Cross-Blockchain Wallet Derivation for Automatic Asset Swaps
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Solution Overview
Problem
Users of one blockchain are unable to execute transactions, such as purchasing Non Fungible Tokens (NFTs), on other blockchains without creating a wallet for the target blockchain or exchanging their digital currency, due to incompatibility between different blockchain systems.
Innovation Solution
A cross-blockchain transaction processing system that automatically generates target blockchain transaction credentials using an initial seed of entropy, facilitates currency exchange transparently, and executes transactions on the user's behalf, without exposing their wallet addresses.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If users want to transact on multiple blockchains, then transaction capability is improved, but system complexity increases due to needing separate wallets and credentials for each blockchain
Solution Approach 1:
The patent implements a universal wallet system where a single source blockchain wallet can generate target blockchain wallets through hierarchical deterministic key derivation. This allows one wallet to serve multiple blockchains by deriving different blockchain-specific key pairs from a common seed, eliminating the need for separate wallets for each blockchain while maintaining security through individual key generation for each target blockchain.
2Ease of operation
If users want to purchase assets on target blockchains, then transaction capability is improved, but operational complexity increases due to manual currency exchange requirements
Solution Approach 1:
The patent introduces a backend component as an intermediary that automatically handles the currency exchange process between source and target blockchains. The backend receives purchase requests, manages the conversion of source blockchain cryptocurrency to target blockchain cryptocurrency, and executes transactions on the target blockchain. This intermediary service eliminates manual exchange operations and simplifies the user experience while handling the complexity of cross-chain currency conversion.
3Ease of operation
If the system provides automatic credential generation, then ease of operation is improved, but security risks increase due to potential exposure of private keys
Solution Approach 1:
The patent extracts the private key generation and management functions from the user's local environment and places them within the controlled backend system. The backend generates target blockchain private keys using the user's source blockchain private key as a seed, keeping the sensitive key derivation process server-side. This extraction ensures that private keys are never exposed to the user or stored in the user's wallet, while still enabling automatic wallet creation for target blockchains.
Data Source
AI summary
A user operating an endpoint app chooses to obtain a blockchain-based asset on a target blockchain. The user does not have blockchain transaction credentials for the target blockchain, but does have blockchain transaction credentials for a source blockchain. The endpoint app hierarchically creates target blockchain transaction credentials for the user, using an initial seed of entropy that was used to create the user's source blockchain transaction credentials. A backend component automatically obtains an amount of target blockchain cryptocurrency sufficient to obtain the blockchain-based asset on the target blockchain, in exchange for source blockchain cryptocurrency of the user. The obtained target blockchain cryptocurrency and the hierarchically created target blockchain transaction credentials are used to automatically obtain the blockchain-based asset on the target blockchain, such that once the transaction is completed, the obtained blockchain-based asset is registered to the address of the user's hierarchically created target blockchain transaction credentials.