Digital Asset Wrapping via Public Key Cryptography for Cross-Ledger Interoperability
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Solution Overview
Problem
Current digital currency systems face challenges in transferring digital assets between different ledger networks due to incompatible communication protocols and lack of mechanisms to prevent double-spending, leading to regulatory issues, uncertainty in value, and increased cybersecurity risks.
Innovation Solution
A method involving a public key cryptography framework that allows for the signing, verification, and updating of digital assets across multiple ledger networks, using a central provider system to assign attributes and utilize environmental data to satisfy conditions for transferring ownership, while ensuring secure transactions and compliance with regulations.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If digital assets are transferred between different ledger networks, then interoperability is improved, but security risks and double-spending prevention become more difficult
Solution Approach 1:
The patent introduces a central provider system as an intermediary between different ledger networks. This system receives digital assets from one network, verifies their validity using cryptographic signatures, adds attributes defining transfer conditions, and issues wrapped digital assets to another network. The intermediary handles the complexity of interoperability while maintaining security through centralized verification and control.
Solution Approach 2:
The patent wraps existing digital assets with additional attributes and metadata to create wrapped digital assets. This nesting structure allows the original asset to retain its value while the wrapper layer contains the necessary information for cross-network transfer, conditions, and provenance tracking, enabling secure interoperability without compromising the underlying asset.
2Reliability
If centralized control is implemented for digital asset transfers, then security and regulation compliance are improved, but system complexity increases
Solution Approach 1:
The patent segments the digital asset transfer system into distinct functional components: a central provider system for verification and control, user devices for initiation and reception, and wrapper generation mechanisms. This segmentation allows centralized security control while distributing operational complexity across manageable components, each with specific responsibilities.
Solution Approach 2:
The central provider system performs preliminary verification of digital asset validity and generates wrapped versions with pre-defined attributes and transfer conditions before the actual transfer occurs. This preliminary action consolidates security checks and compliance verification into a single authoritative step, reducing the complexity of ongoing security management.
3Adaptability or versatility
If attributes and conditions are added to digital assets, then transfer control and regulation compliance are improved, but data processing complexity increases
Solution Approach 1:
The patent creates a copy of the original digital asset structure (the wrapper) that contains the necessary attributes and conditions as metadata. This wrapper copy preserves the original asset's value while adding control mechanisms, allowing the system to process and enforce conditions without altering the underlying asset data, thus managing processing complexity.
Solution Approach 2:
The patent modifies the digital asset by adding new parameters (attributes) such as transfer conditions, expiration dates, and provenance information. These parameter changes are handled through the wrapper structure, allowing the system to manage increased data complexity by organizing additional parameters in a structured manner that doesn't fundamentally change the core asset processing logic.
Data Source
AI summary
Systems, methods, and computer-readable storage media of wrapping digital assets. One method includes receiving, from a central provider system, a digital asset signed by a central private key associated with a digital asset on a central ledger, and verifying the digital asset based on a central public key. The method further includes updating the digital asset including an assignee field, and receiving an attribute for a second assignee of the digital asset. The method further includes wrapping utilizing the private key of the public and private key pair, the digital asset with the attribute and receiving environmental data. The method further includes determining the at least one condition of the attribute is satisfied, and updating the assignee field.