Hierarchical Account Segmentation for IoT Cryptocurrency Management
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Solution Overview
Problem
Current systems face challenges in managing and tracking cryptocurrency transactions across numerous connected devices in the 'Internet of Things' ecosystem, lacking efficient mechanisms for resource allocation and spending control.
Innovation Solution
A device transaction management server allocates and tracks cryptocurrency among connected devices, utilizing digital wallets and protocol sets to enable autonomous transactions while ensuring spending compliance with predefined rules, using a split/combine protocol for efficient distribution and reallocation of funds.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If each connected device reports transactions in a broadcast ledger (blockchain), then transaction transparency and security are improved, but network traffic and system complexity increase significantly
Solution Approach 1:
The patent segments the monolithic blockchain ledger into hierarchical account structures with master accounts and sub-accounts. Each connected device operates under a parent account, creating a tree-like structure that reduces the scope of transactions that need to be broadcast to the entire network. This segmentation maintains security through cryptographic verification while reducing network traffic and system complexity.
Solution Approach 2:
The patent introduces account management servers as intermediaries between connected devices and the blockchain network. These servers aggregate transactions from multiple devices, manage sub-accounts, and handle the interaction with the blockchain, thereby reducing the direct burden on individual devices and the overall network complexity.
2Ease of operation
If a centralized system manages all cryptocurrency transactions for connected devices, then spending control and fund management are improved, but the system becomes a single point of failure and reduces device autonomy
Solution Approach 1:
The patent divides the centralized account management into hierarchical segments with master accounts holding parent accounts and sub-accounts for individual devices. This segmentation allows distributed control where each level operates semi-autonomously within its authority, reducing the single point of failure risk while maintaining spending control capabilities.
Solution Approach 2:
The patent implements dynamic account activation where sub-accounts can be activated or deactivated by parent accounts based on spending conditions. This dynamic control allows flexible spending management while maintaining device autonomy when activated, and centralized control when deactivated, thus balancing reliability and ease of operation.
3Productivity
If connected devices are allocated cryptocurrency segments for autonomous transactions, then device autonomy and transaction speed are improved, but tracking and managing residual funds becomes complex
Solution Approach 1:
The patent implements feedback mechanisms where connected devices report their residual segment amounts back to the account management system. This feedback loop enables automatic tracking of fund usage, triggers for additional allocations when thresholds are reached, and reconciliation with the parent account, thereby simplifying fund management while maintaining device autonomy and transaction speed.
Data Source
AI summary
One embodiment of the invention is directed to a method for allocating and tracking funds to connected devices to enable the connected devices to perform transactions independently. The method may comprise, receiving, at a management computer, an input amount. The input amount may be associated with a first data store. The management computer may allocate one or more segments of the input amount to one or more corresponding connected devices. The management computer may associate the one or more segments with a second data store. In at least one example, the individual segment allocated to a connected device enables the connected device to conduct a transaction. The management computer may provide the allocated segment to the connected device. Later, the management computer may receive a residual segment amount from the device and may deallocate some portion of the segment amount from the device based on the residual segment amount.