Cryptographically Linked Identities for KYC-Compatible Verification
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Existing blockchain systems lack effective methods for linking parties cryptographically and verifying these links, which is crucial for identity management and compliance with regulations like KYC, and they do not interface well with non-blockchain systems.
Innovation Solution
A method involving generating shared private keys between parties and using public-private key pairs to establish a cryptographically linked identity, which can be verified by a third party, allowing trust association and signature verification without revealing private keys.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If blockchain public keys and addresses are used for identification, then uniqueness within the blockchain address space is achieved, but the ability to comply with KYC regulations and interface with non-blockchain systems is insufficient
Solution Approach 1:
The patent introduces a trusted third party as an intermediary that issues cryptographic attestations linking blockchain identities to real-world identities. This mediator enables KYC compliance and integration with non-blockchain systems without compromising the decentralized nature of blockchain, as the third party verifies identities and provides cryptographic proof that can be used across different systems
2Adaptability or versatility
If cryptographic key pairs are used for blockchain identification, then security and anonymity are maintained, but the ability to establish trusted links between parties for identity management is lacking
Solution Approach 1:
The patent adds a new dimension to cryptographic identification by creating a hierarchical key structure where a root key pair serves as the foundation, and derived key pairs are generated from it. This dimensional expansion allows parties to prove their identity linkage through cryptographic derivation relationships while maintaining the security and anonymity properties of blockchain keys
3Adaptability or versatility
If traditional identity verification methods are used, then compliance with KYC regulations is achieved, but integration with blockchain systems and maintenance of cryptographic security is difficult
Solution Approach 1:
The patent replaces traditional mechanical identity verification systems with cryptographic proof mechanisms. Instead of relying on centralized databases and manual verification processes, the system uses cryptographic attestations and key derivation proofs that can be automatically verified on blockchain networks, maintaining cryptographic security while enabling regulatory compliance
Data Source
AI summary
A computer-implemented method of linking a first party and a second party, the method being performed by the first party and comprising: obtaining a first cryptographic public-private key pair comprising a first private key and a corresponding first public key; generating a first shared private key pair known to the first party and the second party; and generating a second cryptographic public-private key pair comprising a second private key and a corresponding second public key, wherein the second private key is generated based on the first private key and the shared private key.