Electronic Coin Data Record Transmission via Homomorphic Encryption

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Solution Overview

Problem

Conventional blockchain-based payment systems are energy-intensive, lack confidentiality, and fail to prevent double spending and uncovered payments, making them impractical for secure and flexible electronic coin data record transactions.

Innovation Solution

A method for directly transmitting electronic coin data records between terminals using masked records generated by applying a homomorphic one-way function, allowing for secure switching, splitting, and joining of coin data records without revealing monetary amounts, and utilizing a monitoring entity to verify transactions without storing actual payment data.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If blockchain technology is used for payment transactions, then integrity protection is improved, but energy consumption increases and confidentiality is lost

Engineering Contradiction:

Improveintegrity protectionVSAvoidenergy consumption

Core Design Contradiction:

ReliabilityVSUse of energy by moving object

Solution Approach 1:

The patent extracts only the essential verification function from blockchain technology. Instead of using the entire blockchain protocol, it extracts the core capability of maintaining an immutable ledger of spent coins, implementing it through a simplified lightweight validation mechanism that records only coin spending events in a tamper-evident log, thereby achieving integrity protection without blockchain's energy-intensive consensus processes

Inventive Principle:

Principle #2Taking out (Extraction)

Solution Approach 2:

The patent applies local quality by implementing verification differently for different participants. Full nodes maintain the complete immutable ledger for comprehensive validation, while lightweight clients can perform basic verification without storing the entire ledger, allowing each participant to have appropriate verification capabilities based on their needs and resource constraints

Inventive Principle:

Principle #3Local quality

2Reliability

If blockchain technology is used for payment transactions, then integrity protection is improved, but confidentiality is worsened due to public data publication

Engineering Contradiction:

Improveintegrity protectionVSAvoidconfidentiality

Core Design Contradiction:

ReliabilityVSLoss of information

Solution Approach 1:

Inventive Principle:

Principle #2Taking out (Extraction)

Solution Approach 2:

Inventive Principle:

Principle #3Local quality

3Reliability

If complex encryption and signing processes are used, then manipulation security is improved, but device complexity increases

Engineering Contradiction:

Improvemanipulation securityVSAvoidsystem complexity

Core Design Contradiction:

ReliabilityVSDevice complexity

Solution Approach 1:

The patent applies preliminary action by pre-signing coin data records with the issuer's private key before distribution. The issuer signs the coin data record containing the unique identifier and amount, creating a cryptographically secure token that can be verified by anyone with the issuer's public key. This preliminary signing eliminates the need for complex runtime verification processes

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

The patent uses copying by distributing signed coin data records as immutable tokens that can be copied and transferred between participants. Each coin data record is a self-contained signed object that can be replicated without modification, and its authenticity is verified through cryptographic signature validation rather than complex procedural checks

Inventive Principle:

Principle #26Copying

4Reliability

If blockchain validation is performed for each transaction, then double spending prevention is improved, but transaction speed decreases

Engineering Contradiction:

Improvedouble spending preventionVSAvoidtransaction speed

Core Design Contradiction:

ReliabilityVSSpeed

Solution Approach 1:

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

The coin data records are self-verifying through their cryptographic signatures. Each record contains embedded validation information (signatures, hashes, unique identifiers) that allows receiving systems to independently verify authenticity and check for double-spending by examining the immutable ledger, without requiring centralized validation or complex multi-party consensus processes

Inventive Principle:

Principle #25Self-service

Data Source

PatentUS12014338B2Device for directly transmitting electronic coin data records to another device, and payment system

Publication Date: 2024.06.18 GIESECKEDEVRIENT ADVANCE52 GMBH

AI summary

A device for directly transmitting electronic coin data records to another device includes accessing data storage, such that an electronic coin data record is stored in the data storage; an interface at least for outputting the at least one electronic coin data record to the other device; and a computing unit configured to mask the electronic coin data record in the device by applying a homomorphic encryption function to the electronic coin data record to obtain a masked electronic coin data record for registering the masked electronic coin data record at a monitoring entity; and to output the electronic coin data record using the interface. A payment system has a monitoring layer including a database in which masked electronic coin data records are stored; and a direct transaction layer including at least two devices in which the method can be carried out.