Offline Digital Asset Interaction via Blockchain Authorization
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Solution Overview
Problem
Current payment systems are vulnerable to security breaches, fraud, and identity theft, and digital asset payments like cryptocurrency face challenges such as volatility, operational security issues, and technical complexity for merchants, as well as susceptibility to fraud attacks within existing payment networks.
Innovation Solution
A digital asset-based interaction system that facilitates real-time digital asset-based interactions by converting digital assets like cryptocurrencies into desired asset formats, using a digital asset-based interaction computing entity that verifies digital assets and manages interactions, and employs a digital asset backing computing entity to provide collateral for interactions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If traditional payment card systems are used, then transaction processing is established with multiple entities involved, but security vulnerabilities to fraud and identity theft increase
Solution Approach 1:
The patent extracts the core transaction verification function from the complex multi-entity payment network and implements it directly on the blockchain. The blockchain network performs authorization, clearing, and settlement functions that traditionally required separate entities (payment card companies, processing networks, banks), thereby reducing system complexity while maintaining security through cryptographic verification.
Solution Approach 2:
The patent introduces a smart contract as an intermediary that automatically executes transaction rules and verification logic on the blockchain. This smart contract mediates between merchants and consumers, eliminating the need for traditional intermediaries like payment gateways and clearinghouses, while maintaining security through decentralized consensus mechanisms.
2Reliability
If payment card authorization with multiple clearing and settlement steps is used, then transaction validation is thorough, but processing time becomes excessive
Solution Approach 1:
The patent implements preliminary action by pre-configuring transaction rules, fees, and validation criteria in smart contracts before transactions occur. The blockchain network and smart contracts are already prepared to validate transactions according to predetermined rules, eliminating the need for sequential authorization, clearing, and settlement steps that cause delays in traditional systems.
Solution Approach 2:
The patent merges the traditionally separate functions of authorization, clearing, and settlement into a single blockchain transaction process. The smart contract simultaneously performs all three functions in one execution cycle, validating the transaction, calculating fees, and settling funds without requiring multiple sequential steps across different entities.
3Productivity
If traditional payment processing networks with multiple entities are used, then transaction routing is established, but processing fees become substantial
Solution Approach 1:
The patent extracts the transaction processing function from the multi-entity payment network and consolidates it on the blockchain platform. By removing intermediaries like payment card companies, processing networks, and acquiring banks, the system eliminates the层层 fees associated with each entity, reducing overall processing costs while maintaining productivity through automated smart contract execution.
Solution Approach 2:
The patent implements self-service through smart contracts that automatically execute transaction processing, fee calculation, and fund settlement without human intervention or intermediary services. The blockchain network itself provides the transaction routing and validation services that traditionally required paid intermediaries, enabling merchants and consumers to process transactions directly with minimal fees.
4Ease of operation
If digital wallet applications with tokenization are used, then payment convenience is improved, but data security vulnerabilities increase due to multiple passing points
Solution Approach 1:
The patent uses copying by creating digital twin representations of assets on the blockchain rather than storing actual sensitive data in digital wallets. The system creates cryptographic copies (tokens) that represent real assets, allowing convenient transactions without exposing or transmitting actual account numbers, card details, or personal information through multiple processing points.
Solution Approach 2:
The patent introduces the blockchain as an intermediary layer that mediates between digital wallets and actual assets. Instead of passing sensitive wallet data through multiple processing entities, the blockchain receives encrypted transaction requests, validates them through smart contracts, and executes transfers without ever exposing the underlying asset data, thereby securing the transaction flow while maintaining convenience.
Data Source
AI summary
A method includes initiating, by a first computing entity, an interaction with a second computing entity. The interaction includes the first computing entity providing an amount of a digital asset and the second computing entity accepting assets in a desired asset format. When in an offline interaction mode, the method includes generating, by the first computing entity, an authorization code including a type of the digital asset and code authentication information and providing the authorization code to the second computing entity. The method further includes sending, by the second computing entity, at least a portion of the authorization code to a digital asset-based interaction computing entity. The method further includes verifying, by the digital asset-based interaction computing entity, the at least the portion of the authorization code, locking an amount of system digital asset to back the amount of the digital asset, and sending confirmation to the second computing entity.