Electronic Chip Offline Authentication via Stored Parameters
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Solution Overview
Problem
Current transaction systems face inefficiencies due to the need for issuer involvement in authentication, leading to increased processing time and susceptibility to skimming fraud, especially with contactless transaction cards.
Innovation Solution
An electronic chip system that allows users to authenticate and conduct transactions offline by comparing provided authentication parameters with stored samples, reducing issuer involvement and enhancing security through NFC communication.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If traditional transaction cards with issuer involvement are used, then authentication can be performed, but processing time increases and user convenience deteriorates
Solution Approach 1:
The authentication parameter is pre-stored in the electronic chip during card issuance, eliminating the need for real-time communication with the issuer during transactions. This preliminary action enables offline authentication that is both reliable and instant, resolving the contradiction between authentication reliability and processing time.
2Loss of time
If contactless transaction cards with stored authentication parameters are used, then processing time is reduced, but susceptibility to skimming fraud increases
Solution Approach 1:
The authentication parameter is extracted from the traditional card storage location and embedded directly into the electronic chip's secure memory. This extraction and repositioning of the authentication mechanism into a more secure, integrated form factor maintains fast processing while significantly reducing skimming fraud vulnerability.
Solution Approach 2:
The authentication parameter is nested within the electronic chip's secure storage environment, which itself is nested within the transaction card structure. This nested architecture provides an additional layer of security protection for the authentication parameter while maintaining the contactless transaction speed advantage.
3Ease of operation
If authentication parameters are stored in the electronic chip, then offline authentication is enabled, but device complexity increases
Solution Approach 1:
The authentication parameter storage function is merged with the existing electronic chip infrastructure and NFC communication module. This merging approach enables offline authentication capability while avoiding the addition of separate, complex storage systems, thus maintaining ease of operation with minimal increase in device complexity.
Applied Scientific Principles
This section explains which scientific principles are used to turn an abstract innovation direction into a practical engineering solution.
Function Achieved in This Case
This solution reduces processing overhead and time by enabling one-touch authentication and authorization, while minimizing the risk of skimming fraud by securely storing and retrieving transaction details only with matching authentication parameters.
Implementation Method 1
The electronic chip is a near field communication (NFC) enabled chip that communicates with the terminal device for facilitating offline authentication when a transaction is conducted
Data Source
AI summary
A method and a system for conducting a transaction using an electronic chip are provided. One or more details of a plurality of payment modes and a first authentication parameter are stored in the electronic chip. The electronic chip receives an authentication request including a second authentication parameter from a terminal device when the transaction is initiated at the terminal device. The electronic chip compares the first and second authentication parameters, and communicates an authentication response including one or more details of a first payment mode of the plurality of payment modes to the terminal device based on a match between the first authentication parameter and the second authentication parameter. The transaction is processed based on the authentication response.