Payment Card Using DAA and EPID for Anonymous Transactions
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Solution Overview
Problem
Current payment systems either lack tracking capabilities, making them vulnerable to malicious access, or are fully tracked, compromising user privacy. There is a need for a system that allows users' trusted institutions to track payments while preventing malicious operators from accessing sensitive information.
Innovation Solution
A communication system incorporating Direct Anonymous Attestation (DAA) and Enhanced Privacy Identification (EPID) to enable secure, anonymous transactions by using a payment card or device that can be loaded with funds or resources, allowing users to make anonymous payments while ensuring their institution can track transactions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If payment systems use traditional tracking methods (like credit cards), then transaction security and accountability are improved, but user privacy is compromised
Solution Approach 1:
The system segments the payment verification process into two independent parts: device identity verification (through DAA/EPID) and transaction tracking. The device can prove its identity without revealing user information, while the system can still track transactions for security purposes. This segmentation allows both privacy and security requirements to be met simultaneously.
Solution Approach 2:
The patent introduces Direct Anonymous Attestation (DAA) and Enhanced Privacy Identification (EPID) as intermediary mechanisms between the payment device and the verification system. These intermediaries enable the device to prove its authenticity without exposing underlying user identity information, thus mediating between privacy protection and transaction verification needs.
2Loss of information
If payment systems use anonymous methods (like cash or Bitcoin), then user privacy is protected, but vulnerability to malicious access increases
Solution Approach 1:
The system performs preliminary identity verification through DAA/EPID before allowing anonymous transactions to proceed. The device must first prove its legitimate identity to the verification system, establishing a trusted relationship in advance. This preliminary action ensures that while transactions remain anonymous, they are still conducted by verified, trustworthy devices, preventing malicious access.
3Loss of information
If Bitcoin is used for payments, then anonymity is improved, but legal compliance and tracking capability deteriorate
Solution Approach 1:
The system dynamically adjusts the level of anonymity and tracking based on the transaction context and institutional requirements. Through configurable settings, the system can operate in fully anonymous mode, partially tracked mode, or fully tracked mode, making it adaptable to different legal jurisdictions and compliance requirements while maintaining core privacy protections.
Data Source
AI summary
Particular embodiments described herein provide for an electronic device that can be configured to couple to a terminal, verify an account with an account institution using Direct Anonymous Attestation (DAA), and request an action related to the account using DAA. In an example, the DAA is accomplished using enhanced privacy identification (EPID). The account institution can be a banking institution, and the requested action can be to add an electronic representation of monetary funds to the account. In another example, the device is a payment card, the terminal is a point of sale terminal, and the requested action is related to a sale of goods or services.