Encrypted Virtual Currency Data Structure for Secure Settlement
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Solution Overview
Problem
Existing virtual currencies like Bitcoin lack a tangible entity and rely heavily on cryptographic techniques for transaction legitimacy, leading to significant data recording efforts and safety concerns.
Innovation Solution
A data structure for virtual currency data that includes encryption of issuer, amount, and settlement conditions, combined with settlement devices that authenticate and process encrypted data to ensure secure and efficient transactions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If Bitcoin uses cryptographic techniques to ensure transaction record legitimacy, then transaction security is improved, but data volume increases requiring extensive blockchain recording
Solution Approach 1:
The patent extracts the essential security function from the entire blockchain transaction record system. Instead of securing every transaction detail through cryptographic recording, the invention uses cryptographic techniques only to verify the authenticity of the virtual currency data itself (issuer information, amount information, settlement condition information), thereby reducing the data volume required for recording while maintaining security.
Solution Approach 2:
The patent creates a simplified copy of the security verification mechanism. Rather than recording complete transaction histories with cryptographic signatures for every transfer, the system uses encrypted virtual currency data that contains embedded cryptographic verification elements, allowing security to be maintained with minimal data storage requirements.
2Reliability
If Bitcoin preserves all transaction records to prevent double transfer, then transfer legitimacy is improved, but system complexity increases
Solution Approach 1:
The patent extracts the double-transfer prevention function from the complex blockchain record-keeping system. By embedding settlement condition information and cryptographic verification directly into the virtual currency data structure itself, the system can prevent double transfer without requiring preservation of complete transaction histories, thereby reducing system complexity.
Solution Approach 2:
The patent introduces encrypted virtual currency data as an intermediary carrier that contains all necessary verification information. This intermediary structure integrates the legitimacy verification function within the currency itself, eliminating the need for separate complex record-keeping systems to track and validate transactions.
3Ease of operation
If virtual currency is circulated as data without tangible entity, then ease of transfer is improved, but safety and trust decrease due to data vulnerability
Solution Approach 1:
The patent replaces the mechanical/tangible nature of physical currency with an encrypted data structure that maintains security properties. Instead of relying on physical possession and handling, the system uses cryptographic encryption to ensure data safety while preserving the ease of digital transfer, thereby achieving both convenience and security.
Solution Approach 2:
The patent creates a composite data structure that combines multiple security mechanisms within the virtual currency itself. The encrypted data structure integrates issuer information, amount information, and settlement condition information with cryptographic verification elements, creating a self-contained unit that maintains safety while enabling easy transfer.
Data Source
AI summary
Provided is a data structure of virtual currency data with high safety. The virtual currency data, which is used in combination with a settlement device that accepts settlement when the virtual currency data is received from a predetermined device via a network and when predetermined conditions are satisfied, includes virtual currency encryption data which is data obtained by, according to a predetermined encryption method, encryption of issuer information including at least information on an issuer of the virtual currency data, amount information that is information for specifying a monetary value, and settlement condition information that is information on conditions for accepting payment with virtual currency.