Virtual Currency Authentication via Distributed Server Consensus

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Solution Overview

Problem

Existing virtual currencies are susceptible to counterfeiting and theft, lacking effective authentication and exchange methods that prevent unauthorized or double spending.

Innovation Solution

A system utilizing a plurality of remote servers that operate independently to verify the authenticity of virtual currency units through certificates, ensuring fault tolerance and preventing counterfeiting, with options for both online and physical representation.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Ease of operation

If virtual currency is stored online for immediate spending, then convenience is improved, but susceptibility to counterfeiting and theft increases

Engineering Contradiction:

ImproveconvenienceVSAvoidsecurity

Core Design Contradiction:

Ease of operationVSReliability

Solution Approach 1:

The system divides the virtual currency verification process across multiple independent remote servers rather than relying on a single centralized system. Each server independently verifies certificate authenticity, and the system requires consensus from multiple servers to confirm a transaction, thereby segmenting the security risk and preventing single-point failures or attacks.

Inventive Principle:

Principle #1Segmentation

Solution Approach 2:

The patent introduces certificates as intermediary objects that mediate between the virtual currency and the verification process. These certificates contain cryptographic proof of authenticity and are verified by remote servers, acting as a trusted intermediary that enables secure online transactions without requiring physical possession of the currency.

Inventive Principle:

Principle #24Intermediary (Mediator)

2Ease of operation

If a centralized system is used to manage virtual currency, then ease of operation is improved, but vulnerability to single-point failure and tampering increases

Engineering Contradiction:

Improveease of operationVSAvoidfault tolerance

Core Design Contradiction:

Ease of operationVSReliability

Solution Approach 1:

The system segments the currency management function across multiple independent remote servers rather than using a single centralized system. Each server maintains its own copy of the certificate verification logic and operates independently, so that if one server fails or is compromised, the others continue to function and can detect the failure through consensus mechanisms.

Inventive Principle:

Principle #1Segmentation

Solution Approach 2:

The system changes the operational parameters of the servers from centralized control to distributed independent operation. Each server operates with autonomous verification capabilities and reports results independently, transforming the system from a single-point-of-failure architecture to a fault-tolerant distributed architecture where the failure of individual servers does not compromise the overall system.

Inventive Principle:

Principle #35Parameter changes

3Measurement precision

If physical money is used, then authenticity can be verified through unique patterns, but it is susceptible to theft when carried or stored

Engineering Contradiction:

Improveauthentication capabilityVSAvoidtheft risk

Core Design Contradiction:

Measurement precisionVSObject-affected harmful factors

Solution Approach 1:

The patent replaces the mechanical system of physical currency with cryptographic certificates that contain unique authentication patterns. Instead of relying on physical features like watermarks or security threads that can be visually inspected, the system uses digital certificates with cryptographic signatures that provide equivalent or superior authentication capability while eliminating the need for physical possession, thereby reducing theft risk.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

4Reliability

If banks are used to store money securely, then safety is improved, but fees are charged and accessibility is reduced

Engineering Contradiction:

ImprovesafetyVSAvoidaccessibility

Core Design Contradiction:

ReliabilityVSEase of operation

Solution Approach 1:

The system enables users to perform their own currency verification and transaction operations through the distributed server network without requiring intermediaries like banks. Users can directly authenticate certificates and exchange virtual currency through the system's consensus mechanism, providing self-service functionality that maintains security while eliminating bank fees and improving accessibility.

Inventive Principle:

Principle #25Self-service

Data Source

PatentUS10650375B2Method of authenticating and exchanging virtual currency

Publication Date: 2020.05.12 WORTHINGTON SEAN H

AI summary

A method of authenticating and exchanging virtual currency is used to permit secure ownership of virtual currency and manage financial transactions. The method is performed by a system that includes a user computing device and plurality of remote servers. The user computing device stores an unverified certificate which is used as currency. The plurality of remote servers is used to authenticate the unverified certificate and aid in transferring ownership of the unverified certificate. To do so, each remote server executes an authentication process for the unverified certificate and sends either a pass status or a fail status to the user computing device. The user computing device executes an assessment process for the unverified certificate based on the pass statuses and fail statuses received. Authentication information related to the unverified certificate is then updated on the user computing device and each remote server that returned the pass status.