Distributed Ledger Micropayments for Private Instant Settlement

Resolve Bottlenecks,
Find Innovative SolutionsGenerate Solutions

Solution Overview

Problem

Existing commerce payment systems face high transaction costs, consumer privacy issues, delayed payment receipt for merchants, and lack of transparency in payment distribution to multiple parties, particularly in e-commerce transactions.

Innovation Solution

A micropayment platform utilizing a distributed ledger to validate and record transactions, enabling secure, transparent, and cost-effective payments without sharing consumer financial information, allowing immediate payment distribution to multiple parties.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If traditional payment systems (credit cards, debit cards) are used for e-commerce transactions, then consumers can make purchases, but transaction costs are high for merchants and consumer financial information is exposed to security risks

Engineering Contradiction:

Improvepayment securityVSAvoidconsumer information exposure

Core Design Contradiction:

ReliabilityVSObject-affected harmful factors

Solution Approach 1:

The patent introduces a micropayment system as an intermediary layer between consumers and merchants. This system uses distributed ledger technology to enable direct peer-to-peer transactions without requiring consumers to share sensitive financial information with merchants, thus maintaining security while enabling payments

Inventive Principle:

Principle #24Intermediary (Mediator)

Solution Approach 2:

The patent creates digital representations of payment obligations through smart contracts on the distributed ledger. These digital copies of payment instructions can be executed automatically without exposing actual card details, replacing the need to share sensitive financial information

Inventive Principle:

Principle #26Copying

2Productivity

If merchants use traditional payment processors to receive payments, then payments can be processed, but merchants experience significant delays in receiving payments and incur high transaction fees

Engineering Contradiction:

Improvepayment processing speedVSAvoidpayment receipt delay

Core Design Contradiction:

ProductivityVSLoss of time

Solution Approach 1:

The patent enables merchants to receive payments directly through the distributed ledger system without relying on traditional payment processors. The automated smart contract execution allows merchants to collect payments immediately upon fulfillment of transaction conditions, eliminating intermediary delays and reducing fees

Inventive Principle:

Principle #25Self-service

Solution Approach 2:

The distributed ledger operates continuously and validates transactions in real-time, allowing payments to be processed and settled immediately without the batch processing delays inherent in traditional payment systems

Inventive Principle:

Principle #20Continuity of useful action

3Loss of information

If traditional payment models are used for multi-party transactions, then payments can be made, but transparency and trust are limited due to hub-and-spoke record keeping models

Engineering Contradiction:

Improvetransaction transparencyVSAvoidrecord keeping system

Core Design Contradiction:

Loss of informationVSDevice complexity

Solution Approach 1:

The patent segments the centralized payment record-keeping function into distributed nodes across the network. Each participant maintains their own copy of the ledger, eliminating the need for a central hub and enabling transparent verification of all transactions by all parties

Inventive Principle:

Principle #1Segmentation

Solution Approach 2:

The distributed ledger serves multiple functions simultaneously: it acts as a transaction record, a verification system, a smart contract execution platform, and a transparent audit trail for all participants, replacing multiple separate systems with a single universal platform

Inventive Principle:

Principle #6Universality (Multi-functionality)

4Loss of energy

If merchants require minimum transaction amounts or aggregate transactions, then transaction costs can be reduced, but merchants face delays in receiving payments

Engineering Contradiction:

Improvetransaction costVSAvoidpayment delay

Core Design Contradiction:

Loss of energyVSLoss of time

Solution Approach 1:

The patent changes the economic parameters of small transactions by using cryptocurrency or digital asset settlements on the distributed ledger. This enables micropayments to be processed with minimal or no fees, eliminating the need for minimum transaction amounts or aggregation while maintaining cost-effectiveness

Inventive Principle:

Principle #35Parameter changes

Data Source

PatentUS12555091B2Microtransaction system

Publication Date: 2026.02.17 DROPP INC

AI summary

A method of effecting a transaction with a micropayment platform that includes a merchant-participant, a consumer-participant, a micropayment system, and a distributed ledger, the method includes receiving by the micropayment system from the merchant-participant a digital promise to pay document (DPP), validating the DPP by the micropayment system, the DPP including at least a payable amount, which includes an amount payable to the merchant-participant; sending a message to the merchant-participant indicating that the amount payable to the merchant-participant is available by checking an account associated with the consumer-participant; creating a transaction file based on the DPP, and recording the transaction file in the distributed ledger by the micropayment system; debiting from the account associated with the consumer-participant an amount corresponding to the amount payable to the merchant-participant; crediting an account of the merchant-participant with an amount indicated to be payable to the merchant-participant.