Hash-Chain Possession Token for Fast Verifiable Ownership Transfer
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Solution Overview
Problem
Existing digital systems for tracking ownership of assets face challenges such as slow consensus mechanisms, vulnerability to hacking, and confusion over which token represents the asset, especially in the context of physical assets, due to issues with distributed ledger blockchains and public-private key encryption.
Innovation Solution
A method and system for an evolving actual possession token using cryptographic hash functions to create a unique electronic token that is transferred and stored based on possession, ensuring ownership is verified through independent means without relying solely on public-private key encryption, and maintaining a verifiable evolution state through a hash chain.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If distributed ledger blockchain with consensus mechanism is used to track ownership, then security and consistency of ownership records are improved, but transaction speed and efficiency deteriorate
Solution Approach 1:
The patent segments the ownership verification process into two independent parts: (1) possession verification through cryptographic hash chains stored locally in the token, and (2) optional consensus verification on the blockchain. This segmentation allows fast local verification without requiring slow consensus mechanisms for every transaction, thus improving transaction speed while maintaining security.
Solution Approach 2:
The patent introduces cryptographic hash chains as an intermediary mechanism between the physical token and the blockchain ledger. The hash chain serves as a self-contained verification system that mediates between possession proof and blockchain records, enabling fast verification without direct reliance on slow consensus mechanisms for each transaction.
2Ease of operation
If public-private key encryption is used for token ownership, then digital ownership tracking is enabled, but vulnerability to hacking and private key theft increases
Solution Approach 1:
The patent creates a cryptographic copy of the ownership state in the form of a hash chain that is stored within the token itself. This copy serves as self-contained proof of ownership that does not require exposure of private keys. The hash chain is a one-way cryptographic representation that verifies ownership without revealing sensitive information, thus enabling digital tracking while reducing hacking vulnerability.
Solution Approach 2:
The patent replaces the traditional public-private key cryptographic system with a hash chain-based possession verification system. Instead of relying on complex asymmetric encryption mechanics that are vulnerable to key theft, the system uses simpler hash function mechanics that provide security through mathematical one-way properties, making the system more resistant to hacking while maintaining ease of operation.
3Stability of the object's composition
If multiple copies of the ledger are distributed across computing nodes, then consistency and tamper detection are improved, but coordination difficulty and system complexity increase
Solution Approach 1:
The patent performs preliminary action by pre-computing and embedding the cryptographic hash chain within the token during token creation or previous transactions. This preliminary preparation of verification data eliminates the need for complex real-time coordination between distributed nodes during transactions, as each node can independently verify ownership using the pre-computed hash chain, thus reducing coordination complexity while maintaining ledger consistency.
4Speed
If electronic tokens are easily copied and transferred digitally, then transfer speed and convenience are improved, but ability to prevent copying and double-spending worsens
Solution Approach 1:
The patent applies asymmetry through the cryptographic hash chain structure, where the token contains a one-way cryptographic representation of ownership history that is easy to verify but difficult to reverse-engineer or copy. The asymmetric cryptographic properties ensure that while the token can be quickly transferred digitally, each transfer creates a new irreversible hash state that prevents copying and double-spending, thus maintaining reliability while enabling fast transfers.
Data Source
AI summary
Disclosed is a method, a device, a system and/or a manufacture of an evolving actual possession token with verifiable evolution state. In one embodiment, a method of ledgerless ownership through actual possession of an electronic token receives an electronic token that includes a set of data blocks each having a transaction data beginning with an issue transaction, with each data block having a block hash dependent on a previous block hash and on a secret value used to evolve the electronic token when adding a new block upon a transfer transaction. A new block and a new secret value is generated and input into a cryptographic hash function, resulting in an output that is a new block hash representing an evolved state of the token. The evolved state may be published to a state dataset that may establish an independent evidence of evolution of the electronic token.