Credential Tokenization for Secure IoT Transactions Without Intermediaries
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Solution Overview
Problem
Consumers face challenges in maintaining privacy and security of transaction data while also receiving personalized offers during electronic transactions, and existing systems often require intermediaries that slow down and complicate the processing of such transactions.
Innovation Solution
A system and method for electronic credential tokenization using a processor and memory to generate and process transactions with credential tokens, allowing secure and personalized transactions without the need for intermediaries, and enabling proximity-based offers and IoT device tokenization.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If traditional electronic transaction systems are used to maintain privacy and security, then transaction data protection is improved, but transaction processing speed deteriorates due to required intermediaries
Solution Approach 1:
The patent extracts and eliminates the intermediary entities (tokenization servers, clearing houses) from the transaction flow by implementing direct peer-to-peer credential tokenization between devices. The credential token is generated and verified locally through cryptographic proofs without requiring centralized intermediaries, thus maintaining security while improving processing speed.
Solution Approach 2:
The system enables devices to perform self-service credential tokenization and verification. Each device independently generates cryptographic proofs of its credentials and verifies received proofs without external assistance, eliminating the need for intermediary validation services and accelerating transaction processing.
2Adaptability or versatility
If credential tokenization is implemented to enable personalized offers, then user personalization capability is improved, but system complexity worsens due to additional security protocols
Solution Approach 1:
The patent uses cryptographic copies (proofs) of credentials instead of the actual credential data. Devices exchange verified proofs that contain sufficient information for personalization and transaction verification without exposing sensitive credential information, simplifying the system architecture while enabling personalized offers.
Solution Approach 2:
The system transforms credential data into different parameter representations through cryptographic hashing and proof generation. The original credentials remain secure while their cryptographic transformations enable personalized offer delivery and transaction verification, reducing system complexity by working with transformed parameters rather than raw data.
3Reliability
If device information is obtained for token generation, then transaction security is improved, but user privacy control deteriorates due to increased data collection
Solution Approach 1:
The patent extracts only the minimum necessary information from device data for token generation. Instead of collecting comprehensive device information, the system extracts specific cryptographic elements needed for proof generation, allowing users to maintain control over their data while ensuring transaction security.
Solution Approach 2:
The system creates cryptographic copies of device information rather than storing or transmitting actual device data. The credential token is generated from cryptographic representations of device state, enabling security verification without exposing actual device information to external parties.
Data Source
AI summary
A computer system and method for tokenizing an IoT device is provided. The system comprises at least one processor and a memory storing instructions which when executed by the processor configure the processor to perform the method. The method obtaining device information, generating a credential token based on the device information, and processing an electronic transaction using the credential token.