Interoperable On-chain Off-chain Banking System
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Solution Overview
Problem
Current financial transaction systems face challenges in cross-verification and reconciliation of off-chain and on-chain beneficiary and recipient account details, leading to inefficiencies in clearing and settlement processes, particularly in cross-border transactions, due to lack of interoperability and visibility of transaction data.
Innovation Solution
A computer-implemented payment and banking system utilizing AI-driven microservices for managing transactions, integrating open and core banking systems with blockchain technology, smart contracts, and near-frequency communication for real-time data exchange and synchronization across on-chain and off-chain platforms, ensuring data integrity and immutability.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If traditional centralized banking systems are used for transaction processing, then system stability and control are maintained, but interoperability with blockchain systems and real-time verification capabilities are limited
Solution Approach 1:
The patent introduces an intermediary layer that includes blockchain nodes, smart contracts, and messaging systems that act as mediators between traditional banking systems and blockchain-based payment systems. This intermediary layer enables communication and data exchange between the two previously incompatible systems, allowing real-time verification of account details while maintaining the stability of traditional systems.
Solution Approach 2:
The system architecture is designed to be universal by supporting multiple types of transactions (on-chain and off-chain), multiple currencies (fiat and cryptocurrency), and multiple communication protocols (ISO standards and near-frequency communication). This multi-functionality allows a single system to handle diverse transaction types without requiring separate specialized systems.
2Loss of time
If real-time verification and synchronization of account details between on-chain and off-chain systems is implemented, then clearing and settlement times are reduced, but system complexity and data synchronization requirements increase
Solution Approach 1:
The patent implements continuous real-time verification and synchronization mechanisms that operate continuously without interruption. Blockchain nodes continuously monitor and verify transaction data, while smart contracts automatically execute reconciliation processes. This continuous operation eliminates batch processing delays and achieves real-time settlement without requiring complex periodic synchronization cycles.
Solution Approach 2:
The system employs self-service mechanisms where smart contracts automatically perform verification, validation, and reconciliation of account details without requiring manual intervention. The blockchain network itself provides the verification service through its consensus mechanisms, and the system automatically detects and resolves discrepancies between on-chain and off-chain records, reducing the need for complex external synchronization infrastructure.
3Productivity
If AI-driven microservices and multiple communication protocols are integrated for transaction management, then transaction efficiency and modernization are accelerated, but system complexity and integration requirements increase
Solution Approach 1:
The patent segments the transaction management system into independent microservices, each handling specific functions such as transaction routing, verification, settlement, and reporting. These modular microservices can be developed, deployed, and maintained independently, reducing integration complexity while maintaining high transaction efficiency. Each microservice can be optimized for its specific function without affecting the entire system.
Solution Approach 2:
The system employs dynamic routing and protocol selection mechanisms that adapt to transaction requirements in real-time. AI-driven components dynamically determine the optimal communication protocol and processing path for each transaction based on current system conditions, transaction type, and priority. This dynamic approach allows the system to handle diverse transactions efficiently without requiring static, overly complex integration architecture.
Data Source
AI summary
A computer-implemented payment and banking system, includes a gateway microservice system comprising proxying, authenticating, logging, routing, and monitoring functionality for managing systems, requests, and responses, enabling the orchestration of communication between a plurality of upstream and downstream systems, an open and/or core banking system enabling functionality comprising authentication, transmission, and receipt of data and/or transactions between a plurality of upstream and downstream systems, an account management system synchronized with the open and/or core banking system facilitating actions comprising buying, selling, transferring, depositing, withdrawing, and exchanging of fungible assets, and a data storage system for storing, retrieving, updating, and synchronizing data.