Virtual Currency Data Structure for Secure Transaction Verification

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Solution Overview

Problem

The existing virtual currency systems, such as Bitcoin, rely heavily on cryptographic techniques to ensure transaction record legitimacy but lack an entity-like nature, leading to inefficiencies and safety concerns due to the need for extensive data recording and the risk of data duplication, which undermines trust and stability.

Innovation Solution

A data structure for virtual currency that includes encrypted virtual currency data, incorporating issue subject information, amount information, and credit information, which can be decrypted using specific conditions, ensuring the authenticity and safety of transactions, thereby reducing the need for extensive record-keeping and enhancing trust.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Ease of operation

If virtual currency is stored as data without physical form, then ease of transfer and distribution is improved, but the risk of data duplication and loss of trust increases

Engineering Contradiction:

Improveease of transferVSAvoidtrust

Core Design Contradiction:

Ease of operationVSReliability

Solution Approach 1:

The patent applies the copying principle by creating cryptographic copies (hashes) of transaction data that can be verified without duplicating the actual currency data. Multiple nodes store verified copies of transaction records, enabling trustless verification while preventing duplication of the actual currency units themselves.

Inventive Principle:

Principle #26Copying

Solution Approach 2:

The patent introduces cryptographic hash functions and digital signatures as intermediaries between the transferor and transferee. These cryptographic mechanisms mediate the transfer process by providing verifiable proof of ownership and transaction validity without requiring direct trust between parties or centralized control.

Inventive Principle:

Principle #24Intermediary (Mediator)

2Reliability

If all transaction records are preserved to prevent double transfer, then reliability is improved, but device complexity and data storage requirements increase

Engineering Contradiction:

Improvetransaction record accuracyVSAvoidsystem complexity

Core Design Contradiction:

ReliabilityVSDevice complexity

Solution Approach 1:

The patent segments the transaction record storage across multiple independent nodes in a distributed network. Each node maintains a copy of the blockchain, dividing the overall system complexity into manageable independent units that can operate autonomously while collectively ensuring transaction integrity.

Inventive Principle:

Principle #1Segmentation

Solution Approach 2:

The patent uses cryptographic copying where each node creates and stores verified copies of transaction blocks. These copies are lightweight verification data (hashes) rather than full transaction ledgers, reducing storage requirements while maintaining reliability through distributed verification.

Inventive Principle:

Principle #26Copying

3Reliability

If cryptographic techniques are used to ensure transaction legitimacy, then reliability is improved, but the entity-like nature of virtual currency is lost

Engineering Contradiction:

Improvetransaction legitimacyVSAvoidentity-like nature

Core Design Contradiction:

ReliabilityVSAdaptability or versatility

Solution Approach 1:

The patent changes the fundamental parameters of virtual currency representation by encoding currency value and ownership in cryptographic parameters (digital signatures, hash values) rather than traditional data formats. This enables the currency to function as a verifiable entity with provenance tracking while maintaining cryptographic security.

Inventive Principle:

Principle #35Parameter changes

4Reliability

If virtual currency data is encrypted with multiple information types, then security is improved, but decryption complexity increases

Engineering Contradiction:

Improvetransaction safetyVSAvoiddecryption complexity

Core Design Contradiction:

ReliabilityVSDevice complexity

Solution Approach 1:

The patent applies preliminary action by pre-embedding verification mechanisms and cryptographic proofs within the encrypted currency data structure itself. The data is prepared in advance with embedded digital signatures and hash chains that enable straightforward verification and decryption by authorized parties without requiring complex external validation processes.

Inventive Principle:

Principle #10Preliminary action

Data Source

PatentUS20200226589A1Data structure, transmission device, receiving device, settlement device, method, and computer program

Publication Date: 2020.07.16 NTI

AI summary

Provided is a data structure of virtual currency data with high safety. The virtual currency data, which is used in combination with a settlement device that accepts settlement when the virtual currency data is received from a predetermined device via a network and when predetermined conditions are satisfied, includes virtual currency encryption data which is data obtained by, according to a predetermined encryption method, encryption of issue subject information including at least information on an issue subject of the virtual currency data, amount information that is information for specifying a monetary value, and credit information that is information used as a basis for a credit of the virtual currency data.