Electronic Payment System with Multi-Condition Unlock for Liquidity

Solution Overview

Problem

Existing electronic payment systems face challenges in maintaining asset/fund liquidity during failed transactions, particularly in multi-ledger Hashed Timelock Contract (HTLC) methods, where locked assets may not be safely withdrawn and can result in decreased liquidity.

Innovation Solution

An electronic payment system is configured with a transaction issuing device and an asset/fund settlement device connected via a network. The system includes unlock information and unlock conditions, allowing for safe withdrawal of locked assets by executing transactions based on collated lock release information and conditions, ensuring continuous transaction execution even after a timeout.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If HTLC mechanism is used for DvP transactions across multiple asset/fund settlement devices, then transaction safety is improved, but asset/fund liquidity decreases when transactions fail

Engineering Contradiction:

Improvetransaction safetyVSAvoidasset/fund liquidity

Core Design Contradiction:

ReliabilityVSProductivity

Solution Approach 1:

The system performs preliminary actions by creating multiple consecutive unlock conditions in advance within a single transaction. These unlock conditions are prepared beforehand with different public keys, allowing the system to handle various scenarios (successful transaction, failed transaction, timeout) without requiring additional transactions. This preliminary structuring enables liquidity preservation while maintaining transaction safety.

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

The invention segments the unlock conditions into multiple distinct conditions within a single transaction, each with different public keys. This segmentation allows the system to selectively execute different unlock conditions based on the transaction outcome, enabling safe withdrawal of locked assets in failed transactions while preserving liquidity for successful transactions.

Inventive Principle:

Principle #1Segmentation

2Reliability

If locked assets are returned to original owner after timeout period, then transaction safety is ensured, but asset/fund liquidity decreases

Engineering Contradiction:

Improvetransaction safetyVSAvoidtimeout period

Core Design Contradiction:

ReliabilityVSLoss of time

Solution Approach 1:

The system performs preliminary actions by creating multiple consecutive unlock conditions in advance within a single transaction. These unlock conditions are prepared beforehand with different public keys, allowing the system to handle various scenarios (successful transaction, failed transaction, timeout) without requiring additional transactions. This preliminary structuring enables liquidity preservation while maintaining transaction safety.

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

The system introduces an intermediary mechanism in the form of multiple unlock conditions with different public keys. This intermediary structure allows the system to mediate between the locked assets and the original owner, enabling safe withdrawal through a structured process that preserves liquidity while ensuring transaction safety.

Inventive Principle:

Principle #24Intermediary (Mediator)

3Reliability

If multiple consecutive unlock conditions are posted to ledger, then safe withdrawal of locked assets is enabled, but device complexity increases

Engineering Contradiction:

Improvesafe withdrawal capabilityVSAvoidtransaction structure complexity

Core Design Contradiction:

ReliabilityVSDevice complexity

Solution Approach 1:

The invention merges multiple unlock conditions into a single transaction structure, rather than creating separate transactions for each unlock condition. This merging approach consolidates the complexity within one transaction, making it easier to manage and execute while enabling safe withdrawal of locked assets through the coordinated operation of multiple unlock conditions.

Inventive Principle:

Principle #5Merging (Combining)

Solution Approach 2:

The system performs preliminary actions by creating multiple consecutive unlock conditions in advance within a single transaction. These unlock conditions are prepared beforehand with different public keys, allowing the system to handle various scenarios (successful transaction, failed transaction, timeout) without requiring additional transactions. This preliminary structuring enables liquidity preservation while maintaining transaction safety.

Inventive Principle:

Principle #10Preliminary action

Data Source

PatentUS12307441B2Electronic payment system and electronic payment method

Publication Date: 2025.05.20 HITACHI LTD

AI summary

A transaction has: lock release information; and a lock release condition. A first transaction has a record with a plurality of successive lock release conditions. A lock release condition of the first transaction includes public key information pertaining to an electronic signature different from the electronic signature of the issuer of the transaction. An asset/fund settlement device posts the first transaction in a ledger and determines executability of a second transaction issued after the first transaction by comparing, in accordance with the order of the plurality of successive lock release conditions, the lock release information and the lock release condition which have been posted in the ledger to lock release information and a lock release condition in a ledger of the second transaction. Thus, in a DvP transaction using electronic settlement, locked assets are safely returned, and deterioration in liquidity of assets/funds is avoided when the transaction is not established.