Offline Value Transfer Using Frozen Funds Reconciliation
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Solution Overview
Problem
Existing electronic value transfer systems, such as physical cards and digital wallets, require online connectivity to function, limiting their usability and exposing users to risks like double spending and loss of value if offline.
Innovation Solution
A system and method for transferring value between user devices that allows transactions even when one or both devices are offline, with value stored locally and reconciled upon reconnection, using biometric identification and secure encryption to prevent double spending and ensure secure transactions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If value is stored on user devices for offline transactions, then offline functionality is enabled, but double spending risk increases
Solution Approach 1:
The system introduces a transfer server as an intermediary that mediates between sending and receiving user devices. The server freezes value at the sending device and reconciles balances upon reconnection, preventing double spending while enabling offline transactions. This intermediary coordinate mechanism resolves the contradiction by providing centralized control without requiring constant connectivity.
Solution Approach 2:
The system performs preliminary actions by freezing value at the sending user device before offline transactions occur. This preliminary freezing prevents the same value from being spent multiple times, while the actual transfer and balance reconciliation happen later when devices reconnect, enabling offline functionality without compromising security.
2Ease of operation
If value is stored locally on user devices, then user convenience improves, but security risks increase
Solution Approach 1:
The transfer server acts as a secure intermediary that holds value in frozen state rather than allowing complete local storage. This intermediary approach provides user convenience for offline transactions while maintaining security through centralized control and reconciliation mechanisms, preventing value loss if devices are lost or compromised.
Solution Approach 2:
The system implements beforehand cushioning by freezing value at the sending device before offline transactions. This creates a protective buffer that prevents unauthorized or duplicate spending, cushioning against security risks while still enabling convenient offline use. The frozen value can only be transferred through controlled reconciliation processes.
3Reliability
If constant online connectivity is required, then security is maintained, but usability decreases
Solution Approach 1:
The system implements dynamic connectivity requirements where devices can operate offline for transactions but must reconnect for balance reconciliation and frozen value release. This dynamic approach maintains security through periodic verification while significantly improving usability by allowing offline operations. The system adapts connectivity requirements based on transaction state rather than requiring constant connection.
Solution Approach 2:
The system performs preliminary freezing of value at the sending device before offline transactions, enabling secure offline operations. The actual security verification and balance updates happen later during reconciliation when devices reconnect, maintaining security without requiring constant online connectivity during transactions.
Data Source
AI summary
A system and method for transferring value across user devices is provided. The system includes sending and receiving user devices. The sending and receiving user devices are configured to store value locally on the respective device. The receiving user device is configured to receive a transfer amount sent by the sending user device. The system also includes a transfer server. If the sending user device stores value at least equal to the transfer amount, the transfer server freezes an amount of value at least equal to the transfer amount. The sending user device transfers the transfer amount to the receiving user device as frozen funds to be unfrozen upon receiving confirmation from the user of the sending user device and acceptance from the receiving user device. The transfer occurs only if the sending and receiving user devices are in close physical proximity upon or shortly after the transfer request.