Pre-validated Virtual Currency Wallets for Instant Transaction Confirmation
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Solution Overview
Problem
The decentralized nature of virtual currencies like Bitcoin introduces a time delay or latency period between the initialization of a transaction and its confirmation, which can be too long for many transaction scenarios, leading to slower adoption of virtual currencies.
Innovation Solution
The use of private keys associated with predefined amounts of virtual currency in secondary wallets to expedite transactions, where these private keys are allocated to the payee almost instantaneously, allowing for immediate transfer of virtual currency without the need for the mining process.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If the mining process is used to confirm virtual currency transactions, then transaction security and validity are ensured, but transaction confirmation time increases to approximately 10 minutes or more
Solution Approach 1:
The patent pre-generates and stores valid virtual currency transactions with their corresponding private keys in a database before they are needed. When a transaction is requested, the system quickly retrieves a pre-validating transaction from the database rather than performing the full mining process, thereby eliminating the 10-minute confirmation delay while maintaining security through the use of pre-validated transactions
Solution Approach 2:
The patent extracts the time-consuming mining process from the transaction confirmation workflow. By separating the validation function (performed in advance during mining) from the transaction execution function (performed on-demand via database retrieval), the system eliminates the latency inherent in traditional mining-based confirmation while preserving the security guarantees of the mining process
2Speed
If traditional payment methods are used instead of virtual currency, then transaction speed is improved, but the advantages of virtual currency (inexpensive peer-to-peer transfer) are lost
Solution Approach 1:
By pre-computing and storing valid transactions in advance, the system enables instant transaction execution without the 10-minute mining delay, achieving speeds comparable to traditional payment methods while maintaining the low transaction costs and peer-to-peer nature of virtual currency systems
3Reliability
If the mining process is performed for every transaction, then transaction validity is confirmed, but processing productivity decreases due to the time-consuming nature of mining
Solution Approach 1:
The system performs transaction validation in advance and stores the results in a database. When transactions are needed, they are retrieved instantly rather than re-validating through mining, dramatically increasing processing throughput while maintaining the same level of validity confirmation
Solution Approach 2:
The patent maintains a continuously updated database of pre-validated transactions that can be rapidly deployed. This continuous preparation of valid transactions ensures that the system can handle high volumes of transactions simultaneously without the bottleneck of performing mining operations for each individual transaction
Data Source
AI summary
Expedited virtual currency transactions are provided by identifying a first user primary wallet associated with a virtual currency and including a first user primary wallet private key. First user secondary wallets are created that each include a respective first user secondary wallet private key, and a respective virtual currency transaction is performed using the first user primary wallet private key to transfer predefined amounts of the virtual currency from the first user primary wallet to each of the first user secondary wallets such that first user secondary wallets are provided with different predefined amounts of the virtual currency. Subsequently, an instruction is received to transfer a payment amount to a second user, and the second user is allocated a subset of the first user secondary wallet private keys included in respective first user secondary wallets that are associated with predefined amounts of the virtual currency that equal the payment amount.