Modular Blockchain Interface for Bank Core Integration
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Solution Overview
Problem
Traditional financial institutions face challenges in integrating with various distributed ledger technologies due to the need for manual processes and potential errors, and existing solutions lack a dynamic interface capable of seamlessly interacting with both bank core systems and blockchain ecosystems.
Innovation Solution
A modular interface system that integrates traditional finance with distributed ledger technology, utilizing modules such as adaptor, UI, blockchain integration, and orchestration modules to facilitate secure, fast, and cost-effective transactions across different bank and blockchain systems.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If manual processes are used for loan authorization and wire transfers, then flexibility and control are maintained, but processing time increases and error rates rise
Solution Approach 1:
The patent introduces an intermediate entity that acts as a mediator between traditional banking systems and blockchain ecosystems. This intermediary orchestrates transactions, manages tokenized representations of bank assets and liabilities, and coordinates between different systems, thereby reducing errors through standardized processes while maintaining integration flexibility without requiring complete automation of all manual steps
Solution Approach 2:
The system segments the transaction process into distinct modular components: traditional banking system operations, tokenization layer, blockchain transaction execution, and reconciliation processes. This segmentation allows manual processes to be preserved where needed while automating specific high-risk or time-consuming steps, balancing reliability improvement with minimal time loss
2Adaptability or versatility
If existing intermediate entity solutions are used to orchestrate tokenized bank assets, then integration between banking and blockchain is enabled, but adaptability to different bank core systems and blockchain ecosystems is limited
Solution Approach 1:
The patent designs the intermediate entity with universal interface capabilities that can adapt to multiple different bank core systems and blockchain ecosystems through standardized protocols and configurable connection modules. This allows a single system architecture to serve multiple purposes and integrate with various platforms without requiring complete system redesign for each integration scenario
Solution Approach 2:
The system employs dynamic configuration capabilities that allow the intermediate entity to adapt its behavior and interface protocols based on the specific bank core system and blockchain ecosystem it is currently interacting with. This dynamic adaptability enables the system to handle different data formats, transaction protocols, and security requirements without increasing fundamental system complexity
3Adaptability or versatility
If traditional banking systems are modified to interact with distributed ledger technology, then blockchain integration is achieved, but system stability and security may be compromised
Solution Approach 1:
The patent positions the intermediate entity as a protective mediator layer between traditional banking systems and blockchain technology. This intermediary handles all blockchain-specific operations, smart contract interactions, and tokenized asset management externally, preventing direct modifications to core banking systems and thereby maintaining system stability and security while achieving full blockchain integration capability
Solution Approach 2:
The system segments blockchain integration functionality into separate, isolated modules that do not directly modify or interact with core banking system code. This segmentation allows blockchain capabilities to be added without compromising the stability of traditional banking operations, as any blockchain-related issues are contained within dedicated integration layers rather than affecting core system reliability
Data Source
AI summary
Described are systems and methods that provide an interface between financial service provider systems and blockchain ecosystems. A system may include a set of modules interfacing a financial service provider system, the set of modules including an adaptor module integratable with a core processing system of the financial service provider, and a UI module including a library of functionalities that are integratable with a UI application of the financial service provider system. The system may also include a blockchain integration module configured to adapt to the one or more blockchain ecosystems and translate one or more operations specific to a type of a blockchain ecosystem into uniform API calls. The system may further include an orchestration module in communication with the blockchain integration module via the API calls and configured to facilitate a transaction including a fiat transaction via the one or more blockchain ecosystems or a tokenized digital asset or liability transaction.