Hardware Token Transaction Unit Managing Device for Offline Banking
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Solution Overview
Problem
Conventional electronic transaction systems face challenges in onboarding unbanked users and providing access to bank accounts or CBDC wallets, especially in areas lacking reliable electricity and broadband access.
Innovation Solution
A hardware token transaction unit managing device that includes a storage for new and used hardware tokens, an input/output system for dispensing and receiving tokens, and a local token management unit for managing tokens, allowing for offline operations and user verification.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If ATMs and bank branches are used for onboarding and transactions, then secure and authorized access to bank accounts is ensured, but reliable access to electricity and broadband is required which is not available in many regions
Solution Approach 1:
The patent introduces hardware tokens as intermediary devices that enable secure transactions without requiring connection to central banking infrastructure. These tokens contain embedded security features and can store transaction data locally, allowing unbanked users to participate in the electronic transaction system while maintaining security standards. The tokens act as a mediator between users and the banking system, eliminating the need for electricity and broadband at the point of use.
Solution Approach 2:
The system segments the transaction functionality into distributed hardware tokens rather than requiring centralized ATM infrastructure. Each token is an independent unit that can perform authentication and transaction functions locally. This segmentation allows the system to operate in regions without reliable electricity or broadband, as each token is self-sufficient and does not require continuous connection to central systems.
2Reliability
If conventional onboarding processes are used, then proper identification and authorization can be verified, but users must visit bank branches during working hours which requires electricity and broadband access
Solution Approach 1:
The system performs preliminary identification and authorization actions by embedding security features directly into the hardware tokens during manufacturing or initial issuance. Biometric data, identification information, and authorization credentials are pre-loaded into the tokens, eliminating the need for users to visit bank branches during working hours for verification. The preliminary actions are completed during token creation, allowing instant onboarding anywhere in the world.
Solution Approach 2:
The hardware tokens enable self-service functionality by containing all necessary authentication and transaction capabilities within the user's possession. Users can independently verify their identity and authorize transactions using their tokens without requiring bank staff or branch infrastructure. This self-service capability eliminates time losses associated with visiting banks during working hours.
3Ease of operation
If handheld devices are required for accessing bank accounts, then convenient access is provided, but unbanked users without handheld devices are excluded from the system
Solution Approach 1:
The hardware tokens are designed as universal access devices that combine the functionality of handheld devices with additional capabilities for regions without electricity or broadband. The tokens can store multiple types of data, support various authentication methods, and function as both identification and transaction devices. This multi-functionality ensures that unbanked users without smartphones or other handheld devices can still access the electronic transaction system conveniently.
Data Source
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AI summary
The invention relates to a hardware token transaction unit managing device (100) within a token-based electronic transaction system (TS), comprising a hardware token transaction unit storage (200) configured for physically storing at least one new and/or used hardware token transaction unit, a hardware token transaction unit input/ output (300) configured for dispensing a new hardware token transaction unit and/or for receiving a used hardware token transaction unit, and a local token transaction unit (400) comprising one or more tokens of the token-based electronic transaction system, the local token transaction unit (400) configured for managing of one or more tokens of the at least one new or used hardware token transaction unit.