Distributed Ledger Payment Processing for Lower Fees and Currency Stability
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Solution Overview
Problem
Conventional payment processing services face high transaction fees and volatility associated with centralized currency systems.
Innovation Solution
A payment processing service utilizing a distributed ledger digital asset, such as Bitcoin or Citicoin, that facilitates transactions between merchants and customers, enabling payment in digital currencies without the need for central authorities, thereby reducing fees and volatility.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Loss of energy
If conventional centralized payment processing services are used, then payment processing can be performed with established infrastructure, but high transaction fees and volatility are incurred
Solution Approach 1:
The patent introduces a distributed ledger digital asset (such as Bitcoin or Citicoin) as an intermediary medium between fiat currency systems. This intermediary enables value transfer without direct exposure to volatility of individual fiat currencies, reducing transaction fees and currency conversion risks while maintaining payment processing functionality across different national currencies.
2Loss of energy
If distributed ledger digital assets are used for payment processing, then transaction fees are reduced and volatility is minimized, but system complexity increases
Solution Approach 1:
The payment processing subsystem acts as an intermediary that manages the complexity of distributed ledger digital asset operations. It handles obtaining digital assets from the network, receiving payments from customers, and transmitting assets to merchants, thereby shielding end-users from the underlying system complexity while enabling low-fee transactions.
Solution Approach 2:
The distributed ledger digital asset network operates autonomously without requiring central authorities for validation or management. The system self-regulates through its decentralized consensus mechanism, reducing the need for complex centralized control structures while maintaining transaction security and integrity.
3Ease of operation
If centralized currency systems are used, then payment processing infrastructure is well-established, but high fees and currency volatility affect merchants and customers
Solution Approach 1:
The distributed ledger digital asset serves as a mediator between established payment infrastructure and end-users. The payment processing subsystem leverages existing infrastructure for customer interactions while using the digital asset intermediary to execute low-fee transactions, combining the ease of established systems with the cost benefits of decentralized assets.
Data Source
AI summary
Systems, methods, and computer-readable media for a payment processing service utilizing a distributed ledger digital asset are provided. A payment processing service subsystem may provide payment processing services for merchants that wish to receive customer payments as a distributed ledger digital asset rather than as a fiat money asset.