Blockchain Transaction Records with Encrypted Message Payloads

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Solution Overview

Problem

Blockchain systems face limitations in securely embedding additional data in transaction records, which can compromise privacy and restrict the inclusion of rich content due to size constraints and public accessibility, while existing solutions fail to provide secure and efficient methods for encoding and encrypting message payloads within transaction records.

Innovation Solution

A method for encoding and encrypting message payloads using shared encryption keys derived from public and private keys associated with source and destination wallets, allowing secure embedding of message payloads within transaction records on the blockchain, while adhering to size constraints and maintaining privacy.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Adaptability or versatility

If additional data is embedded in transaction records on a public blockchain, then the richness of transaction information is improved, but the privacy and security of the embedded data deteriorates due to public accessibility

Engineering Contradiction:

Improverichness of transaction informationVSAvoidprivacy exposure

Core Design Contradiction:

Adaptability or versatilityVSObject-affected harmful factors

Solution Approach 1:

The patent introduces an intermediary encoding/encryption layer between the message payload and the public blockchain. Message payloads are encoded (e.g., base64) and encrypted (e.g., using AES with derived keys) before embedding in transaction records. This intermediary transformation allows rich data to be stored on-chain while protecting privacy, as the data becomes unintelligible to public viewers but recoverable by authorized parties with decryption keys.

Inventive Principle:

Principle #24Intermediary (Mediator)

Solution Approach 2:

The patent applies different quality treatments to different parts of the transaction record. Sensitive message payloads are encoded and encrypted with high security measures, while non-sensitive transaction metadata (sender, receiver, amount) remains in plaintext for public verification. This local differentiation allows the system to maximize both information richness and privacy protection where needed.

Inventive Principle:

Principle #3Local quality

2Adaptability or versatility

If message payloads are embedded in transaction records, then the functionality of blockchain transactions is improved, but the size constraints of blocks are exceeded

Engineering Contradiction:

Improvefunctionality of transactionsVSAvoidblock size

Core Design Contradiction:

Adaptability or versatilityVSVolume of moving object

Solution Approach 1:

The patent extracts the bulk of message payload data from the blockchain transaction records and stores it externally (e.g., in IPFS or other distributed storage). Only essential transaction information and encrypted hashes or small encoded portions of the message are embedded in the on-chain transaction records. This extraction allows rich functionality to be maintained while keeping on-chain data size within block limits.

Inventive Principle:

Principle #2Taking out (Extraction)

Solution Approach 2:

The patent moves message storage from the single dimension of on-chain transaction records to multiple dimensions: essential metadata remains in the 1D transaction record structure on-chain, while the full message content is stored in the external distributed file system dimension, accessible via hashes or URIs embedded in transactions. This dimensional transition resolves the size conflict.

Inventive Principle:

Principle #17Another dimension (Dimensionality change)

3Reliability

If encoding and encryption is applied to message payloads, then the security of embedded data is improved, but the computational cost increases

Engineering Contradiction:

Improvesecurity of message payloadVSAvoidcomputational cost

Core Design Contradiction:

ReliabilityVSUse of energy by moving object

Solution Approach 1:

The patent applies partial encryption/encoding rather than encrypting all transaction data. Only the message payload portion requiring privacy protection is encoded and encrypted, while transaction metadata remains in plaintext. This partial application of security measures achieves necessary protection while minimizing computational overhead compared to full-transaction encryption.

Inventive Principle:

Principle #16Partial or excessive action

Solution Approach 2:

The patent performs encoding and encryption of message payloads in advance, before transaction inclusion in blocks. Message payloads are pre-processed with encoding (e.g., base64) and encryption (e.g., AES-GCM) offline or during transaction creation, so that block validators only need to perform lightweight verification operations. This preliminary processing shifts computational cost away from the critical block validation path.

Inventive Principle:

Principle #10Preliminary action

Data Source

PatentUS12430638B1Securely embedding messages in transaction records in blockchain systems

Publication Date: 2025.09.30 CIRCLE INTERNET FINANCIAL LLC

AI summary

Certain aspects of the present disclosure provide techniques for securely embedding messages in transaction records in a blockchain system. An example method generally includes receiving a request to perform a transaction on a blockchain. Generally, the request includes a message payload describing the transaction and an indication of an amount of a token to transfer from a source wallet to a destination wallet on the blockchain. The message payload is encoded. Generally, the encoded message payload has a maximum size associated with a block size on the blockchain. A transaction record including the encoded message payload and the amount of the token to transfer to the destination wallet is generated, and the transaction record is committed to the blockchain.