Overlay Ledger Banking for Anonymous MBC Card Exchanges
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Solution Overview
Problem
Existing MBC systems lack integration with traditional banking services, limiting their usability and security, especially in handling deposits, interest accrual, and credit services, without compromising user anonymity.
Innovation Solution
A banking system that integrates MBC with traditional financial institutions, utilizing a pooled MBC account and an overlay ledger to manage MBC transactions, allowing secure deposit, interest accrual, and credit services while maintaining user anonymity.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If MBC systems integrate with traditional banking services, then usability and security are improved, but user anonymity may be compromised
Solution Approach 1:
The system separates user identity information from transaction verification. Financial institutions verify identities and maintain records in traditional banking systems, while MBC transactions use cryptographic keys for verification. This segmentation allows security through institutional verification while preserving anonymity in the MBC transaction layer itself.
Solution Approach 2:
The patent introduces financial institutions as intermediaries between users and the MBC network. These institutions verify user identities, maintain compliance records, and facilitate transactions without requiring users to directly disclose personal information on the MBC network, thus preserving anonymity while enabling security and regulatory compliance.
2Adaptability or versatility
If MBC systems integrate with traditional banking services, then deposit management and interest accrual are improved, but system complexity increases
Solution Approach 1:
The system creates a multi-functional platform where financial institutions can serve both traditional fiat currency customers and MBC users through the same infrastructure. The dual ledger system allows the same institution to maintain traditional banking ledgers and MBC transaction ledgers, enabling deposit management and interest accrual for both currency types without requiring separate systems.
Solution Approach 2:
The patent implements a nested ledger structure where an overlay ledger (tracking MBC balances and transactions) is superimposed on the traditional banking ledger infrastructure. The overlay ledger contains references to underlying transaction data stored in the traditional banking system, allowing complex MBC functionality to be built upon existing banking systems rather than creating entirely new infrastructure.
3Reliability
If MBC transactions are processed through financial institutions, then transaction security is improved, but processing speed decreases
Solution Approach 1:
The system performs preliminary verification of user identities and account statuses by financial institutions before MBC transactions occur. User identities are verified in advance, and accounts are pre-approved for certain transaction types and limits. This preliminary action allows transactions themselves to proceed quickly through cryptographic verification without requiring real-time institutional approval for each transaction.
Solution Approach 2:
The patent implements a hybrid verification approach where full institutional verification is applied only when necessary (e.g., large transactions, new users, unusual patterns), while routine transactions use streamlined cryptographic verification. This partial verification approach maintains security for high-risk transactions while enabling fast processing for routine operations.
Data Source
AI summary
Embodiments include a method of performing math based currency (“MBC”) exchanges. One method includes receiving an exchange request, from a customer computer system, a remote exchange request for an amount. The method further includes exchanging, on a published blockchain, an amount of MBC equal to the amount to an MBC account of the online merchant and updating a pooled account database. The method further includes updating an overlay ledger to modify an MBC balance of the MBC account held by the customer and broadcasting the remote exchange to a plurality of MBC verification nodes for verification.