MBC Credit Card Ledger Architecture for Secure POS Exchanges
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Solution Overview
Problem
Existing MBC systems lack integration with traditional banking services, limiting their utility and security, particularly in managing deposits, credits, and transfers without relying on financial institutions for verification and insurance.
Innovation Solution
A banking system that integrates MBC with traditional financial institutions, utilizing a pooled MBC account and overlay ledger to manage MBC transactions, allowing for secure deposit, credit, and transfer services, while ensuring financial institutions take possession of MBC for insurance and lending purposes.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Speed
If MBC transactions are processed without financial institution involvement, then transaction speed and anonymity are improved, but security and reliability deteriorate
Solution Approach 1:
The patent introduces financial institutions as intermediary entities that verify and record MBC transactions through ledgers. The financial institution acts as a trusted mediator between senders and receivers, providing verification services that enhance transaction security while maintaining the decentralized nature of MBC. The institution validates transaction authenticity and maintains record-keeping without requiring users to directly trust each other.
Solution Approach 2:
The system implements feedback mechanisms where financial institutions provide transaction verification status and maintain ledgers that record transaction histories. This feedback loop allows the system to confirm successful transactions, detect potential fraud, and maintain accountability. The ledger updates and verification responses provide continuous feedback to users about their transaction status.
2Reliability
If financial institutions integrate with MBC systems, then security and insurance coverage are improved, but system complexity increases
Solution Approach 1:
The patent segments the MBC system into distinct functional layers: the decentralized MBC network layer for transaction initiation, the financial institution layer for verification and ledger maintenance, and the user interface layer for interaction. This segmentation allows each component to operate independently with well-defined interfaces, reducing overall system complexity while maintaining security benefits.
Solution Approach 2:
The financial institution system is designed to handle multiple functions: verifying MBC transactions, maintaining ledgers, providing insurance coverage, and interfacing with traditional banking systems. By creating a universal platform that performs all these functions, the patent reduces the need for separate specialized systems, thereby managing complexity while providing comprehensive services.
3Adaptability or versatility
If MBC is pooled by financial institutions for insurance and lending, then service versatility is improved, but loss of MBC control by users increases
Solution Approach 1:
The patent implements preliminary actions where users explicitly authorize the pooling of their MBC with financial institutions through smart contracts or agreement protocols. Before pooling occurs, users can specify terms, conditions, and limits. This preliminary authorization ensures users maintain control over their assets while enabling the financial institution to provide insurance and lending services with user consent.
Solution Approach 2:
The system dynamically adjusts the level of user control based on the specific service being accessed. For insurance services, users may retain full control with optional pooling. For lending services, users can set credit limits and terms. The pooling arrangement is not static but adapts to user needs and service requirements, maintaining flexibility and user agency while enabling versatile financial services.
Data Source
AI summary
Embodiments include a method of performing math based currency (“MBC”) exchanges. One method includes receiving an exchange request from a merchant point-of-sale (POS) system and determining a merchant POS system accepts MBC payments. The method further includes exchanging, on a published blockchain, an amount of MBC equal to an amount to an MBC account of the merchant POS system and updating a pooled account database. The method further includes updating an overlay ledger to modify an MBC balance of the MBC credit card account held by the customer and broadcasting the exchange to a plurality of MBC verification nodes for verification.