Smart Contract Cryptocurrency Staking Living Arrangement

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Solution Overview

Problem

Conventional technologies for managing living arrangements, such as rent, lease, or mortgage agreements, often lack a provable method for payment completion and can adversely impact parties economically, necessitating a more sustainable and technologically advanced solution.

Innovation Solution

The use of distributed ledger technology to facilitate living arrangements by locking cryptocurrency to a smart contract, allowing the staker to receive real property benefits while the owner receives residual earnings, with the arrangement maturing when the staked amount is unlocked and the title transferred to the staker, thereby bypassing intermediaries and ensuring economic sustainability.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If conventional technologies (Web 2.0, financial intermediaries) are used to facilitate living arrangements, then automatic payments can be setup, but the system lacks provable payment completion and adversely impacts parties economically

Engineering Contradiction:

Improveprovable payment completionVSAvoideconomic impact on parties

Core Design Contradiction:

ReliabilityVSObject-generated harmful factors

Solution Approach 1:

The patent replaces conventional financial intermediaries with a distributed ledger system where smart contracts serve as self-executing intermediaries. The smart contract automatically executes payment transfers and tracks completion on the blockchain, providing provable payment completion without requiring traditional banks or financial intermediaries that impose adverse economic conditions on parties.

Inventive Principle:

Principle #24Intermediary (Mediator)

Solution Approach 2:

The patent substitutes the mechanical/conventional payment verification system with a cryptographic and distributed ledger system. Instead of relying on manual verification or centralized database records, the system uses blockchain transactions and smart contract code to automatically prove payment completion and manage living arrangements, eliminating the need for conventional financial infrastructure.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

2Productivity

If conventional payment systems are used, then transactions can be processed, but intermediation costs are incurred and transparency is reduced

Engineering Contradiction:

Improvetransaction processingVSAvoidintermediation costs

Core Design Contradiction:

ProductivityVSLoss of energy

Solution Approach 1:

The patent extracts and eliminates the need for traditional financial intermediaries from the payment processing system. By using distributed ledger technology and smart contracts, the system processes transactions directly between parties without requiring banks, payment processors, or other intermediaries that charge fees and reduce transparency. The blockchain itself serves as the transaction processing and verification mechanism.

Inventive Principle:

Principle #2Taking out (Extraction)

3Loss of information

If distributed ledger technology with smart contracts is used, then intermediation is bypassed and transparency is improved, but the system complexity increases

Engineering Contradiction:

ImprovetransparencyVSAvoidsystem complexity

Core Design Contradiction:

Loss of informationVSDevice complexity

Solution Approach 1:

The patent implements self-service through smart contracts that automatically execute payment transfers, track living arrangement status, and manage transactions without human intervention. The system serves itself by using the distributed ledger to store and verify all transactions, eliminating the need for complex centralized systems or manual verification processes. The blockchain naturally provides transparency and auditability as an inherent feature of the self-service architecture.

Inventive Principle:

Principle #25Self-service

Data Source

PatentUS11869105B1Systems and methods for bypassing intermediation using living arrangements

Publication Date: 2024.01.09 MCCARTHY MIKE

AI summary

Systems and methods for establishing a living arrangement between a staker of cryptocurrency and an owner of a real property are described. Distributed ledger technology may be leveraged to facilitate arrangements between a staker (e.g., a cryptocurrency staker) and an owner (e.g., a real property owner). The staker may receive aspects (e.g., staying rights, etc.) of a real property by locking cryptocurrency to a smart contract, where a portion or all of the residuals from decentralized financial activities may be earmarked for the owner. In some cases, maturity of the arrangement may be residual dependent (e.g., where the arrangement terminates once the sum of the residues to the owner reaches a threshold). At the maturity of an arrangement, the staked amount may be unlocked and available for the staker, and the owner's interest in the title (or deed) is transferred and claimable to the staker.