Micropayment Token Generation via Merged One-Way Hash Chains
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Solution Overview
Problem
Existing micropayment systems face challenges in balancing efficiency and safety, with high computational and storage costs, and inadequate protection for customers, particularly in online transactions with varying denominations.
Innovation Solution
A micropayment system utilizing a merged one-way hash function with adjustable number base and bit parameters to generate token data, ensuring secure and efficient transactions by encoding tokens for varying denominations, and verifying their correctness through a one-way hash chain mechanism.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If a fixed currency value is used in one-way hash chain type micropayment schemes, then the computational cost for calculating the one-way hash chain is high, but the system maintains security
Solution Approach 1:
The patent applies dynamics by making the currency value variable rather than fixed. The system allows the currency value to change dynamically based on the transaction amount, using a representation function that maps variable amounts to hash chain positions. This resolves the contradiction by enabling both security through hash chains and flexibility in computational cost adaptation to different transaction sizes.
Solution Approach 2:
The patent changes the parameter of currency value from fixed to variable. By introducing a representation function that takes variable currency amounts as input and determines the corresponding hash chain position, the system achieves both security (through the hash chain structure) and reduced computational cost (by adapting the hash chain length to the specific transaction amount rather than always using a fixed maximum length).
2Reliability
If signature type micropayment schemes are used, then security is improved, but computational costs for calculation and transmission increase
Solution Approach 1:
The patent extracts the signature verification requirement from every transaction and replaces it with a hash-based verification mechanism. Instead of requiring full digital signature verification for each micropayment, the system uses hash chain properties where verification only requires checking the hash relationship between consecutive chain elements, significantly reducing computational and transmission costs while maintaining security.
Solution Approach 2:
The patent uses hash chain copies instead of original signatures. Each transaction uses a copy of the hash chain relationship rather than requiring the original private key signature, allowing verification of authenticity without the computational overhead of full signature verification. This enables secure micropayments with minimal computational cost.
3Productivity
If counting type micropayment schemes are used, then computational cost is reduced, but safety for customers decreases
Solution Approach 1:
The patent introduces a hash chain as an intermediary between the customer and merchant in counting-type schemes. The hash chain serves as a trusted mediator that provides cryptographic proof of remaining balance without requiring the customer to trust the merchant's counter. This maintains the low computational cost of counting schemes while adding security through cryptographic verification of the balance state.
Data Source
AI summary
A system, a method, and a computer readable medium for micropayment with varying denomination are disclosed. The method utilizes a secret value, a public information, a number base parameter, a bit parameter, and merged one-way hash chains to calculate a root for providing a certificate of a transaction among a customer, a merchant and a service device. Therefore, the purpose of varying denomination for micropayment system can be achieved and the trade safety and the efficiency during the transaction process can be enhanced as well.