Regulatory Terminal Key Management for Blockchain Privacy

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Solution Overview

Problem

Conventional blockchain systems lack comprehensive regulation and privacy protection, leading to security risks and losses due to the lack of an update mechanism for user keys and transparent account information, making it difficult to prevent illegal transactions and protect user privacy.

Innovation Solution

A blockchain system with a regulatory terminal that issues and manages ID keys for transaction terminals, using secret sharing and homomorphic encryption to protect privacy data, enabling secure key updates and transaction verification, while maintaining user privacy and preventing illicit activities.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If user keys are updated to improve security, then security is improved, but the user address changes requiring notification of transaction parties, increasing operational complexity

Engineering Contradiction:
ImprovesecurityVSAvoidoperational complexity
Core Design Contradiction:
ReliabilityVSEase of operation

Solution Approach 1:

The patent introduces a regulatory terminal as an intermediary that manages key updates and address mappings. When a user updates their key, the regulatory terminal automatically updates the mapping between the old address and new key, eliminating the need for users to manually notify transaction parties. This resolves the contradiction by maintaining security through key updates while reducing operational complexity through automated address management.

Inventive Principle:
Principle #24Intermediary (Mediator)

2Adaptability or versatility

If privacy data is made transparent for regulation, then regulatory capability is improved, but user privacy protection deteriorates

Engineering Contradiction:
Improveregulatory capabilityVSAvoidprivacy protection
Core Design Contradiction:
Adaptability or versatilityVSLoss of information

Solution Approach 1:

The patent segments data into different types: public information (addresses, transaction amounts) that can be transparent for regulatory purposes, and private information (user identities, sensitive personal data) that remains protected. The regulatory terminal can access and regulate public information while user privacy is preserved through selective disclosure and encryption of sensitive data. This resolves the contradiction by enabling regulatory capability through transparent public data while maintaining privacy protection for sensitive information.

Inventive Principle:
Principle #1Segmentation

3Adaptability or versatility

If comprehensive regulation is implemented to prevent illegal transactions, then regulatory capability is improved, but system complexity increases

Engineering Contradiction:
Improveregulatory capabilityVSAvoidsystem complexity
Core Design Contradiction:
Adaptability or versatilityVSDevice complexity

Solution Approach 1:

The regulatory terminal is designed as a multi-functional system that combines key management, address mapping, transaction verification, and regulatory oversight into a single platform. This universal system handles multiple regulatory functions through standardized processes, reducing the need for separate complex systems for each regulatory function. The terminal can regulate different types of transactions using the same underlying infrastructure, thereby improving regulatory capability while controlling system complexity through functional integration.

Inventive Principle:
Principle #6Universality (Multi-functionality)

Data Source

PatentUS11139951B2Blockchain system and data processing method for blockchain system
Publication Date: 2021.10.05 ALIBABA GROUP HOLDING LTD
  • US11139951B2 patent drawing
  • US11139951B2 patent drawing
  • US11139951B2 patent drawing

AI summary

A blockchain system and a data processing method for a blockchain system are disclosed. The blockchain system includes: a regulatory terminal and a transaction terminal. The regulatory terminal is configured to issue an ID key of the transaction terminal according to an ID of the transaction terminal, and operate on privacy data of the transaction terminal based on the ID key of the transaction terminal. The ID of the transaction terminal is an account address. The transaction terminal is configured to operate on local privacy data according to the ID key of the transaction terminal issued by the regulatory terminal. As such, the privacy protection over the blockchain system is effectively realized and the security is improved.