Cryptocurrency Management Device Fraud Detection

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Solution Overview

Problem

Conventional cryptocurrency systems face operational inefficiencies due to enormous calculation amounts required for special hash values in mining, leading to potential system instability.

Innovation Solution

A management device connected to user devices via a network, featuring storage areas for cryptocurrency IDs, account information, history information, and asset balances, which determines issue and buying intervention conditions to manage cryptocurrency operations without relying on extensive calculations.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If special hash values are generated by mining processing to prevent falsification of shared transaction history data, then the security and reliability of the cryptocurrency system is improved, but the calculation amount becomes enormous and the system operation becomes unstable

Engineering Contradiction:

Improvesecurity of transaction history dataVSAvoidsystem operation smoothness

Core Design Contradiction:

ReliabilityVSProductivity

Solution Approach 1:

The patent extracts the hash calculation function from the mining process and implements it separately in the management device. The management device generates hash values for transaction history data independently, rather than requiring all nodes to perform mining calculations. This separates the security function (hash generation) from the resource-intensive mining process, maintaining data integrity while reducing overall system computational burden.

Inventive Principle:

Principle #2Taking out (Extraction)

Solution Approach 2:

The management device acts as an intermediary between users and the blockchain network. It performs hash calculations and validates transactions before they are added to the blockchain, reducing the computational load on individual mining nodes while maintaining the security and integrity of the transaction history data through centralized hash management.

Inventive Principle:

Principle #24Intermediary (Mediator)

2Reliability

If all transaction history data from the past to the present are shared among a plurality of user devices, then the transparency and trustworthiness of the system is improved, but the data storage requirements and network bandwidth consumption increase significantly

Engineering Contradiction:

Improvetransparency of transaction historyVSAvoiddata storage amount

Core Design Contradiction:

ReliabilityVSQuantity of substance

Solution Approach 1:

The patent extracts the full transaction history storage requirement from individual user devices and centralizes it in the management device. User devices only store essential transaction data and can query the management device for historical information, reducing the storage burden on each node while maintaining system transparency through centralized history management.

Inventive Principle:

Principle #2Taking out (Extraction)

Solution Approach 2:

The management device serves multiple functions: it acts as a transaction validator, hash generator, and central repository for transaction history data. By consolidating these functions, the system maintains transparency and trustworthiness through a single authoritative source of truth, eliminating the need for redundant data storage across multiple user devices.

Inventive Principle:

Principle #6Universality (Multi-functionality)

3Reliability

If the management device determines propriety of issue conditions and buying intervention conditions with multiple checks, then the fraud detection capability is improved, but the processing time and computational overhead increase

Engineering Contradiction:

Improvefraud detection accuracyVSAvoidtransaction processing time

Core Design Contradiction:

ReliabilityVSLoss of time

Solution Approach 1:

The management device performs preliminary checks on issue conditions and buying intervention conditions before transactions are finalized. By validating cryptocurrency issuance requirements and monitoring price conditions in advance, the system detects potential fraud early in the process, reducing the need for extensive post-transaction verification and minimizing processing delays.

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

The patent replaces complex manual fraud detection processes with automated computational checks in the management device. The device automatically verifies issue conditions, monitors buying intervention thresholds, and detects fraudulent patterns through algorithmic analysis, improving detection accuracy while reducing processing time compared to manual review methods.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

Data Source

PatentUS11341577B2Management device, cryptocurrency system, and system

Publication Date: 2022.05.24 GVE LTD

AI summary

[Problem] Provided are a management device and a cryptocurrency system capable of smoothly operating an entire system by detecting fraud on cryptocurrencies without using enormous calculation amounts.[Solution] A management device connected to a plurality of user devices via a network, the management device including: an issued information storage area that stores a cryptocurrency ID of an issued cryptocurrency; an account information storage area that stores account information in association with one or a plurality of cryptocurrency IDs; and a history information storage area that stores history information of a cryptocurrency in association with a cryptocurrency ID.