Recovery Unit for Secure Token Management in Payment Systems
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Solution Overview
Problem
In electronic payment transaction systems, there is a need to securely recover tokens from lost, stolen, or malfunctioning secure transaction units while maintaining anonymity and preventing financial damage to users, as existing solutions fail to adequately address token recovery and fraud detection without compromising data integrity and security.
Innovation Solution
A recovery unit that stores and manages token recovery data sets, allowing for the blocking or recovery of tokens upon request, with each token recovery data set uniquely assigned to a secure transaction unit, enabling the re-issuance of tokens with identical monetary value, and a secure transaction unit that generates and transmits these data sets to the recovery unit for token management and fraud detection.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If tokens are stored in a centralized or decentralized blockchain/distributed ledger, then token verification and system security are improved, but online access is required for all transactions and a lot of information must be published
Solution Approach 1:
The system segments token data into two parts: token references (hash values) stored in the distributed ledger for verification, and full token data stored locally in secure transaction units for offline use. This segmentation allows offline transactions while maintaining verification security through periodic online checks.
Solution Approach 2:
The patent introduces token references (cryptographic hash values) as intermediaries between the distributed ledger and local tokens. These references enable verification of token authenticity without requiring continuous online access to the ledger, reducing the need for frequent online connections while maintaining security.
2Productivity
If tokens are stored locally in secure transaction units for offline exchange, then transaction speed and anonymity are improved, but token recovery from lost or stolen units becomes difficult
Solution Approach 1:
The system performs preliminary actions by creating and storing token recovery data sets (backup information including token references and metadata) in the distributed ledger before tokens are lost or stolen. This preliminary backup enables recovery operations without requiring the original secure transaction unit to be intact.
Solution Approach 2:
The patent creates cryptographic copies of token information in the form of token references and recovery data sets stored in the distributed ledger. These copies serve as backups that can be used to restore tokens if the original secure transaction unit is compromised, while maintaining security through cryptographic verification.
3Ease of repair
If a recovery unit stores token recovery data sets for lost transaction units, then token recovery capability is improved, but system complexity and data security requirements increase
Solution Approach 1:
The recovery unit operates autonomously by automatically verifying incoming recovery requests against the distributed ledger, validating token references, and issuing recovered tokens without requiring manual intervention. This self-service approach reduces operational complexity while maintaining robust recovery capabilities.
Solution Approach 2:
The system implements feedback mechanisms where the recovery unit continuously verifies token references against the distributed ledger and updates its state based on verification results. This feedback loop ensures data integrity and security while automating the recovery process, reducing the need for complex manual procedures.
Data Source
AI summary
A secure transaction unit includes means for receiving and transmitting one or more tokens to one or more other secure transaction unit in the electronic payment transaction system to cause an exchange of the one or more tokens between secure transaction units in the electronic transaction system. Each token includes at least a monetary value and a private key of a token-individual key pair; means for generating one or more token recovery data sets, each token recovery data set being uniquely assigned to one or more tokens being managed by the secure transaction unit at the time of generating the token recovery data set; means for transmitting the one or more token recovery data sets to a recovery unit, the recovery unit being managed by the participant or by a service provider unit. The invention further relates to a recovery unit in the electronic payment transaction system.