Offline Peer-to-Peer Wallet Transfers via Bluetooth and NFC
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Solution Overview
Problem
Existing electronic payment methods require network connectivity and lack privacy and security in peer-to-peer transactions, especially in offline or unreliable network conditions.
Innovation Solution
A system and method for transferring value between mobile devices using short-range communication protocols like Bluetooth or NFC, with cryptographic validation and a timer-based confirmation process to ensure secure and private transactions without network connectivity.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If electronic payment methods are used, then convenience and speed of transaction are improved, but network connectivity requirement reduces privacy and increases dependency on remote systems
Solution Approach 1:
The patent uses cryptographic intermediaries (public-private key pairs, digital signatures, and hashed identifiers) to mediate the transaction between two devices. These cryptographic elements enable the devices to verify each other's authenticity and establish secure communication without requiring direct trust or network connectivity to central authorities, thus resolving the contradiction between convenience and privacy/security.
Solution Approach 2:
The system enables self-service transactions where each device independently validates the other using its own cryptographic keys and stored wallet information. The devices perform mutual authentication and transaction validation locally without requiring external verification, allowing convenient offline transactions while maintaining security through cryptographic self-verification.
2Reliability
If network connectivity is required for electronic payments, then transaction validation is improved, but ability to transact offline deteriorates
Solution Approach 1:
The system performs preliminary actions by pre-generating cryptographic key pairs, storing wallet identifiers and balances locally on each device, and pre-establishing the cryptographic framework for validation. This preliminary setup enables the devices to perform complete transaction validation offline, eliminating the need for real-time network connectivity while maintaining reliable validation through pre-configured cryptographic verification.
3Reliability
If cryptographic validation is implemented, then security and fraud prevention are improved, but complexity of operation increases
Solution Approach 1:
The system uses copied and transformed representations of wallet identifiers (hashed and encrypted versions) instead of handling raw sensitive data. Each device creates cryptographic copies (hashes and encrypted identifiers) that can be safely exchanged and validated without exposing the actual wallet secrets, thus maintaining security while simplifying the user interaction to simple copy-paste or scan operations.
4Reliability
If timer-based confirmation is used, then fraud prevention is improved, but transaction time increases
Solution Approach 1:
The system implements periodic action through the timer mechanism that checks for confirmation at regular intervals. The timer creates structured periodic verification points during the transaction process, allowing the system to balance fraud prevention (by requiring confirmation within a reasonable time frame) with transaction efficiency (by not requiring excessively long confirmation periods).
Data Source
AI summary
System and methods and computer program code are provided to transfer value from a first wallet application on a first mobile device to a second wallet application on a second mobile device. Pursuant to some embodiments, the transfer is performed over a short or medium range communications protocol and does not require for either or both devices to be “online” or connected to a remote network device or system.