2Reliability

If pre-paid currency is frozen using smart contract, then transaction security is improved, but service provider cannot use the currency until verification

Engineering Contradiction:

Improvetransaction securityVSAvoidservice provider's ability to use pre-paid currency

Core Design Contradiction:

ReliabilityVSEase of operation

Solution Approach 1:

The smart contract performs preliminary verification of service fulfillment conditions before releasing the frozen digital currency to the service provider. This ensures transaction security by confirming the service was actually provided (improving reliability) while still allowing the provider to access and use the funds once conditions are met (restoring ease of operation).

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

The pre-payment verification smart contract enables self-service by automatically verifying service fulfillment and releasing funds without requiring manual intervention from the user. This maintains transaction security through automated verification while improving ease of operation by eliminating the need for user approval or manual fund release processes.

Inventive Principle:

Principle #25Self-service

3Reliability

If unused pre-paid currency is revoked and returned to user, then user interests are protected, but requires additional verification process

Engineering Contradiction:

Improveuser refund capabilityVSAvoidverification process complexity

Core Design Contradiction:

ReliabilityVSDevice complexity

Solution Approach 1:

The pre-payment verification smart contract implements self-service by automatically verifying whether service conditions have been met and determining whether to release or revoke the frozen digital currency. This protects user interests through automated verification (improving reliability) while reducing process complexity by eliminating manual verification steps (reducing device complexity).

Inventive Principle:

Principle #25Self-service

Solution Approach 2:

The smart contract provides feedback by automatically monitoring service fulfillment conditions and responding by either releasing or revoking the frozen digital currency. This feedback mechanism ensures user protection through continuous verification (improving reliability) while streamlining the process through automation (reducing complexity).

Inventive Principle:

Principle #23Feedback

Data Source

PatentUS20240281802A1Digital Currency-Based Payment Method, Platform and System, and Terminal

Publication Date: 2024.08.22 THE PEOPLES BANK OF CHINA DIGITAL CURRENCY INST

AI summary

The present disclosure relates to a digital currency-based payment method, platform and system, and a terminal, and relates to the technical field of computers. An implementation of the method includes: receiving a target payment request for a first digital currency in a frozen state, the first digital currency in the frozen state being generated based on a pre-payment request and a pre-configured pre-payment deposit smart contract; generating a second digital currency according to a target payment amount indicated by the target payment request, the first digital currency, and a pre-configured pre-payment verification smart contract; and sending the second digital currency to a first account corresponding to the first digital currency. The implementation improves the transaction security, and is conducive to protecting the rights and interests of a user.