Blockchain Payment System with Local Key Storage for Network Outages
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Solution Overview
Problem
Digital payment systems are hindered by communication network interruptions during natural disasters, making it difficult for customers to make transactions, especially for essential purchases like food and water, as they rely on real-time communication with third-party systems.
Innovation Solution
A fault-tolerant digital payment system that switches to using a blockchain for transaction verification and recording when communication networks are down, allowing transactions to be processed locally and then broadcasted when networks are restored, with prefunded addresses and private keys enabling transactions even without internet connectivity.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If real-time communication with third-party processing systems is used for digital payments, then transaction authorization and recording can be ensured, but the system becomes unable to process transactions when communication networks are interrupted
Solution Approach 1:
The system performs preliminary actions by storing transaction data, digital account identifiers, and blockchain addresses in local memory before network interruptions occur. This allows the point-of-sale system to process transactions using stored information when communication with third-party systems is unavailable, thereby maintaining transaction reliability during network outages.
Solution Approach 2:
The patent introduces blockchain technology as an intermediary layer between the point-of-sale system and third-party processing systems. The blockchain serves as a decentralized ledger that can verify and record transactions independently of traditional communication infrastructure, enabling transactions to proceed during network interruptions while maintaining security and integrity.
2Reliability
If traditional digital payment processing systems are used, then fraudulent activity can be detected through real-time communication, but customers cannot make essential purchases during natural disasters when network infrastructure is damaged
Solution Approach 1:
The system pre-stores transaction data, digital account identifiers, and blockchain addresses in local memory before emergencies occur. This preliminary preparation enables customers to make essential purchases during natural disasters using stored information, maintaining transaction accessibility while fraud detection is preserved through blockchain verification.
Solution Approach 2:
The patent creates local copies of blockchain data and transaction information stored in the point-of-sale system's memory. These copies enable transaction processing during network outages without requiring real-time communication, while the blockchain's distributed nature ensures fraud detection capabilities remain intact through decentralized verification.
3Reliability
If real-time communication with payment processing systems is required, then proper credits and debits can be tracked, but the system becomes impossible to use when telephone, wireless and cellular networks are damaged
Solution Approach 1:
The system performs preliminary actions by storing transaction data, digital account identifiers, and blockchain addresses in local memory before network interruptions. This enables the point-of-sale system to accurately track credits and debits using stored information during emergencies, maintaining transaction recording accuracy without real-time communication.
Solution Approach 2:
The blockchain acts as an intermediary ledger that can verify and record transactions independently of traditional communication infrastructure. The local storage of blockchain data enables the system to maintain accurate transaction recording during network outages while the distributed blockchain network ensures data integrity when communication is restored.
Data Source
AI summary
Systems and methods for fault tolerant digital payments are disclosed. The system comprises a computing system that can automatically determine if payments should be processed using a digital payment processing system, or using a blockchain. When the system detects that communication with the digital payment processing system has been interrupted, the system may facilitate transactions through the blockchain. In particular, the system may receive private keys from mobile devices of customers, which can be used to make payments on the blockchain.