Blockchain-Based Payment Card Token Management
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Solution Overview
Problem
The existing system for physical payment cards results in excessive plastic waste, environmental degradation, and significant costs for card issuers due to the need for frequent card replacements and updates, as well as security risks associated with stolen new cards.
Innovation Solution
A system and method utilizing a private metablock for over-the-air updates of payment card tokens, enabling zero-expiry payment cards by maintaining user profiles across different payment card issuers and providing EMV and cardless security compliance updates, thus eliminating the need for physical card replacements.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If physical payment cards are replaced periodically, then security credentials are updated, but plastic waste increases and environmental degradation occurs
Solution Approach 1:
The patent separates the payment card into two independent components: a physical card (for user possession) and a virtual token (for transaction processing). The virtual token is stored on a blockchain and can be updated independently without replacing the physical card, thus eliminating plastic waste while maintaining security credential updates.
Solution Approach 2:
The patent creates a virtual copy (token) of the payment card credentials that exists on a blockchain. This virtual token can be updated, revoked, or regenerated without affecting the physical card material, allowing security updates without physical replacement and reducing plastic waste.
2Reliability
If physical payment cards are replaced periodically, then security credentials are updated, but operational costs for card issuers increase
Solution Approach 1:
The patent creates a virtual copy (token) of the payment card credentials that exists on a blockchain. This virtual token can be updated, revoked, or regenerated without affecting the physical card material, allowing security updates without physical replacement and reducing plastic waste.
Solution Approach 2:
The patent replaces the mechanical/physical card replacement system with a digital blockchain-based token system. Instead of physically manufacturing, mailing, and activating new cards, the system uses cryptographic token generation and blockchain updates, eliminating manual processes and reducing operational costs.
3Reliability
If physical payment cards are replaced periodically, then expired cards are deactivated, but security risks increase if new cards are stolen before delivery
Solution Approach 1:
The patent enables the virtual token to be updated or revoked on the blockchain before the physical card is even mailed to the customer. The token can be set with expiration dates or validity periods, and can be immediately deactivated if the physical card is reported lost or stolen, eliminating the security window that exists during traditional card replacement.
Solution Approach 2:
The patent creates a virtual copy (token) of the payment card credentials that exists on a blockchain. This virtual token can be updated, revoked, or regenerated without affecting the physical card material, allowing security updates without physical replacement and reducing plastic waste.
4Reliability
If physical payment cards are replaced periodically, then card expiry is enforced, but time and resources are consumed in the replacement process
Solution Approach 1:
The patent creates a virtual copy (token) of the payment card credentials that exists on a blockchain. This virtual token can be updated, revoked, or regenerated without affecting the physical card material, allowing security updates without physical replacement and reducing plastic waste.
Solution Approach 2:
The patent replaces the mechanical/physical card replacement system with a digital blockchain-based token system. Instead of physically manufacturing, mailing, and activating new cards, the system uses cryptographic token generation and blockchain updates, eliminating manual processes and reducing operational costs.
Data Source
AI summary
A system and method for enabling dynamic expiration dates in a payment card. An algorithm executes on a computing device to create a private blockchain that is controlled by an inquiry block exchange. A payment card holder (PCH) metablock is generated when a first payment card issuer creates a PCH profile. This PCH profile is maintained within a security zone on the network. The security zone comprises multiple modules. These modules include a dynamic smart contract (DSC) execution engine module for generating a DSC hash value that identifies the DSC for the PCH profile metablock. A hyper-ledger fabric module enables dynamic parameters to be stored as an asset in the DSCs. A metablock generator module creates a PCH profile metablock and hashes the data in a subscribed hashing algorithm. The hashed data includes private keys and cryptographic keys in a secured element section of the PCH profile metablock.