Virtual Currency Settlement via Exchange Institution
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Solution Overview
Problem
Cryptocurrency mining pool systems face increased workload and development costs due to the need to manage multiple types of virtual currencies, complicating settlement processes.
Innovation Solution
A virtual currency settlement method and apparatus that allows mining nodes to settle with a first virtual currency based on workload and income type, then exchanges it into a second virtual currency through an exchange institution, transferring the second currency to an account, and determines an exchange rate for user presentation.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If the mining pool system manages multiple types of virtual currencies to settle with different mining nodes, then the settlement capability is improved, but the device complexity and workload increase
Solution Approach 1:
The patent introduces an exchange institution as an intermediary between the mining pool system and mining nodes. The mining pool system only needs to manage one type of virtual currency (first virtual currency), while the exchange institution handles the conversion to other virtual currencies (second virtual currency). This mediator approach allows the system to maintain settlement capability for multiple currencies without increasing the complexity of the mining pool system itself.
Solution Approach 2:
The patent extracts the currency conversion function from the mining pool system and transfers it to a separate exchange institution. By taking out the complex multi-currency management functionality, the mining pool system is simplified to only handle its native virtual currency, while the exchange institution independently manages the conversion to other currencies.
2Adaptability or versatility
If the mining pool system manages multiple types of virtual currencies, then the settlement capability is improved, but the development cost increases
Solution Approach 1:
The exchange institution acts as a mediator that the mining pool system collaborates with. Instead of the mining pool system independently developing and maintaining multiple currency management capabilities (which would be costly), it partners with an exchange institution that already has the infrastructure to handle multiple virtual currencies, thereby reducing development costs.
Solution Approach 2:
The exchange institution provides a universal platform that handles multiple virtual currency conversions. This multi-functional institution serves the mining pool system's needs for various currencies without requiring the mining pool system to develop separate functionality for each currency type.
3Ease of operation
If the mining pool system directly settles with mining nodes using income-type virtual currencies, then the settlement process is simplified, but the system must manage multiple virtual currencies
Solution Approach 1:
The exchange institution serves as a mediator that receives the first virtual currency from the mining pool system and provides the corresponding second virtual currency to the mining node. This intermediary approach maintains the simplicity of the settlement process for the mining pool system while eliminating the need for it to directly manage multiple virtual currency types.
Data Source
AI summary
The present disclosure provides a currency settlement method and apparatus. The currency settlement method includes: settling with a mining node that acquired a first virtual currency according to a workload performed by the mining node and an income type of the mining node; according to a settlement currency type, transacting with an exchange institution to exchange an amount in the first virtual currency into an amount in a second virtual currency, the second virtual currency being the settlement currency type; and transferring the amount of the second virtual currency to an account.