IOTpay Continuous Bit-Flow Payment System for Real-Time IoT Transactions
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Solution Overview
Problem
Current payment systems are inadequate for handling instant, high-resolution, continuous, and variable-rate transactions required by the Internet of Things (IoT) devices, as they are slow, error-prone, and lack anonymity, making them unsuitable for micro and nano payments in real-time scenarios.
Innovation Solution
IOTpay enables fast, real-time, device-to-device payments through a bit flow rate system where each bit carries a monetary value, allowing for instant micro or nano payments without subsequent invoicing, and offers optional anonymity, facilitating secure and personalized transactions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Speed
If traditional payment systems are used for IoT transactions, then security and validation can be maintained, but transaction speed and real-time processing capability deteriorate
Solution Approach 1:
The payment system segments the transaction validation process into two parts: (1) instant bit-flow payment execution between devices using cryptographic proof, and (2) subsequent batch validation by the mint. This segmentation allows the payment to be executed immediately without waiting for full validation, thus improving speed while maintaining security through the cryptographic proof mechanism.
Solution Approach 2:
The system performs preliminary cryptographic proof generation and validation setup before the actual payment transaction. The payor device prepares cryptographic proofs in advance, and the payee device validates these proofs immediately upon receipt, enabling real-time payment confirmation without requiring the mint to be involved in the time-critical validation step.
2Measurement precision
If discrete coin payment is used, then payment validation is simplified, but payment resolution and continuity deteriorate
Solution Approach 1:
The system transitions from static discrete coin payments to dynamic continuous bit-flow payments. The payment rate can be adjusted in real-time based on the billing rate, allowing for continuous variable-rate transactions. The bit-flow can be modulated to match any billing rate requirement, providing dynamic adaptability that discrete coins cannot achieve.
Solution Approach 2:
The system changes the fundamental parameter of payment representation from discrete coin units to continuous bit sequences with adjustable monetary value per bit. This parameter change enables high-resolution payments where the value per bit can be set to any precision level, allowing micro and nano payments while maintaining system efficiency through the continuous nature of bit-flow transmission.
3Reliability
If identity information is collected for payment validation, then payment security is improved, but user anonymity deteriorates
Solution Approach 1:
The system extracts and removes personal identity information from the payment validation process. Instead of using traditional account-based systems that require personal identifiers, the patent employs cryptographic proof mechanisms where validation is performed on anonymous cryptographic tokens. The mint validates payments based on cryptographic proofs rather than personal identity data, thus maintaining payment security while preserving user anonymity.
Solution Approach 2:
Cryptographic proofs serve as an intermediary between the payor's identity and the payment validation process. The payor device generates cryptographic proofs that prove payment capability without revealing identity. The payee device and mint validate these proofs without accessing personal identity information, thus maintaining both payment validity and user anonymity through the intermediary cryptographic layer.
4Adaptability or versatility
If continuous variable-rate payment is implemented, then IoT transaction flexibility is improved, but traditional billing infrastructure compatibility deteriorates
Solution Approach 1:
The bit-flow payment system is designed to be universal and compatible with various billing models and IoT applications. The same underlying bit-flow mechanism can accommodate different billing rates, payment schedules, and transaction types. The system can function as both continuous variable-rate payment and discrete payment when needed, providing multi-functionality that reduces the need for separate specialized systems for different billing scenarios.
Data Source
AI summary
Replacing discrete digital coin payment with a continuous payment flow to be used between devices on the Internet of Things. This pay-as-you-go, real-time payment regimen accommodates continuous, variable rate payment with no subsequent invoicing burden.