Payment Gateway Integrating Blockchain Smart Contracts
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Solution Overview
Problem
There is a need to integrate blockchain technology with traditional payment processing architectures, as existing systems lack the capability to seamlessly incorporate blockchain functionality into traditional payment networks, preventing entities from utilizing blockchain features like smart contracts within existing payment processing systems.
Innovation Solution
A system and method that enable the use of blockchain smart contracts within traditional payment transactions by routing transaction messages through a processing server, which forwards the messages to both a financial institution for authorization and a blockchain node for smart contract execution, utilizing separate communication ports to maintain integration with existing payment processing infrastructure without modification.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If blockchain technology is integrated with traditional payment processing architecture, then functionality and versatility are improved, but system complexity increases
Solution Approach 1:
A gateway component is introduced as an intermediary between the traditional payment processing system and the blockchain network. The gateway receives transaction messages from the payment processor, formats them into blockchain-compatible transactions, and submits them to the blockchain network. This intermediary layer enables integration while isolating the complexity of blockchain technology from the traditional payment system, allowing both systems to operate independently yet cooperatively.
2Adaptability or versatility
If transaction messages are routed to both traditional payment processors and blockchain nodes, then functionality is enhanced, but processing time increases
Solution Approach 1:
The system performs preliminary formatting and preparation of transaction messages before routing them to both the traditional payment processor and blockchain node. The gateway pre-validates transaction data, pre-formats blockchain transactions, and pre-establishes communication channels. This preliminary action reduces the time required during actual transaction execution by eliminating redundant validation and formatting steps that would otherwise occur during the routing process.
3Ease of operation
If existing payment processing infrastructure is used without modification, then ease of operation is maintained, but adaptability to blockchain technology is limited
Solution Approach 1:
The integration architecture is segmented into distinct functional components: the existing payment processing system remains unchanged, a new gateway component handles blockchain-specific operations, and the blockchain network operates independently. This segmentation allows the traditional payment processing infrastructure to continue operating with its established simplicity while the gateway component provides blockchain adaptability. Each segment can be developed, maintained, and updated independently without affecting the others.
Data Source
AI summary
A method for enabling the use of blockchain smart contracts as part of a traditional payment transaction includes: receiving, by a receiver of a processing server, a transaction message for a payment transaction, wherein the transaction message is formatted according to one or more standards and includes a plurality of data elements storing transaction data, the transaction data including at least a bank identification value; determining, by a processor of the processing server, a routing plan for the transaction message based on at least the bank identification value; and transmitting, by a transmitter of the processing server, the transaction message to (i) a first computing system using a first communication port of the processing server, and (ii) a second computing system using a second communication port of the processing server, based on the determined routing plan.