Smart Contract Data Verification via Segmentation
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Solution Overview
Problem
Individuals have limited ability to review and control their data once it is aggregated in large electronic databases, such as those maintained by credit bureaus and healthcare organizations, and lack control over who accesses this sensitive information.
Innovation Solution
A data coordinating system that utilizes smart contracts on a distributed execution environment, including Blockchain, to manage and verify data by storing metadata about the data's location, authorized entities, and counterparties, allowing individuals to review, verify, and dispute their data while maintaining control over its access.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If data is aggregated in large electronic databases by third-party systems, then data consolidation and management efficiency are improved, but individuals lose control over their data and ability to review/access it
Solution Approach 1:
The patent segments data control into multiple components: the individual retains control through cryptographic keys, the third-party system maintains data storage and processing capabilities, and a smart contract mediates access. This segmentation allows efficient data management by the third-party while preserving individual control through distributed authority rather than centralized aggregation.
Solution Approach 2:
The patent introduces a smart contract as an intermediary between the individual and the third-party system. This smart contract automatically enforces access control rules, verifies individual authorization, and manages data sharing permissions without requiring direct individual intervention. The intermediary enables efficient automated data management while maintaining individual sovereignty over their data.
2Ease of operation
If data is stored in centralized databases, then data access and retrieval are simplified, but data security and privacy control are compromised
Solution Approach 1:
The patent replaces traditional mechanical access control systems with cryptographic mechanisms. Instead of relying on centralized authentication servers and permission management, the system uses public-key cryptography where individuals control access to their data through cryptographic keys. This substitution maintains simplified data retrieval through automated cryptographic verification while dramatically improving privacy security through decentralized cryptographic control.
3Adaptability or versatility
If third-party systems aggregate sensitive data from multiple sources, then comprehensive data analysis is enabled, but individual authorization and access control are weakened
Solution Approach 1:
The patent creates a universal smart contract framework that can handle multiple types of data (financial, healthcare, personal information) from various sources while maintaining consistent authorization control. The smart contract serves multiple functions: verifying individual identity, checking authorization permissions, managing data sharing agreements, and enabling comprehensive data analysis across different data types and sources all through a single reliable authorization mechanism.
Data Source
AI summary
In response to a request by a data furnisher system to add data to that organized by a system, a data coordinating system resolves the identity of counterparties to whom the data is relevant. For each identified counterparty, the coordinating system identifies a corresponding counterparty system, and via communications between smart contracts comprised in the coordinating system, communicates the data provided by the data furnisher system. The counterparty reviews the data and either verifies that it is accurate or disputes the data. The counterparty's response is communicated through the data coordinating system via the relevant smart contracts to the data furnisher system. If the counterparty verified the data, the data coordinating system updates its database to reflect the data has been verified. If the counterparty disputed the data, the data furnisher and counterparty communicate to resolve the dispute. The data is marked as being disputed.


