Securities Issuing Machine with Cryptographic Checksums
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Solution Overview
Problem
Current systems lack the ability to provide a convenient and cost-effective method for issuing, buying, selling, and recycling unmodifiable and unforgeable securities, limiting their circulation to specific financial institutions and restricting access to potential investors.
Innovation Solution
A securities issuing system with a server, client, and securities issuing machine that allows users to purchase and sell securities, including bonds for public works projects, with features like cryptographic checksums and special paper to ensure unmodifiability and unforgeability, enabling widespread access and secure transactions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Extent of automation
If conventional ATM machines are used to dispense paper money, then money distribution is automated, but the system cannot print new unmodifiable and unforgeable securities
Solution Approach 1:
The patent replaces conventional mechanical printing systems with cryptographic verification systems. The issuing machine uses cryptographic checksums and special paper with embedded security features (holograms, watermarks, microprinting) that cannot be replicated by ordinary copying mechanisms, thereby ensuring unforgeability while maintaining automation.
Solution Approach 2:
The patent employs composite security paper containing multiple layers with different properties including holographic elements, watermarked regions, and microprinted patterns. This composite structure makes the securities unforgeable while allowing automated verification through optical sensors and image processing.
2Reliability
If securities are limited to specific financial institutions, then security control is maintained, but access for potential investors is restricted
Solution Approach 1:
The patent introduces a centralized server as an intermediary that manages security verification and transaction coordination. The server stores master cryptographic keys and verifies checksums, allowing multiple distributed issuing machines to operate securely without requiring physical presence at specific financial institutions, thereby expanding accessibility while maintaining security control.
Solution Approach 2:
The issuing machine is designed to handle multiple functions including purchasing new securities, selling existing securities, and recycling old securities back into the system. This multi-functionality allows a single machine to serve various investor needs, increasing accessibility while maintaining centralized security oversight.
3Reliability
If cryptographic checksums and special paper are used, then unmodifiability and unforgeability are ensured, but device complexity increases
Solution Approach 1:
The patent incorporates cryptographic checksums and security features directly into the paper and printing process during security issuance. The checksum is calculated and embedded beforehand, and special paper with security features is prepared in advance, allowing verification to occur automatically without requiring complex real-time analysis equipment at the issuing machine.
Solution Approach 2:
The patent uses optical scanning and image processing to verify security features by comparing scanned images against stored reference patterns. This copying-based verification approach simplifies the verification process compared to requiring complex physical analysis of each security feature, reducing device complexity while maintaining reliability.
Data Source
AI summary
An issuing system for issuing unmodifiable and/or unforgeable hardcopy documents or securities includes a server and a plurality of issuing machines connected to the server via a network. Each of the issuing machines receives an ID recording medium provided by a potential purchaser, retrieves an identification recoded in the received ID recording medium, requests the potential purchaser to input request for a transaction of the security or fixed rate financing instrument, processes the requested transaction by retrieving information via a network from the server, and prints out on demand a hardcopy of the security or fixed rate financing instrument as purchased by the potential purchaser and a checksum thereon. A method for forming a new market with the issuing system.