Secure Digital Currency Routing via Distributed Exchange Units
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Solution Overview
Problem
Existing digital currency exchange solutions face challenges in maintaining security, reliability, and maintainability due to differing security requirements across multiple digital currency systems, leading to complexity and potential security compromises.
Innovation Solution
A secure digital currency server with an external transaction manager that determines a transaction route using a list of exchange candidates, avoiding the need for the requesting unit to manage target currency units, and utilizing static and dynamic routing conditions to ensure reliable and secure transactions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Device complexity
If a single exchange unit is used for multiple digital currency systems, then complexity is reduced, but security requirements become too high to be widely adopted
Solution Approach 1:
The system segments the exchange function into multiple independent exchange units (first exchange unit in source system, second exchange unit in target system) rather than using a single centralized exchange unit. This segmentation allows each unit to operate independently with its own security requirements, reducing the overall security burden while maintaining exchange functionality across multiple digital currency systems.
Solution Approach 2:
The invention introduces an exchange directory server as an intermediary that coordinates between the first exchange unit and second exchange unit. The directory server manages exchange candidate information and routing without requiring the requesting unit to directly manage target currency units, thus reducing complexity while maintaining security through distributed architecture.
2Adaptability or versatility
If the requesting unit manages target digital currency units, then exchange functionality is achieved, but security requirements are compromised
Solution Approach 1:
The invention extracts the target currency management function from the requesting unit and places it in the second exchange unit within the target digital currency system. The requesting unit only needs to interact with its own exchange unit and the exchange directory server, removing the security burden of managing foreign currency units while preserving full exchange functionality.
Solution Approach 2:
Each digital currency system's exchange unit independently manages its own currency units and security requirements. The first exchange unit handles source currency, the second exchange unit handles target currency, and both operate autonomously based on routing information from the exchange directory server, eliminating the need for cross-system currency management.
3Adaptability or versatility
If every digital currency server handles all currency pairs, then versatility is improved, but complexity and reliability decrease
Solution Approach 1:
The exchange directory server provides a universal interface that enables any digital currency server to participate in exchanges with multiple currency pairs without each server needing to handle all pairs directly. The directory server aggregates exchange candidate information from multiple specialized exchange units, allowing the system as a whole to support many currency pairs while individual servers remain simple and reliable.
Data Source
AI summary
A secure digital currency server, includes an external transaction manager for external digital currency transactions to other digital currency systems, including an external digital currency transaction from the first digital currency system to a target digital currency system using a target digital currency. The external transaction manager is configured to receive a list of exchange candidates from an exchange directory server and to determine at least a first digital currency exchange unit of the exchange candidates. The external transaction manager is configured to provide a transaction route from the first digital currency system via one or more digital currency exchange units of the exchange candidates, including the first digital currency exchange unit, to the target digital currency system.