Offline Digital Currency Transfer via Escrow Wallet Tokens

Resolve Bottlenecks,
Find Innovative SolutionsGenerate Solutions

Solution Overview

Problem

Existing systems face challenges in securely transferring digital cash from a central bank's core ledger to offline-capable devices like smart cards, due to memory and computing limitations, while maintaining the integrity and security of the transaction.

Innovation Solution

A method involving a Digital Currency Provider (DCP) that uses an escrow wallet to manage transactions between a digital currency wallet and offline devices, generating and validating tokens of different types to ensure secure and integrity-maintained transfers.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Adaptability or versatility

If digital cash is loaded into offline capable devices, then offline transactions are enabled, but the UTXO chain cannot continue within the device due to memory and computing limitations

Engineering Contradiction:

Improveoffline transaction capabilityVSAvoidUTXO chain storage requirement

Core Design Contradiction:

Adaptability or versatilityVSDevice complexity

Solution Approach 1:

The patent divides the digital currency system into two segments: an online core ledger that maintains the complete UTXO chain and an offline capable device that stores only necessary transaction data. This segmentation allows offline transactions to function while the core ledger continues to manage the full blockchain, resolving the contradiction between offline capability and UTXO chain storage requirements.

Inventive Principle:

Principle #1Segmentation

Solution Approach 2:

The patent introduces a Digital Currency Provider (DCP) as an intermediary between the core ledger and offline devices. The DCP manages the escrow wallet and facilitates token conversion between different types, enabling offline devices to transact without storing the complete UTXO chain while maintaining system integrity.

Inventive Principle:

Principle #24Intermediary (Mediator)

2Adaptability or versatility

If a complete system transfers digital cash from core ledger to offline devices, then offline transactions are enabled, but maintaining integrity and security of the transfer becomes challenging

Engineering Contradiction:

Improvedigital cash transfer capabilityVSAvoidtransaction integrity and security

Core Design Contradiction:

Adaptability or versatilityVSReliability

Solution Approach 1:

The DCP acts as a trusted intermediary that manages the escrow wallet and validates transactions. It converts digital currency tokens between different types and ensures proper accounting, maintaining transaction integrity and security during transfers between core ledger and offline devices.

Inventive Principle:

Principle #24Intermediary (Mediator)

Solution Approach 2:

The system implements feedback mechanisms where the DCP receives transaction information from both the core ledger and offline devices, validates the transactions against established rules, and provides confirmation. This feedback loop ensures transaction integrity and security while enabling complete system transfers.

Inventive Principle:

Principle #23Feedback

3Ease of operation

If offline capable devices store digital currency tokens, then offline transactions are possible, but the device memory and computing resources become insufficient for processing complex data

Engineering Contradiction:

Improveoffline transaction operationVSAvoiddata storage capacity

Core Design Contradiction:

Ease of operationVSQuantity of substance

Solution Approach 1:

The patent segments data storage by keeping only essential transaction information in offline devices while storing comprehensive UTXO chain data in the core ledger. This allows offline devices to operate independently for transactions without requiring sufficient memory to store the complete blockchain history.

Inventive Principle:

Principle #1Segmentation

Solution Approach 2:

The system creates simplified copies of transaction data in offline devices rather than storing complete UTXO chains. These copies contain only the necessary information for offline transactions, reducing memory requirements while maintaining operational capability.

Inventive Principle:

Principle #26Copying

Data Source

PatentEP4672116A1Method for performing a digital currency transaction

Publication Date: 2025.12.31 THALES DIS FRANCE SA

Figure 1
Figure 2
Figure 3

AI summary

The invention is a method for performing a digital currency transaction involving a first device (40) hosting a digital currency purse (49). The first device is able to participate to offline digital currency transfers with a second device (60) hosting another digital currency purse (69), each of said purses storing one or more digital currency tokens of a first type (T1). A digital currency wallet stores one or more digital currency tokens of a second type. The digital currency transaction is performed by transferring digital currency funds between said purse (49) and said digital currency wallet through a Digital Currency Provider, DCP, (80) hosting an escrow wallet (10). The DCP updates the escrow wallet to reflect digital currency funds stored in the form of one or more tokens of first type in said first purse (49).