Digital Currency Spending Without Ownership via Biometric Auth

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Solution Overview

Problem

Individuals without digital currency ownership are restricted from spending digital currency, limiting their ability to accept offers for goods or services that require digital currency, and are often restricted to accepting offers for goods or services that only require sovereign currency.

Innovation Solution

A system that allows users to spend digital currency without owning it by using a biometric-enabled transitory password authentication device to authenticate transactions, which charges a user's debit card with an equivalent amount of sovereign currency in real-time, enabling the transfer of digital currency to a target recipient.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Adaptability or versatility

If one must own digital currency to spend it, then digital currency spending capability is limited to currency owners, but this creates exclusion for non-owners who cannot accept offers for goods or services requiring digital currency

Engineering Contradiction:

Improvetransactional capabilityVSAvoidaccessibility

Core Design Contradiction:

Adaptability or versatilityVSEase of operation

Solution Approach 1:

The patent introduces a third-party service provider as an intermediary that bridges the gap between digital currency owners and non-owners. The service provider holds the digital currency wallet and facilitates transactions on behalf of users who do not own digital currency, allowing them to spend it through their existing debit cards while the service provider manages the digital currency conversion and transfer.

Inventive Principle:

Principle #24Intermediary (Mediator)

Solution Approach 2:

The system enables a single service provider to serve multiple functions: holding digital currency wallets, processing transactions for both owners and non-owners, converting between digital and sovereign currency, and facilitating payments across different platforms. This multi-functional approach expands accessibility without requiring each user to maintain their own digital currency wallet.

Inventive Principle:

Principle #6Universality (Multi-functionality)

2Adaptability or versatility

If digital currency spending requires ownership, then security and control remain with owners, but this restricts the system to a closed loop of currency holders

Engineering Contradiction:

Improveparticipant scopeVSAvoidtransaction security

Core Design Contradiction:

Adaptability or versatilityVSReliability

Solution Approach 1:

The service provider acts as a trusted intermediary that manages digital currency wallets and transaction processing. This intermediary model maintains security through centralized control of private keys while enabling broader participation. The service provider verifies transactions, manages wallet balances, and ensures proper conversion between digital and sovereign currency, thereby maintaining reliability while expanding the participant scope beyond currency owners.

Inventive Principle:

Principle #24Intermediary (Mediator)

Solution Approach 2:

The patent replaces the traditional mechanical requirement of direct digital currency ownership with a service-based authentication system. Instead of requiring users to possess and manage private keys, the system uses service provider verification and biometric authentication mechanisms to authorize transactions, substituting the ownership-based mechanical system with a service-mediated authentication approach.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

3Speed

If real-time charging of debit cards is implemented, then transaction speed and user convenience are improved, but this increases system complexity and real-time processing requirements

Engineering Contradiction:

Improvetransaction speedVSAvoidsystem complexity

Core Design Contradiction:

SpeedVSDevice complexity

Solution Approach 1:

The service provider pre-establishes digital currency wallets and maintains real-time connectivity with banking systems. Before transactions occur, the system is configured with exchange rates, wallet addresses, and processing protocols. This preliminary setup enables rapid transaction execution without requiring complex real-time calculations during the actual payment, as the infrastructure is already in place and pre-configured.

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

The system implements real-time feedback loops where the service provider continuously monitors debit card charges, digital currency wallet balances, and exchange rate fluctuations. This feedback mechanism enables automatic adjustment of transaction parameters, real-time currency conversion, and dynamic wallet management, reducing the need for complex manual processing while maintaining high transaction speed and accuracy.

Inventive Principle:

Principle #23Feedback

Data Source

PatentUS12093958B2Systems and methods for facilitating spending digital currency without owning digital currency

Publication Date: 2024.09.17 HYPR CORP

AI summary

Spending digital currency without owning digital currency may be facilitated. The user may use a software application running on the user's computing platform to scan a digital currency public address quick-response code (QR), or a near-field-communication (NFC) based public address. The user may be prompted to swipe-to-authenticate the transaction. The user may authenticate the transaction by fingerprint-swiping a biometric-enabled transitory password authentication device. The biometric-enabled transitory password authentication device may transmit an encrypted transitory password a server via the user's computing platform. Upon receiving and verifying the transaction, the server may send an amount of digital currency to the target address on behalf of the user. The server may charge the user's debit card an equivalent amount of sovereign currency.