Encrypted Digital Currency Distribution via Centralized Database
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Solution Overview
Problem
Existing physical currency systems face challenges such as inability to track currency, counterfeiting, high printing costs, tax evasion, money laundering, and inefficiencies in international transactions due to their physical nature.
Innovation Solution
A system for generating and distributing encrypted digital currency using a computer processor to create unique serial IDs and corresponding denominations, stored in a centralized list, which are then encrypted and sent over a network for storage in financial accounts, allowing for secure and trackable transactions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If physical currency is printed and distributed, then currency can be circulated in the economy, but the ability to track currency is limited and counterfeiting becomes possible
Solution Approach 1:
The patent creates digital copies of currency represented as encrypted data values in a centralized database, replacing physical currency with digital representations that can be tracked and verified without physical handling
Solution Approach 2:
The patent replaces the mechanical physical currency system with an electronic/digital system using encrypted data values stored in a centralized database, eliminating the need for physical printing and handling while enabling comprehensive tracking
2Productivity
If physical currency is used for international transactions, then money can be transferred between countries, but intermediary banks are required increasing transaction costs
Solution Approach 1:
The patent extracts the intermediary banking system from the international transaction process by enabling direct peer-to-peer digital currency transfers through the centralized database, eliminating the need for intermediary banks and reducing transaction costs
3Ease of manufacture
If physical currency is printed and distributed, then currency supply can be managed, but printing costs increase continuously
Solution Approach 1:
The patent creates digital copies of currency as encrypted data values in a centralized database, replacing the physical printing process with digital data generation and storage, thereby eliminating continuous printing costs
Solution Approach 2:
The patent replaces the mechanical printing and physical distribution system with an electronic system that generates and distributes digital currency values through a centralized database, eliminating the need for physical minting operations
Data Source
AI summary
A system and method for generating encrypted digital currency comprising: a computer processor for executing a set of instructions stored on a computer readable medium to; generate a plurality of unique serial IDs and corresponding currency denominations for the digital currency, each of the currency denominations associated with at least one of the plurality of unique serial IDs; store the plurality of unique serial IDs and corresponding currency denominations in a centralized list; access the list and generate the encrypted digital values using each associated pair of the plurality of unique serial IDs and corresponding currency denominations for the digital currency, each of the encrypted digital values representing the encrypted digital currency; and send one or more of the encrypted digital values to an institution over a communications network for storage in a financial account as an account deposit of the one or more of the encrypted digital values.