Bi-directional Digital Asset POS Device for Secure Transactions
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Solution Overview
Problem
Current payment systems are vulnerable to security breaches, fraud, and identity theft, and they are inconvenient, time-consuming, and expensive for merchants, who also face challenges in accepting digital assets like cryptocurrency due to operational complexities and volatility, as well as the need for expensive point-of-sale upgrades.
Innovation Solution
A bi-directional digital asset point of sale computing device that facilitates digital asset-based interactions, including payments, cash back, and purchases, by connecting user computing devices with a digital asset-based interaction system that uses a digital asset exchange and consensus network to authorize and verify transactions in real-time, reducing the need for merchants to handle private keys and comply with regulatory issues.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If traditional payment card systems are used, then payment processing is established and widely accepted, but security breaches, fraud, and identity theft occur frequently
Solution Approach 1:
The patent introduces a digital asset exchange as an intermediary between the user's computing device and the merchant's POS system. This intermediary handles the digital asset transactions, validating transfers through a consensus network without requiring the merchant to directly manage private keys or handle sensitive financial data, thereby reducing fraud and security breaches while maintaining payment reliability
2Adaptability or versatility
If digital asset payments are accepted directly by merchants, then payment diversity is improved, but merchants face operational complexities and volatility
Solution Approach 1:
The digital asset exchange serves as a mediator that handles all operational complexities of digital asset management. It automatically converts digital assets to fiat currency or other accepted payment forms, manages volatility through hedging mechanisms, and handles transaction validation through the consensus network, thereby enabling payment diversity without increasing merchant operational complexity
Solution Approach 2:
The system enables self-service by allowing the digital asset exchange to automatically manage transactions, conversions, and validations without requiring active merchant involvement. The consensus network automatically verifies transactions, and the exchange handles asset conversions, freeing merchants from operational complexities while maintaining versatile payment options
3Adaptability or versatility
If merchants implement digital asset acceptance capabilities, then payment modernization is achieved, but expensive point-of-sale upgrades are required
Solution Approach 1:
The digital asset exchange acts as an intermediary that eliminates the need for expensive POS upgrades at the merchant location. All digital asset validation and conversion occur on the exchange's infrastructure, which connects to the merchant's existing POS system through standard interfaces, thereby achieving digital asset acceptance without requiring costly hardware or software upgrades at the point of sale
4Speed
If real-time transaction verification is implemented, then transaction speed is improved, but system complexity increases
Solution Approach 1:
The digital asset exchange serves as an intermediary that handles real-time verification through its consensus network infrastructure. The exchange pre-validates transaction patterns and maintains real-time ledgers, enabling fast transaction processing without requiring the merchant's POS system to perform complex verification algorithms, thereby achieving speed without increasing local system complexity
Data Source
AI summary
A bi-directional digital asset point-of-sale (POS) computing device includes a display and a digital asset POS module. The digital asset POS module is operable to: initiate a digital asset-based interaction with the user computing device, obtain an amount of first desired assets from the user computing device, send real-time information regarding the digital asset-based interaction to a digital asset-based interaction computing entity, and obtain a confirmation from the digital asset-based interaction computing entity regarding backing the digital asset-based interaction with an amount of system digital assets. When the digital asset-based interaction is backed with the amount of the system digital assets, the digital asset POS module is further operable to process the digital asset-based interaction by connecting to the digital asset-based interaction computing entity to exchange the amount of the first desired assets to an amount of second desired assets and distributing the amount of the second desired assets.