Digital Asset Exchange Using Device Identifiers for Privacy
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Solution Overview
Problem
Existing systems for managing digital assets, such as gift cards and event tickets, lack security, respect user privacy, and are inefficient in issuance, exchange, trade, redemption, and validation, often requiring personal data and being vulnerable to fraud.
Innovation Solution
A Digital Asset Exchange Platform (DAX Platform) and associated mobile app (DAX App) use unique device identifiers to create anonymized device accounts, allowing secure and anonymous transactions without personal data storage, utilizing a partial distributed ledger for secure management and redemption of digital assets.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If personal data is collected and stored for user accounts, then authentication and service delivery can be achieved, but user privacy is compromised and security risks increase
Solution Approach 1:
The patent extracts personal data from the authentication process by using device identifiers (IMEI, MAC address) instead of personal information. The system takes out the need for storing sensitive user data while maintaining authentication capability through device-specific identifiers that don't reveal personal information.
Solution Approach 2:
The patent introduces an intermediary mechanism where device identifiers serve as mediators between the user and the service provider. Instead of direct personal data exchange, the system uses anonymized device identifiers as an intermediary that enables authentication without exposing personal information.
2Ease of operation
If traditional user account systems are used with personal data, then service providers can identify and contact users, but data protection compliance becomes difficult and security vulnerabilities increase
Solution Approach 1:
The system extracts the identification function from personal data and relocates it to device identifiers. This removes the need for complex data protection compliance while maintaining the ability to identify and contact users through their device-specific identifiers.
Solution Approach 2:
The patent changes the identification parameter from personal data (name, email, phone number) to device identifiers (IMEI, MAC address). This parameter change simplifies data protection compliance while preserving user identification and contact capabilities.
3Ease of operation
If gift cards are issued in physical form, then users can carry and use them, but they are easy to lose, misplace, or forget
Solution Approach 1:
The patent replaces the mechanical physical gift card system with a digital system stored in mobile devices. This substitution eliminates the physical form that can be lost or forgotten while maintaining portability through electronic storage in always-carried devices like smartphones.
4Ease of manufacture
If eGiftcards are distributed through email, then distribution cost is reduced, but security protection is inadequate and pins can be leaked
Solution Approach 1:
The patent extracts the security vulnerability of visible pins from the eGiftcard system. By removing the pin display mechanism and using direct device-to-device transfer with cryptographic authentication, the system maintains low distribution costs while eliminating security risks associated with pin leakage.
Solution Approach 2:
The system applies preliminary anti-action by preventing pin leakage before it can occur. Instead of displaying pins that could be leaked, the system uses cryptographic authentication and direct device communication that inherently prevents the security vulnerability from existing in the first place.
5Adaptability or versatility
If secondary market trading of gift cards is allowed, then unused cards can be exchanged, but the process is inefficient, costly, and privacy-invasive
Solution Approach 1:
The patent makes the device account system universal, allowing any digital asset to be transferred between any devices without requiring traditional secondary market mechanisms. This multi-functional approach enables direct peer-to-peer exchange that is more efficient and privacy-preserving than conventional gift card trading platforms.
Data Source
AI summary
A system is provided as a computer server platform and application programming software installed in primary devices of users for exchanging and trading digital asset securely and anonymously between two users of the system. The digital asset is registered under a device account of a primary device of a user with the system using a unique device account name. The system respects “privacy by design” in GDPR by using device account based-on anonymized data instead of personal account based-on personal data of prior art to ensure the system does not collect, store and process users' personal data in the course of device accounts' set-up and transactions of digital assets.