Blockchain Credential Bypass for Secure Payment Transactions
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Solution Overview
Problem
Consumers are hesitant to provide payment credentials to merchants due to the risk of cyber-attacks and man-in-the-middle attacks during electronic payment transactions, as existing systems lack a method to bypass merchant systems for secure transaction initiation.
Innovation Solution
A blockchain-based system that stores transaction data approved by consumers, allowing a processing server to verify and initiate payments without sharing payment credentials with merchants, ensuring security through immutability and minor modifications to existing systems.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If consumers provide payment credentials to merchants for storage, then transaction convenience is improved, but security against cyber-attacks and credential theft deteriorates
Solution Approach 1:
The patent extracts the payment credentials from the merchant system entirely. Instead of storing credentials at the merchant, the system uses a blockchain to store only a reference identifier that points to the actual credentials held securely by the consumer or a trusted third party. This extraction eliminates the security vulnerability while preserving transaction convenience.
Solution Approach 2:
The patent introduces a blockchain as an intermediary between the consumer and merchant. The blockchain stores transaction approvals and credentials reference without exposing actual payment credentials to the merchant. This intermediary layer enables convenient transactions while maintaining security by preventing direct credential exposure.
2Reliability
If consumers enter payment credentials for every transaction, then security against credential theft is improved, but transaction convenience and time efficiency deteriorates
Solution Approach 1:
The patent implements preliminary action by having consumers pre-approve transactions and store approval references in the blockchain before actual purchases. This preliminary authorization eliminates the need to re-enter credentials for each transaction, providing both convenience and security through advance authentication.
Solution Approach 2:
The system enables self-service through automated blockchain verification. Once credentials are initially stored and transaction approvals are recorded on the blockchain, the system automatically verifies and processes subsequent transactions without requiring consumer intervention or credential re-entry, maintaining security while improving convenience.
3Productivity
If merchants store payment credentials for future transactions, then transaction speed is improved, but vulnerability to man-in-the-middle attacks and data breaches increases
Solution Approach 1:
The patent segments the payment system into separate functional components: credential storage, transaction approval, and transaction execution. The blockchain stores only approval references而非 actual credentials, separating sensitive data from the merchant system. This segmentation maintains transaction speed while eliminating the security vulnerability of centralized credential storage.
Solution Approach 2:
The patent moves the credential storage function to a different dimension - the blockchain ledger - rather than storing credentials in traditional merchant databases. This dimensional shift to a distributed, immutable ledger provides the same transaction speed benefits while fundamentally changing the security model to resist attacks.
4Reliability
If a blockchain system is implemented to bypass merchant credential storage, then security is improved, but system complexity increases
Solution Approach 1:
The patent leverages the universal nature of blockchain technology, which already provides built-in security, immutability, and distributed storage capabilities. By utilizing this existing multi-functional platform, the system achieves enhanced security without adding significant complexity, as the blockchain handles multiple functions (storage, verification, security) in a single integrated system.
Data Source
AI summary
A method for transaction initiation with a bypass of merchant systems includes: storing a consumer public key and a blockchain comprised of a plurality of blocks, each block being comprised of a block header and data values, each block header including a block timestamp, and each data value including a unique transaction identifier; receiving a data message originating from a merchant system including a specific transaction identifier, a transaction timestamp, and transaction data; identifying a specific data value in a specific block that includes the specific transaction identifier; verifying that the block timestamp in the specific block is within a predetermined period of time of the transaction timestamp; identifying payment credentials associated with a user transaction account corresponding to the specific data value; and initiating a payment transaction between the merchant system and the transaction account using the identified payment credentials and transaction data.