Recurring Digital Asset Payments With Backed Real-Time Conversion
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Solution Overview
Problem
Current payment systems are vulnerable to security breaches, fraud, and identity theft, and digital asset payments like cryptocurrencies face acceptance issues by merchants due to operational complexity, volatility, and exposure of sensitive information, while maintaining high transaction costs.
Innovation Solution
A digital asset-based interaction system that converts digital assets like cryptocurrencies to a desired asset format in real-time, verifies transactions through a consensus network, and manages interactions using a digital asset backing entity to ensure secure and efficient transactions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If traditional payment card transactions are used, then transaction security is maintained through multiple validation steps, but the process becomes time-consuming and expensive with high processing fees
Solution Approach 1:
The patent extracts the essential security validation function from the complex traditional payment card system and implements it through digital asset verification. Instead of routing through multiple banks and networks, the system directly verifies digital asset authenticity and ownership, eliminating unnecessary intermediaries and steps while maintaining security.
Solution Approach 2:
The patent replaces the mechanical/physical payment card system with a digital asset-based system. The verification process substitutes manual card presentation and physical validation with digital cryptographic verification, enabling faster and more efficient transaction processing without sacrificing security.
2Reliability
If digital wallets with tokenization are used, then payment card data security is improved, but data still passes through multiple hardware and software layers increasing vulnerability
Solution Approach 1:
The patent extracts sensitive payment data from the digital wallet ecosystem and replaces it with digital asset verification. Instead of securing and processing sensitive card data through multiple layers, the system works with public keys and cryptographic proofs that can be verified without exposing underlying financial information, reducing the attack surface.
Solution Approach 2:
The patent introduces digital assets as an intermediary between the payer and payee. Rather than directly handling sensitive payment card data through multiple software and hardware layers, the system uses digital asset verification as an intermediate step that confirms transaction validity without requiring access to underlying financial institution systems.
3Loss of energy
If merchants accept cryptocurrencies directly, then transaction costs are reduced, but merchants face operational complexity and volatility risks
Solution Approach 1:
The patent introduces a digital asset verification system as an intermediary that simplifies cryptocurrency acceptance for merchants. Instead of merchants directly managing volatile digital assets and complex verification processes, the system handles asset validation and conversion, allowing merchants to accept payments with minimal operational complexity while maintaining cost efficiency.
Solution Approach 2:
The patent transforms the volatility parameter of digital assets through real-time valuation and conversion mechanisms. The system continuously monitors digital asset values and converts them to stable fiat currencies or other stable assets at the point of transaction, eliminating volatility risks for merchants while preserving the cost benefits of digital asset usage.
4Productivity
If digital asset transactions are processed in real-time, then transaction efficiency is improved, but verification through consensus networks requires additional time
Solution Approach 1:
The patent performs preliminary verification actions by pre-establishing consensus network connections and pre-validating digital asset addresses. The system maintains ready-to-verify asset references and pre-configured verification parameters, enabling rapid real-time transaction processing without the time penalty of cold-start verification.
Solution Approach 2:
The patent ensures continuous verification action by maintaining active, ongoing validation processes. Instead of periodic or batch verification, the system continuously monitors and validates digital asset transactions in real-time, keeping verification processes alive and ready to process transactions immediately without interruption or delay.
Data Source
AI summary
A method includes initiating a reoccurring digital asset-based interaction between a first and second computing entity of a digital asset-based interaction system, providing, by the first computing entity, first computing entity information to the second computing entity, and storing, by the second computing entity, the first computing entity information. When the reoccurring digital asset-based interaction occurs, the method further includes sending, by the second computing entity, at least a portion of the first computing entity information and second computing entity information to a digital asset-based interaction computing entity, obtaining, by the digital asset-based interaction computing entity, the amount of the digital asset from the first computing entity, locking an amount of system digital asset to back the reoccurring digital asset-based interaction, and sending a confirmation to the second computing entity that the reoccurring digital asset-based interaction is successful.