Secure Digital Currency Server with Segmented Exchange Routing
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Solution Overview
Problem
Existing digital currency exchange solutions face challenges in maintaining security, reliability, and maintainability, particularly when exchanging between multiple digital currency systems, as they often require managing digital currency units that do not meet the security requirements of the target system, leading to increased complexity and decreased reliability.
Innovation Solution
A secure digital currency server with an external transaction manager that receives a list of exchange candidates from an exchange directory server, determines a transaction route through one or more digital currency exchange units, and manages transactions without requiring the requesting unit to handle target currency units, thereby maintaining security and reliability by avoiding complexity and ensuring compliance with different security requirements of each system.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Device complexity
If a single exchange unit is used for multiple digital currency systems, then complexity is reduced, but security requirements become too high and reliability decreases
Solution Approach 1:
The exchange system is segmented into multiple independent exchange units, each dedicated to specific digital currency pairs. Instead of one centralized exchange unit handling all currencies, the system divides exchange functionality across multiple specialized units (e.g., first exchange unit for currency pair AB, second exchange unit for currency pair CD), reducing the security burden on each individual unit while maintaining overall system reliability.
Solution Approach 2:
The patent introduces intermediary components including an exchange directory server that coordinates between multiple exchange units and a settlement system that handles final reconciliation. These intermediaries enable distributed exchange operations without requiring a single high-security centralized unit, thus improving reliability while managing complexity.
2Adaptability or versatility
If the requesting unit manages target digital currency units, then exchange functionality is achieved, but security requirements are compromised and maintainability decreases
Solution Approach 1:
The management of target digital currency units is extracted from the requesting unit and transferred to dedicated exchange units that specialize in handling specific currency pairs. The requesting unit only needs to initiate exchange requests and receive results, while the complex task of managing target currency units is taken out and handled by specialized components with appropriate security credentials.
Solution Approach 2:
Different exchange units are assigned different security qualities and capabilities based on their specific functions. Each exchange unit is configured with the appropriate security credentials for its designated currency pairs, rather than requiring all units to have maximum security capabilities. This local specialization improves both security compliance and maintainability.
3Adaptability or versatility
If all digital currency servers handle all currency pairs, then versatility is improved, but complexity increases and reliability decreases
Solution Approach 1:
The patent segments the currency pair handling responsibility across multiple servers. Instead of each server supporting all currency pairs, the system divides currency pairs among specialized exchange units on different servers. The exchange directory server coordinates these segmented responsibilities, enabling comprehensive currency pair support while keeping individual server complexity manageable.
Solution Approach 2:
The exchange directory server and settlement system serve universal functions across all currency pairs and exchange units. These multi-functional components coordinate the specialized exchange units, enabling the overall system to support all currency pairs without requiring each individual server to handle every currency pair, thus maintaining versatility while reducing complexity.
Data Source
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AI summary
The invention relates to a secure digital currency server (10), comprising: - an external transaction manager (16) for external digital currency transactions to other digital currency systems (2-5), including an external digital currency transaction from the first digital currency system (1) to a target digital currency system (5) using a target digital currency; characterized in that the external transaction manager (16) is configured to receive (222) a list of exchange candidates (22-25) from an exchange directory server (7) and to determine at least a first digital currency exchange unit (22) of the exchange candidates (22-25); the external transaction manager (16) is configured to provide a transaction route (251, 252, 255) from the first digital currency system (1) via one or more digital currency exchange units (22, 24) of the exchange candidates (22-25), including the first digital currency exchange unit (22), to the target digital currency system (5).