Digital Asset Wrapping via Public Key Cryptography
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Solution Overview
Problem
Current systems face challenges in transferring digital currency between multiple ledger networks due to incompatible communication protocols and lack of mechanisms to prevent double-spending, leading to regulatory issues, security concerns, and uncertainty in cryptocurrency value fluctuations.
Innovation Solution
A cryptography framework that enables centralized control of digital currency, allowing for attribute assignment, template-based exchanges, and secure transactions across ledger networks using public and private key pairs, smart contracts, and environmental data monitoring.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If digital currency is transferred between multiple ledger networks, then exchange capability is improved, but security and double-spending prevention deteriorate due to incompatible communication protocols
Solution Approach 1:
The patent introduces a centralized provider system as an intermediary between different ledger networks. This provider system acts as a mediator that receives digital assets from one network, verifies their validity, and transfers them to another network. The intermediary handles the compatibility issues between different communication protocols and ledgers, enabling secure cross-network transfers without requiring direct communication between incompatible systems.
Solution Approach 2:
The provider system performs multiple functions within a single centralized architecture: it manages digital asset issuance, verification, transfer coordination, and communication between different ledger networks. This multi-functional approach consolidates security responsibilities and provides a universal interface for various digital currency types and network protocols, improving both exchange capability and security.
2Reliability
If centralized control is implemented, then security and regulatory compliance are improved, but processing complexity increases
Solution Approach 1:
The patent segments the centralized provider system into distinct functional modules: digital asset verification module, transfer coordination module, communication interface module, and regulatory compliance module. Each module handles specific tasks independently, which simplifies the overall processing complexity while maintaining centralized security control. The segmentation allows for modular development and easier maintenance of the complex system.
3Adaptability or versatility
If digital asset attributes and conditions are added, then functionality control is improved, but data processing load increases
Solution Approach 1:
The patent implements preliminary verification and validation of digital asset attributes and conditions before transfer occurs. The provider system pre-checks all attributes, conditions, and environmental data requirements in advance, and only processes transfers that meet the predefined criteria. This preliminary action filters out invalid transactions early, reducing the overall processing load on the system while maintaining robust functionality control.
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.