Digital Currency Transfer via Temporary Wallet
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Current cryptocurrency transaction validation processes are slow, often taking 40 minutes or more, leading to issues like double-spend, lost currency, and inadequate security due to the delay in validation within decentralized networks like blockchain.
Innovation Solution
A computer-implemented method creates a digital temporary wallet to hold cryptocurrency for transfer, generating a transaction key that locks the transfer to the recipient's public key, allowing for secure and fast transfer outside the blockchain network by printing a physical wallet that can be transferred to the recipient, enabling instantaneous ownership change.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If transactions are validated through decentralized blockchain network, then security and decentralization are improved, but transaction speed deteriorates (40+ minutes validation time)
Solution Approach 1:
The patent introduces a centralized exchange platform as an intermediary between buyers and sellers. The exchange holds the actual cryptocurrency assets and facilitates instant transfers through its internal system, eliminating the need for direct peer-to-peer blockchain transactions. This intermediary approach enables fast transfers while maintaining security through the exchange's controlled environment.
Solution Approach 2:
The patent replaces the mechanical blockchain validation process with a digital ledger system maintained by the exchange. Instead of relying on decentralized network consensus and mining operations, the exchange uses its own centralized ledger to track and validate transactions instantly, substituting the slow mechanical blockchain process with a faster digital system.
2Reliability
If blockchain validation is used for currency transfer, then currency security is maintained, but time loss increases (40+ minutes waiting period)
Solution Approach 1:
The exchange pre-holds cryptocurrency assets in its custody before transactions occur. When a transfer is requested, the currency is already prepared and can be instantly moved to the recipient's account without waiting for blockchain validation. This preliminary preparation eliminates the 40+ minute waiting period while maintaining security through the exchange's established custody protocols.
3Adaptability or versatility
If decentralized network validation is implemented, then system independence is improved, but vulnerability to double-spend and loss increases
Solution Approach 1:
The exchange serves as a trusted intermediary that controls the actual currency assets. When a transfer is initiated, the exchange verifies the sender's balance, deducts the amount, and immediately credits the recipient's account in its internal ledger. This controlled intermediary process eliminates double-spend vulnerabilities by ensuring only one transfer can occur at a time, while maintaining system independence through the exchange's autonomous operation.
Data Source
AI summary
Digital currency transfer is facilitated by a process that includes receiving an indication of a type and amount of digital currency to be transferred to a recipient as part of a digital currency transfer, and a specified public key of the recipient. The public key identifies a digital permanent wallet of the recipient's account. The process creates and stores a digital temporary wallet to temporarily hold the digital currency. This creates a transaction key uniquely identifying the digital currency transfer, and associates with the digital temporary wallet the transaction key and the public key. The process transfers the digital currency from the digital permanent wallet of the sender to the digital temporary wallet, and sends temporary wallet information of the digital temporary wallet, including the transaction key, for embodiment in a physical wallet to hold the digital currency and to be printed and transferred to the recipient.