Label Tracking System for Anonymous Digital Transfers
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Solution Overview
Problem
Current digital electronic transfer systems face security vulnerabilities as they often act as single points of failure, storing personal and transaction data, and are cumbersome for managing and transferring funds, particularly between minors and parents, lacking anonymity and instant transfer capabilities.
Innovation Solution
A label tracking system that generates unique identifiers for account subdivisions, allowing transfers between these labels without revealing sensitive account information, thereby maintaining anonymity and enabling instantaneous, controlled transactions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If a single centralized banking system stores all account and transfer data, then transfer management is simplified, but security is compromised due to single point of failure and unauthorized access risks
Solution Approach 1:
The patent segments the centralized banking system into multiple distributed ledger nodes, where each node maintains a copy of the transfer data. This segmentation eliminates the single point of failure while maintaining simplified transfer management through consistent data replication across nodes.
Solution Approach 2:
The patent introduces cryptographic hashing and digital signatures as intermediaries between the transferor and the banking system. These intermediaries enable secure, anonymous transfers by verifying identities without exposing sensitive account information, thus maintaining security while simplifying the transfer process.
2Measurement precision
If personal information and account data are stored in the transfer system, then transfer accuracy is improved, but security is worsened due to increased vulnerability to breaches
Solution Approach 1:
The patent extracts sensitive personal information from the transfer data structure. Instead of storing full account details, the system uses hashed identifiers and cryptographic proofs that verify transfer accuracy without exposing personal information, thus maintaining precision while reducing security risks.
Solution Approach 2:
The patent creates cryptographic copies (hashes) of personal information that can be verified for accuracy without revealing the original data. These hash copies enable transfer verification while maintaining security by preventing reconstruction of sensitive information from the stored data.
3Adaptability or versatility
If multiple separate accounts are created for different transfer purposes, then transfer control is improved, but device complexity and ease of operation are worsened
Solution Approach 1:
The patent implements a universal account structure where a single account can support multiple transfer purposes through programmable transfer rules and conditions. This multi-functionality allows differentiated transfer control without requiring separate accounts, thus reducing complexity while maintaining adaptability.
Solution Approach 2:
The patent introduces dynamic transfer rules that can be configured and modified within a single account structure. These dynamic rules enable flexible control over different transfer purposes (e.g., time-based restrictions, amount limits, recipient categories) without requiring static separate accounts, thereby reducing complexity while maintaining versatility.
4Loss of information
If account holder information is revealed in transfer records, then transfer traceability is improved, but anonymity and security are worsened
Solution Approach 1:
The patent uses cryptographic hash copies of account holder information instead of the actual personal data in transfer records. These hash copies provide unique identifiers for traceability purposes while maintaining anonymity, as the original personal information cannot be reconstructed from the hash values stored in the ledger.
Solution Approach 2:
The patent introduces cryptographic protocols as intermediaries that enable traceability through hashed identifiers without exposing personal information. These intermediaries allow the system to track transfers for fraud prevention and compliance while preserving the anonymity and security of account holders.
Data Source
AI summary
Systems and method for method for increasing security in online transfers by maintaining anonymity of transferors are described herein. In an embodiment, a label tracking system receives a request to generate labels for an account of an account holder. The system generates a plurality of labels in response to the request and send the plurality of labels to an account computing device which stores a mapping of labels to identification information. The system receives an allocation request from the account computing device and stores allocations for each of the generated labels. When the system receives a request to perform a transfer between two labels, without changing any items within the account and without receiving identification information corresponding to the labels, the system updates the labels by decrementing an amount allocated to the transferor label and incrementing an amount allocated to the transferee label.