Home Cryptocurrency Trading Machine with Local API Encryption
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Solution Overview
Problem
The cryptocurrency market poses security risks due to hacking threats that can compromise API credentials, making it intimidating for investors and potentially leading to unauthorized access or theft of funds.
Innovation Solution
A home-based trading machine with custom hardware securely stores and manages API credentials, encrypting them with RSA encryption and only accessible via the user's IP address, minimizing the risk of unauthorized access by ensuring encryption and decryption occur only on the machine, and using a machine learning chip for optimized trading decisions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If API credentials are stored on servers for cryptocurrency trading, then trading accessibility and convenience are improved, but security risk and vulnerability to hacking increase
Solution Approach 1:
The patent extracts API credentials from server storage and places them on the user's local device. The credentials are stored in an encrypted form on the user's device, eliminating the need for servers to hold sensitive authentication information. This extraction removes the security vulnerability while maintaining trading accessibility through the encrypted local storage.
Solution Approach 2:
The patent introduces encryption as an intermediary layer between the API credentials and the trading system. The credentials are encrypted using asymmetric encryption before storage and transmission, creating a security barrier that prevents direct access while allowing authorized operations. This intermediary protects the credentials without blocking legitimate trading access.
2Ease of operation
If API credentials are transmitted and stored in plaintext, then ease of access and processing is improved, but vulnerability to hacking and unauthorized access increases
Solution Approach 1:
The patent changes the parameter of credential storage from plaintext to encrypted form. The API credentials are transformed through encryption algorithms, changing their state from accessible but vulnerable to secure but requiring decryption. This parameter change maintains the functional ability to access credentials while fundamentally improving security against hacking.
3Device complexity
If a centralized server stores API credentials for multiple users, then system simplicity and ease of management is improved, but security risk and single point of failure increases
Solution Approach 1:
The patent segments the credential storage function from the centralized server to individual user devices. Each user's API credentials are stored locally on their own device rather than centrally. This segmentation eliminates the single point of failure and distributes security responsibility, making the system more secure while requiring minimal server infrastructure.
4Object-affected harmful factors
If encryption is implemented for API credentials, then security and protection against hacking is improved, but device complexity and computational requirements increase
Solution Approach 1:
The patent uses asymmetric encryption with public and private key pairs, where the public key can be freely shared and the private key remains secret. This copying approach allows secure credential transmission and storage without requiring complex key management infrastructure. The public key can be distributed widely while the private key provides secure access, simplifying implementation while maintaining strong security.
Applied Scientific Principles
This section explains which scientific principles are used to turn an abstract innovation direction into a practical engineering solution.
Function Achieved in This Case
The system enhances security by preventing unauthorized access and hacking, ensuring API credentials are never stored on servers, reducing the risk of theft and maintaining secure cryptocurrency trading.
Implementation Method 1
The system may include a machine learning chip that optimizes data analysis and decision making for cryptocurrency trading
Implementation Method 2
The memory stores instructions executable by the processor execution engine to generate an encryption key configured to encrypt at least one set of application programing interface (API) credentials in an encrypted packet
Data Source
AI summary
The present disclosure presents a system and methodology for cryptocurrency trading. The system comprises a home-based trading machine, one or more servers and at least one database, each of which communicating via a network. The home-based trading machine is configured to encrypt at least one set of API credentials accessible to at least one currency exchange application in an encrypted packet; receive, from an electronic processing device operable by a vendor of the encrypted packet, the encrypted packet; implement the encryption key to decrypt the API key and the API secret key to unlock the encrypted packet to perform a cryptocurrency trade; and upon completion of the cryptocurrency trade, re-encrypt the API credentials.