Multi-Party Contract Digital Signature Validation
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Solution Overview
Problem
Existing systems for establishing multi-party contracts face challenges in preventing repudiation, where entities can deny agreeing to contract terms, especially when log files are altered by computing devices, leading to disputes over contract terms.
Innovation Solution
A computer-implemented method and system that uses schema-based validation and digital signatures to securely transmit and validate contract data elements between entities, ensuring that contracts are binding and tamper-proof through the use of encryption keys and a digital contract envelope.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If computing devices autonomously negotiate and process contracts with minimal human intervention, then productivity and efficiency are improved, but the risk of repudiation and log file tampering increases
Solution Approach 1:
The system performs preliminary actions by generating digital signatures and creating tamper-proof log entries at the time of contract negotiation and execution. This preliminary cryptographic binding ensures that when contracts are processed autonomously without human intervention, the authenticity and integrity of agreements are preserved through pre-established digital evidence that prevents later repudiation.
Solution Approach 2:
The patent introduces cryptographic intermediaries including digital signatures, hash functions, and blockchain-ledger mechanisms that mediate between autonomous computing devices. These intermediaries provide a trusted framework that enables automated contract processing while preventing repudiation, as the cryptographic protocols serve as neutral arbiters that verify agreement authenticity without requiring human intervention.
2Loss of time
If entities can autonomously process contracts without human intervention, then loss of time and operational speed are improved, but the difficulty of detecting and measuring contract integrity increases
Solution Approach 1:
The patent replaces manual verification mechanisms with cryptographic and automated detection systems. Digital signatures, hash-based integrity checks, and blockchain consensus protocols automatically detect and measure contract integrity without human intervention. This substitution enables fast autonomous processing while maintaining robust tampering detection through mathematical rather than mechanical verification methods.
Solution Approach 2:
The system implements continuous feedback mechanisms where digital signatures and cryptographic hashes provide immediate verification of contract integrity. When contracts are autonomously processed, the feedback loop through cryptographic validation ensures that any tampering is detected and measured automatically, maintaining trust in the system despite the absence of human oversight.
3Reliability
If digital signatures and encryption are used to prevent repudiation, then contract security and reliability are improved, but device complexity increases
Solution Approach 1:
The patent implements universal cryptographic infrastructure that serves multiple functions: digital signatures provide both authentication and integrity verification, blockchain-ledgers simultaneously record transactions and provide immutable audit trails, and smart contracts automate both negotiation and enforcement. This multi-functionality reduces the need for separate complex systems while maintaining high reliability and contract binding enforceability.
Data Source
AI summary
A protocol-based system and method for establishing a multi-party contract are disclosed. In a method conducted at a computing device associated with an entity, a set of contract data elements relating to a contract to be established is received from either one of another entity or a deal negotiation component associated with the entity. The contract data elements are validated using an associated contract schema and a schema-based validation algorithm. If the contract data elements are valid, the contract data elements are transmitted to the other of the deal negotiation component or another entity. Transmitting the contract data elements to another entity includes generating a digital signature associated with the contract data elements by digitally signing the contract data elements or a representation thereof and transmitting the digital signature and either of the contract data elements or the representation thereof to the other entity.