Transaction Identifier Generation via Distributed Cryptographic Verification
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Solution Overview
Problem
Current wireless financial transaction technologies lack efficient methods for generating unique transaction identifiers that can be independently computed by entities other than the electronic device, leading to security concerns and user experience issues during near-field communication-based transactions.
Innovation Solution
A portable electronic device with an antenna and secure element that determines a unique transaction identifier based on financial-account information, using cryptographic operations and challenges, allowing other entities to compute and verify the identifier without the device sharing it, and associates receipt information with the transaction.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Measurement precision
If the electronic device generates and shares the transaction identifier with other entities, then verification capability is improved, but security is worsened due to exposure of sensitive information
Solution Approach 1:
The patent extracts the transaction identifier generation from the electronic device and performs it independently by other entities (merchant terminal, payment network) using publicly available transaction data. This allows verification without exposing sensitive device-internal information, resolving the contradiction between verification capability and security.
Solution Approach 2:
The patent introduces an intermediary computation model where transaction identifiers are generated through cryptographic functions applied to shared transaction data. This intermediary mechanism enables independent verification by multiple parties without requiring direct access to sensitive device resources, balancing verification needs with security constraints.
2Reliability
If the electronic device conducts all transaction identifier computations, then security is improved, but processing efficiency and user experience are worsened due to repeated proximity requirements
Solution Approach 1:
The patent segments the transaction identifier generation process into multiple independent computations performed by different entities (electronic device, merchant terminal, payment network). Each entity contributes to the overall verification without requiring continuous device proximity, improving processing efficiency while maintaining security through distributed computation.
Solution Approach 2:
The patent enables preliminary generation of transaction identifiers by merchant terminals and payment networks using transaction data before final verification. This preliminary action allows parallel processing and reduces the need for repeated device interactions, enhancing efficiency while security is maintained through cryptographic verification.
Data Source
AI summary
To facilitate conducting a financial transaction via wireless communication between an electronic device and another electronic device, the electronic device determines a unique transaction identifier for the financial transaction based on financial-account information communicated to the other electronic device. The financial-account information specifies a financial account that is used to pay for the financial transaction. Moreover, the unique transaction identifier may be capable of being independently computed by one or more other entities associated with the financial transaction (such as a counterparty in the financial transaction or a payment network that processes payment for the financial transaction) based on the financial-account information communicated by the portable electronic device. The electronic device may also associate receipt information, which is subsequently received from a third party (such as the payment network), with the financial transaction by comparing the determined unique transaction identifier to the computed unique transaction identifier.