Blockchain Address Structure With Embedded Identity Verification
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Solution Overview
Problem
The inability to verify the true identity of blockchain address owners hinders the wider adoption of blockchain technology in regulated environments, leading to issues such as asset loss, theft, and inheritance complications.
Innovation Solution
Embedding owner identification information within the blockchain address, optionally encrypted, and using trusted Guardians to authenticate this information, ensuring secure and transparent transactions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If blockchain addresses are used without embedded identification information, then the system maintains trustless peer-to-peer operation and anonymity, but the true identity of address owners cannot be verified
Solution Approach 1:
The patent embeds identification information within the blockchain address structure itself, creating a nested configuration where KYC data is contained inside the address. This allows the address to serve dual purposes: maintaining its original cryptographic function while simultaneously carrying identification data, thus improving reliability without proportionally increasing complexity
Solution Approach 2:
The blockchain address is transformed from a single-function cryptographic identifier into a multi-functional structure that simultaneously provides transaction addressing, cryptographic verification, and identity storage capabilities. This universal design allows one structure to fulfill multiple roles, resolving the contradiction between adding verification capability and maintaining system simplicity
2Reliability
If private keys are used for authentication, then transactions can be securely signed and verified, but dependency on private keys creates security risks and inheritance complications
Solution Approach 1:
The patent introduces Guardians as intermediary entities that mediate between the blockchain system and identity verification. Instead of relying solely on private keys for authentication, the system uses Guardians to verify identity and manage access, thereby reducing the harmful effects of private key dependency while maintaining transaction security through a distributed trust model
Solution Approach 2:
The authentication function is segmented from the transaction signing function. Private keys continue to sign transactions for security, but a separate Guardian system handles identity verification and access management. This segmentation isolates the security risks of private keys from the identity verification process, reducing overall system vulnerability
3Reliability
If permissioned access control is implemented, then regulated environments can verify identities, but the trustless peer-to-peer nature of blockchain is compromised
Solution Approach 1:
The patent creates a dynamic system where the same blockchain address structure can adapt to different operational modes. In permissionless mode, the address functions as a standard cryptographic identifier maintaining anonymity. In permissioned mode, the embedded KYC data enables identity verification. This dynamic capability allows the system to adapt to different regulatory requirements without compromising the fundamental trustless architecture
Data Source
AI summary
The invention is directed to computer-based method and a computer system for generating a blockchain address. The method comprises receiving a request for a new blockchain address for a user, the request including a public key, which has an associated private key, and identification information for the user, and generating the address based on a combination of the public key and the identification information.