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Method of flexible group trading using blockchain and differential pricing. Disclosure Number: IPCOM000245852D
Publication Date: 2016-Apr-13
Document File: 5 page(s) / 162K

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Trading is a integral part of modern society. To make products and services tradable, they have to be standardized/commoditized. Then investors, industrialists can trade with that product/services in exchanges. In some countries, laws tell, that only if 80% of farmers agree for land sale, It can be sold for industrialists Or builders. In such cases it is difficult for industrialists and farmers to negotiate. In this artcile we have provided mechanism for farmers as group to negotiate and get good price with industrialists. Industrialists also get flexibility to choose between different groups willing to sell. The same mechanism can be utilized for any multi-party trading system involving many limited resources.

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Page 01 of 5

Method of flexible group trading using blockchain and differential pricing .


The article describes a group trading system. The method of group trading system described ensures all parties gets a fair play in transaction. In this owners of resources and investors who need the resources can make deal through the system provided.

The mechanism has a built in fool proof mechanism using blockchain to ensure prevention of foul-play and invalid transaction. The system also ensures all applicable laws can be followed in the place of transaction.

The parties involved in transaction can dynamically enter/exit the system.

Architecture of group trading system

The below diagram(figure-1) describes the architecture of the system mentioned. In Figure-1 Resource can set their price for the Land by increasing/decreasing price.

A mechanism like shares, where farmer can do entry and exit group.

A mechanism for law of approval(say 80 of landowners have to agree, or 80 of lands are available) to act as trigger transaction.

Multiple bulk-buyers can bid on group.

Bulk-buyer can increase or decrease bid to get his preference.

A group can be formed [By Govt or Land Notification] to trade land.


The owners of resources (S1,S2 etc) will enter group group-1. They have an option to set price for entry/exit of system.
group-1 is formed by government notification. Rules and laws to be followed is embedded in blockchain rules. Bulk buyers bid on price.

When the price, the policy, trigger all are satisfied, the transaction gets triggered.









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Description of solution

The below Figure-2 describes the solution Description of figure-2 flowchart:-
In the solution,

The commoditized land is entered in the group(A1). The farmer or group member sets the



The group is formed by the Government notification (A2). The government sets



The trigger price/rules for transaction to complete.


The Land details, differential pricing is supplied to the software (A3).