Smart Contract Token Transfer Commission Tracking
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Solution Overview
Problem
Current electronic ledger platforms, such as blockchain systems, lack the ability for originators to control and participate in downstream transactions of tokens, leading to inefficiencies in ticket sales and resale processes, where primary ticketing agencies struggle to monitor sales prices and ownership, resulting in misaligned economic interests and reduced consumer choice.
Innovation Solution
Implementing a blockchain-based system that enables smart contracts to manage token transfers, allowing originators to receive commissions on downstream sales through automatic cryptocurrency transfers, while maintaining records of token ownership and transactions, thereby aligning interests and improving transaction efficiency.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If traditional electronic ledger platforms are used for token transfers, then transaction recording is simple and decentralized, but originators cannot control or participate in downstream transactions and cannot use transaction information meaningfully
Solution Approach 1:
The patent applies preliminary action by embedding executable programs (smart contracts) within tokens before they are transferred. These programs contain pre-defined instructions for automatic commission calculations and payments to originators. When downstream transactions occur, the embedded programs execute automatically, enabling originator participation and control without requiring complex external monitoring systems.
Solution Approach 2:
The patent implements self-service through autonomous smart contracts that automatically track token ownership, calculate commissions, and execute payments to originators. The system serves itself by using blockchain technology to automatically record and verify transaction information, eliminating the need for external intermediaries to monitor and enforce commission payments.
2Reliability
If originators cannot monitor downstream transaction information, then transaction processing is fast and simple, but economic interests become misaligned and consumer choice is reduced
Solution Approach 1:
The patent applies feedback by creating a closed-loop system where smart contracts automatically track token transfers and provide real-time information about downstream transactions to originators. The executable programs embedded in tokens continuously report transaction data back to originators, enabling them to monitor sales prices and ownership while maintaining aligned economic interests through automatic commission payments.
Solution Approach 2:
The patent uses smart contracts as intermediaries between token owners and originators. These autonomous programs mediate the relationship by automatically calculating commissions based on transaction data and facilitating payments to originators, thereby aligning economic interests without requiring direct monitoring or verification by the originators themselves.
3Productivity
If manual tracking of token ownership and transactions is used, then system complexity is low, but commission payments are inaccurate and transaction efficiency is reduced
Solution Approach 1:
The patent replaces manual mechanical tracking systems with automated computational systems. Executable programs embedded in tokens automatically track ownership and transaction information using blockchain technology, eliminating the need for manual record-keeping. This substitution of automated digital systems for manual processes significantly improves transaction processing efficiency while maintaining accurate commission calculations.
Data Source
AI summary
Among other things, we describe implementations of systems and methods for enabling one or more nodes of an electronic ledger platform to carry out operations with respect to one or more records in the electronic ledger platform. The operations include receiving an indication authorized by an entity to transfer a token to another entity, the indication comprising a first quantity of cryptocurrency to be provided by the entity, the token comprising a record of a record of a second quantity of cryptocurrency provided to one or more other entities by the entity and a reference to an executable program. In response to execution of the executable program, one or more records of an electronic ledger in the electronic ledger platform are committed in accordance with a first protocol.