Offline Digital Token Transaction System Using Secure Ledger
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Solution Overview
Problem
Existing offline electronic and mobile transactions lack security when no Internet connection is available, leading to potential fraudulent activities as payment service providers cannot authenticate fund availability, causing payees to prefer cash transactions.
Innovation Solution
A secure offline transaction system using digital tokens recorded in secure ledgers within payer and payee transaction devices, allowing peer-to-peer wireless transactions and synchronization with ledger tracking systems when an Internet connection becomes available, ensuring secure fund transfer.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If offline electronic transactions are conducted without Internet connection, then transaction convenience is improved, but security and authentication reliability deteriorate
Solution Approach 1:
The system performs preliminary actions by pre-establishing cryptographic key pairs and storing public keys in a distributed ledger before transactions occur. When an offline transaction is needed, the system uses these pre-configured elements to create digital tokens that can be immediately validated without requiring real-time Internet connectivity to the payment service provider.
Solution Approach 2:
The patent introduces digital tokens as intermediary objects that carry encrypted transaction information between payer and payee. These tokens act as mediators that enable trust in offline transactions by encapsulating authentication data and transaction details that can be verified locally without requiring direct communication with the payment service provider.
2Reliability
If cash transactions are used when Internet connection is unavailable, then transaction security is improved, but transaction versatility and convenience deteriorate
Solution Approach 1:
The system creates digital copies of transaction information in the form of digital tokens that replicate the security and traceability of cash transactions while enabling electronic transfer. These digital tokens can be stored, transmitted, and validated without physical currency, providing versatility while maintaining security through cryptographic verification.
Solution Approach 2:
The patent makes the electronic payment system universal by enabling it to function both online and offline. The same digital token-based system provides transaction capabilities whether Internet connection is available or not, eliminating the need to switch between cash and electronic payment methods based on connectivity status.
3Reliability
If payment service provider authenticates fund availability online, then transaction authenticity is improved, but system complexity and dependency on Internet connection increase
Solution Approach 1:
The authentication process is segmented into two phases: online phase where the payment service provider establishes initial authentication and creates digital tokens, and offline phase where these tokens are validated locally. This segmentation allows the complex authentication logic to be distributed rather than centralized, reducing dependency on continuous Internet connectivity while maintaining authenticity.
Data Source
AI summary
A payer transaction device enables secure offline transactions using a secure element providing a secure payer account database, a secure ledger database, and a wallet application. While the payer transaction device is not connected to the Internet, the wallet application receives a payee identifier and a transaction amount and verifies that the transaction amount is less than an available payer account balance in the secure payer account database. In response, the wallet application creates a digital token that allocates the transaction amount from the payer account balance to the payee identifier, and records the digital token in a payer secure ledger in the secure ledger database, which reduces the available payer account balance by the transaction amount. The wallet application then transfers the digital token to a payee transaction device over a peer-to-peer wireless connection and, subsequently, the digital token is synchronized with a ledger tracking system through the Internet.