Blockchain IoT Payment Security via Digital Wallet Intermediary
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Solution Overview
Problem
Conventional IoT payment systems require user information and direct communication between the user device and service provider, leading to security hazards and inefficient management of IoT device payments.
Innovation Solution
A blockchain-based method for IoT device payments that registers IoT devices, service providers, and digital wallets in a blockchain database, allowing for secure and efficient transactions without requiring user information, by using hash values and link information to facilitate payments between IoT devices and digital wallets.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If conventional mobile payment service is used for IoT device payments, then direct communication between user device and service provider is enabled, but security hazards increase and user information exposure occurs
Solution Approach 1:
The patent introduces a payment supporting server as an intermediary between the IoT device and service provider. This server manages digital wallets and processes payments without requiring direct communication between the user device and service provider, thereby preventing user information exposure while maintaining payment security. The server acts as a mediator that handles sensitive financial operations separately from the IoT transaction flow.
Solution Approach 2:
The patent creates a digital wallet as a digital copy of the user's payment capabilities, stored and managed on the payment supporting server. Instead of requiring the actual user device to communicate directly with the service provider, the system uses this digital copy (digital wallet) to represent the user's payment authority, thereby preventing exposure of real user information while enabling secure payments.
2Ease of operation
If user information is required for IoT device payments, then payment processing is simplified, but security risks and management inefficiency increase
Solution Approach 1:
The patent replaces actual user information with a digital wallet copy that contains necessary payment credentials. The digital wallet stores payment information in an encrypted form and manages transactions without exposing the user's real personal information. This allows simplified payment processing while maintaining high security standards, as the system operates with the digital copy rather than requiring sensitive user data.
Solution Approach 2:
The payment supporting server acts as an intermediary that manages the digital wallet and handles payment processing. Instead of requiring the IoT device or service provider to directly handle sensitive user information, the server mediates all payment operations, thereby simplifying the overall process while improving security through centralized, secure management of payment credentials.
3Speed
If direct communication between user device and service provider is used, then payment speed is fast, but system complexity and management difficulty increase
Solution Approach 1:
The payment supporting server serves as a centralized intermediary that manages all digital wallet operations. This architecture maintains fast payment processing by enabling direct communication between the payment server and service provider, while simultaneously reducing system complexity by consolidating payment management functions in a single secure location, eliminating the need for each IoT device to independently manage complex payment protocols.
Solution Approach 2:
The digital wallet system enables self-service payment operations where the payment supporting server automatically manages authentication, encryption, and transaction processing without requiring complex coordination between multiple devices. The server autonomously handles payment validation and execution, thereby maintaining fast processing speeds while reducing overall system management complexity through automated, centralized operations.
Data Source
AI summary
A method of a payment for an Internet of Things (IoT) device is provided. The method includes steps of: a payment supporting server (a) on condition that the payment supporting server has registered certificates of the IoT device, a service providing device, and a digital wallet in a first blockchain, manages their transaction IDs, has registered a representative hash value in a second blockchain, manages their transaction IDs, and manages link information between the IoT device and the digital wallet, confirming validity of a billing transaction, and (b) acquiring identification information on the digital wallet; and (c) paying the billing detail using the digital wallet, registering its payment result in the first blockchain, registering in the second blockchain, if one anchoring condition is satisfied, a first representative hash value, and transmitting the payment result to the service providing device, the IoT device, and the digital wallet.