Third-Party Proxy Wallets for Smart Contract Payment Continuity

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Solution Overview

Problem

Decentralized automated systems using smart contracts for data confidence fabrics face issues with insufficient customer funds leading to service disruptions and exclusion of entities that cannot use cryptocurrencies.

Innovation Solution

Implementing multiple wallets per entity, including cryptocurrency and traditional currency options, with a third-party proxy to manage payments through smart contracts, ensuring continuous service and enabling non-crypto entities to participate.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Extent of automation

If smart contracts are used for automated payments in DCF, then trust and automation are improved, but service disruption occurs when customer funds are insufficient

Engineering Contradiction:

Improveautomated paymentVSAvoidservice continuity

Core Design Contradiction:

Extent of automationVSReliability

Solution Approach 1:

The patent introduces a fallback wallet mechanism that acts as an intermediary between the customer's primary wallet and the smart contract payment system. When the primary wallet has insufficient funds, the fallback wallet automatically steps in to cover the payment, ensuring service continuity without disrupting the automated smart contract execution. This mediator approach resolves the contradiction by maintaining both automation and reliability.

Inventive Principle:

Principle #24Intermediary (Mediator)

Solution Approach 2:

The patent implements a fallback wallet that is pre-configured with sufficient funds to cover potential payment shortfalls. This beforehand cushioning ensures that when the primary wallet runs out of funds, there is already a prepared backup mechanism in place to prevent service disruption, thus maintaining reliability while preserving the automated payment system.

Inventive Principle:

Principle #11Beforehand cushioning (Prior cushioning)

2Extent of automation

If only cryptocurrency wallets are used in DCF, then smart contract automation is enabled, but entities with organizational restrictions on cryptocurrency are excluded

Engineering Contradiction:

Improvesmart contract paymentVSAvoidentity participation

Core Design Contradiction:

Extent of automationVSAdaptability or versatility

Solution Approach 1:

The patent makes the payment system universal by allowing entities to use either cryptocurrency wallets or traditional bank account proxies. The system automatically adapts to the entity's preferred or permitted payment method, enabling both crypto-enabled and crypto-restricted entities to participate in the DCF. This multi-functionality resolves the contradiction by maintaining smart contract automation while expanding adaptability to include all entity types.

Inventive Principle:

Principle #6Universality (Multi-functionality)

Solution Approach 2:

The patent introduces a proxy wallet mechanism that acts as an intermediary for entities that cannot use cryptocurrency directly. The proxy wallet, linked to traditional bank accounts, mediates between the smart contract system and entities with organizational restrictions on cryptocurrency. This allows these entities to participate in the automated DCF system without directly handling cryptocurrency, thus resolving the contradiction between automation and inclusivity.

Inventive Principle:

Principle #24Intermediary (Mediator)

3Reliability

If smart contracts require sufficient funds for execution, then payment security is improved, but flexibility in payment mechanisms is reduced

Engineering Contradiction:

Improvepayment securityVSAvoidpayment mechanism flexibility

Core Design Contradiction:

ReliabilityVSAdaptability or versatility

Solution Approach 1:

The patent implements a dynamic payment mechanism where the system automatically switches between primary wallet, fallback wallet, and proxy wallet based on fund availability and entity preferences. This dynamic adaptation allows the system to maintain strict payment security checks while flexibly accommodating different payment scenarios and entity requirements, resolving the contradiction between security and flexibility.

Inventive Principle:

Principle #15Dynamics

Solution Approach 2:

The patent segments the payment mechanism into multiple independent components: primary wallet, fallback wallet, and proxy wallet. Each segment serves a specific function and can be independently configured. This segmentation allows the system to enforce strict security checks at each segment while providing overall flexibility through the modular structure, resolving the contradiction between payment security and mechanism flexibility.

Inventive Principle:

Principle #1Segmentation

Data Source

PatentUS12481978B2Third-party proxies for crypto-based DCF

Publication Date: 2025.11.25 DELL PROD LP

AI summary

One example method includes receiving, by a trust provider from a third party proxy, an indication that the third party proxy has instantiated a smart contract on behalf of the trust provider, connecting wallets of a customer to an agent of a data confidence fabric, in response to a request from an application, providing a trust service that includes processing customer data by applying a trust function to the customer data, creating annotations for the customer data based on the trust function, providing the processed customer data to a recipient, calling the smart contract using successive ones of the customer wallets until the smart contract is successfully executed, transferring, from the customer wallet that resulted in successful execution of the smart contract to the third party proxy, a trust provider fee, and transferring the trust provider fee from a third party proxy wallet to a trust provider wallet.