Secure Transaction Units for Interoperable Offline Token Exchange
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Solution Overview
Problem
Existing electronic payment systems face challenges in ensuring secure and interoperable transactions between tokens issued by different financial service providers, particularly in offline scenarios, while preventing fraud and double-spending.
Innovation Solution
A secure transaction unit and token reference register system that manages token exchanges and registrations, using token-type information (e.g., ISIN, WKN, BIC) to identify token issuers, and performs swap, split, and merge commands securely, with verification and registration requests signed by private keys to prevent unauthorized transactions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If tokens are stored in a centralized blockchain/distributed ledger, then transaction transparency and verification are improved, but online access requirement and transaction speed are worsened
Solution Approach 1:
The system segments token data into two parts: token references (hash values) stored in the distributed ledger for verification, and actual token data stored locally in secure elements for fast offline access. This segmentation allows verification without requiring continuous online access to the blockchain.
Solution Approach 2:
Token references act as intermediaries between the local secure storage and the distributed ledger. These references enable verification of token authenticity without requiring direct access to the full token data or continuous online connection to the blockchain network.
2Adaptability or versatility
If multiple token issuer instances are allowed, then system versatility and interoperability are improved, but fraud prevention complexity and security management are worsened
Solution Approach 1:
The system uses a universal token reference structure (hash value) that works across multiple token issuer instances. Each issuer can issue tokens with different formats and characteristics, but all tokens are verified through the same cryptographic hash mechanism, enabling interoperability without requiring issuer-specific verification logic.
Solution Approach 2:
The system changes the verification parameter from checking issuer-specific token formats to verifying cryptographic hash values. This parameter change allows multiple issuers to operate with different token characteristics while maintaining a unified security model through hash-based verification.
3Ease of operation
If token references are stored in a token reference register, then offline transaction capability is improved, but storage requirements and system complexity are worsened
Solution Approach 1:
The system extracts only the essential verification information (cryptographic hash values) from the full token data and stores it in the token reference register. This extraction enables offline verification capabilities while minimizing storage requirements and reducing system complexity compared to storing complete token information.
Data Source
AI summary
A secure transaction unit includes means for receiving and transmitting one or more tokens; and control means configured to cause a direct exchange of one or more tokens with one or more other secure transaction units in the electronic transaction system, and to send one or more registration requests including token references to a token reference register of the electronic transaction system for registering the tokens in the electronic payment transaction system. Each token reference includes the monetary value of the assigned token, a public key corresponding to the private key of the token-individual key pair, and the token-type information of the assigned token as token reference elements and wherein each token reference being uniquely assigned to a token.