Math-Based Currency Banking Ledger for Secure Account Transactions

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Solution Overview

Problem

Existing math-based currency (MBC) systems lack integration with traditional banking services, limiting their utility and security, particularly in managing transactions, deposits, and credit services without relying on external verification.

Innovation Solution

A banking system for MBC that includes a network interface, ledger, and processor to manage customer accounts, enabling secure storage and transaction processing, allowing financial institutions to take possession of MBC for deposit insurance and lending, while maintaining privacy and security through a pooled account system.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Speed

If MBC transactions are processed without traditional banking integration, then transaction speed and anonymity are improved, but security and reliability deteriorate

Engineering Contradiction:

Improvetransaction speedVSAvoidsecurity

Core Design Contradiction:

SpeedVSReliability

Solution Approach 1:

The patent introduces a hybrid system where a traditional banking institution acts as an intermediary between the decentralized MBC network and the financial system. The bank maintains MBC accounts for customers, verifies transactions, and holds reserves in the MBC network, thereby providing security and reliability while preserving the speed advantages of MBC transactions.

Inventive Principle:

Principle #24Intermediary (Mediator)

2Ease of operation

If wallet applications store private keys locally, then user control and anonymity are improved, but security against loss and theft deteriorates

Engineering Contradiction:

Improveuser controlVSAvoidsecurity against loss

Core Design Contradiction:

Ease of operationVSReliability

Solution Approach 1:

The patent combines the advantages of both centralized and decentralized approaches by merging local wallet storage with bank-held reserves. Users maintain private keys in their wallets for transaction initiation, while the bank simultaneously holds MBC accounts and reserves to provide backup security, insurance, and recovery capabilities if keys are lost or stolen.

Inventive Principle:

Principle #5Merging (Combining)

3Adaptability or versatility

If financial institutions hold MBC directly, then deposit insurance and lending services are improved, but complexity of key management increases

Engineering Contradiction:

Improvebanking servicesVSAvoidkey management complexity

Core Design Contradiction:

Adaptability or versatilityVSDevice complexity

Solution Approach 1:

The patent extracts the complex key management functions from the banking system and leaves them with users, while the bank focuses on holding MBC accounts and providing banking services. The bank manages MBC balances and transactions at the account level without needing to handle private keys directly, thereby providing banking services while avoiding key management complexity.

Inventive Principle:

Principle #2Taking out (Extraction)

Data Source

PatentUS12493863B2Infrastructure for maintaining math-based currency accounts

Publication Date: 2025.12.09 WELLS FARGO BANK NA

AI summary

A banking system of a financial institution maintains a plurality of customer accounts in math-based currency (“MBC”). The system includes a network interface configured to facilitate data transmission over a network. The system includes a ledger including information relating to the plurality of customer accounts associated with a plurality of customers. The system includes a processor configured to update information contained in the ledger relating to the plurality of customer accounts based on the occurrences of MBC transactions involving the plurality of customers.