Pending-State Token Activation for Leaner Transaction Authorization
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Solution Overview
Problem
Existing tokenization systems face inefficiencies due to the creation and activation of tokens before first use, leading to unnecessary token generation and activation, and a significant number of unused tokens, which burdens the system and wastes resources.
Innovation Solution
Tokens are created in a pending state and activation is deferred until the time of transaction authorization, reducing interactions between the token service and authorizing entities, and activating tokens only when they are used.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If tokens are created and activated before first use, then tokens are ready for immediate use, but this results in multiple interactions between token service provider and authorizing entities and increases infrastructure costs
Solution Approach 1:
The patent applies preliminary action by creating tokens in advance and storing them in a token vault before they are needed. The tokens are generated and held in a pending state, ready for immediate use without requiring activation interactions at the time of transaction. This resolves the contradiction by preparing tokens beforehand while avoiding the complexity of real-time activation processes.
Solution Approach 2:
The patent extracts the token activation step from the token creation process. Instead of activating tokens during creation or at the time of use, the system separates these functions: tokens are created and stored in a vault, then selectively activated only when needed for transactions. This extraction eliminates unnecessary interactions and reduces system complexity while maintaining token readiness.
2Ease of operation
If tokens are generated and activated in advance, then tokens are available for use, but a substantial number of tokens remain unused during their lifespan, burdening the system and wasting token numbers
Solution Approach 1:
The patent applies dynamics by making token activation status changeable based on actual usage needs. Tokens transition from a pending state in the vault to an active state only when a transaction requires them. This dynamic approach allows the system to maintain token availability while avoiding the waste of activating tokens that will never be used, as activation becomes a flexible, demand-driven process rather than a static pre-condition.
Solution Approach 2:
The patent changes the parameter of token activation from a binary pre-set state to a conditional state based on transaction requirements. Tokens are created with an initial status and only change to active when needed, allowing the system to optimize resource usage by activating only the necessary number of tokens rather than pre-activating all possible tokens.
3Loss of energy
If tokens are activated only when used, then system resources are optimized and token waste is minimized, but this requires a different tokenization model that changes interaction timing
Solution Approach 1:
The patent uses preliminary action by pre-creating tokens and storing them in a vault before they are activated. This allows the system to optimize resources by having tokens ready in a dormant state, then activating them only when transactions require them. The preliminary creation without immediate activation resolves the contradiction between resource optimization and the need for a structured tokenization model.
Solution Approach 2:
The patent introduces a token vault as an intermediary component that manages tokens between creation and activation. This vault serves as a buffer that decouples token generation from token activation, allowing the system to optimize resources while maintaining a clear, manageable tokenization model structure through the intermediary storage and management layer.
Data Source
AI summary
A method is disclosed. The method includes receiving, by a token service computer, a request to obtain a token, and then obtaining the token. The method also includes receiving a request to activate the token, after the token is used to conduct a transaction.