Virtual Currency Point Exchange Mediator for Blockchain Commerce

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Solution Overview

Problem

Current blockchain-based virtual currency systems face limitations in compatibility and valuation across different types, hindering their use in various electronic commerce activities such as purchasing items, services, auctions, and investments, as well as lacking compatibility between different virtual currencies.

Innovation Solution

A blockchain payment system and method that includes a user computing device, a virtual currency exchange server, and an electronic commerce server, enabling the conversion of virtual currency to a standardized point for use in purchasing items or services, with a point exchange service server determining reference prices and facilitating transactions through smart contracts, allowing compatibility and valuation of various virtual currencies.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Adaptability or versatility

If virtual currency is used for trade between individuals without national approval, then trade intermediation and guarantee functions are replaced, but compatibility and valuation between different virtual currencies remain limited

Engineering Contradiction:

Improvecompatibility between virtual currenciesVSAvoidvaluation of virtual currencies

Core Design Contradiction:

Adaptability or versatilityVSReliability

Solution Approach 1:

The patent introduces a point exchange service server as an intermediary that converts various virtual currencies into a standardized point system. This mediator enables compatibility between different virtual currencies by translating them into a common denominator (points), while maintaining reliable valuation through reference price parameters obtained from virtual currency exchange servers.

Inventive Principle:

Principle #24Intermediary (Mediator)

Solution Approach 2:

The patent transforms virtual currency values by changing the parameter representation from diverse currency types to a unified point system. By obtaining reference price parameters from exchange servers and converting virtual currencies to points based on these parameters, the system achieves both compatibility and reliable valuation across different currency types.

Inventive Principle:

Principle #35Parameter changes

2Adaptability or versatility

If blockchain technology is introduced to conventional services, then centralized intermediation is replaced, but actual circulation of virtual currency remains limited

Engineering Contradiction:

Improveapplication scope of virtual currencyVSAvoidusability in electronic commerce

Core Design Contradiction:

Adaptability or versatilityVSEase of operation

Solution Approach 1:

The point exchange service server acts as a bridge between blockchain-based virtual currencies and conventional electronic commerce systems. By converting virtual currencies to standardized points that can be used in online/offline payments, auctions, and investments, the system expands application scope while maintaining ease of operation through familiar point-based transaction mechanisms.

Inventive Principle:

Principle #24Intermediary (Mediator)

Solution Approach 2:

The patent creates a universal point system that can be applied across multiple electronic commerce activities including online/offline payments, auctions, investments, and cloud funding. This multi-functional approach allows virtual currencies to be used in diverse scenarios while maintaining operational simplicity through the standardized point interface.

Inventive Principle:

Principle #6Universality (Multi-functionality)

3Extent of automation

If smart contracts are used to execute trades automatically, then third party intervention is eliminated, but compatibility between different virtual currency types cannot be achieved

Engineering Contradiction:

Improveautomatic contract executionVSAvoidcompatibility between virtual currencies

Core Design Contradiction:

Extent of automationVSAdaptability or versatility

Solution Approach 1:

The smart contract incorporates the point exchange service server as an intermediary component that automatically converts different virtual currencies to points before executing the trade. This maintains automatic contract execution while enabling compatibility between different currency types through the built-in conversion mechanism that retrieves reference prices and performs point calculations.

Inventive Principle:

Principle #24Intermediary (Mediator)

Solution Approach 2:

The patent merges the currency conversion function with the smart contract execution process. By integrating the point exchange service into the automated contract, the system combines automatic execution with multi-currency compatibility, allowing trades to be executed automatically regardless of the specific virtual currency types involved.

Inventive Principle:

Principle #5Merging (Combining)

Data Source

PatentUS11790353B2System and method for online/offline payment with virtual currency for nodes included in mobile-based blockchain distributed network

Publication Date: 2023.10.17 KIM SONG HWAN

AI summary

An open electronic commerce system includes a user computing device holding a virtual currency, as a node of a blockchain network; a virtual currency exchange server configured to support virtual currency trading; a point exchange service server configured to determine a reference price parameter from the virtual currency exchange server when there is a request for exchange of the virtual currency that the user computing device holds, and to exchange the virtual currency for a point corresponding to the virtual currency requested to be exchanged; and an electronic commerce server configured to provide support for purchase of an item with the point.