Offline Cryptocurrency Token Generation and Signing
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Solution Overview
Problem
Existing cryptocurrency transfer systems require internet access, which can be a barrier for users without online connectivity, and may compromise security during transactions.
Innovation Solution
A network system and method that allows generating and signing a token offline for cryptocurrency transfers, using a user computing device to create a token with transfer information and a password, and storing it on a portable device for secure authentication and transfer without internet access, enabling secure offline-to-online transactions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If internet access is required for cryptocurrency transfers, then security can be maintained through centralized verification, but accessibility is reduced for users without online connectivity
Solution Approach 1:
The system divides the cryptocurrency transfer process into two independent parts: offline token generation and signing, and online verification and execution. This segmentation allows users to create transfer tokens without internet access, improving accessibility while maintaining security through centralized verification when the token is submitted
Solution Approach 2:
The system performs preliminary actions (token generation and digital signing) offline before the actual cryptocurrency transfer. By preparing the signed token in advance without requiring internet connectivity, users can initiate transfers from any location, and the system verifies and executes the transfer later when connected
2Reliability
If centralized online verification is used for all transfers, then security is maintained, but user autonomy and offline capability are reduced
Solution Approach 1:
The system performs preliminary signing actions offline using the user's private key stored on their device. This preliminary action grants user autonomy and offline capability, while the subsequent online verification maintains security through centralized validation of the digitally signed token
Solution Approach 2:
The signed token acts as an intermediary that carries the user's authorization offline. It mediates between the user's offline signing action and the system's online verification process, enabling user autonomy while maintaining security through cryptographic validation
3Adaptability or versatility
If offline token generation is implemented, then accessibility for users without internet is improved, but potential security risks from offline operations increase
Solution Approach 1:
The system separates sensitive cryptographic operations (private key storage and signing) from network-connected operations. By segmenting the process so that only the resulting token is transmitted online, it eliminates exposure of private keys to network threats while maintaining accessibility
Solution Approach 2:
The signed token serves as a secure intermediary that transfers authorization information without exposing sensitive cryptographic material. It enables offline operation while mitigating security risks by never transmitting private keys or sensitive data over the network
Data Source
AI summary
A user computing device generates a token while the user computing device is in an offline mode and not connected to an external network. The token includes information of an amount of cryptocurrency to be transferred from a user account to a receiving account and information of a first password for enabling the transfer. The token is signed by the user computing device with a private key while in the offline mode and the signed token is stored by the user computing device on a portable device. A receiving device receiving the signed token from the portable user storage device, authenticates a user corresponding to the user account based on the signed token, receives a second password, compares the first and second passwords for enabling the transfer, and transfers the amount of cryptocurrency from the user account to the receiving account based on the information included in the token.