Token Transaction Verifier for Blockchain Wallet Security
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Solution Overview
Problem
Current blockchain wallet security is inadequate, allowing malicious entities to fraudulently access stored assets due to shortcomings in authentication and verification processes, particularly for high-value non-fungible tokens (NFTs).
Innovation Solution
A system and method for authenticating token transactions that involves selecting a transaction verifier, transmitting data including a recipient identifier and authentication value, and evaluating the request based on preliminary assessments of authentication and security policies, with options to encrypt, require second-factor authentication, or reject unsafe requests, using a machine learning model trained on previous evaluations and trust scores.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If traditional wallet authentication methods are used, then ease of operation is maintained, but security reliability is insufficient against fraudulent access
Solution Approach 1:
The system performs preliminary authentication and security assessments before processing token transactions. Multiple verifiers evaluate the request in advance, checking authentication values, security policies, and risk factors, so that only validated transactions proceed to execution. This prevents fraudulent access before it can occur.
Solution Approach 2:
The patent introduces intermediary verifier entities that mediate between the user's transaction request and the blockchain network. These verifiers act as trusted intermediaries that independently evaluate authentication credentials and security policies, adding a layer of verification that enhances reliability without directly complicating user interaction.
2Reliability
If multiple verifiers and preliminary assessments are implemented, then security reliability improves, but device complexity increases
Solution Approach 1:
The verification system is segmented into multiple independent verifier entities, each responsible for specific assessment tasks such as authentication validation, security policy checking, or risk evaluation. This modular segmentation allows the complex verification process to be distributed across specialized components rather than monolithic code, making the system more manageable and maintainable.
Solution Approach 2:
The verifier system operates autonomously, with verifiers independently evaluating transaction requests using predefined security policies and authentication criteria. The system self-manages the verification process without requiring manual intervention, automatically selecting verifiers, transmitting data, and evaluating results, which reduces operational complexity despite the multiple components involved.
3Reliability
If authentication values and security policies are verified, then security reliability improves, but loss of time occurs due to additional verification steps
Solution Approach 1:
Authentication values and security policies are verified in advance before transaction execution. The system performs preliminary assessments of authentication credentials and policy compliance, so that when a transaction is initiated, the verification work has already been done. This reduces the time penalty during actual transaction processing.
Solution Approach 2:
The system employs selective verification where not all verifiers are activated for every transaction. Based on risk assessment and transaction characteristics, only the necessary number and type of verifiers are engaged. For low-risk transactions, minimal verification is performed, while high-risk transactions receive fuller scrutiny, optimizing the balance between security and speed.
Data Source
AI summary
Systems and methods for facilitating token-based transactions performed in accordance with many embodiments of the invention are illustrated. One embodiment includes a method that receives a request to perform a transaction corresponding to a transfer of at least one token. The method selects, from a plurality of verifiers, a transaction verifier for the request. The method transmits a collection of data to the transaction verifier, wherein the collection of data: corresponds to at least one of the transaction or the request, and includes a recipient identifier and an authentication value for a requesting user. The method receives a validity evaluation for the transaction including: an assessment of whether the request is properly authenticated; and an assessment of whether the request complies with at least one security policy associated with the at least one token. The method evaluates the request based on the assessment(s).