EDT-X Platform Blockchain Marker Data Transaction Auditing
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Current systems face challenges in reliably recording and auditing financial transactions due to sophisticated hacking methods and the complexity of international transactions, which complicates regulatory requirements such as know your customer (KYC) and beneficiary information verification.
Innovation Solution
The Embedded Data Transaction Exchange Platform (EDT-X) generates marker data about transactions and stores it in a quasi-private blockchain distributed ledger, allowing for secure, anonymous recording and easy auditing, ensuring the integrity of transaction information.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If transaction data is stored securely and anonymously in a database, then data security and privacy are improved, but auditability and traceability deteriorate
Solution Approach 1:
The system divides transaction data into two separate storage locations: encrypted data stored in a secure database and marker data stored on the blockchain. This segmentation allows the actual transaction information to remain secure and anonymous while the marker data provides auditability and traceability through the immutable blockchain ledger.
Solution Approach 2:
The patent introduces marker data as an intermediary element that links the encrypted transaction data to the blockchain. These markers act as references that can be traced on the blockchain without revealing the actual transaction content, thus mediating between security requirements and auditability requirements.
2Device complexity
If traditional databases are used for transaction recording, then data storage is simple, but reliability against hacking and tampering deteriorates
Solution Approach 1:
The system merges two different storage approaches: traditional encrypted database storage for the actual transaction data and blockchain storage for the marker data. This combination provides both the simplicity of database storage for sensitive data and the immutability of blockchain for audit trails, achieving high reliability against hacking and tampering.
Solution Approach 2:
The blockchain stores marker data beforehand that serves as a cushion against potential database breaches or tampering. Even if the traditional database is compromised, the immutable blockchain record of markers provides a backup that cannot be altered, ensuring data integrity.
3Loss of information
If detailed transaction information is made publicly accessible for auditing, then auditability is improved, but data security and privacy deteriorate
Solution Approach 1:
The system applies different accessibility qualities to different data types: marker data on the blockchain is publicly accessible for auditing purposes, while the actual transaction information in the encrypted database remains private and accessible only to authorized users. This local quality differentiation allows simultaneous achievement of auditability and data privacy.
Data Source
AI summary
Aspects of the present disclosure are presented for an Embedded Data Transaction Exchange Platform (EDT-X) that generates marker data about relevant data of a transaction, and reliably stores the marker data in a permanent data storage, such as a block chain distributed ledger. The EDT-X platform does not generate the actual information that explains who was involved in the transaction or what the contents of the transaction were, but rather generates marker data that can reliably lead to tracing back to that information. The marker data may be permanently stored in a permanent data storage entity, such as a block chain distributed ledger. The data about the content of the transaction may be anonymously stored in a secure database, and the marker data pointing to the content of the transaction may be retrieved from the block chain distributed ledger to look up where the content data is stored in the secure database.