Loan Processing Service Using Distributed Ledger Digital Asset Collateral

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Solution Overview

Problem

Conventional loan processing services face high transaction fees and volatility due to centralized currency systems, limiting their effectiveness and accessibility, especially for unbanked and under-banked populations.

Innovation Solution

A loan processing service utilizing a distributed ledger digital asset as collateral, allowing for the transmission and conversion of decentralized digital assets like Bitcoin, enabling loan processing and payment systems that reduce transaction fees and volatility by leveraging decentralized networks.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If centralized currency systems are used for loan processing, then loan processing can be performed through traditional channels, but transaction fees are high and volatility is increased

Engineering Contradiction:

Improveloan processing stabilityVSAvoidtransaction fees

Core Design Contradiction:

ReliabilityVSLoss of energy

Solution Approach 1:

The patent introduces a distributed ledger digital asset as an intermediary medium between the lender and borrower. Instead of using traditional centralized currency systems directly, the loan is processed through this digital asset that operates on a decentralized network, thereby reducing transaction fees while maintaining processing reliability

Inventive Principle:

Principle #24Intermediary (Mediator)

Solution Approach 2:

The patent replaces the mechanical system of centralized currency processing with a decentralized digital asset system. The traditional centralized currency infrastructure is substituted with a distributed ledger technology that automatically processes loans, reducing intermediary fees and improving efficiency

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

2Ease of operation

If centralized currency systems are used for loan processing, then traditional loan channels are available, but accessibility to unbanked and under-banked populations is limited

Engineering Contradiction:

Improveloan processing accessibilityVSAvoidsystem infrastructure requirements

Core Design Contradiction:

Ease of operationVSDevice complexity

Solution Approach 1:

The patent enables self-service loan processing through the distributed ledger digital asset system. Users can access loan services directly through the decentralized network without requiring traditional banking infrastructure, making the system accessible to unbanked and under-banked populations while reducing the complexity of centralized infrastructure requirements

Inventive Principle:

Principle #25Self-service

3Productivity

If decentralized digital assets are used for loan processing, then transaction fees are reduced and accessibility is improved, but volatility and inflation risks may increase

Engineering Contradiction:

Improveloan processing efficiencyVSAvoidcurrency value stability

Core Design Contradiction:

ProductivityVSStability of the object's composition

Solution Approach 1:

The patent changes the parameters of the digital asset system by implementing mechanisms that adjust the digital asset's properties to reduce volatility. This includes modifying the digital asset's composition or characteristics to maintain value stability while preserving the efficiency benefits of decentralized processing

Inventive Principle:

Principle #35Parameter changes

Data Source

PatentUS20180075421A1Loan processing service utilizing a distributed ledger digital asset as collateral

Publication Date: 2018.03.15 RIPIO HLDG

AI summary

Systems, methods, and computer-readable media for a loan processing service utilizing a distributed ledger digital asset as collateral are provided.