Third-Party Log Matching for Transaction Governance
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Solution Overview
Problem
The existing methods for governing transactions between trading partners in the financial industry, particularly in IP networks, face challenges such as the need for centralized hubs, administrative difficulties, security concerns, and the risk of device subversion when third-party devices are deployed at the periphery.
Innovation Solution
A method and system where a third-party log entry matching entity receives and matches independent logs from trading partners, using cryptographic signatures and hash functions to verify transaction integrity, and provides real-time notification for error processing and dispute resolution, ensuring secure and efficient governance of transactions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If third-party devices are deployed at the periphery of IP networks, then transaction governance capability is improved, but device security and administrative complexity worsen
Solution Approach 1:
The patent creates cryptographic copies (hashes) of transaction data that are distributed to multiple third-party entities. Instead of deploying physical devices at periphery locations, the system uses cryptographic replicas of transaction logs that can be verified independently by multiple governors, eliminating the need for physical device deployment while maintaining governance capability.
Solution Approach 2:
The patent introduces cryptographic hash functions and digital signatures as intermediaries between trading partners and third-party governors. These cryptographic mechanisms mediate the verification process, allowing governors to verify transaction integrity without directly accessing or deploying devices at partner locations, thus reducing security risks.
2Measurement precision
If third-party devices are deployed at the periphery, then transaction monitoring is improved, but administrative burden and maintenance difficulty worsen
Solution Approach 1:
The system uses cryptographic copies of transaction data that can be independently verified by multiple third parties. This eliminates the need to physically maintain devices at numerous periphery locations, as the same cryptographic verification can be performed anywhere, reducing administrative burden while maintaining monitoring accuracy.
Solution Approach 2:
The cryptographic hash verification mechanism is universally applicable across all trading partners and locations. A single verification algorithm can be used by any third-party governor to verify transactions from any partner, eliminating the need for location-specific device configuration and reducing maintenance complexity.
3Reliability
If centralized hubs are used in IP networks, then transaction governance is improved, but network architecture compatibility and processing speed worsen
Solution Approach 1:
The patent segments the centralized governance function into multiple independent third-party governors that operate in parallel. Instead of a single centralized hub processing all transactions sequentially, multiple governors can independently verify different transactions simultaneously, maintaining governance reliability while improving processing speed through parallelization.
Solution Approach 2:
The patent transitions from a centralized spatial model to a distributed cryptographic model. Instead of organizing governance around a physical central location, the system uses cryptographic verification that can occur anywhere in the network, adding the dimension of location independence and enabling parallel processing across multiple nodes.
Data Source
AI summary
An embodiment of the present invention is directed to receiving a first independent log from a first trading partner wherein the first independent log comprises at least one request log entry associated with a transaction wherein the request log entry comprises at least a request identifier; receiving a second independent log from a second trading partner wherein the second independent log comprises at least one reply log entry associated with the transaction between the first trading partner and the second trading partner, wherein the reply log entry comprises at least a reply identifier; matching the at least one request log entry and the at least one reply log entry based on one or more of the request identifier and the reply identifier at a third party interface; identifying non-matching log entries at the third party interface; and forwarding the non-matching log entries.