Private Network Digital Currency Issuance for Secure Off-Chain Exchange

Resolve Bottlenecks,
Find Innovative SolutionsGenerate Solutions

Solution Overview

Problem

Current digital currency systems face challenges in regulating anonymous exchanges, lack of mainstream adoption due to security concerns, and inefficiencies in processing and managing digital currency transactions, leading to issues with fluctuating values and increased cyber risks.

Innovation Solution

A private network-based system for issuing and exchanging digital currency, utilizing a centralized model with secure key management and real-time micro-allocations, enabling secure and efficient transactions off-ledger.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Ease of operation

If a decentralized digital currency system is used, then anonymity and user freedom are improved, but security risks and regulatory challenges increase

Engineering Contradiction:

Improveuser freedomVSAvoidsecurity risks

Core Design Contradiction:

Ease of operationVSReliability

Solution Approach 1:

The system segments digital currency operations into on-ledger transactions (for security and regulation) and off-ledger transactions (for user freedom and anonymity). The ledger system handles only critical security functions while allowing most transactions to occur privately off-ledger, resolving the contradiction between security and user freedom.

Inventive Principle:

Principle #1Segmentation

Solution Approach 2:

A private network acts as an intermediary layer between users and the public ledger. This intermediary enables secure, regulated transactions while maintaining user privacy and freedom by filtering and managing only essential information that reaches the public ledger.

Inventive Principle:

Principle #24Intermediary (Mediator)

2Reliability

If traditional ledger-based digital currency processing is used, then transaction security is improved, but processing efficiency and speed deteriorate

Engineering Contradiction:

Improvetransaction securityVSAvoidprocessing efficiency

Core Design Contradiction:

ReliabilityVSProductivity

Solution Approach 1:

The system extracts time-consuming consensus verification and ledger updating operations from the transaction processing flow. These security-critical functions are performed selectively only when necessary, while most transactions are processed efficiently off-ledger without full consensus overhead.

Inventive Principle:

Principle #2Taking out (Extraction)

Solution Approach 2:

Security measures such as device registration, key generation, and transaction authorization are performed in advance before actual transactions occur. This preliminary setup enables fast off-ledger transactions while maintaining security without requiring real-time ledger verification for every transaction.

Inventive Principle:

Principle #10Preliminary action

3Reliability

If comprehensive transaction monitoring is implemented, then regulatory compliance is improved, but user privacy and anonymity deteriorate

Engineering Contradiction:

Improveregulatory complianceVSAvoiduser privacy

Core Design Contradiction:

ReliabilityVSLoss of information

Solution Approach 1:

The system applies different levels of monitoring and privacy protection to different transaction types and users. Regulatory-compliant transactions are monitored appropriately, while private transactions maintain anonymity. The ledger system selectively records only the minimum necessary information for compliance without exposing detailed user activity.

Inventive Principle:

Principle #3Local quality

4Productivity

If a private network system is implemented, then processing load on the ledger is reduced, but system complexity increases

Engineering Contradiction:

Improveprocessing load reductionVSAvoidsystem complexity

Core Design Contradiction:

ProductivityVSDevice complexity

Solution Approach 1:

The private network system is nested within the existing ledger infrastructure, with the public ledger providing foundational security and the private network layer adding efficiency. This nested architecture reduces processing load on the main ledger while managing complexity through layered design, where each layer has specific responsibilities.

Inventive Principle:

Principle #7Nested doll (Nesting)

Data Source

PatentUS20260057355A1Systems and methods for private network issuance of digital currency

Publication Date: 2026.02.26 WELLS FARGO BANK NA

AI summary

Systems, methods, and computer-readable storage media micro-allocating digital currency. One method includes registering a device with a private network, wherein the device is associated with a digital wallet application. The method further includes detecting, from the registered device via the private network, activity data corresponding to a use of the device. The method further includes determining a denomination of digital currency for an off-chain exchange between a third-party digital wallet application and the digital wallet application based on the activity data. The method further includes establishing, via the private network, a private network connection between the digital wallet application and the processing circuit. The method further includes accessing and identifying, via the private network, at least one digital currency token greater or equal to the denomination. The method further includes issuing a digital currency token based on a rule dataset and the at least one digital currency token.