Shared-Secret Data Encryption Using XOR and Blockchain Keys

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Solution Overview

Problem

Existing blockchain encryption methods are computationally expensive and lack versatility for applications beyond cryptocurrency, and secure key distribution over insecure networks is inefficient.

Innovation Solution

A method using XOR operations and elliptic curve arithmetic to establish shared private keys, incorporating encrypted data into blockchain transactions for secure and efficient communication, and employing hash functions for key derivation and authentication.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If traditional secure key distribution protocols (Diffie-Helman, three-pass protocol) are used, then secure encryption is achieved, but computational expense increases significantly

Engineering Contradiction:
Improvesecure encryptionVSAvoidcomputational efficiency
Core Design Contradiction:
ReliabilityVSProductivity

Solution Approach 1:

The patent extracts the key distribution problem from the encryption process by using blockchain's immutable ledger to store encryption keys and authentication data. Instead of performing complex key exchange protocols, the system stores public keys and encrypted data directly on the blockchain, allowing participants to derive shared secrets independently through cryptographic operations on the stored data, thereby eliminating the computational overhead of traditional key distribution protocols

Inventive Principle:
Principle #2Taking out (Extraction)

Solution Approach 2:

The blockchain acts as an intermediary that facilitates secure key distribution without requiring direct communication between participants. The blockchain stores authentication data and encryption keys that all participants can access, and through cryptographic operations (hash functions, elliptic curve multiplication), participants independently derive the same shared secrets. This intermediary approach replaces complex multi-step key exchange protocols with simple cryptographic operations on blockchain-stored data

Inventive Principle:
Principle #24Intermediary (Mediator)

2Reliability

If continuous key generation is performed for secure communication, then security is maintained, but computational resources and energy consumption increase

Engineering Contradiction:
ImprovesecurityVSAvoidenergy consumption
Core Design Contradiction:
ReliabilityVSUse of energy by moving object

Solution Approach 1:

The system performs preliminary actions by storing authentication data and public keys on the blockchain in advance. When communication is needed, participants simply retrieve this pre-stored data and perform a single cryptographic operation (elliptic curve multiplication or hash function) to derive the shared secret, rather than continuously generating new keys. This preliminary setup eliminates the need for ongoing computational key generation

Inventive Principle:
Principle #10Preliminary action

Solution Approach 2:

Each participant independently derives the shared secret using their own private key and the publicly stored authentication data on the blockchain. The system is self-service in that no external key distribution server or continuous key generation process is needed - participants autonomously generate the same encryption key through cryptographic operations on the blockchain data, eliminating the energy consumption associated with centralized key management

Inventive Principle:
Principle #25Self-service

3Adaptability or versatility

If blockchain is used for automated tasks beyond cryptocurrency, then versatility is improved, but computational complexity increases

Engineering Contradiction:
Improveapplication versatilityVSAvoidsystem complexity
Core Design Contradiction:
Adaptability or versatilityVSDevice complexity

Solution Approach 1:

The patent implements a universal encryption and authentication system that can be applied to multiple different use cases (messaging, file transfer, voting, supply chain) using the same core blockchain infrastructure and cryptographic operations. The system uses standard blockchain transactions to store authentication data and supports various cryptographic schemes (elliptic curve, hash functions) that can serve different application requirements, thereby achieving versatility without proportionally increasing complexity

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

Data Source

PatentUS12609815B2Computer implemented method and system for encrypting data
Publication Date: 2026.04.21 NCHAIN LICENSING AG
  • US12609815B2 patent drawing
  • US12609815B2 patent drawing
  • US12609815B2 patent drawing

AI summary

A method of encrypting data is disclosed. The method comprises determining, at a first node associated with a first public-private key pair of a cryptography system having a first private key (VA) and a first public key (PA), a common secret (S1) common with the first node and a second node, wherein the second node is associated with a second public-private key pair of the cryptography system having a second private key (VB) and a second public key (PB). The common secret is determined on the basis of the first private key and the second public key, and the properties of the cryptography system are such that the common secret can be determined on the basis of the second private key and the first public key. An encryption key, based on the common secret, is determined for encryption of data (M), and the data is encrypted on the basis of the encryption key, wherein the step of encrypting data includes an exclusive or (XOR) operation.