Cryptocurrency Infrastructure System with Node Authentication
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Solution Overview
Problem
Current cryptocurrency systems, such as Bitcoin, face challenges with volatility in value, anonymity leading to fraud and theft, and lack of efficient management, which hinders security and efficiency in transactions.
Innovation Solution
Implementing a management system server computer that designates issuer nodes and distributor nodes within a cryptocurrency payment network, utilizing digital certificates to authenticate nodes and manage the generation and distribution of digital currency, thereby enhancing security and efficiency.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If a decentralized cryptocurrency system is used, then anonymity and user freedom are improved, but security and fraud prevention deteriorate
Solution Approach 1:
The patent introduces a management system server computer as an intermediary between users and the cryptocurrency network. This server issues digital certificates to authorized entities (exchanges, merchants, users) and maintains a database of certificate information. The intermediary enables centralized security management and fraud prevention while preserving user freedom through digital certificate-based authentication, resolving the contradiction between decentralized anonymity and centralized security.
2Reliability
If a management system with digital certificates is implemented, then security and fraud prevention are improved, but system complexity increases
Solution Approach 1:
The management system server computer performs multiple functions: issuing digital certificates, storing certificate information in a database, verifying certificate authenticity, and providing certificate information to network participants. By consolidating these security-related functions into a single multi-functional system, the patent reduces overall system complexity compared to having separate systems for each function while maintaining comprehensive security.
3Adaptability or versatility
If traditional cryptocurrency mining is used, then decentralization and user participation are improved, but energy consumption and transaction efficiency deteriorate
Solution Approach 1:
The patent fundamentally changes the parameter of how new cryptocurrency units are created. Instead of using energy-intensive mining operations where users compete to solve cryptographic puzzles, the system uses a management server to issue digital certificates that authorize entities to receive newly created cryptocurrency units. This parameter change from computational work to certificate-based authorization dramatically reduces energy consumption while maintaining user participation through certificate issuance and validation.
Data Source
AI summary
Embodiments of the present invention are directed to methods and systems for managing a cryptocurrency payment network comprising one or more issuer nodes and one or more distributor nodes. Issuer nodes may be granted different rights from distributor nodes with respect to the issuance and distribution of digital currency within the cryptocurrency payment network. A management system server computer may generate unique node verification key pairs for each node in the cryptocurrency payment network, where the node verification key pairs may be used to identify and authenticate issuer nodes and distributor nodes.