Offline Blockchain Payment Secure Element Token Deduction
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Solution Overview
Problem
Existing digital payment systems face challenges in providing offline payment solutions that are as convenient and resilient as physical fiat payments, particularly in scenarios where users are temporarily offline from intermediary computers or the internet.
Innovation Solution
The proposed system utilizes a secure element on a user device to select between an offline balance and an offline amount of program tokens, deducting the requested amount from the offline program tokens, and completing the interaction with a resource provider computer, enabling offline payments without the need for online intermediaries.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If digital payment systems rely on online intermediaries for authorization, then transaction security and fund management are improved, but system availability and user convenience deteriorate when users are offline
Solution Approach 1:
The system segments the payment authorization process into two independent parts: offline authorization using locally stored cryptographic keys and signatures, and online settlement that occurs later when connectivity is available. This allows transactions to be authorized without online intermediaries while maintaining security through cryptographic verification, resolving the contradiction between transaction security and system availability.
Solution Approach 2:
The system performs preliminary actions by pre-distributing cryptographic keys and account information to users offline before they need to make payments. Users can then authorize transactions immediately using these pre-distributed credentials without needing to contact intermediaries, while the actual fund transfer is settled later when online, thus improving both availability and maintaining security.
2Ease of operation
If offline payment solutions are implemented without intermediaries, then system availability and user convenience are improved, but transaction security and fund management control deteriorate
Solution Approach 1:
The system introduces cryptographic signatures and verification mechanisms as digital intermediaries that enable trustless offline transactions. Instead of requiring physical intermediaries or online connectivity, the cryptographic protocol acts as a mediator that verifies transaction validity, ensures proper authorization, and enables later settlement, thus maintaining transaction security while allowing offline operation.
Solution Approach 2:
The system replaces the mechanical requirement for online intermediary involvement with a cryptographic verification mechanism that can operate offline. The cryptographic signature scheme substitutes the need for real-time intermediary authorization, allowing transactions to be validated locally while maintaining security guarantees that would traditionally require online intermediary control.
3Device complexity
If existing offline payment solutions require recipients to accept risk of insufficient funds or limit spending to single use, then implementation simplicity is improved, but payment circulation and convenience deteriorate
Solution Approach 1:
The system implements feedback mechanisms where transaction information is recorded locally and can be verified against the blockchain ledger when online. This allows the system to track fund circulation, verify balances, and enable repeated spending from the same funds until they are actually transferred, providing both implementation simplicity and payment circulation similar to physical cash while preventing double-spending through cryptographic verification.
Data Source
AI summary
A method includes receiving, by a user device, an interaction request message for an interaction. The interaction request message comprises a requested amount from a resource provider computer. A secure element on the user device selects between an offline balance and an offline amount of program tokens stored in the secure element. The offline amount of program tokens can be selected. The secure element on the user device can deduct the requested amount from the offline amount of program tokens. The user device can complete the interaction with the resource provider computer.