Distributed Ledger Information Sharing for Secure Identity Verification
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Solution Overview
Problem
Financial institutions face challenges in securely and efficiently sharing personal information across networks while maintaining privacy and security, due to stringent KYC regulations, risk of data leakage, and differing data management systems, which hinders business integration and account opening processes.
Innovation Solution
A method and system utilizing distributed ledger technology (DLT) for secure information sharing, where user information is encrypted with public keys and stored across multiple nodes, ensuring high security and fault resistance, with only authorized nodes able to decrypt and share the information, maintaining anonymity of transmission sources and destinations.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If personal information is shared across financial institutions via network communication, then efficiency of identity verification is improved, but security risk of data leakage increases
Solution Approach 1:
The patent segments personal information into multiple encrypted portions distributed across different nodes in a decentralized network. Each node holds only a fragment of the complete information, making it impossible to reconstruct the full data set without collusion. This segmentation enables efficient sharing while mitigating security risks through distributed storage and encryption.
Solution Approach 2:
The patent introduces cryptographic protocols and decentralized ledger technology as intermediaries that facilitate secure information exchange. These intermediaries enable financial institutions to verify identity information without directly exposing raw personal data, thus improving verification efficiency while maintaining security through cryptographic abstraction layers.
2Reliability
If identity verification procedures are performed manually for each financial institution, then security control is improved, but time and effort required increases
Solution Approach 1:
The patent implements preliminary cryptographic setup where public-private key pairs are generated in advance and distributed to authorized nodes. Identity verification data is pre-encrypted and stored in the decentralized ledger before actual verification needs occur. This preliminary action enables rapid verification while maintaining security controls, eliminating the need for repeated manual procedures.
Solution Approach 2:
The patent creates cryptographic copies of identity verification data that can be distributed across the decentralized network. Instead of sharing actual personal information, the system uses cryptographic representations that preserve verification functionality while eliminating security risks associated with copying sensitive data. This enables efficient multi-institution verification without compromising security.
3Ease of manufacture
If centralized server/client systems are used for information sharing, then ease of implementation is improved, but cost and scalability worsen
Solution Approach 1:
The patent transitions from traditional centralized vertical architecture to a decentralized horizontal network architecture. Information sharing occurs across multiple dimensional nodes in a peer-to-peer network rather than through a single centralized server. This dimensional change enables scalable implementation while distributing computational and storage loads, reducing overall system cost and improving fault tolerance.
Data Source
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AI summary
To enable non-disclosed information provided from an individual or an organization to be shared via a network safely and reliably. Resolution means: When a node (1) among a plurality of nodes on a P2P network outputs a request for user information to the network, a node (2) that has ever encrypted the user information encrypts the user information with the public key forming a key pair with the private key of the node (1). The node (1) can obtain the desired user information by decrypting the encrypted data by using the private key that the node (1) itself manages. The plurality of nodes connected to the network stores completely the same encrypted data of the user information that is output to the network. Therefore, even when one node included in the plurality of nodes changes the encrypted data for the purpose of illegal use or the like, the changed encrypted data can be rejected if it is not identical to values obtained from the other nodes included in the plurality of nodes. The information sharing of the present invention can guarantee high security.