Description:BACKGROUND
Field of Invention
[001] Embodiments of the present invention generally relate to a payout system and particularly to a system for automated parametric event payout.
Description of Related Art
[002] Agreements that depend on automatic payment after a measurable real-world event face significant inefficiencies. Verification of the event often depends on manual checks, human intervention, or centralized intermediaries. This process introduces delays, administrative overhead, and a lack of transparency regarding the data used and the timing of payout. In addition, reliance on a central party exposes participants to counterparty risk and disputes over the interpretation of the triggering event.
[003] Existing practices include traditional parametric insurance, where payouts link to predefined measurable triggers such as rainfall levels, flight delays, or seismic readings. Insurance companies, escrow services, or Application Package Interface (API) driven solutions process these agreements by drawing data from internal systems, trusted third parties, or centralized feeds. In some decentralized applications, smart contracts attempt to automate payouts with the help of blockchain oracles. However, these systems still depend on internal processes, limited oracle structures, or traditional payment rails for execution.
[004] Despite these solutions, major shortcomings persist. Traditional insurance and escrow remain centralized, costly, and slow. Application Package Interface (API) based solutions continue to rely on single service providers, which limits transparency and security. Even early decentralized applications suffer from high transaction fees, slow settlement, and reliance on oracles that may lack robustness or full decentralization.
[005] There is thus a need for an improved and advanced ### that can administer the aforementioned limitations in a more efficient manner.
SUMMARY
[006] Embodiments in accordance with the present invention provide a system for automated parametric event payout. The system comprising a blockchain network adapted to provide an immutable ledger. The system further comprising a policy contract deployed on the blockchain network, configured to store terms selected from a parametric trigger condition based on real-world event data, a pre-defined verifiable off-chain data source identifier, a beneficiary address, or a combination thereof. The system further comprising a data interface contract deployed on the blockchain network, operably connected to the policy contract. The data interface contract is configured to receive event data originating from the pre-defined verifiable off-chain data source identified in the policy contract; apply a pre-defined validation logic to the received event data to generate a verified event status; and provide a verified event status to the policy contract.
[007] Embodiments in accordance with the present invention further provide a method for automating parametric event payout using a blockchain system. The method comprising steps of deploying a policy contract on a blockchain network. The policy contract defining terms are selected from a parametric trigger condition based on real-world event data, a pre-defined verifiable off-chain data source identifier, a beneficiary address, or a combination thereof; deploying an data interface contract configured to receive event data from the off-chain data source and apply a pre-defined validation logic; deploying a payout contract configured to execute a payout transfer; receiving, by the data interface contract, event data originating from the off-chain data source; and applying, by the data interface contract, the pre-defined validation logic to the received event data to generate a verified event status.
[008] Embodiments of the present invention may provide a number of advantages depending on their particular configuration. First, embodiments of the present application may provide a system for automated parametric event payout.
[009] Next, embodiments of the present application may provide a system that enables near-instantaneous payout once the predefined event occurs, in contrast to traditional processes that may take days or weeks.
[0010] Next, embodiments of the present application may provide a system that eliminates administrative overhead from manual verification, claims adjustment, and central processing, which reduces costs for both providers and users.
[0011] Next, embodiments of the present application may provide a system that is immutably recorded on the blockchain, ensuring verifiable, tamper-proof, and transparent records.
[0012] Next, embodiments of the present application may provide a system that removes reliance on human intermediaries or central institutions by shifting trust to cryptographically secure smart contracts and validated data feeds.
[0013] Next, embodiments of the present application may provide a system that reduces disputes and enhances confidence in the accuracy of event verification.
[0014] These and other advantages will be apparent from the present application of the embodiments described herein.
[0015] The preceding is a simplified summary to provide an understanding of some embodiments of the present invention. This summary is neither an extensive nor exhaustive overview of the present invention and its various embodiments. The summary presents selected concepts of the embodiments of the present invention in a simplified form as an introduction to the more detailed description presented below. As will be appreciated, other embodiments of the present invention are possible utilizing, alone or in combination, one or more of the features set forth above or described in detail below.
BRIEF DESCRIPTION OF THE DRAWINGS
[0016] The above and still further features and advantages of embodiments of the present invention will become apparent upon consideration of the following detailed description of embodiments thereof, especially when taken in conjunction with the accompanying drawings, and wherein:
[0017] FIG. 1 illustrates a block diagram of a system for automated parametric event payout, according to an embodiment of the present invention;
[0018] FIG. 2 illustrates a dataflow diagram of a system for automated parametric event payout, according to an embodiment of the present invention; and
[0019] FIG. 3 depicts a flowchart of a method for automating parametric event payout using a blockchain system, according to an embodiment of the present invention.
[0020] The headings used herein are for organizational purposes only and are not meant to be used to limit the scope of the description or the claims. As used throughout this application, the word "may" is used in a permissive sense (i.e., meaning having the potential to), rather than the mandatory sense (i.e., meaning must). Similarly, the words “include”, “including”, and “includes” mean including but not limited to. To facilitate understanding, like reference numerals have been used, where possible, to designate like elements common to the figures. Optional portions of the figures may be illustrated using dashed or dotted lines, unless the context of usage indicates otherwise.
DETAILED DESCRIPTION
[0021] The following description includes the preferred best mode of one embodiment of the present invention. It will be clear from this description of the invention that the invention is not limited to these illustrated embodiments but that the invention also includes a variety of modifications and embodiments thereto. Therefore, the present description should be seen as illustrative and not limiting. While the invention is susceptible to various modifications and alternative constructions, it should be understood, that there is no intention to limit the invention to the specific form disclosed, but, on the contrary, the invention is to cover all modifications, alternative constructions, and equivalents falling within the scope of the invention as defined in the claims.
[0022] In any embodiment described herein, the open-ended terms "comprising", "comprises”, and the like (which are synonymous with "including", "having” and "characterized by") may be replaced by the respective partially closed phrases "consisting essentially of", “consists essentially of", and the like or the respective closed phrases "consisting of", "consists of”, the like.
[0023] As used herein, the singular forms “a”, “an”, and “the” designate both the singular and the plural, unless expressly stated to designate the singular only.
[0024] FIG. 1 illustrates a block diagram of a system 100 for automated parametric event payout, according to an embodiment of the present invention. In an embodiment of the present invention, the system 100 may be adapted to solve inefficiencies of parametric payouts by employing a blockchain-based system 100. The system 100 may employ self-executing smart contracts that may be adapted to automate an entire process based on verifiable real-world data. The verifiable real-world data may be, but not limited to, a flight delay threshold, a weather metric, and so forth and linked beneficiary addresses, that securely fetches and crucially verifies data from one or multiple pre-defined off-chain oracle sources potentially using enhanced consensus or validation logic. Upon agreement setup and potential fund escrow, the system 100 may continuously monitor relevant event via oracles; once verification of trigger condition is met according to robust validation rules, the system 100 may instantly and automatically transfer the predetermined amount to a beneficiary. This entire workflow may be executed on an immutable blockchain ledger, eliminates intermediaries, dramatically cuts processing time and costs, removes counterparty risk, and provides complete, auditable transparency regarding event verification and payout execution.
[0025] In an embodiment of the present invention, the system 100 may feature smart contract architecture that may be integrated and enhanced, potentially multi-source, oracle data validation, and consensus mechanisms directly within the automated execution flow to improve payout reliability and reduce disputes compared to prior implementations.
[0026] According to the embodiments of the present invention, the system 100 may incorporate non-limiting hardware components to enhance a processing speed and an efficiency such as the system 100 may comprise a blockchain network 102, a policy contract 104, a data interface contract 106, and a payout contract 108. In an embodiment of the present invention, the hardware components of the system 100 may be integrated with computer-executable instructions for overcoming the challenges and the limitations of the existing systems.
[0027] In an embodiment of the present invention, the blockchain network 102 may be adapted to provide an immutable ledger. In an embodiment of the present invention, the policy contract 104 deployed on the blockchain network 102. The policy contract 104 may be configured to store terms selected from a parametric trigger condition based on real-world event data, a pre-defined verifiable off-chain data source identifier, a beneficiary address, and so forth.
[0028] In an embodiment, the policy contract 104 may be configured to store pre-defined parametric terms, including one or more trigger conditions associated with a real-world event. Parties may interact with the policy contract 104 via a user interface (not shown) to define such terms. The policy contract 104 may also escrow funds as represented by Arrow E. In an embodiment, a real-world event occurs, such as a flight status change, weather condition, or other measurable event. One or more verifiable off-chain data sources or oracle networks monitor the real-world event and provide event data to the data interface contract.
[0029] In an embodiment of the present invention, the data interface contract 106 may be deployed on the blockchain network 102, operably connected to the policy contract 104. The data interface contract 106 may validate the received event data through pre-defined logic and generates a verified event status. This verified event status is communicated to the policy contract 104.
[0030] The data interface contract 106 may be configured to receive event data originating from the pre-defined verifiable off-chain data source identified in the policy contract 104.
[0031] The data interface contract 106 may be configured to apply a pre-defined validation logic to the received event data to generate a verified event status. The data interface contract 106 may be configured to provide a verified event status to the policy contract 104. The data interface contract 106 may be configured to evaluate the verified event status against the parametric trigger condition. The data interface contract 106 may be configured to transfer a pre-determined payout amount to the beneficiary address.
[0032] In an embodiment of the present invention, the pre-defined validation logic may be configured to obtain event data from multiple distinct off-chain data sources identified in the policy contract 104 and perform a consensus check among multiple data sources.
[0033] In an embodiment of the present invention, the policy contract 104 may be operably connected to the payout contract 108. In an embodiment of the present invention, the pre-defined validation logic may be configured to apply an outlier detection algorithm to filter received event data before generating the verified event status.
[0034] In an embodiment of the present invention, the policy contract 104 may be configured to hold a pre-determined payout amount in escrow prior to the parametric trigger condition being met.
[0035] In an embodiment, upon receiving the verified event status, the policy contract 104 may evaluate the status against stored trigger conditions. If the conditions are satisfied, the policy contract 104 may transmit a trigger signal to the payout contract 108. In an embodiment, the payout contract 108 may execute a payout transfer from escrowed funds to the designated beneficiary addresses on the blockchain network 102. In an embodiment, all contract interactions and the final payout transfer are immutably recorded on the blockchain network 102, ensuring transparency and auditability.
[0036] FIG. 2 illustrates a dataflow diagram 200 of the system 100 for automated parametric event payout, according to an embodiment of the present invention. In an embodiment of the present invention, a smart device 202 may be adapted to continuously capture real-world event data such as environmental readings, weather metrics, or operational parameters, and generate digital event records that may be transmitted for further processing. The smart device 202 may be, but not limited to, an Internet of Things (IoT) based device, sensors, and so forth. Embodiments of the present invention are intended to include or otherwise cover any type of the smart device 202, including known, related art, and/or later developed technologies.
[0037] In an embodiment of the present invention, an edge gateway 204 may be configured to aggregate, preprocess, and securely transmit the captured event data from the smart device 202 to an off-chain server 206. The edge gateway 204 may additionally filter redundant signals and perform lightweight validation prior to transmission.
[0038] In an embodiment of the present invention, an off-chain server 206 may be adapted to host data management functions, execute advanced validation logic, and interface with both the blockchain network 208 and a user device 210. The off-chain server 206 may further be adapted to structure the incoming event data into a standardized format suitable for blockchain submission.
[0039] In an embodiment of the present invention, a blockchain network 208 may be configured to store immutable event records received from the off-chain server 206, and execute associated smart contracts that govern automated payout conditions. The blockchain network 208 may ensure transparent, tamper-proof, and decentralized verification of the validated event data.
[0040] In an embodiment of the present invention, the user device 210 may be an electronic device that may enable the user to access event verification details, payout status, and contract execution history directly from the off-chain server 206 or from the blockchain network 208. The user device 210 may thus provide beneficiaries or stakeholders with real-time visibility and traceability of the entire parametric event payout process. The user device 210 may be, but not limited to, a smartphone, a tablet, a laptop, and so forth. Embodiments of the present invention are intended to include or otherwise cover any type of the user device 210, including known, related art, and/or later developed technologies.
[0041] In an exemplary scenario of the present invention, the smart device 202 may be deployed in an agricultural field to measure rainfall and soil moisture levels at regular intervals. The captured sensor data may be transmitted to the edge gateway 204, that may perform initial aggregation and remove inconsistent readings before securely forwarding the processed information to the off-chain server 206. The off-chain server 206 may execute advanced validation logic on the incoming data, compare the results against predefined parametric thresholds, and prepare standardized event records. These validated records may then be transmitted to the blockchain network 208, where a smart contract may evaluate the event status against a parametric trigger condition, such as a rainfall level below a specified threshold for a continuous period. Upon verification, the blockchain network 208 may automatically execute a payout contract and transfer compensation to beneficiary’s account. The beneficiary may access details of the event verification, contract execution, and payout status in real time through the user device 210, such as a mobile phone or personal computer, thereby ensuring transparency, immutability, and efficiency throughout the payout process.
[0042] In another exemplary scenario of the present invention, the smart device 202 may be deployed at an airport to capture live aircraft movement data, including departure and arrival timestamps. The event data may be transmitted to the edge gateway 204 that may aggregate the raw inputs, filters inconsistent records, and forwards the refined dataset to the off-chain server 206. The off-chain server 206 may validate the data by comparing the reported timestamps against airline flight schedules and prepare an event record in a standardized format. The validated record may be transmitted to the blockchain network 208, where a smart contract may determine whether a flight delay exceeds a predefined time threshold. Once the event is confirmed, the blockchain network 208 may trigger the payout contract to release funds from escrow to passenger’s designated account. The passenger may access the payout details and event verification history through the user device 210, ensuring immediate compensation and eliminating the need for manual claim submission.
[0043] FIG. 3 depicts a flowchart of a method for automating parametric event payout using a blockchain system, according to an embodiment of the present invention.
[0044] At step 302, the system 100 may deploy the policy contract 104 on the blockchain network 102. The policy contract 104 defining terms may be, but not limited to, the parametric trigger condition based on real-world event data, the pre-defined verifiable off-chain data source identifier, the beneficiary address, and so forth.
[0045] At step 304, the system 100 may deploy the data interface contract 106 configured to receive the event data from the off-chain data source and apply the pre-defined validation logic.
[0046] At step 306, the system 100 may deploy the payout contract 108 configured to execute the payout transfer.
[0047] At step 308, the system 100 may receive event data originating from the off-chain data source by the data interface contract 106 .
[0048] At step 310, the system 100 may apply the pre-defined validation logic to the received event data to generate the verified event status by the data interface contract 106 .
[0049] At step 312, the system 100 may evaluate the verified event status against the parametric trigger condition by the policy contract 104.
[0050] At step 314, the system 100 may automatically trigger the policy contract 104 and the payout contract 108 to transfer a pre-determined payout amount to the beneficiary address when the parametric trigger condition is met based on evaluation.
[0051] While the invention has been described in connection with what is presently considered to be the most practical and various embodiments, it is to be understood that the invention is not to be limited to the disclosed embodiments, but on the contrary, is intended to cover various modifications and equivalent arrangements included within the scope of the appended claims.
[0052] This written description uses examples to disclose the invention, including the best mode, and also to enable any person skilled in the art to practice the invention, including making and using any devices or systems and performing any incorporated methods. The patentable scope of the invention is defined in the claims, and may include other examples that occur to those skilled in the art. Such other examples are intended to be within the scope of the claims if they have structural elements that do not differ from the literal language of the claims, or if they include equivalent structural elements within substantial differences from the literal languages of the claims. , Claims:CLAIMS
I/We Claim:
1. A system (100) for automated parametric event payout, comprising:
a blockchain network (102) adapted to provide an immutable ledger;
a policy contract (104) deployed on the blockchain network (102), configured to store terms selected from a parametric trigger condition based on real-world event data, a pre-defined verifiable off-chain data source identifier, a beneficiary address, or a combination thereof; and
a data interface contract (106) deployed on the blockchain network (102), operably connected to the policy contract (104), characterized in that the data interface contract (106) is configured to:
receive event data originating from the pre-defined verifiable off-chain data source identified in the policy contract (104);
apply a pre-defined validation logic to the received event data to generate a verified event status; and
provide a verified event status to the policy contract (104).
2. The system (100) as claimed in claim 1, wherein the policy contract (104) is operably connected to a payout contract (108).
3. The system (100) as claimed in claim 1, wherein the policy contract (104) is configured to evaluate the verified event status against the parametric trigger condition.
4. The system (100) as claimed in claim 1, wherein the policy contract (104) is configured to transfer a pre-determined payout amount to the beneficiary address.
5. The system (100) as claimed in claim 1, wherein the pre-defined validation logic is configured to obtain event data from multiple distinct off-chain data sources identified in the policy contract (104) and perform a consensus check among multiple data sources.
6. The system (100) as claimed in claim 1, wherein the pre-defined validation logic is configured to apply an outlier detection algorithm to filter received event data before generating the verified event status.
7. The system (100) as claimed in claim 1, wherein the policy contract (104) is configured to hold a pre-determined payout amount in escrow prior to the parametric trigger condition being met.
8. A method (300) for automating parametric event payout using a blockchain system, the method (300) is characterized by steps of:
deploying a policy contract (104) on a blockchain network (102), wherein the policy contract (104) defining terms are selected from a parametric trigger condition based on real-world event data, a pre-defined verifiable off-chain data source identifier, a beneficiary address, or a combination thereof;
deploying a data interface contract (106) configured to receive event data from the off-chain data source and apply a pre-defined validation logic;
deploying a payout contract (108) configured to execute a payout transfer;
receiving, by the data interface contract (106) , event data originating from the off-chain data source; and
applying, by the data interface contract (106) , the pre-defined validation logic to the received event data to generate a verified event status.
9. The method (300) as claimed in claim 8, comprising a step of evaluating, by the policy contract (104), the verified event status against the parametric trigger condition.
10. The method (300) as claimed in claim 8 comprising a step of automatically triggering, by the policy contract (104), the payout contract (108) to transfer a pre-determined payout amount to the beneficiary address when the parametric trigger condition is met based on evaluation.
Date: October 08, 2025
Place: Noida

Nainsi Rastogi
Patent Agent (IN/PA-2372)
Agent for the Applicant