Smart Contract Token Issuance for Confidential Blockchain Payments
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Solution Overview
Problem
Blockchain transactions lack confidentiality for sensitive financial information, particularly in smart contracts for goods or services, compromising business relationships by exposing transaction amounts.
Innovation Solution
A payment method using a smart contract on a blockchain that issues tokens with associated parameters, requiring user authorization and service application verification, ensuring confidentiality by hiding the negotiated price and allowing conditional token issuance.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If blockchain transparency is used for transaction verification, then transaction security and traceability are improved, but transaction confidentiality deteriorates
Solution Approach 1:
The patent segments transaction information into two distinct parts: public metadata (transaction hash, block number, timestamp) that is stored on the blockchain for verification, and confidential data (transaction amount, party identities) that is kept private through cryptographic techniques. This segmentation allows the system to maintain blockchain transparency and security while protecting sensitive financial information from public exposure.
Solution Approach 2:
The patent introduces cryptographic intermediaries including hash functions, digital signatures, and zero-knowledge proofs as mediators between the transaction parties and the blockchain network. These cryptographic mechanisms enable verification of transaction validity without revealing the actual transaction details, thus maintaining both security and confidentiality simultaneously.
2Productivity
If smart contracts are used to automate service execution, then operational efficiency is improved, but control over token issuance deteriorates
Solution Approach 1:
The patent implements preliminary action by requiring users to pre-authorize service applications through cryptographic signatures before token issuance occurs. The smart contract is pre-configured with authorization rules and conditions that must be satisfied before tokens can be issued. This preliminary authorization mechanism maintains user control over token issuance while enabling automated execution through smart contracts.
Solution Approach 2:
The patent introduces dynamic control mechanisms where the smart contract's token issuance functionality is not static but adapts based on real-time conditions. The contract can dynamically evaluate authorization requests, verify service execution status, and conditionally issue tokens based on predefined rules. This dynamic approach allows automated efficiency while maintaining flexible user control over when and how tokens are issued.
Data Source
Figure 1~2
AI summary
The invention relates to a payment method implemented by a payment device and characterized in that it comprises: - a step of receiving a first request intended for a computer program, referred to as smart contract, recorded on a blockchain, said first request comprising at least one electronic token associated with at least one parameter; - a first step of sending said at least one parameter in response to a second request originating from a service application; and - a second step of issuing said at least one token in response to a third request originating from said service application.