Cryptographic Audit Trail for Secure Transaction Reconciliation

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Solution Overview

Problem

The reconciliation of corporate purchases made using connected devices is complex, error-prone, and susceptible to abuse due to the time gap between transactions and bill arrival, leading to uncertainty and potential misuse.

Innovation Solution

A method and system for creating a secure audit trail by generating cryptographic hashes of transaction details and metadata, storing them in a transaction log database, and validating entry hashes to ensure integrity and detect tampering, thereby establishing a secure and transparent record of transactions.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Ease of operation

If traditional monthly credit card billing is used for reconciliation, then the process is simple to implement, but it is tedious, error-prone, and discovers errors too late

Engineering Contradiction:

Improvesimplicity of reconciliation processVSAvoiderror detection timing and accuracy

Core Design Contradiction:

Ease of operationVSReliability

Solution Approach 1:

The system performs preliminary actions by immediately hashing transaction details and storing them in a blockchain ledger at the time of purchase. This pre-establishes a secure, immutable record before the monthly billing cycle, enabling real-time tracking and immediate error detection rather than waiting for monthly statements.

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

The patent replaces the mechanical manual reconciliation process with an automated cryptographic hashing system. Instead of manually reviewing monthly bills, the system automatically generates SHA-256 hashes of transaction details, stores them on the blockchain, and provides automated reconciliation, eliminating human error and tedious manual processes.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

2Device complexity

If manual monthly reconciliation is performed, then the system complexity is low, but the time gap between purchase and bill arrival creates uncertainty and allows abuse

Engineering Contradiction:

Improvesystem complexityVSAvoidtime gap between transaction and billing

Core Design Contradiction:

Device complexityVSLoss of time

Solution Approach 1:

The system establishes continuous useful action by immediately recording transactions on the blockchain at the moment of purchase and maintaining this record indefinitely. The cryptographic hash is generated and stored continuously, eliminating the time gap between transaction and record-creation. This continuous availability of transaction data prevents abuse during the lengthy monthly billing cycle.

Inventive Principle:

Principle #20Continuity of useful action

Solution Approach 2:

The system performs preliminary action by creating the audit trail record at the time of purchase rather than waiting for monthly billing. The transaction details are immediately hashed and stored on the blockchain, establishing a permanent record before any potential abuse can occur during the extended time gap.

Inventive Principle:

Principle #10Preliminary action

3Reliability

If cryptographic hashing and blockchain storage are implemented, then transaction integrity and security are improved, but the system complexity and computational requirements increase

Engineering Contradiction:

Improvetransaction record integrityVSAvoidcryptographic processing complexity

Core Design Contradiction:

ReliabilityVSDevice complexity

Solution Approach 1:

The system extracts only the essential cryptographic hash value (SHA-256) from the transaction details and stores this condensed representation on the blockchain, rather than storing the complete transaction data. This extraction approach maintains integrity through the hash while reducing the data volume and computational complexity of storing and processing transaction records.

Inventive Principle:

Principle #2Taking out (Extraction)

Solution Approach 2:

The system changes the parameter representation by transforming readable transaction details into a cryptographic hash format. This parameter transformation maintains the integrity and uniqueness of transaction data while simplifying storage and comparison operations. The hash serves as a compact, immutable representation that can be easily verified without storing the original detailed transactions.

Inventive Principle:

Principle #35Parameter changes

Data Source

PatentUS9424576B2Methods and systems of creating a payment record with a cryptographically secure audit trail

Publication Date: 2016.08.23 CONDUENT BUSINESS SERVICES LLC

AI summary

A method of creating a secure audit trail for transactions may include, by a host electronic device, for each of a plurality of transactions, receiving, from a client electronic device, a transaction details document that summarizes the transaction, generating a document hash by performing a first cryptographic hash function on the received transaction details document, and identifying metadata associated with the transaction. The method may include generating an entry hash associated with the plurality of transactions by performing a second cryptographic hash function on at least the document hash of each transaction in the plurality of transactions and the metadata associated with each transaction in the plurality of transactions, and storing the entry hash in an entry in a transaction log database.