Digital Token Transferability Verification for Loyalty Status

Resolve Bottlenecks,
Find Innovative SolutionsGenerate Solutions

Solution Overview

Problem

Customer loyalty programs face challenges in transferring status benefits between users, requiring human intervention and cumbersome processes, leading to a poor user experience and hindering issuer benefits.

Innovation Solution

Implementing a blockchain-based cryptocurrency system that embeds loyalty status and transferability indicators, allowing customers to transfer loyalty status securely without human verification, using gateway and reward tokens that act as definitive identifiers of customer status.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If traditional reward transfer processes are used, then human verification and intervention are required to ensure proper transfer eligibility, but this increases process complexity and time consumption

Engineering Contradiction:

Improvetransfer eligibility verificationVSAvoidprocess complexity

Core Design Contradiction:

ReliabilityVSDevice complexity

Solution Approach 1:

The system enables self-service through smart contracts that automatically verify transfer eligibility and execute rewards transfers without human intervention. The blockchain network autonomously validates transfer conditions and processes the transfer, eliminating the need for manual verification while maintaining reliability through cryptographic proof and predefined transferability rules embedded in the token metadata.

Inventive Principle:

Principle #25Self-service

Solution Approach 2:

The patent replaces the mechanical human verification system with an automated digital system based on blockchain technology. Smart contracts encode transfer eligibility rules and automatically execute verification, substituting manual administrative processes with algorithmic automation that operates without human intervention while ensuring consistent application of transfer rules.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

2Measurement precision

If human intervention is required for reward transfers, then transfer accuracy and eligibility verification are improved, but user experience deteriorates due to cumbersome processes

Engineering Contradiction:

Improvetransfer eligibility verification accuracyVSAvoiduser experience

Core Design Contradiction:

Measurement precisionVSEase of operation

Solution Approach 1:

The system empowers users to independently transfer rewards by simply initiating a transfer request through their digital wallet. The smart contract automatically handles eligibility verification by checking transferability indicators in the token metadata and the recipient's wallet address validity, eliminating the need for users to navigate complex verification processes while maintaining accurate eligibility assessment.

Inventive Principle:

Principle #25Self-service

Solution Approach 2:

The patent uses digital token copies on the blockchain to represent transferable rewards. Each reward is tokenized with metadata indicating transferability, allowing the reward information to be replicated and transferred across the network without manual copying or verification, simplifying the user process while maintaining precision through cryptographic validation of token authenticity and transfer rights.

Inventive Principle:

Principle #26Copying

3Reliability

If manual verification processes are used, then control over reward transfers is maintained, but time consumption and processing speed increase

Engineering Contradiction:

Improvetransfer controlVSAvoidtransfer processing speed

Core Design Contradiction:

ReliabilityVSProductivity

Solution Approach 1:

The patent replaces manual verification mechanics with automated smart contract execution on the blockchain. When a transfer request is initiated, the smart contract instantly verifies transfer eligibility by reading transferability indicators from the token metadata and checking network conditions, then executes the transfer in a single automated operation, maintaining control through programmable rules while achieving near-instantaneous processing speeds.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

Solution Approach 2:

The blockchain network maintains continuous operation and validation, allowing reward transfers to be processed at any time without interruption by manual verification schedules. The distributed ledger continuously records and validates transfer transactions, enabling uninterrupted high-speed processing while maintaining reliable control through ongoing network consensus and smart contract enforcement of transfer rules.

Inventive Principle:

Principle #20Continuity of useful action

Data Source

PatentUS20250384434A1Systems and Methods to Securely Transfer Digital Tokens

Publication Date: 2025.12.18 RAMSEE 1 LLC

AI summary

A system configured to receive, from a first user, a digital currency unit comprising an indication of a loyalty status associated with the digital currency unit, wherein the digital currency unit is associated with one or more blocks of a distributed ledger, wherein the one or more blocks record the indication of the loyalty status and a transferability indication corresponding to the digital currency unit, determine the digital currency unit was transferred to the first user from a second user, verify, based on information recorded on the one or more blocks, that the digital currency unit is transferable and, in response to verifying the digital currency unit is transferable, send a response to the first user including the indication of the loyalty status associated with the digital currency unit.