Transaction Verification Module Using Asymmetric Cryptography
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Solution Overview
Problem
Bitcoin-like cryptocurrencies face issues with anonymity leading to illegal activities, slow transaction processing, and risk of loss due to decentralized and public ledger systems.
Innovation Solution
A centralized Transaction Verification and Accounting Module (TVAM) using a private ledger that manages funds for prepaid accounts, employing asymmetric cryptography for secure transactions, and allowing account owners to control public/private key pairs for identity verification and transaction signing, enabling secure and efficient payment processes.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If a decentralized public ledger system is used to ensure anonymity and distribute control, then user anonymity and system decentralization are improved, but transaction processing speed decreases and security risks increase
Solution Approach 1:
The system segments the ledger into public and private components. The public ledger maintains transaction records for transparency, while the private ledger stores sensitive account information and cryptographic keys. This segmentation allows the system to maintain anonymity through cryptographic techniques while enabling faster centralized processing for validated transactions, resolving the contradiction between anonymity and processing speed.
Solution Approach 2:
The patent introduces a hybrid ledger architecture that acts as an intermediary between fully decentralized public ledgers and centralized private ledgers. This hybrid structure enables transactions to be processed with the efficiency of centralized systems while maintaining the anonymity and security benefits of decentralized cryptography, thus resolving the speed-anonymity trade-off.
2Adaptability or versatility
If a decentralized public ledger system is used to eliminate central control, then system autonomy and anonymity are improved, but vulnerability to illegal activities increases
Solution Approach 1:
The system applies different quality characteristics to different parts of the ledger. The public ledger portion maintains anonymity and decentralization for transaction records, while the private ledger portion implements centralized control and monitoring capabilities for account verification and compliance. This local differentiation allows the system to support both anonymity and anti-fraud measures simultaneously.
Solution Approach 2:
The patent employs asymmetric cryptography where public keys provide anonymity and private keys enable controlled access. The asymmetric nature of cryptographic key pairs allows the system to maintain user anonymity while enabling centralized verification and monitoring to prevent illegal activities, resolving the contradiction between anonymity and fraud prevention.
3Reliability
If asymmetric cryptography is used for secure transaction signing, then security and identity verification are improved, but computational complexity increases
Solution Approach 1:
The system performs preliminary cryptographic operations during account setup and transaction initiation phases. Public and private key pairs are generated in advance, and transactions are signed before submission to the ledger. This preliminary action reduces the computational burden during transaction processing and validation, balancing security requirements with computational efficiency.
Data Source
AI summary
Embodiments relate to systems, apparatuses, and methods for performing transaction signing utilizing asymmetric cryptography and a private ledger. A transaction data is signed by a user device using a private key, and may be utilized in an authorization request message without including a real credential of the user. A transaction verification and accounting module (TVAM) can verify the signed transaction data and can continue processing the transaction.