Obfuscated Ledger Traceability for Real-Time Solvency Proofs

Solution Overview

Problem

Current systems fail to provide real-time assurance of an entity's solvency and financial data, relying on infrequent financial statements, which lack immediacy and expose sensitive information, and lack visibility into complete financial records.

Innovation Solution

Implementing a system that uses cryptographic functions to generate obfuscated cryptographic outputs, forming a data structure on a distributed ledger, ensuring real-time traceability and verification of an entity's solvency, assets, and liabilities while maintaining privacy through quantum-resistant signatures.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Loss of information

If traditional financial statements are used to verify entity solvency, then information transparency is improved, but real-time verification capability deteriorates and sensitive information exposure increases

Engineering Contradiction:

Improveinformation transparencyVSAvoidreal-time verification capability

Core Design Contradiction:

Loss of informationVSLoss of time

Solution Approach 1:

The patent replaces traditional mechanical financial reporting systems with a cryptographic system based on distributed ledgers and zero-knowledge proofs. This substitution enables real-time verification of financial data without requiring periodic manual reporting, thus resolving the contradiction between information transparency and real-time verification capability.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

Solution Approach 2:

The patent introduces cryptographic intermediaries (zero-knowledge proofs and commitment schemes) that mediate between the entity's internal financial data and external verification needs. These intermediaries enable real-time verification while protecting sensitive information, resolving both the real-time verification capability and sensitive information exposure contradictions.

Inventive Principle:

Principle #24Intermediary (Mediator)

2Loss of information

If traditional financial statements are used to verify entity solvency, then information transparency is improved, but sensitive information security deteriorates

Engineering Contradiction:

Improveinformation transparencyVSAvoidsensitive information exposure

Core Design Contradiction:

Loss of informationVSObject-affected harmful factors

Solution Approach 1:

The patent introduces cryptographic intermediaries (zero-knowledge proofs and commitment schemes) that mediate between the entity's internal financial data and external verification needs. These intermediaries enable real-time verification while protecting sensitive information, resolving both the real-time verification capability and sensitive information exposure contradictions.

Inventive Principle:

Principle #24Intermediary (Mediator)

Solution Approach 2:

The patent extracts only the necessary verification information from complete financial data through cryptographic proofs. Instead of exposing all sensitive financial details, the system extracts and publishes only the proof of solvency, maintaining transparency while protecting sensitive information.

Inventive Principle:

Principle #2Taking out (Extraction)

3Object-affected harmful factors

If cryptographic obfuscation is used to protect sensitive information, then data security is improved, but verification capability deteriorates

Engineering Contradiction:

Improvedata securityVSAvoidverification capability

Core Design Contradiction:

Object-affected harmful factorsVSDifficulty of detecting and measuring

Solution Approach 1:

The patent introduces cryptographic intermediaries (zero-knowledge proofs and commitment schemes) that mediate between the entity's internal financial data and external verification needs. These intermediaries enable real-time verification while protecting sensitive information, resolving both the real-time verification capability and sensitive information exposure contradictions.

Inventive Principle:

Principle #24Intermediary (Mediator)

Data Source

PatentUS12556393B2Systems and methods for real-time traceability using an obfuscation architecture

Publication Date: 2026.02.17 WELLS FARGO BANK NA

AI summary

Systems, methods, and computer-readable storage media to trace obfuscated data of an entity. One system includes a data processing system including memory and one or more processors configured to generate a data structure including a plurality of cryptographic outputs, wherein each of the plurality of cryptographic outputs obfuscates data of at least one identifier of the entity. The processors are further configured to broadcast the data structure to a distributed ledger and receive a proof request associated with a customer's cryptographic output. The processors are further configured to generate a cryptographic proof dataset for the customer's cryptographic output and provide the cryptographic proof dataset.