Negative Certificate Authority for Blockchain Transaction Security

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Solution Overview

Problem

Current financial transaction systems face challenges in verifying attributes beyond transaction origin, leading to increased transaction settlement time and risk of fraudulent fund transfers due to information silos and separate verification systems among parties, which results in unnecessary costs and customer dissatisfaction.

Innovation Solution

A negative certificate authority computing system generates and manages negative certificates that include public keys and authorization restrictions, allowing consortium members to collaboratively define and enforce restrictions on untrusted users across blockchain-based value exchange transactions, eliminating the need for conventional computation-intensive consensus-based validation mechanisms.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If separate verification systems are used by each financial institution, then each institution can maintain its own authorization restrictions, but transaction settlement time increases and information silos prevent collaborative verification

Engineering Contradiction:

Improveauthorization restriction enforcementVSAvoidtransaction settlement time

Core Design Contradiction:

ReliabilityVSLoss of time

Solution Approach 1:

The patent merges separate verification systems into a unified blockchain-based system where multiple financial institutions share a common ledger. The negative certificate authority computing system consolidates authorization restrictions from multiple entities into a single distributed ledger, enabling collaborative verification instead of separate sequential checks.

Inventive Principle:

Principle #5Merging (Combining)

Solution Approach 2:

The blockchain system serves multiple functions simultaneously: it acts as a distributed ledger, a verification mechanism, and a communication platform for consortium members. The negative certificate system provides universal authorization restriction enforcement across all participating financial institutions through a single infrastructure.

Inventive Principle:

Principle #6Universality (Multi-functionality)

2Reliability

If thorough checks are conducted for KYC and AML regulations, then transaction security is improved, but transaction settlement time increases due to separate verification by sending and receiving banks

Engineering Contradiction:

Improvetransaction securityVSAvoidtransaction settlement time

Core Design Contradiction:

ReliabilityVSLoss of time

Solution Approach 1:

The system performs preliminary verification by maintaining authorization restrictions and negative certificates on the blockchain before transactions occur. Financial institutions can check the blockchain ledger in advance to verify if counterparties are restricted, avoiding repeated thorough checks during each transaction settlement process.

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

The blockchain-based negative certificate system acts as an intermediary between sending and receiving banks, providing a shared source of truth for authorization restrictions. Instead of each bank conducting separate thorough checks, they consult the intermediary blockchain system for verification.

Inventive Principle:

Principle #24Intermediary (Mediator)

3Reliability

If conventional computation-intensive consensus-based validation mechanisms are used, then transaction verification is thorough, but computational resources and transaction settlement time are excessively consumed

Engineering Contradiction:

Improvetransaction verificationVSAvoidcomputational resources

Core Design Contradiction:

ReliabilityVSUse of energy by moving object

Solution Approach 1:

The patent extracts the verification function from computation-intensive consensus mechanisms. Instead of requiring full consensus validation for each transaction, the system extracts authorization restriction verification from the complex consensus process and handles it separately through blockchain ledger checks, reducing computational overhead.

Inventive Principle:

Principle #2Taking out (Extraction)

Solution Approach 2:

The system uses lightweight negative certificates and authorization restrictions that can be quickly verified against the blockchain ledger, replacing heavy consensus-based validation. These lightweight verification objects consume minimal computational resources compared to full consensus mechanisms.

Inventive Principle:

Principle #27Cheap short-living objects (Disposable)

Data Source

PatentUS12169831B1Systems and methods for distributed management of negative certificates for blockchain-based value exchange transactions

Publication Date: 2024.12.17 WELLS FARGO BANK NA

AI summary

A system and methods include a negative certificate authority for distributed management of negative certificates. An authorization restriction is associated with an untrusted user. A negative certificate generated for the untrusted user includes a public key associated with the untrusted user and an authorization restriction. The authorization restriction includes at least one global restriction, which is applicable to each consortium member that subscribes to the negative certificate. The authorization restriction includes at least one local restriction, which allows individual consortium members to further define their own locally applicable restrictions using the negative certificate authority. The negative certificate is accessible to each member of the consortium to enforce the authorization restriction against a transaction request. A secure contributor record including a unique cryptographically generated address is generated for each contributor. In some embodiments, the transaction request is a blockchain-based value exchange transaction, such as a payment transaction using fiat or math-based currency.