Private Blockchain Channels for B2B Transaction Reliability
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Solution Overview
Problem
B2B transactions face challenges such as single-point failures, network glitches, message loss, and discrepancies due to centralized and non-uniform transaction records, leading to security breaches and time-consuming reconciliations.
Innovation Solution
Implementing a private blockchain network with distributed ledger technology and smart contracts to create secure, decentralized channels for B2B transactions, ensuring immutability, transparency, and consensus through endorsement policies.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If API or EDI transactions are used for B2B transactions, then transactions can be processed between businesses, but single failures in method calls can result in significant losses and the system is prone to network glitches and message loss
Solution Approach 1:
The patent segments the transaction system into multiple independent channels (first channel between first system and second system, second channel between first system and subsystems). Each channel has its own distributed ledger and endorsement mechanism, isolating failures to specific channels rather than affecting the entire system.
Solution Approach 2:
The patent introduces a distributed ledger as an intermediary between transaction participants. Instead of direct point-to-point connections that can fail, transactions are mediated through the distributed ledger which provides reliable message delivery and ensures transaction integrity across multiple channels.
2Productivity
If centralized transaction records are used, then transaction management is simplified, but discrepancies arise and reconciliations become time-consuming
Solution Approach 1:
The patent inverts the traditional centralized record-keeping model by implementing distributed ledgers where multiple independent systems maintain their own copies of transaction records. This inversion eliminates single points of failure and ensures that all participants have consistent, accurate records without requiring centralized reconciliation.
Solution Approach 2:
The patent implements endorsement policies that provide feedback mechanisms. Before a transaction is recorded in the distributed ledger, it must receive endorsements from authorized participants, ensuring accuracy and consistency. This feedback loop prevents discrepancies from arising in the first place.
3Reliability
If private blockchain network with distributed ledger is implemented, then transaction security and integrity are improved, but system complexity and deployment difficulty increase
Solution Approach 1:
The patent designs the distributed ledger system to serve multiple functions simultaneously: it provides transaction recording, endorsement validation, dispute resolution, and reconciliation. This multi-functionality reduces the need for separate systems and simplifies deployment despite the underlying complexity of blockchain technology.
Data Source
AI summary
Methods and systems for generating and executing secure transactions in a business-to-business (B2B) environment are disclosed. Secure B2B transactions are implemented through a private blockchain network. An enterprise-wide private blockchain network is implemented between the concerning parties of a B2B transaction for the duration of a purchase cycle. The private network may include a number of sub-systems and transactions between parties, including the sub-systems, may be executed via one or more channels using smart contracts. Transactions are be endorsed by relevant parties before details of the transaction are added to a distributed ledger.


