Electronic Currency Ledger Verification for Unauthorized Transfer Prevention
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Solution Overview
Problem
Existing virtual currency systems like Bitcoin require significant resource consumption and are expensive and slow, making them inefficient for transactions.
Innovation Solution
A method and system for an electronic currency base that uses electronic files with proprietary nature, secured by digital signatures from central banks and entities, and recorded in ledgers to ensure authenticity and prevent unauthorized transfers, reducing the need for network resources.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If cryptographic proofs are used for virtual currency transactions, then security and authenticity are improved, but resource consumption and transaction cost increase significantly
Solution Approach 1:
The patent extracts the essential security function from complex cryptographic proofs and implements it through a simplified digital signature system. The central bank signs currency issuance and transfer requests with its private key, and the system verifies these signatures using the central bank's public key, eliminating the need for resource-intensive cryptographic consensus mechanisms while maintaining security.
Solution Approach 2:
The patent introduces a central bank as an intermediary authority that issues and verifies digital signatures for currency transactions. This intermediary system replaces the decentralized cryptographic proof system with a trusted third-party verification mechanism, where the central bank's digital signature serves as the security guarantee, significantly reducing computational resource consumption.
2Reliability
If cryptographic proofs are used for virtual currency transactions, then transaction authenticity is improved, but transaction speed deteriorates
Solution Approach 1:
The patent extracts the core authentication function from multi-step cryptographic proofs and implements it through direct digital signature verification. When a transfer request is received, the system immediately verifies the central bank's digital signature using its public key, enabling fast authentication without the delays inherent in cryptographic consensus mechanisms.
Solution Approach 2:
The central bank pre-generates and stores its public key in the system before transactions occur. This preliminary setup allows for immediate signature verification during transactions, eliminating the need for real-time cryptographic key exchange or consensus building, thereby significantly improving transaction speed.
3Reliability
If cryptographic proofs are used for virtual currency transactions, then security is improved, but transaction cost increases
Solution Approach 1:
The patent implements a lightweight digital signature verification system that requires minimal computational resources compared to full cryptographic proof validation. The verification process uses simple public key cryptography operations that can be performed efficiently, making each transaction cost-effective while maintaining security through the central bank's digital signature.
Solution Approach 2:
The central bank acts as a trusted intermediary whose pre-established public key enables fast, low-cost verification. Instead of requiring each transaction to undergo expensive cryptographic consensus, the system leverages the central bank's authoritative signature, which can be verified cheaply and quickly, reducing overall transaction costs.
4Productivity
If direct transfer of virtual currency is implemented, then transaction efficiency is improved, but security control deteriorates
Solution Approach 1:
The patent introduces the central bank's digital signature as an intermediary security mechanism that works seamlessly with direct transfers. The central bank signs the transfer request, and this signature provides cryptographic proof of authorization without requiring intermediaries in the transfer process itself, thus maintaining both direct transfer efficiency and strong security control.
Solution Approach 2:
The patent replaces complex mechanical security control systems (such as multi-party verification and consensus mechanisms) with a streamlined digital signature verification process. The central bank's signature serves as a single source of truth that enables direct transfers while maintaining security, eliminating the need for cumbersome intermediary verification steps.
Data Source
AI summary
A method executed by a computer for attaining an electronic currency base includes a step of generating an electronic file to which a proprietary nature set in advance is imparted. A step adds first signature data generated by using a private key of a central bank to the electronic file. The method includes adding second signature data generated by using a private key of a first entity to the electronic file in order to transfer the electronic file to a second entity from the first entity after the first signature data is added. At least a part of contents of the electronic file is recorded in a ledger. The presence or absence of an unauthorized transfer of the electronic file is determined based on at least the contents recorded in the ledger.