Reconstructable Metal Transaction System
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Solution Overview
Problem
Precious metals like Gold and Silver are not effectively utilized as currencies for day-to-day transactions due to difficulties in partial redemption and inefficient trading methods, which do not allow for smart profit-making from dynamic market value fluctuations.
Innovation Solution
A system and method for facilitating transactions using reconstructable metal objects, where the current price of the metal is determined based on its type and weight, and a corresponding amount is deducted from the metal object to complete transactions, with verification and reconstruction processes secured through a blockchain mechanism.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If precious metals are used as commodities for buying and selling, then they can be stored and transferred, but they cannot be used for day-to-day transactions and partial redemption is difficult
Solution Approach 1:
The metal object is divided into two parts: a reusable identifier (metal ID) and a consumable metal portion. The metal ID can be repeatedly used for transactions while the metal portion is consumed and cannot be redeemed, enabling partial redemption and day-to-day transaction usability.
Solution Approach 2:
A metal object serves as an intermediary between the user and the transaction system. It contains both identification information and metal value, allowing it to function as a currency while enabling partial redemption through the separation of ID and metal portions.
2Productivity
If metals are used for transactions, then profit can be earned from value fluctuations, but existing trading methods are inefficient and require mortgage or selling through intermediaries
Solution Approach 1:
The metal object performs multiple functions simultaneously: it serves as payment currency, contains identification data for verification, and enables direct trading without requiring banks or jewelry shops as intermediaries. Users can trade metals directly by presenting the metal object at the point of sale.
Solution Approach 2:
The metal object combines multiple functions into a single item: it acts as both currency for transactions and as an identification medium. The system integrates verification, valuation, and transaction execution in one unified process, eliminating the need for separate trading intermediaries.
3Measurement precision
If the current price of metal is determined based on weight and type, then accurate valuation is achieved, but the system complexity increases
Solution Approach 1:
The manual measurement and valuation process is replaced with an automated system that reads metal object characteristics (weight, type) and automatically determines price based on pre-stored reference data. This substitution of manual mechanical measurement with automated electronic verification reduces system complexity while maintaining precision.
Data Source
AI summary
A method and system for facilitating transaction via a metal object, the metal object being made from a reconstructable metal, is disclosed. The method includes: receiving, at a transceiver, a transaction request that includes an amount of the transaction; receiving, at a metal object deposit portal, the metal object for the transaction; identifying, by processor, a current price rate of the reconstructable metal; determining, by the processor, a current price of the metal object based on weight of the metal object and the current price rate of the reconstructable metal; determining, by the processor, an amount of the reconstructable metal to be deducted from the metal object; and providing, by a dispenser, another metal object reconstructed from the metal object based at least on the amount of reconstructable metal to be deducted, to facilitate completion of the transaction.