Centralized Virtual Currency Transaction Processing System
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Solution Overview
Problem
Current virtual currency systems are limited in tracking and utilizing virtual currencies from multiple sources, as they are often closed-loop and require significant infrastructure for transaction processing, and do not effectively integrate the additional information provided by mobile devices for secure and regulated marketplaces.
Innovation Solution
A transaction processing system that generates and centrally manages virtual currency, using a server computer to parse network protocol packets with issuer and consumer identifiers to verify and process transactions, allowing for standardized virtual currency use across merchants and reducing the need for multiple accounts.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If a centralized virtual currency management system is implemented, then transaction security and fraud prevention are improved, but system complexity and infrastructure requirements increase
Solution Approach 1:
The patent introduces a centralized payment processing network as an intermediary between consumers, merchants, and virtual currency issuers. This mediator verifies transactions, validates virtual currency authenticity, and coordinates between multiple parties, thereby improving security without requiring each participant to build complex verification systems independently.
Solution Approach 2:
The payment processing network performs multiple functions: transaction authorization, virtual currency validation, consumer verification, and fraud detection. By consolidating these diverse functions into a single multi-functional system, the patent improves overall security while avoiding the need for separate specialized systems for each function.
2Adaptability or versatility
If multiple merchant-specific virtual currency systems are maintained, then merchant autonomy and customization are improved, but tracking and management difficulty increase
Solution Approach 1:
The patent segments virtual currency into distinct types or categories associated with different merchants or merchant groups. Each virtual currency maintains its merchant-specific characteristics while being tracked through a unified payment processing network that can identify and manage different currency types separately, reducing overall tracking complexity.
Solution Approach 2:
The centralized payment processing network acts as an intermediary that receives virtual currency from multiple merchants, standardizes their formats, and manages them uniformly. This allows merchants to maintain autonomy in issuing their own currencies while the network handles the complexity of tracking and converting between different currency types.
3Measurement precision
If mobile device information is integrated into transaction processing, then authentication accuracy and fraud prevention are improved, but information processing requirements and system complexity increase
Solution Approach 1:
The system performs preliminary verification of mobile device information and consumer identities before processing the actual transaction. By pre-validating device authenticity and consumer credentials, the system improves authentication accuracy while reducing the processing burden during the transaction itself, as basic verification has already been completed.
Solution Approach 2:
The patent extracts and separately processes mobile device information (such as device identifiers, location data, and authentication tokens) from the main transaction flow. This extracted information is verified independently through the payment processing network, improving authentication accuracy without overwhelming the transaction processing system with excessive data handling requirements.
4Productivity
If virtual currency transactions require infrastructure investment, then transaction processing capability is improved, but cost and barrier to entry increase
Solution Approach 1:
The patent merges virtual currency transaction processing with the existing payment processing network infrastructure that already handles traditional currency transactions. By combining these functions into a single integrated system, merchants and consumers can process virtual currency transactions without building separate dedicated infrastructure, thereby improving processing capability while reducing investment requirements.
Data Source
AI summary
A payment processing system may be integrated with a centralized virtual currency issuing and transaction processing system to provide a standardized and more efficient virtual currency that can provide easier tracking of and use of a consumer's virtual currency balance. The payment processing system may implement a network communications systems that may allow the payment processing system to obtain additional consumer, merchant and transaction information for a transaction by data fields transmitted in a network header portion of a network communications protocol packet. The additional information may be stored and cross-referenced to provide greater transaction tracking data.