Cryptocurrency Transfer via Traditional Domain Names
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Solution Overview
Problem
Existing cryptocurrency transfer systems are cumbersome for users due to the need to input complex and non-human-readable cryptocurrency addresses, and decentralized blockchain domain name systems can lead to scams by allowing anyone to purchase domain names, compromising brand integrity and security.
Innovation Solution
A system and method utilizing traditional domain names to facilitate cryptocurrency transfers by configuring a server and distributed ledger network to resolve cryptocurrency addresses, allowing users to send cryptocurrencies using human-readable URLs, and optionally incorporating transaction memos for account identification.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If decentralized blockchain domain name systems are used to map cryptocurrency addresses to human readable names, then ease of operation is improved, but reliability deteriorates due to scams and brand name compromises
Solution Approach 1:
The patent introduces a trusted intermediary authority (such as a domain registrar or certificate authority) that verifies and authenticates domain names before mapping them to cryptocurrency addresses. This intermediary acts as a mediator between the decentralized blockchain system and the traditional domain name system, ensuring that only authorized entities can register domain names. This resolves the contradiction by maintaining the ease of human-readable address input while preventing scams through centralized verification of domain ownership and legitimacy.
2Reliability
If traditional domain name systems are used for cryptocurrency transfers, then reliability is improved through established security protocols, but device complexity increases due to integration requirements
Solution Approach 1:
The patent segments the system into distinct functional components: a traditional domain name system layer for verification and authentication, and a blockchain layer for cryptocurrency transactions. The domain name resolution process is separated from the transaction execution process. This segmentation allows each layer to operate independently with its own security protocols, reducing the overall system complexity while maintaining reliability through the established security of traditional domain name systems.
3Ease of operation
If cryptocurrency addresses are made human readable through domain names, then ease of operation is improved, but loss of information increases due to potential resolution failures
Solution Approach 1:
The patent implements a feedback mechanism where the system continuously monitors domain name resolution status and provides real-time feedback to users. Before initiating a transaction, the system verifies that the domain name is properly registered and resolves correctly. During transaction processing, it continuously checks the resolution status and alerts users of any issues. This feedback loop prevents transaction failures by identifying and addressing resolution problems before they result in loss of cryptocurrency, thus reducing information loss while maintaining ease of operation.
Data Source
AI summary
The present disclosure provides a system and method of transferring cryptocurrency using traditional domain names. The system includes a server of or on behalf of a receiver, a sender's device, and a distributed ledger (DL) network. The server is configured to host a web page or an application with a URL containing a traditional domain name for resolution of at least a cryptocurrency address. The sender's device is configured to send cryptocurrency to said URL. Nodes of the DL network are configured to resolve said cryptocurrency address by visiting the URL and extract the cryptocurrency address, and then complete the transaction using the resolved address. The method includes steps to configure the system. After configuration users send cryptocurrencies to a URL, and nodes of said DL network resolve the cryptocurrency address, and then use the resolved address to complete the cryptocurrency transaction. The invention makes sending cryptocurrencies like Zelle® Pay.