Transaction-Specific Digital Wallets for Secure POS Crypto Management
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Solution Overview
Problem
The use of virtual currencies in transactions is hindered by security concerns, such as hacking of digital wallets due to poor passwords and the attractiveness of large sums of currency, as well as price fluctuations that are more frequent than traditional currencies.
Innovation Solution
A secure Point-Of-Sale (POS) management system is implemented, which generates a transaction-specific digital wallet for each transaction, dynamically ties it to the transaction, and uses an enterprise server to manage crypto currency transactions, including exchange rate determination and secure storage, limiting exposure in case of a breach.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If large sums of crypto currency are kept in a single digital wallet, then transaction efficiency is improved, but security is worsened due to increased attractiveness to hackers
Solution Approach 1:
The patent divides a single large digital wallet into multiple smaller digital wallets. Each wallet contains a portion of the total crypto currency funds, so that if one wallet is compromised, the loss is limited to that wallet's contents rather than the entire sum. This segmentation resolves the contradiction by maintaining transaction efficiency (through multiple available wallets) while improving security (through reduced exposure per wallet).
2Reliability
If transaction-specific digital wallets are generated for each transaction, then security is improved by limiting breach impact, but device complexity is worsened
Solution Approach 1:
The system creates separate digital wallet instances for each transaction, isolating funds and cryptographic keys on a per-transaction basis. This segmentation ensures that a security breach in one transaction cannot compromise other transactions, directly improving security while managing complexity through automated wallet generation and management protocols.
Solution Approach 2:
The patent introduces an intermediary wallet management system that automatically handles the creation, funding, and retirement of transaction-specific wallets. This intermediary layer shields users from the complexity of manual wallet management while enabling secure transaction isolation, resolving the contradiction between security improvement and complexity increase.
3Productivity
If crypto currency is traded 24/7/365, then liquidity is improved, but price stability is worsened due to frequent fluctuations
Solution Approach 1:
The patent implements preliminary actions by establishing transaction-specific digital wallets with predetermined security measures and funding limits before transactions occur. Exchange rate determinations are made at the time of transaction initiation, locking in values and protecting against subsequent price fluctuations. This preliminary action maintains continuous trading availability while mitigating the impact of frequent price changes.
Data Source
AI summary
A Point-Of-Sale (POS) terminal is equipped to process crypto currencies for transactions. The POS terminal generates a transaction-based digital wallet for a given transaction to receive a crypto currency payment for that given transaction. The transaction-based digital wallet, funded with the crypto currency for the given transaction, is transferred to a retailer's server where the crypto currency is transferred from the transaction-based digital wallet to a retailer's digital wallet for eventual exchange to a government issued currency.