Decentralized Trust Network for Cryptocurrency Fraud Detection
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Solution Overview
Problem
The lack of effective payer protections in cryptocurrency transactions makes it difficult to safeguard against fraud, as cryptocurrency funds sent to fraudulent parties are often not recoverable.
Innovation Solution
A trust network that generates consensus trust scores for cryptocurrency transactors by acquiring blockchain data, generating local node trust scores, and determining consensus trust scores through a distributed network, providing a safeguard against fraud while preserving user anonymity.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Measurement precision
If a centralized trust evaluation system is used, then trust score accuracy is improved, but system reliability and decentralization are worsened
Solution Approach 1:
The patent divides the trust evaluation system into multiple independent node servers distributed across the network. Each node server independently calculates local trust scores for blockchain addresses based on its own data, eliminating reliance on a single centralized authority and improving system reliability while maintaining accuracy through distributed consensus.
Solution Approach 2:
The patent introduces a consensus mechanism as an intermediary layer between individual node servers and the final trust score output. This intermediary coordinates the trust score calculations across multiple nodes, ensuring agreement on the final score while preserving the decentralized architecture and preventing single-point failures.
2Reliability
If multiple node servers are used to calculate trust scores, then system reliability is improved, but device complexity is worsened
Solution Approach 1:
Each node server autonomously calculates local trust scores using its own stored blockchain data without requiring manual intervention or complex coordination. The nodes self-manage their trust score computations, reducing the operational complexity burden on individual devices while maintaining high system reliability through the distributed architecture.
Solution Approach 2:
The patent implements a feedback mechanism where node servers receive trust score requests from clients, compute scores based on their local data, and return results. This standardized request-response feedback loop simplifies the interaction between nodes and clients, reducing device complexity while the distributed nature of multiple nodes maintains system reliability.
Data Source
AI summary
A method includes acquiring, at a node server, blockchain data for a blockchain address on a blockchain network. The blockchain data includes a plurality of transactions for the blockchain address. The method includes generating a local node trust score for the blockchain address based on the blockchain data. The local node trust score indicates a likelihood that the blockchain address is involved in fraudulent activity. The method includes receiving, from a plurality of remote servers, a plurality of additional local trust scores for the blockchain address. The method includes determining a consensus trust score based on the local node trust score and the plurality of additional local trust scores. Additionally, the method includes receiving a trust request for the blockchain address from a requesting device and sending the consensus trust score for the specified blockchain address to the requesting device.