Payment Instrument Encryption for Cryptocurrency Card Payments
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Solution Overview
Problem
Existing card payment systems face challenges in accepting non-fiat currencies like cryptocurrencies without requiring infrastructure modifications or allowing third parties to initiate transactions, violating the blockchain principle of owner-initiated transactions.
Innovation Solution
A method and system that enable non-fiat currency transactions in standard card infrastructure by encrypting a part of the cryptocurrency transaction signature on the payment instrument, using the issuer's private key, and transferring it through the standard infrastructure to ensure only the account owner can initiate transactions, enhancing security and expanding payment instruments.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If a new infrastructure is introduced to accept non-fiat currencies, then cryptocurrency transactions can be performed, but the complexity of the payment system increases and requires modifications to acquirers' software and hardware
Solution Approach 1:
The patent introduces an intermediary component - a payment instrument with embedded cryptocurrency wallet functionality - that acts as a bridge between the existing card infrastructure and blockchain technology. This intermediary enables cryptocurrency transactions without requiring modifications to the acquirer's infrastructure, as the cryptographic functions are contained within the payment instrument itself rather than requiring system-wide changes.
2Ease of operation
If third parties are allowed to initiate cryptocurrency transactions on behalf of holders, then transaction processing is simplified, but the security and blockchain principle of owner-initiated transactions is violated
Solution Approach 1:
The patent segments the transaction initiation process into two distinct parts: cryptographic signature generation (which remains exclusively with the account holder via private key) and transaction processing (handled by the payment system). This segmentation allows third parties to facilitate transactions through the standard authorization request流程 while ensuring that only the account holder can cryptographically authorize the transaction, thus maintaining both ease of operation and security.
3Productivity
If private keys are accessed by trusted parties for transaction initiation, then transaction processing is enabled, but the core blockchain principle of private key secrecy is compromised
Solution Approach 1:
The payment instrument itself serves as an intermediary that contains the private key in a secure environment. The trusted party (acquirer or payment system) never directly accesses the private key, but instead receives cryptographic proofs and authorization data from the payment instrument. This intermediary mechanism enables transaction processing while maintaining private key secrecy, as the private key remains confined within the secure element of the payment instrument throughout the entire process.
Data Source
AI summary
The invention pertains to the method and system for the performance of non-fiat currency transactions within the card infrastructure. The technical result is to increase the security of transactions. The method for the payment instrument for settlement in cryptocurrency involves encryption of a part of the cryptocurrency transaction signature, the encryption key of which is known only to the payment instrument and the issuer, transmission of data required for the authorization request generation, including the encrypted part of the cryptocurrency transaction signature, to the payment instruments acceptance point, where the authorization request is generated and sent to the acquirer host; this host sends the authorization request to the processing center of the payment system, which receives the number of the payment instrument for settlement in cryptocurrency; this number is used to generate the missing part of the cryptocurrency transaction signature and route the authorization request comprising both parts of the cryptocurrency transaction signature to the card issuer corresponding to this payment instrument number, where generation of the cryptocurrency transaction takes place, then this cryptocurrency transaction is sent to the issuer account in blockchain; this issuer sends a confirmation of crediting, and then submits a positive response to the authorization request to the acquirer host.