DLT Transaction Signing with Separated Authentication and Authorization

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Solution Overview

Problem

Conventional decentralized ledger technologies (DLTs) conflate authentication and authorization processes, leading to security breaches and inefficiencies in managing complex corporate authority structures, as they rely on public/private key combinations that do not distinguish between individual identity and transaction authority, compromising accountability and integrity.

Innovation Solution

The method cryptographically separates and links authentication and authorization processes by using access tokens and key fragments, enabling independent verification and execution of transactions within a decentralized network, incorporating multi-party computation and smart contracts to manage complex authority structures.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If conventional DLTs use public/private key combinations for authentication, then the system is simple to operate, but security is compromised because individual identity and transaction authority are not distinguished

Engineering Contradiction:
ImprovesecurityVSAvoidsystem complexity
Core Design Contradiction:
ReliabilityVSDevice complexity

Solution Approach 1:

The patent segments the authentication process into two distinct components: authentication (verifying individual identity) and authorization (verifying transaction authority). This is achieved by separating the private key into multiple key fragments distributed to different authorized individuals, requiring both authentication credentials and key fragments to execute transactions. This segmentation resolves the contradiction by improving security through role separation while managing complexity through structured key management.

Inventive Principle:
Principle #1Segmentation

Solution Approach 2:

The patent extracts the authorization function from the traditional public/private key authentication mechanism. Instead of using a single private key for both authentication and authorization, the system extracts authorization capabilities by distributing key fragments to multiple individuals and requiring their collaboration. This extraction improves security by preventing single-point compromise while maintaining operational feasibility through defined key fragment management protocols.

Inventive Principle:
Principle #2Taking out (Extraction)

2Reliability

If DLTs conflate authentication and authorization processes, then the system is easier to implement, but accountability and integrity are compromised

Engineering Contradiction:
ImproveaccountabilityVSAvoidprocess complexity
Core Design Contradiction:
ReliabilityVSDevice complexity

Solution Approach 1:

The patent segments the conflation of authentication and authorization into distinct operational phases. Authentication verifies the individual's identity through credentials, while authorization validates transaction authority through key fragment verification and smart contract logic. This segmentation enhances accountability by clearly attributing actions to authenticated individuals with verified authority, while managing process complexity through automated verification mechanisms.

Inventive Principle:
Principle #1Segmentation

Solution Approach 2:

The patent implements feedback mechanisms through smart contracts that verify both authentication status and authorization permissions before allowing transactions. The system provides feedback by rejecting transactions that fail either authentication or authorization checks, ensuring accountability. This feedback loop manages process complexity by automating verification rather than requiring manual review of each transaction's authenticity and authority.

Inventive Principle:
Principle #23Feedback

3Reliability

If DLTs use separate authentication and authorization processes, then security and accountability are enhanced, but the system becomes more complex

Engineering Contradiction:
ImproveintegrityVSAvoidoperational simplicity
Core Design Contradiction:
ReliabilityVSEase of operation

Solution Approach 1:

The patent creates a universal framework that handles both authentication and authorization within a single transaction execution flow. The smart contract system universally applies verification logic that checks both credentials and key fragments, maintaining operational simplicity through a unified interface. This multi-functionality approach enhances integrity by ensuring both authentication and authorization are verified, while preserving ease of operation through automated processes that hide complexity from users.

Inventive Principle:
Principle #6Universality (Multi-functionality)

Solution Approach 2:

The patent introduces smart contracts as intermediaries that mediate between the separate authentication and authorization processes. The smart contract receives authentication credentials and key fragments, performs verification, and either approves or rejects transactions. This intermediary approach enhances integrity by ensuring systematic verification of both authentication and authorization, while maintaining operational simplicity by providing a single point of interaction for users rather than requiring them to manage separate verification processes.

Inventive Principle:
Principle #24Intermediary (Mediator)

Data Source

PatentUS12476800B2Method, apparatus, and computer-readable medium for authentication and authorization of networked data transactions
Publication Date: 2025.11.18 SECURRENCY INC
  • US12476800B2 patent drawing
  • US12476800B2 patent drawing
  • US12476800B2 patent drawing

AI summary

One of the drawbacks of Distributed Ledger Technology (DLT) is the conflation of authorization and authentication of transactions on a distributed ledger. The present invention includes a highly adaptable method and system for separating, but cryptographically linking, the authentication and authorization process of signing a transaction of a distributed ledger. The present invention facilitates group authority, common in corporate structures, for proposed transactions, voting models, and even workflow decision making. The present invention supports implementation of a variety of known authorization models into a decentralized network.