Cryptographically Secure Physical Currency Device

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Solution Overview

Problem

Current systems lack a secure and efficient method for authenticating and managing physical currency, particularly in electronic transactions, where counterfeiting and security inconsistencies can occur due to the lack of intrinsic value and reliable record-keeping.

Innovation Solution

The integration of precious metal and processing circuitry within credit card-sized devices, which are validated through a blockchain consensus network, allowing for secure transactions and record-keeping by updating transaction hashes stored on the device and a distributed ledger, thereby preventing counterfeiting by identifying inconsistencies.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Ease of operation

If physical currency is used for transactions, then convenience and accessibility are improved, but security and counterfeiting risks worsen

Engineering Contradiction:

Improveconvenience of physical currencyVSAvoidsecurity against counterfeiting

Core Design Contradiction:

Ease of operationVSReliability

Solution Approach 1:

The patent embeds precious metal within the physical currency device to provide intrinsic value and embeds processing circuitry to provide computing capabilities. This composite structure combines the tangibility of physical currency with the security and tracking capabilities of electronic systems, resolving the contradiction between convenience and security.

Inventive Principle:

Principle #40Composite materials

2Productivity

If transaction records are maintained centrally, then record-keeping efficiency is improved, but security and trust worsen due to single-point failures

Engineering Contradiction:

Improverecord-keeping efficiencyVSAvoidsecurity and trust

Core Design Contradiction:

ProductivityVSReliability

Solution Approach 1:

The patent implements a distributed ledger where transaction records are segmented and replicated across multiple nodes in a consensus network. This segmentation eliminates single-point failures and enhances security while maintaining record-keeping efficiency through parallel processing across the distributed network.

Inventive Principle:

Principle #1Segmentation

Solution Approach 2:

The patent employs consensus mechanisms where nodes verify and validate transactions before adding them to the ledger. This feedback loop ensures that only valid transactions are recorded, enhancing security and trust while maintaining efficient record-keeping through automated validation processes.

Inventive Principle:

Principle #23Feedback

3Reliability

If precious metal is embedded in devices, then intrinsic value and security are improved, but manufacturing complexity and cost worsen

Engineering Contradiction:

Improveintrinsic value and securityVSAvoidmanufacturing complexity

Core Design Contradiction:

ReliabilityVSDevice complexity

Solution Approach 1:

The patent embeds processing circuitry within the physical currency device that contains precious metal. This nested structure integrates multiple functions (value storage, computing, validation) into a single compact unit, reducing overall manufacturing complexity while maintaining security and intrinsic value.

Inventive Principle:

Principle #7Nested doll (Nesting)

Data Source

PatentUS20250021968A1Cryptographically secure physical currency

Publication Date: 2025.01.16 WELLS FARGO BANK NA

AI summary

This application describes techniques for authenticating and/or using a device as physical currency. In one example, this disclosure describes a device comprising: precious metal embedded within the device providing an intrinsic value for the device and making the device suitable for use as physical currency; and processing circuitry configured to: store information about a transaction hash associated with the device, wherein the transaction hash is derived from prior transactions performed using the device, and enable comparison of the transaction hash to information about the device that is stored on a distributed ledger.