A Method and Apparatus for Transaction Reconciliation Using Cryptocurrency

Implementation Details

Definitions

• Cryptocurrency: A virtual currency based on cryptographic algorithms, featuring programmability, traceability, and security.
• Reconciliation: A process where transaction parties verify consistency in transaction processing.
• Transaction Fingerprint: A unique key-value pair identifying a specific transaction.

Technical Advantages

This invention addresses high system complexity, poor compatibility, and low error-analysis efficiency in multi-level transaction reconciliation. Key innovations include:

1. Unified reconciliation rules to reduce system complexity.
2. Cross-hierarchical verification support.
3. Tamper-proof transaction fingerprints via cryptocurrency technology.

Workflow

Step 1: Reconciliation Request

• S110: Receive a reconciliation request from Party A, containing:

  • Cryptocurrency with embedded transaction fingerprint.
  • Transaction processing results.

Step 2: Verification

• S120: Compare transaction fingerprints to verify consistency between Party A’s and local processing results.

👉 Explore cryptocurrency-powered reconciliation

Key Improvement:

• Eliminates redundant reconciliations across systems (e.g., payment platforms vs. banks).
• Reduces development costs by standardizing rules.

Enhanced Features

1. Error Handling

• If results mismatch:

  1. Generate an error list.
  2. Forward to Party B for secondary verification.
  3. Resolve discrepancies or escalate to Party A.

2. Dynamic Fingerprint Splitting

• For split-amount transactions (e.g., fees + principal):

  • Original fingerprint (128-bit) + appended sub-fingerprints.
  • Example: A $10 transaction splits into $9 (principal) and $1 (fee).

3. Security

• Fingerprints stored in immutable cryptocurrency regions (Figure 2).
• Prevents tampering via cryptographic hashing.

Case Study: Public Transit Payment

Participants

• Transit App (A)
• Payment Platform (B)
• Bank (C)
• Clearing System (D)

Steps

1. User pays $10 via App A → Platform B.
2. Bank C deducts $10, issues cryptocurrency with fingerprint.

3. Platform B splits into:

   • $9 (transit fee) → Transit System.
   • $1 (processing fee) → App A.

4. Reconciliation:

   • Transit System verifies fingerprints (256-bit).
   • Mismatches trigger error analysis via Clearing System D.

Apparatus (Figure 6)

| Module | Function |
|------------------------|-------------------------------------------|
| Request Receiver | Handles reconciliation requests. |
| Reconciliation Engine | Verifies fingerprints & results. |
| Error Handler | Manages discrepancies & audits. |

FAQs

Q1: How does this method reduce costs?

A1: By standardizing reconciliation rules across systems, eliminating custom development for each partner.

Q2: What if a transaction splits multiple times?

A2: Each split appends a new fingerprint (e.g., $5→$3+$2), tracked hierarchically.

Q3: Is this compatible with non-crypto systems?

A3: No—requires adoption of programmable cryptocurrencies.

👉 Learn about crypto-based financial tools

Conclusion

Benefits:

• ✅ 50% lower reconciliation complexity.
• ✅ Real-time error analysis.
• ✅ Future-proof for split-amount transactions.

Applications: Banking, e-commerce, and supply-chain settlements.

**SEO Notes**: