Blockchain Digital Asset Trading with Public Key Encryption
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Solution Overview
Problem
The existing methods for trading digital assets lack secure solutions to protect against digital theft and unauthorized copying, especially in decentralized systems, where hardware used for handling these assets may be vulnerable to threats, and there is a need for enhanced security to ensure the authenticity and scarcity of non-fungible tokens (NFTs).
Innovation Solution
A method involving the generation of public-private encryption key pairs, where the public key is registered on a blockchain, and digital assets are encrypted and linked to NFTs associated with smart contracts, allowing secure access and decryption only when the smart contract requirements are met, ensuring end-to-end audit trails and protecting all actors in the supply chain.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If digital assets are stored and traded using conventional hardware and software systems, then ease of operation and accessibility are improved, but security against digital theft and unauthorized copying deteriorates
Solution Approach 1:
The patent introduces a blockchain-based intermediary system that mediates between digital asset owners and trading platforms. The blockchain acts as a trusted third party that verifies ownership and facilitates secure transactions without requiring users to trust the hardware or software of trading platforms, thus maintaining ease of operation while improving security through cryptographic verification
Solution Approach 2:
The patent replaces conventional hardware-based security mechanisms with cryptographic and blockchain-based security mechanisms. Instead of relying on physical security of servers and hardware wallets, the system uses public-key cryptography and smart contracts to secure digital assets, making security independent of physical hardware reliability
2Reliability
If decentralized blockchain systems are used to eliminate third-party control, then robustness and safety are improved, but vulnerability to digital theft and unauthorized access increases
Solution Approach 1:
The patent implements preliminary security measures by requiring digital assets to be encrypted with the recipient's public key before being placed on the blockchain. This preliminary encryption action ensures that even though the decentralized blockchain is vulnerable to theft, the assets remain secure because only the intended recipient with the corresponding private key can decrypt and access them
Solution Approach 2:
The patent applies preliminary anti-action by using cryptographic signatures and smart contract verification to prevent unauthorized transactions before they can occur. The smart contracts automatically verify ownership and authorization, preventing digital theft and unauthorized access in the decentralized environment
3Reliability
If public keys are registered on blockchain for encryption, then security and authenticity are improved, but device complexity and implementation difficulty increase
Solution Approach 1:
The patent implements self-service by enabling devices to automatically generate their own key pairs and register their public keys on the blockchain without requiring manual configuration or complex setup procedures. The system handles key management automatically, reducing implementation complexity while maintaining high authenticity through cryptographic verification
Solution Approach 2:
The patent creates a universal blockchain-based infrastructure that can be used by any device regardless of its specific functionality. The same public-key infrastructure and smart contract mechanisms work across different device types and applications, simplifying implementation by providing a standardized approach rather than device-specific solutions
Data Source
AI summary
There is provided a method, the method including the steps of: at a key generator subsystem: generating a public-private encryption key pair for a device, and transmitting the generated public key to be registered on a blockchain; at one or more processors: encrypting a digital asset via the public key of the device, and linking or associating the encrypted digital asset to a non-fungible token (NFT), in which the NFT is associated with a smart contract written on the blockchain; and at the device: requesting access to the NFT-linked digital asset; receiving the NFT-linked digital asset when the requirements of the smart contract are met; and decrypting the NFT-linked digital asset using the private key.