Replicated State Databases Eliminate Manual Invoicing
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Solution Overview
Problem
In Business to Business (B2B) transactions, the invoicing process is complex and time-consuming due to multiple verifications and validations by various departments, leading to inefficiencies and manual reconciliation processes, especially in multi-party supply chains with siloed IT/ERP systems.
Innovation Solution
Implementing a system with replicated state databases that manage transactions and invoice terms across peer nodes using dedicated channels, enabling smart contracts for automatic verification and validation, and transmitting an invoice flag for automatic invoice generation.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If manual verification and validation processes are used across multiple departments in B2B transactions, then trust and accuracy can be ensured through human review, but the invoicing process becomes complex and time-consuming
Solution Approach 1:
The patent replaces manual mechanical verification processes with automated smart contracts executed on a replicated state database system. The smart contracts automatically validate transaction data against predefined business rules, eliminating the need for manual human review while maintaining verification accuracy. This substitution of automated computational logic for manual mechanical processes resolves the contradiction by providing both reliability through consistent rule enforcement and speed through automated execution.
Solution Approach 2:
The system enables self-service verification where the replicated state database automatically validates and reconciles transaction data across multiple departments without external intervention. Each node in the network independently verifies data integrity through consensus mechanisms, allowing the system to serve its own validation needs without relying on manual processes from various departments, thus reducing time loss while maintaining reliability.
2Reliability
If multiple departments and partners are involved in B2B transactions, then comprehensive validation can be achieved, but manual reconciliation processes become necessary and inefficient
Solution Approach 1:
The patent merges the validation and reconciliation functions of multiple departments and partners into a single unified smart contract execution environment. Instead of separate manual reconciliation processes for each department, the system combines all validation logic into automated smart contracts that execute simultaneously across the replicated state database, achieving comprehensive validation while dramatically improving reconciliation efficiency through parallel automated processing.
Solution Approach 2:
The replicated state database system serves multiple functions simultaneously: it acts as a shared ledger, validation engine, reconciliation mechanism, and communication platform for all departments and partners. This universal system handles diverse validation requirements across different departments through a single multi-functional architecture, eliminating the need for separate manual processes and improving overall productivity while maintaining comprehensive validation.
3Reliability
If IT/ERP systems are siloed across different organizations, then data security and autonomy can be maintained, but invoice reconciliation becomes manual and slow
Solution Approach 1:
The patent introduces a replicated state database with smart contracts as an intermediary layer between siloed IT/ERP systems. This intermediary enables secure data exchange and automated reconciliation without requiring organizations to expose their internal systems. Each organization maintains autonomy over their ERP system while the intermediary handles the reconciliation processes, preserving data security through controlled access while eliminating manual reconciliation time through automated cross-system validation.
Solution Approach 2:
The system segments the reconciliation process into independent smart contract modules that can execute autonomously across different organizational boundaries. Each segment handles specific validation tasks while maintaining security isolation, allowing organizations to maintain their siloed ERP systems for security reasons while the segmented smart contracts efficiently perform reconciliation by processing data in isolated, secure units without requiring full system integration.
4Productivity
If sensitive data such as price and contract terms are shared among partners, then automatic invoice generation can be enabled, but trust issues prevent sharing on common channels
Solution Approach 1:
The patent applies local quality by allowing different data sharing arrangements for different types of information. Sensitive data such as prices and contract terms are shared only with specific authorized nodes through private channels, while other non-sensitive transaction data can be shared more broadly. This localized approach to data sharing enables automatic invoice generation by providing necessary information to relevant parties without requiring universal trust across all partners, thus maintaining reliability while achieving automation productivity.
Data Source
AI summary
Example implementations are directed to eliminating or reducing the invoicing business process by using replicated states as single truth for sub-groups participating in a supply chain network involving a large number of transient partners in a low trust ecosystem. All activities of the business process such as invoicing are shared as single truth of replicated states for the subgroup. The confidential data involving terms of reference for business process is shared separately as single truth of replicated states among such partners. The validations for business process such as invoicing can be derived by executing smart contracts on such replicated states that have single truth about transactions among different sub-groups/channels in supply chain, thereby reducing/eliminating need for invoice generation that need to be manually verified, validated and acknowledged among supplier and customers for payments.