Secured Ledger Address Representations for Fraud-Resistant Transaction Provenance
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Current systems face challenges in securely validating and recording transactions, particularly in preventing fraud and misuse of customer information, as existing methods rely on GPS and signature proofs that can be manipulated or forged, leading to issues with transaction authenticity and privacy.
Innovation Solution
The implementation of a system that creates a verifiable record of transactions on a distributed ledger using secured representations of distributed ledger addresses to hide the identities of parties involved, ensuring only approved entities can validate transactions, utilizing time-based cryptographic hashing to generate one-time advertisements of blockchain addresses.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If GPS and signature proofs are used to validate transactions, then transaction verification can be performed, but the proofs can be manipulated or forged leading to fraud and loss of transaction authenticity
Solution Approach 1:
The patent introduces a distributed ledger (blockchain) as an intermediary that issues cryptographic proofs of transaction occurrence. Instead of relying on manipulable GPS and signature proofs, the system uses a decentralized ledger that all parties trust, which generates immutable proof records that cannot be forged or manipulated, thus resolving the reliability issue while eliminating fraud vulnerabilities
Solution Approach 2:
The patent replaces the mechanical/physical verification methods (GPS coordinates, handwritten or digital signatures) with cryptographic proof mechanisms based on distributed ledger technology. This substitution transforms the verification system from one susceptible to physical manipulation into one based on mathematical cryptography and decentralized consensus, eliminating the harmful factors of fraud and manipulation
2Reliability
If distributed ledger transactions are used to create verifiable records, then transaction authenticity and tamper-proof records are achieved, but the identities of transacting parties must be hidden using secured representations
Solution Approach 1:
The patent segments the transaction record into two distinct parts: public information (transaction details, timestamps, amounts) that can be verified by all parties, and private information (party identities) that is protected through cryptographic representations. This segmentation allows the system to maintain transaction verification reliability while preserving identity privacy through secured representations like hashed addresses or zero-knowledge proofs
3Reliability
If secured representations of distributed ledger addresses are used to hide identities, then privacy is protected and only authorized parties can understand the representations, but the complexity of the system increases
Solution Approach 1:
The patent implements self-service through automated cryptographic operations where the distributed ledger system itself generates, manages, and verifies secured representations without requiring external manual intervention. Smart contracts automatically handle the creation of secured representations and their verification, reducing the perceived complexity for users while maintaining strong privacy protection through algorithmic automation
Data Source
AI summary
Implementations of the disclosure are directed to proving and creating on a distributed ledger a verifiable transaction record of a transaction between a user associated with user device and an agent associated with agent system, where the identities of the user and agent are hidden.