Device for secure data exchange in financial transactions using blockchain

Abstract

A device for blockchain-based secure data exchange in financial transactions, comprising: a transaction initiation unit configured to receive transaction requests from authenticated user devices, each transaction request including transaction-specific data and user authentication data; The blockchain interface module is configured to record transaction data in real time on the blockchain, thereby ensuring the immutability and verifiability of each transaction entry; a cryptographic processing unit operationally connected to the transaction initiation unit and the blockchain interface module, wherein the cryptographic processing unit is configured to encrypt the transaction-specific data using a multi-layer encryption protocol prior to its transmission to the blockchain interface module, and to generate and verify digital signatures for each transaction request to maintain the integrity and authenticity of the data. a secure key management unit configured to generate, distribute and manage encryption keys, wherein the secure key management unit ensures that encryption keys are dynamically updated at predetermined intervals and securely stored in a tamper-proof hardware security module; a data validation module that is communicatively coupled to the transaction initiation unit and the cryptographic processing unit, wherein the data validation module: checks the integrity of transaction-specific data by cross-referencing it with predefined transaction criteria before encryption; triggers a warning if transaction-specific data does not meet the predefined transaction criteria; and a real-time monitoring unit configured to analyze transaction patterns for irregularities, wherein the real-time monitoring unit uses machine learning algorithms to identify anomalous activity and flag it for further review.

Description

Field of the invention

[0001] The invention relates to a device for secure data transmission in financial transactions. Specifically, it is a device that uses blockchain technology to ensure that data exchanged in financial transactions remains trustworthy, confidential, and secure. They have combined their proprietary blockchain-driven protocols with the latest cryptographic technology and used them to form a tamper-proof, decentralized system that enables real-time financial transactions. The device is ideal for use cases requiring secure data exchange of value, such as banking, digital asset exchange, and other financial services that require high robustness. Background of the invention

[0002] In financial systems, secure data exchange is essential to maintain trust and confidentiality between parties involved in transactions. With the increasing volume of digital financial transactions, concerns about data leaks and unauthorized access to confidential information are growing. Traditional methods of securing data exchange, such as encryption and Secure Sockets Layer (SSL) protocols, have proven vulnerable to advanced cyberattacks. Blockchain technology, with its decentralized and tamper-proof nature, offers a potential solution for improving security in the exchange of financial data. However, current blockchain implementations face challenges in scalability, speed, and adaptability, especially for financial transactions that require high throughput and real-time processing.There is a need for a secure, efficient, and adaptable device that uses blockchain technology to ensure the integrity, confidentiality, and security of data exchanged in financial transactions.

[0003] In today's digital landscape, secure data exchange in financial transactions has become increasingly important. Financial institutions, payment processors, and digital platforms are regularly exposed to cybersecurity threats such as data leaks, fraud, and unauthorized access. As the volume and complexity of financial transactions grows, so too has the sophistication of these threats. Traditional methods for securing financial data exchange, such as encryption, digital signatures, and SSL / TLS protocols, are widely used to ensure data integrity and confidentiality. However, these conventional approaches face significant limitations in terms of scalability, security, and adaptability to emerging threats. Therefore, the financial industry is exploring new technologies such as blockchain to address these challenges and improve the security of data exchange in financial transactions.

[0004] Encryption is one of the most widely used techniques for protecting data in financial transactions. By converting data into an unreadable format, encryption is intended to protect confidential information from unauthorized access. However, encryption alone is often insufficient because it relies heavily on the secure management of cryptographic keys. If an attacker gains access to these keys, the encrypted data can be easily decrypted. Traditional encryption methods also struggle with the increasing computing power available to attackers, making them vulnerable to brute-force attacks and other cryptographic attacks. Furthermore, while encryption can protect data in transit, it does not provide protection against tampering or unauthorized modification.This limitation is particularly problematic in financial transactions, where data integrity is as important as confidentiality.

[0005] Digital signatures are another widely used technique for securing financial transactions. By verifying the authenticity of data, digital signatures ensure that the data comes from a legitimate source and has not been tampered with. However, digital signatures are often vulnerable to replay attacks, in which an attacker intercepts and resends a transaction to achieve unauthorized results. Furthermore, digital signatures rely on a central authority for key management, creating a single point of failure. If the security of the central authority is compromised, the integrity of all transactions signed with its keys could be at risk.Furthermore, digital signatures alone do not provide a mechanism for verifying the order or timing of transactions, which is essential for preventing double-spending or other forms of transaction manipulation in financial systems.

[0006] The Secure Sockets Layer (SSL) and Transport Layer Security (TLS) protocols are widely used to secure communication in financial transactions. These protocols establish a secure channel between sender and receiver, ensuring the confidentiality and integrity of data during transmission. Although SSL / TLS protocols effectively protect data during transmission, they are vulnerable to various types of attacks, such as man-in-the-middle (MITM) attacks and protocol downgrades. In MITM attacks, an attacker intercepts communication between sender and receiver and can modify or steal the transmitted data. Protocol downgrades, on the other hand, exploit vulnerabilities in older SSL / TLS versions, allowing attackers to force connections that use weaker encryption methods.These vulnerabilities expose SSL / TLS-secured transactions to unauthorized access and tampering, thus undermining their effectiveness as a comprehensive security solution.

[0007] Blockchain technology has proven to be a promising solution for improving data security in financial transactions. By providing a decentralized, distributed ledger, blockchain allows multiple parties to record and verify transactions without relying on a central authority. Each transaction in a blockchain is encrypted and linked to the previous transaction by a cryptographic hash, creating a chain of blocks that is virtually tamper-proof. This structure ensures that once a transaction is recorded, it cannot be changed without altering all subsequent blocks, making the blockchain highly resistant to tampering and fraud.Furthermore, the decentralized nature of blockchain reduces the risk of a single point of failure, as the integrity of the ledger is maintained by a network of nodes rather than a central authority. These features make blockchain an attractive solution for securing data exchange in financial transactions.

[0008] Despite its advantages, blockchain technology also brings its challenges. One of the biggest disadvantages of blockchain is scalability. As the number of transactions increases, so does the size of the blockchain, which can lead to longer transaction processing times and larger storage requirements. In financial systems that require real-time processing, such as high-frequency trading or payment processing, these delays can impact performance. Furthermore, blockchain consensus mechanisms, such as Proof-of-Work (PoW) and Proof-of-Stake (PoS), are computationally based. Summary of the invention

[0009] The present invention provides a device for facilitating data exchange in secure financial transactions through the use of blockchain technology. A blockchain ledger records transaction data to provide tangible and verifiable evidence of each financial exchange—the device also utilizes this functionality. It consists of a blockchain node interface, a transaction processing unit, an encryption module for storage and verification, and a data relay component. At the level of a single blockchain node interface, provided in conjunction with an underlying distributed blockchain network, in which transaction data is recorded and confirmed by other nodes located on both remote and local machines. Transaction processing, used both to initiate transactions and to validate them (in real time), is used.Sensitive transaction data is encrypted by an encryption module before transmission, and transaction accuracy is verified against a predefined smart contract protocol stored on the blockchain using a verification unit. The data relay enables secure real-time communication between the transaction processing unit of the Cellframe sidechain / node network and our blockchain ecosystem.

[0010] The tool helps exchange data more securely by leveraging the decentralized features of blockchain, which eliminate dependence on a central authority. Furthermore, it accelerates transaction speed and scalability through the use of a powerful consensus algorithm, eliminating process delays and managing parallel transaction processing. The device is also equipped with adaptive cryptographic methods capable of responding instantly to cybersecurity threats, ensuring the secure exchange of financial data is always a solution in the future.

[0011] The objective of the present invention is to provide a secure data exchange device for financial transactions that uses blockchain technology to increase reliability, confidentiality, and protection against unauthorized access. By leveraging a decentralized and tamper-proof ledger system (instead of traditional security solutions), dependence on central authorities, single-point vulnerabilities, etc., is reduced / eliminated, enabling a more secure IoT. Furthermore, the device is capable of scaling blockchain for real-time financial transactions, thus addressing existing latency and processing limitations commonly encountered in current blockchain implementations.

[0012] Another objective of this invention is the ability to use modern cryptographic mechanisms in the device (for security at every level). The invention is intended to enable the encryption of sensitive transaction data stored by webmail services, both in transit and at rest, using symmetric encryption as well as asymmetric (public-private key) cryptographic techniques. Furthermore, the invention changes its encryption methods based on new threat intelligence (pre-fed via multiple data feeds), enabling dynamic response to next-generation cybersecurity challenges and long-term resilience against moving target attacks.

[0013] The second goal of the invention is to make the transaction verification process more efficient using smart contracts. Such contracts automatically ensure compliance with regulations and transaction-specific requirements, thus reducing manual intervention and waste caused by human error. The advantage of the invention is that it creates an automated system for more effective verification to ensure compliance with legal and procedural requirements for each transaction.

[0014] Furthermore, the invention aims to improve compatibility with legacy financial systems by providing a modular and flexible architecture. The device is designed to integrate with leading financial platforms and easily adapt to numerous types of financial services. This flexibility ensures that the device is suitable for various unique environments, making it a relatively universal solution for reliable data trading directly with numerous financial institutions. SHORT DESCRIPTION OF THE FIGURE

[0015] These and other features, aspects, and advantages of the present invention will become more readily understood when the following detailed description is read in conjunction with the accompanying drawings, in which like characters represent like parts throughout. Fig. 1 shows a block diagram of a device for blockchain-based secure data exchange in financial transactions.

[0016] In Fig.Figure 1 shows a block diagram of a device for blockchain-controlled secure data exchange in financial transactions. The system 100 includes a transaction initiation unit 102 configured to receive transaction requests from authenticated user devices, each transaction request including transaction-specific data and user authentication data; a blockchain interface module 104 adapted for connection to a distributed ledger system, the blockchain interface module configured to record transaction data in real time into the blockchain, thereby ensuring the immutability and verifiability of each transaction entry; anda cryptographic processing unit 106 operatively connected to the transaction initiation unit and the blockchain interface module, wherein the cryptographic processing unit is configured to encrypt the transaction-specific data using a multi-layer encryption protocol prior to transmitting it to the blockchain interface module; to generate and verify digital signatures corresponding to each transaction request to maintain the integrity and authenticity of the data; a secure key management unit 108 configured to generate, distribute, and manage encryption keys, wherein the secure key management unit ensures that encryption keys are dynamically updated at predetermined intervals and securely stored in a tamper-evident hardware security module;a data validation module 110 communicatively coupled to the transaction initiation unit and the cryptographic processing unit, wherein the data validation module: verifies the integrity of transaction-specific data by cross-referencing it with predefined transaction criteria prior to encryption; triggers an alarm when transaction-specific data does not meet the predefined transaction criteria; and a real-time monitoring unit 112 configured to analyze transaction patterns for anomalies, wherein the real-time monitoring unit uses machine learning algorithms to identify and flag anomalous activity for further review.

[0017] In one embodiment, the transaction initiation unit 102 also includes a multi-factor authentication interface that verifies user identities through a combination of biometric data and time-based one-time passwords (TOTP), thus improving the security of the transaction initiation process by preventing unauthorized access.

[0018] In one embodiment, the blockchain interface module 104 includes a consensus algorithm that determines the validity of each transaction by synchronizing with multiple nodes across the distributed ledger network, thereby reducing the risk of single-point failures and improving data reliability.

[0019] In one embodiment, the cryptographic processing unit 106 is configured with a multi-layer encryption approach that uses at least one asymmetric encryption layer followed by a symmetric encryption layer, where the asymmetric encryption layer secures the transaction data at the initial stage and the symmetric encryption layer encrypts the data for subsequent storage in the blockchain, thus optimizing both encryption strength and processing speed.

[0020] In one embodiment, the secure key management unit 108 includes a decentralized key distribution scheme that divides and distributes key segments among multiple secure storage locations, each location requiring multi-level authorization for access, thereby minimizing the risk of key compromise.

[0021] In one embodiment, the real-time monitoring unit 112 is configured to continuously update its anomaly detection models based on new transaction data patterns, with each update including the incorporation of a feedback loop mechanism to improve model accuracy and response times in detecting potentially fraudulent activity.

[0022] An example would be secure data exchange hardware for blockchain-based financial transactions, designed to meet the required levels of security, integrity, and reliability, combining both blockchain (distributed ledger technology) and advanced cryptography techniques. This device consists of several interconnected parts that work together to ensure secure data transmission and transaction integrity.

[0023] Its operation is signaled by a transaction initiation unit that receives transaction requests initiated by authenticated user devices. Using multi-factor authentication, the system validates a user biometrically and with time-based one-time passwords (TOTP) for additional security against identity theft. After authentication, transaction-specific data such as transaction information (e.g., recipient) and user authentication credentials are securely transmitted to the cryptographic processing unit.

[0024] The cryptographic processing unit is responsible for ensuring that transaction data remains confidential and authentic. The cryptographic processing unit is used to perform an encryption process for transaction-specific data in a multi-layered manner using both asymmetric and symmetric encryption protocols. The first layer of asymmetric encryption uses public-key cryptography on the Ethereum network to encrypt transaction data so that only specific parties can access it. From there, the data is encrypted for storage under a symmetric (AES) encryption layer, ensuring an appropriate level of security for protection and processing.In addition, the cryptographic processing unit also creates and validates digital signatures associated with each transaction request, thus protecting a transaction from integrity violations or unauthorized changes.

[0025] According to the patent application, this module can be easily combined with a blockchain interface that can be integrated into a type of distributed ledger system. It validates each transaction using a consensus algorithm and writes all captured raw data to the blockchain. The consensus algorithm is used to improve data consistency and fault tolerance by synchronizing it with other nodes distributed across the ledger network. Ideally, this serves as a permanently recorded audit trail that can be used for verification and regulatory compliance.

[0026] An innovative aspect of some embodiments is that the secure key management unit (10, 30) can be fully integrated into state-of-the-art processors, as it generates, distributes, and manages all encryption keys to be used during transaction processing. The device uses a key divided into segments and stored in various secure locations, each location requiring multi-level authorization to access the segment. To increase security, the key management unit regularly changes the encryption keys and stores them in a tamper-evident hardware security module where they cannot be retrieved or tampered with.

[0027] To verify transaction-specific data, the device features an information validation module that compares entered numbers against predefined alphabetic concepts before they are entered into an encrypted form. The module triggers an alert (a "red flag") if the data does not meet these criteria, prompting a human response for further verification. This proactive measure also provides an additional security feature by confirming the integrity of the data before it is added to the blockchain.

[0028] To support the secure data exchange mechanism, a real-time monitoring layer is implemented that monitors transaction flows over time and compares them for patterns that could reveal fraudulent behavior. The device operates according to the principles of machine learning algorithms to identify anomalous patterns by automatically modifying its detection models when new data patterns are discovered. The system incorporates a feedback loop that allows it to continuously refine its models, thus improving the accuracy and response time of threat detection.

[0029] This device combines these special components and offers what many would consider an all-in-one tool for secure data mobility in financial transactions. Blockchain can guarantee that all transaction records are unaltered and accessible to third parties and uses advanced cryptographic features to protect data. The device not only offers maximum security features but can also keep pace with rapidly changing threats, ensuring a future-proof solution for secure financial transactions.

[0030] The following figure shows these interconnected parts of blockchain-driven secure data exchange in financial transactions, and each component is responsible for maintaining transaction integrity, confidentiality, and speed.

[0031] It is the most important component that connects a device to a decentralized blockchain network: its node interface. Data communication includes a bidirectional module that allows the device to send and receive messages to and from the blockchain network. It sends encrypted transaction data to the network and receives confirmation of this input from other nodes on the blockchain. On the node side, it features a latency-optimized protocol stack that enables faster data transfer and makes transactions more durable, ensuring no degradation even at larger volumes.

[0032] The microprocessor executes transaction scripts, including checking the account balance, validating transactions for authenticity, and generating cryptographic hashes from the transaction. For additional security, the transaction processing unit can be stopped in the event of unusual events. Furthermore, fraudulent activity can be controlled by interpreting both the processed results and the currently processed results.

[0033] Block inside incorporates security features such as an encryption module to protect the confidentiality of transaction data. It features a cryptography accelerator that performs encryption and decryption in hardware at speeds of up to 75 MB / s. Data at rest and in transit is encrypted using a wide range of encryption techniques, including symmetric and asymmetric algorithms. Encryption keys are created in a secure enclave on the module and never leave such key material in plaintext. The encryption module also incorporates an adaptive function that allows the cryptographic algorithms to be updated through real-time streaming threat intelligence, providing additional protection against emerging cyber threats.

[0034] The Verification Unit is responsible for verifying the integrity of each transaction. This device has a set of smart contract protocols programmed and stored on the blockchain. Each time a transaction is initiated, the Verification Unit double-checks all of this and compares it with some smart contracts containing corresponding clauses. It validates that regulatory compliance, user authentication (or proof of identity), and transaction checks and balances are met. If verification is successful, the transaction is inserted into a block signed by the Validation Unit, which is then submitted to the blockchain network for final validation.To ensure traceability, it logs all verification activities in an audit trail so that a transparent record of what happened can be easily used for future reference.

[0035] The data relay unit is essential for smooth interaction between the transaction processing block and a blockchain. It sends transaction data to the network and receives responses via an application programming interface (API). The data relay has load balancing capabilities that distribute transaction loads across multiple nodes, avoiding network congestion and ensuring smooth operations. It also enables message encryption to ensure confidentiality and hashing for data integrity during transmission (supported by the relay component).

[0036] In operation, the device begins with the transaction processing unit, which initiates a financial transaction by gathering necessary information from an associated user interface. The encryption module encrypts the data, which is then offered to the blockchain node interface via a data relay component. The node interface is linked to the blockchain network, with other nodes using a consensus algorithm to validate encrypted transaction data. Once validated, the transaction data is permanently written to the blockchain ledger, and a confirmation is sent back to the device. Afterward, the transaction must pass through a verification unit, which determines whether it responds to relevant smart contracts; at this point, the transaction is complete and final.

[0037] This solution provides a secure way to exchange financial data and leverages the blockchain's decentralized ledger with adaptive cryptographic mechanisms. This technology offers greater data security, better point scaling (upward to handle high-volume transactions), and compliance with financial industry regulations. Applicable to any industry: Thanks to its modular design, even existing financial systems can be integrated, making the application versatile for all types of secure data exchange in a wide variety of FinTech environments.

[0038] The invention relates to secure data exchange systems and secure code / hardware, primarily for financial transactions. This technology mashup provides a super-secure way to record, verify, and manage transaction data by using blockchain principles together with cryptography. The invention is suitable for financial institutions and digital payment systems, as well as other entities that require secure, transparent, and tamper-proof transaction records. This invention ensures the security of data exchange and lends robustness to financial transactions for complete reliability in digital environments by combining decentralized key management with real-time anomaly detection. REFERENCES 100 A device for secure data exchange in financial transactions using blockchain. 102 Transaction initiation unit 104 B Lock chain interface module 106 Cryptographic processing unit 108 Secure Key Management Unit 110 Data Validation Module 112 Real-time monitoring unit

Claims

[1] A device for blockchain-controlled secure data exchange in financial transactions, comprising: a transaction initiation unit configured to receive transaction requests from authenticated user devices, each transaction request comprising transaction-specific data and user authentication data; the blockchain interface module is configured to record transaction data in the blockchain in real time, ensuring the immutability and verifiability of each transaction entry; a cryptographic processing unit operatively connected to the transaction initiation unit and the blockchain interface module, wherein the cryptographic processing unit is configured to encrypt the transaction-specific data using a multi-layer encryption protocol prior to transmitting it to the blockchain interface module, and to generate and verify digital signatures for each transaction request to maintain the integrity and authenticity of the data. a secure key management unit configured to generate, distribute, and manage encryption keys, the secure key management unit ensuring that encryption keys are dynamically updated at predetermined intervals and securely stored in a tamper-resistant hardware security module; a data validation module communicatively coupled to the transaction initiation unit and the cryptographic processing unit, wherein the data validation module: verifies the integrity of transaction-specific data by cross-referencing it with predefined transaction criteria before encryption; triggers a warning if transaction-specific data does not meet the predefined transaction criteria; and a real-time monitoring unit configured to analyze transaction patterns for irregularities, wherein the real-time monitoring unit uses machine learning algorithms to identify and flag anomalous activities for further review. [2] The device of claim 1, wherein the transaction initiation unit further comprises a multi-factor authentication interface that verifies user identities through a combination of biometric data and time-based one-time passwords (TOTP), thereby improving the security of the transaction initiation process by preventing unauthorized access. [3] The apparatus of claim 1, wherein the blockchain interface module comprises a consensus algorithm that determines the validity of each transaction by synchronizing with multiple nodes throughout the distributed ledger network, thereby reducing the risk of single-point failures and improving data reliability. [4] The apparatus of claim 1, wherein the cryptographic processing unit is configured with a multi-layer encryption approach using at least one asymmetric encryption layer followed by a symmetric encryption layer, wherein the asymmetric encryption layer secures the transaction data at the initial stage and the symmetric encryption layer encrypts the data for subsequent storage in the blockchain, thus optimizing both the encryption strength and the processing speed. [5] The apparatus of claim 1, wherein the secure key management unit includes a decentralized key distribution scheme that divides and distributes key segments among multiple secure storage locations, each location requiring multi-level authorization for access, thereby minimizing the risk of key compromise. [6] The apparatus of claim 1, wherein the real-time monitoring unit is configured to continuously update its anomaly detection models based on new transaction data patterns, each update including the incorporation of a feedback loop mechanism to improve model accuracy and response times in detecting potentially fraudulent activities.

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