Umbrella Wallet Structure for Faster Digital Currency Settlement
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Solution Overview
Problem
Existing fund transfer and settlement systems between entities involve high transaction costs, long settlement cycles, and high operational risks due to frequent manual operations, necessitating an improvement in efficiency and risk management.
Innovation Solution
A digital currency wallet system with an umbrella-structured wallet structure, comprising an umbrella-top wallet and umbrella-bottom wallets, facilitates efficient fund transfer and settlement by receiving and distributing digital currency among multiple entities, utilizing smart contracts and automated processes to reduce manual intervention and enhance security.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Loss of energy
If traditional bank account-based fund transfer is used, then fund settlement can be achieved, but transaction costs are high and settlement cycle is long
Solution Approach 1:
The patent replaces the traditional mechanical bank account-based fund transfer system with a digital currency wallet system. The umbrella-structured wallet architecture uses digital currency transactions instead of conventional bank transfers, enabling direct peer-to-peer fund transfers without intermediate bank processing, thereby reducing transaction costs and settlement cycles
Solution Approach 2:
The patent segments the wallet system into an umbrella-top wallet and multiple umbrella-bottom wallets corresponding to different entities. This segmentation allows independent fund management for each entity while maintaining unified control at the top level, enabling efficient fund allocation and reducing settlement complexity
2Reliability
If manual operations are used for fund transfer, then fund settlement can be performed, but operational risks are high
Solution Approach 1:
The patent implements self-service through automated smart contracts that automatically execute fund transfers and settlements based on predefined conditions. The system performs automatic fund allocation, reconciliation, and settlement without requiring manual intervention, thereby reducing operational risks associated with manual processes
Solution Approach 2:
The system incorporates feedback mechanisms through automated monitoring and verification of fund transactions. The umbrella-structured wallet system continuously monitors transaction status and provides feedback to ensure accurate fund allocation and settlement, reducing operational errors and risks
3Loss of time
If frequent manual operations are performed, then fund settlement can be completed, but settlement cycle becomes long
Solution Approach 1:
The patent applies preliminary action by pre-configuring smart contracts and settlement parameters before fund transactions occur. The umbrella-structured wallet system pre-establishes allocation rules and settlement protocols, enabling automatic and instant execution of fund transfers without delays caused by manual processing
Solution Approach 2:
The system maintains continuous operation through automated fund monitoring and settlement processes. The umbrella-top wallet continuously monitors transactions and automatically allocates funds to umbrella-bottom wallets, ensuring uninterrupted settlement operations and reducing the settlement cycle
Data Source
AI summary
The present disclosure relates to the technical field of computers, and discloses a settlement method and apparatus based on a digital currency wallet system, and the wallet system. A specific implementation of the method includes: opening an umbrella-top wallet and one or more umbrella-bottom wallets corresponding to the umbrella-top wallet; receiving a collected digital currency by using the umbrella-top wallet, and top-to-bottom fund transferring the collected digital currency to the one or more umbrella-bottom wallets; and settling a fund to one or more umbrella-bottom entities in response to one or more settlement requests.