Intrachain’s Transaction Flow
Dear Community,
In the last Medium Blog we have explained to you how Intrachain helps large corporations to improve accounting efficiency through blockchain. In this week’s Blog, we are going to explain to you Intrachain’s Transcation Flow.
The Problem of Intercompany Cost Allocation and Transactions
In the course of performance of tasks under the contract between legal entities, there is a need for the preparation and processing of primary data coming from performers. This primary information includes paramaters such as a list of tasks, the executor, terms, cost and so forth. Based on these data, usually accounting documents are prepared, invoices are issued and, ultimately, the counterparty makes payment.
However, in almost every case the customer and the executor have different accounting systems and ERPs. These systems usually are not unified, and also could be of completely different manufacturers, so integration between them translates into a fairly large-scale and costly project. Thus, there is a barrier between the electronic systems of the customer and the contractor, which can only be overcome manually or by means of an external integration system.
Intrachain — the Solution
This external integration system is Intrachain.
In the graphic above you can see how Intrachain provides the receipt and processing of primary data from the executors (Process Mining component), billing automation and transactions in the blockchain (Intrachain Server), as well as the integration component with ERP systems of the customer and executor in the form of Intrachain API and adapters.
How does Intrachain operate?
Intrachain operates with two Ethereum blockchains — Public and Private. Legal entities are represented in public blockchain with private accounts. Depending on the contract between legal entities the number of smart contracts are created in compliance with the terms of the contract. Advance and prepaid settlement systems are possible. The smart contracts that are in accordance with the treaty provisions are also created in a private blockchain. The execution of contractual obligations is carried out through calls to Intrachain API. The Intrachain Server processes incoming requests and generates transactions in a private blockchain, the execution of which leads to the call of the smart contract code. The smart contract code is responsible for the correct calculation of funds for debiting from the counterparty account for services rendered within the transaction being executed.
What does this mean?
This means that, transaction processing occurs inside a private blockchain, which only contractors have access to. The public blockchain acts as a mechanism for the formation of advance payments or the transfer of prepayments to counterparty accounts in fulfillment of the terms of the contract.
How is this process secured?
The integrity and immutability of these transactions is provided by the Etereum eco-system. Private transaction data is available for viewing only to the direct participants of the transaction, while the very fact of the transaction and the authentication and integrity check of the data are available to all parties using the single private blockchain space.
This makes it possible to use a single private blockchain for carrying out transactions between a number of counterparties connected by financial obligations.
Did you like this post? Tap the clap icon :)
