Travel Rule Authority Device for Blockchain Identity Verification
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Solution Overview
Problem
Current blockchain technologies lack a secure method for trustless actors to verify ownership of anonymous receiving addresses for virtual assets, and to securely transmit sensitive personal data alongside these transactions, due to the anonymous nature of blockchain addresses.
Innovation Solution
A system and method that utilize a Travel Rule authority device to associate blockchain addresses with recipients, employing probabilistic data structures like Bloom filters and Cuckoo filters to securely store and verify these associations, and encrypting personal data for secure transmission.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If blockchain addresses remain anonymous to preserve trustless operation, then peer-to-peer autonomy is maintained, but secure verification of ownership and compliant transmission of personal data becomes impossible
Solution Approach 1:
The patent introduces a Travel Rule authority device as an intermediary that stores associations between blockchain addresses and personal data. This mediator enables trustless actors to verify ownership and transmit personal data compliantly without establishing direct trust relationships, resolving the contradiction between anonymous operation and secure verification
Solution Approach 2:
The system segments the verification process into two independent components: (1) the blockchain network handles anonymous address transactions, and (2) the Travel Rule authority device handles personal data associations. This segmentation allows each component to operate optimally without compromising the other
2Reliability
If personal data is transmitted with virtual assets to comply with regulations, then regulatory compliance is achieved, but security risks increase due to potential unauthorized access
Solution Approach 1:
The Travel Rule authority device acts as a secure intermediary that holds personal data associations. When transmission is required, the system queries this intermediary rather than directly exposing personal data, thereby achieving compliance while minimizing security risks through controlled access
Solution Approach 2:
The system performs preliminary verification by querying the Travel Rule authority device to confirm the recipient's ownership of the blockchain address before transmitting personal data. This preliminary action ensures compliance and prevents unauthorized access by validating the recipient's entitlement in advance
Data Source
AI summary
One or more aspects described herein provide methods and systems for authoritatively confirming that a recipient is an intended recipient to receive personal data, and to securely transmit the personal data to the intended recipient, when both the sender and receiver are operating in a trustless ecosystem such as that used with blockchain technology. A computing device may receive an indication of a blockchain address used, by a sender computing device and via a blockchain, to send one or more virtual assets. The computing device may store an association between the blockchain address and the recipient. The computing device may send, to the sender computing device and in response to a query comprising the blockchain address, an indication of the recipient. The indication may be configured to cause the sender computing device to send, to the recipient, personal data associated with an owner of the one or more virtual assets.