Shared Ledger for Transaction Reconciliation
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Solution Overview
Problem
Current invoicing, financing, and payment processes for purchase and sale transactions are inefficient due to repetitive and redundant documentation reconciliation, lack of interconnection between transaction data, and extensive reliance on manual processes, leading to costly and time-consuming efforts among counterparties and third parties.
Innovation Solution
A system utilizing a computer and a decentralized ledger database, such as a blockchain, to record and reconcile transactions, notifications, and updates, providing a common system of record and facilitating document exchange between counterparties while allowing third-party verification and authorization.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If discrete stages of invoicing, financing, and payment processes are used with separate documentation systems, then each stage can be processed independently, but repetitive and redundant reconciliation occurs between counterparties and third parties, increasing time and cost
Solution Approach 1:
The patent merges separate documentation systems into a single shared ledger that all counterparties and third parties access. Instead of each party maintaining separate records requiring reconciliation, the system combines all transaction data into one unified source of truth that everyone can verify simultaneously, eliminating redundant reconciliation efforts.
Solution Approach 2:
The shared ledger serves multiple functions across different transaction stages (invoicing, financing, payment) and for multiple parties (buyers, suppliers, third-party financiers). This universal system replaces multiple specialized documentation systems, allowing the same infrastructure to support all transaction types and participants without requiring separate reconciliation processes.
2Adaptability or versatility
If multiple parties maintain separate internal systems for recording transactions, then each party can manage its own data, but a common system of record is lacking, leading to extensive manual reconciliation effort
Solution Approach 1:
The shared ledger acts as an intermediary system that all parties access and trust. Instead of parties directly comparing their separate systems, the ledger serves as a neutral mediator that provides a common view of transaction data. Each party can manage their own data inputs, but the ledger reconciles everything automatically, eliminating manual comparison work.
3Reliability
If third-party financiers conduct manual verification of transaction documentation, then they can assess risk and reduce costs, but the verification process is costly and time-consuming
Solution Approach 1:
The shared ledger provides real-time feedback to third-party financiers about transaction status and authenticity. Instead of manually requesting and verifying documentation, financiers can query the ledger directly to obtain verified transaction data, eliminating the need for costly manual due diligence while maintaining high verification accuracy.
Data Source
AI summary
A system facilitating purchase and sales transactions is disclosed, having a computer, a ledger database in data communication with said computer, a transaction received by said computer, software executing on said computer for recording the transaction on the ledger, a notification indicative of the transaction transmitted by said computer to at least one counterparty, an update indicative of a change to the transaction received by said computer, software executing on said computer for relating the update with the transaction, software executing on said computer for recording the update on the ledger in a manner relating it to the transaction, and a second notification indicative of the updated transaction transmitted by said computer to at least one counterparty.