Blockchain-based electronic voucher method and system

Blockchain-based electronic voucher method and system

Glossary

Term DefinitionsBlockchain A distributed database that stores a growing list of data records (blocks) that are linked together by cryptographic technology to ensure data security and immutability. Payment Network A system or network used to transfer funds between entities, such as Visa, Mastercard, etc. Transaction Account A financial account that can be used to conduct transactions, such as a checking account, savings account, credit card account, etc. Merchant An entity that offers goods or services for purchase. Issuer A financial institution that issues payment instruments (such as credit cards, debit cards, etc.). Payment Transaction A transfer of funds between two entities, such as the purchase of goods or services, the repayment of a debt, etc. Point of Sale (POS) A physical location configured to process sales transactions and receive payments, usually equipped with an electronic cash register (ECR) or a point of sale terminal (POS terminal). Electronic voucher A digitized voucher that represents a certain value of currency and can be redeemed for goods or services at a specified merchant or network. Blockchain Transaction Identifier A code that uniquely identifies a specific transaction on the blockchain. Transaction Data Information related to a payment transaction, such as the transaction amount, date, time, merchant information, etc. Transaction data value Information associated with an e-voucher stored on the blockchain, such as redemption amount, merchant identifier, expiration date, etc. Payment credentials Information associated with a transaction account used to authorize and process payment transactions, such as credit card numbers, security codes, etc. Redemption amount The face value of an e-voucher, i.e., the value of the goods or services that can be redeemed. Merchant identifier A code used to uniquely identify a merchant, such as the merchant name, number, etc. Expiration date The date on which an e-voucher expires. Authorization response The payment network's reply to a request to authorize a payment transaction, indicating whether the transaction was approved. Data message Information passed between different components of a system. Processed transaction amount The amount actually paid, which may be different from the transaction amount, such as the amount after using an e-voucher.

Short answer questions

How can an e-voucher system use blockchain to reduce fraud?

In the context of e-vouchers, what is the difference between "transaction data value" and "payment credentials"?

What steps are involved in "eligibility verification" of an e-voucher?

How can merchants benefit from an e-voucher system that uses blockchain?

Describe the process of passing an e-voucher from sender to receiver.

Explain how the blockchain is updated after an e-voucher is redeemed.

What is the purpose of the "voucher identification number"?

What role does the issuing institution play in the e-voucher system?

If the redemption amount of the e-voucher is less than the transaction amount, how does the system process the payment?

In addition to reducing fraud, what other advantages does the e-voucher system using blockchain have?

Short answer answer

The e-voucher system reduces fraud by storing voucher information on the blockchain. Due to the immutability of the blockchain, any tampering with the voucher information will be detected immediately, preventing the use of counterfeit vouchers.

The "transaction data value" is stored on the blockchain and contains information about the e-voucher, such as the redemption amount, merchant identifier, and expiration date. The "payment voucher" is stored in the e-voucher itself and contains information associated with the transaction account, which is used to authorize and process payment transactions.

The eligibility verification of the e-voucher includes checking the validity of the voucher, such as whether it has expired, whether there is an outstanding redemption amount, whether it is redeemable at the associated merchant, and whether it has been redeemed.

Merchants can benefit from an e-voucher system using blockchain because it can reduce fraud, provide visibility about outstanding vouchers, and potentially attract more customers.

The sender generates an e-voucher using a sender device and sends it electronically to a receiver device. The receiver device receives the e-voucher and stores it until it is ready to be redeemed.

Upon redemption of an e-voucher, the blockchain node creates a new data value containing an updated redemption amount or indicating that the e-voucher has been fully redeemed. This new data value is then added to the blockchain.

The "voucher identification number" is used to uniquely identify each e-voucher. It is used to retrieve information related to the voucher on the blockchain and verify the authenticity of the voucher during the redemption process.

The issuing institution is responsible for issuing the transaction account associated with the e-voucher. It is also responsible for verifying the transaction account and placing the holding amount when the voucher is generated.

If the redemption amount of the e-voucher is less than the transaction amount, the system splits the payment into two separate transactions: one for the voucher redemption amount and the other for the remaining transaction amount, which is paid by the receiver using another payment method.

In addition to reducing fraud, an e-voucher system using blockchain can also improve transparency and traceability, reduce administrative costs, and improve customer experience.

Paper Title

Discuss the potential impact of using blockchain technology on e-voucher systems, including the impact on consumers, merchants, and the industry as a whole.

Compare and contrast traditional e-voucher systems with e-voucher systems using blockchain, focusing on security, transparency, and efficiency.

Analyze the challenges that e-voucher systems using blockchain may face, such as scalability, regulatory issues, and user adoption.

Explore future trends in e-voucher systems using blockchain, such as integration with other technologies (e.g., IoT, AI) and new application scenarios.

Evaluate the ethical implications of e-voucher systems using blockchain for different stakeholders (e.g., consumers, merchants, issuers, regulators).