Mobile Wallet Currency Transfer Using Smart Contract Exchange Lock-In
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Solution Overview
Problem
Existing currency exchange and transfer processes are time-consuming and costly, requiring customers to visit physical branches or use online portals, and involve inefficient traditional payment rails that delay transactions and incur additional fees.
Innovation Solution
A mobile wallet application facilitates currency exchange and transfer using a distributed ledger-based payment rail, allowing customers to perform transactions directly from their mobile devices, eliminating the need for physical branches and reducing fees through automated smart contracts.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Speed
If traditional payment rails are used for currency transfer, then the system is simpler to implement, but the transaction speed is slow and fees are high
Solution Approach 1:
The patent replaces traditional mechanical payment rails (SWIFT, correspondent banks) with a distributed ledger system that uses cryptographic hashing and peer-to-peer verification. This substitution enables near-instantaneous settlement while reducing the need for complex intermediary infrastructure.
Solution Approach 2:
The patent introduces a distributed ledger as an intermediary layer between sender and receiver, eliminating the need for traditional correspondent bank networks. The ledger provides a shared truth that all participants can verify, reducing trust requirements and enabling faster transfers.
2Ease of operation
If customers visit physical branches for currency exchange, then the service is more secure and reliable, but the process is time-consuming and inconvenient
Solution Approach 1:
The patent enables customers to perform currency exchange and transfers directly through mobile devices using automated smart contracts. The system handles verification, execution, and settlement automatically without requiring physical branch visits or teller intervention, while maintaining security through cryptographic protocols.
Solution Approach 2:
The patent pre-establishes smart contracts and currency reserves on the distributed ledger before transactions occur. This preliminary setup allows customers to execute transfers instantly without needing to visit branches for authentication or fund verification at the time of transfer.
3Productivity
If traditional online banking portals are used for wire transfers, then the process can be done remotely, but it still requires filling out forms and taking time
Solution Approach 1:
The patent enables continuous, real-time currency transfers without interruption for form-filling or manual verification. The distributed ledger processes transactions continuously as they are submitted, eliminating idle time between steps and allowing transfers to occur instantly throughout the day without batch processing delays.
Solution Approach 2:
The patent replaces manual form-filling and banking portal procedures with automated smart contracts that execute transfers automatically based on predefined conditions. This eliminates the time-consuming manual processes while maintaining remote accessibility.
4Ease of manufacture
If physical branches and traditional payment rails are used, then the system is more established and trusted, but fees are higher and costs are greater
Solution Approach 1:
The patent extracts the expensive intermediary layers from traditional payment rails (correspondent banks, SWIFT fees, branch overheads) and replaces them with a distributed ledger that eliminates these middlemen. The system achieves cost reduction by removing unnecessary intermediaries while maintaining functionality.
Solution Approach 2:
The patent changes the operational parameters of the payment system by moving from batch-processing traditional rails to continuous distributed ledger validation. This parameter change enables lower operational costs through automated verification and elimination of physical infrastructure requirements.
Data Source
AI summary
Systems, methods, and computer-readable storage media for locking-in curreny exchanges. One method includes providing, using a graphical user interface (GUI) of a wallet application, a customer request for a currency transfer between a customer account and a recipient account. The customer account is associated with a first type of currency and the recipient account is associated with a second type of currency. The method further includes receiving, by the GUI of the wallet application, an indication of a transferred amount for a currency transfer from the wallet application associated with the customer account to the recipient account based on executing a smart contract on a distributed ledger, debiting, by the wallet application, an amount of the first type of currency from the customer account, and crediting, by the wallet application, an amount of the second type of currency to the receipient account.