Offline Virtual Currency Authentication via Secure Storage
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Solution Overview
Problem
Current mobile payment systems, especially card-not-present transactions, are inefficient, insecure, and prone to errors due to the need for real-time connectivity with servers, making them vulnerable to fraud and costly for merchants.
Innovation Solution
A method and system for authenticating virtual currency instruments using a payment application that enables offline authentication through a software module on an electronic device, which can perform Static or Dynamic Data Authentication and validate biometric information, allowing for secure transactions even without internet connectivity.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If real-time connectivity with token server is required for token validation, then transaction security is improved, but device complexity and dependency on network infrastructure increases
Solution Approach 1:
The patent implements offline authentication by pre-storing authentication data (such as cryptograms or authentication codes) in the mobile device's secure storage during device initialization or previous online sessions. When a transaction occurs without network connectivity, the device uses these pre-stored credentials to authenticate the payment instrument locally, eliminating the need for real-time server connectivity while maintaining security.
Solution Approach 2:
The patent introduces an authentication data storage mechanism as an intermediary between the payment instrument and the token server. This intermediary stores authentication credentials locally in the device, enabling the device to verify payment instruments without direct network communication, thus resolving the contradiction between security and connectivity dependency.
2Ease of operation
If card-not-present transactions are processed over Internet, then transaction convenience is improved, but security and fraud risk worsen
Solution Approach 1:
The patent uses tokenization to create a copy of the payment instrument information (the token) that replaces the actual primary account number in the mobile device. This token can be stored and used for authentication without exposing the real card details. The token serves as a secure copy that maintains transaction convenience while enhancing security, as the actual card number is never stored or transmitted during offline transactions.
Solution Approach 2:
The patent performs authentication data preparation in advance during device setup or online sessions, storing encrypted authentication credentials in secure storage. This preliminary action enables the device to conduct secure authentication locally during transactions, providing both convenience and security without requiring real-time server verification.
3Productivity
If offline authentication is enabled, then transaction efficiency and reliability are improved, but device complexity increases
Solution Approach 1:
The patent implements a universal authentication module that handles both online and offline transaction scenarios using the same core authentication logic. The system uses a single secure storage mechanism and authentication algorithm that works whether network connectivity is available or not, eliminating the need for separate authentication systems and reducing overall device complexity despite enabling offline functionality.
Data Source
AI summary
Various aspects of a method and system for authentication of a virtual currency instrument for a monetary transaction are disclosed herein. In accordance with an embodiment, the method includes activation of a software module different from a payment application at an electronic device. An authentication of secure information, which is read through the payment application by the software module, is performed at the electronic device. Output of an authentication result occurs at the electronic device based on the authentication from the software module for the monetary transaction.