Offline Blockchain Transaction Processing for Point of Sale Devices
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Solution Overview
Problem
Point of sale devices often become unable to process electronic transactions when disconnected from payment networks, leading to inconvenience for consumers and potential loss of business for merchants, as existing methods to enhance connectivity are ineffective in cases where the payment network is the cause of the interruption.
Innovation Solution
A system and method using a specifically programmed integrated circuit card to facilitate offline data exchanges with a blockchain network, allowing electronic transactions to be conducted even when the point of sale device is offline from traditional payment networks by storing and validating structured data sets including network identifiers, unspent output hashes, output indices, and key pairs, enabling the generation and transmission of transaction data.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If a point of sale device is connected to a payment network, then electronic transactions can be processed, but the device becomes vulnerable to network interruptions and offline failures
Solution Approach 1:
The system pre-loads blockchain data sets into the point of sale device before offline transactions occur. These data sets include unspent transaction outputs, public keys, and other necessary blockchain information that enable the device to generate and validate transactions without network connectivity, thus preparing the device in advance for potential offline scenarios
Solution Approach 2:
The patent introduces blockchain technology as an intermediary layer between the point of sale device and traditional payment networks. The blockchain serves as a decentralized ledger that can validate transactions without requiring connection to centralized payment processors, effectively mediating the transaction process when traditional networks are unavailable
2Reliability
If multiple interfaces are added to a point of sale device for redundancy, then connectivity reliability improves, but device complexity increases
Solution Approach 1:
The system extracts the critical transaction validation functionality from the traditional payment network dependency and embeds it directly into the point of sale device through blockchain data sets. This extraction eliminates the need for multiple network interfaces while maintaining transaction capability, as the device can independently validate transactions using the embedded blockchain data
3Ease of operation
If a consumer carries fiat currency for offline payments, then offline transactions are possible, but convenience and security are reduced
Solution Approach 1:
The system creates a digital copy of currency value through blockchain tokens that can be stored and transferred electronically. Instead of physical fiat currency, the consumer's funds are represented by blockchain data sets stored in the point of sale device, enabling offline transactions with the same convenience as online electronic payments but without the security risks of carrying cash
Data Source
AI summary
A method for conducting an offline data exchange associated with a blockchain includes: storing a structured data set associated with a blockchain network, the data set including a network identifier, unspent output hash, output index, output value, and key pair; receiving the network identifier and a transaction amount from a point of sale; validating the structured data set as including the network identifier and an output value greater than or equal to the transaction amount; transmitting the unspent output hash and output index to the point of sale; receiving a destination address from the point of sale; generating transaction data including the destination address and a payment amount based on the transaction amount; and transmitting the transaction data to the point of sale.