Virtual Currency Secured Physical Currency Transmission
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Solution Overview
Problem
Conventional physical currency transmission systems are unsecured, relying on trust in money transfer agents with little recourse if physical currency is not delivered to the intended recipient.
Innovation Solution
The system secures physical currency transmission by using a virtual currency public ledger to verify the identity of transfer agents and employs a multi-signature transaction to reimburse the deliverer only upon confirmed delivery, utilizing a physical currency delivery confirmation code.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If trust-based systems are used for physical currency transmission, then the system is simple and easy to operate, but the reliability is poor with little recourse if currency is not delivered
Solution Approach 1:
The patent introduces a virtual currency system as an intermediary mechanism between physical currency senders and receivers. The virtual currency acts as a escrow that is released only when delivery is confirmed, eliminating the need to trust money transfer agents while providing recourse if delivery fails. This resolves the contradiction by adding a mediating layer that ensures reliability without requiring complex legal frameworks or centralized authority.
Solution Approach 2:
The patent replaces the mechanical trust-based system with an automated virtual currency transaction system. Instead of relying on human trust and manual verification, the system uses automated smart contract execution on a blockchain to release virtual currency only when delivery is confirmed. This substitution of mechanical trust with automated cryptographic verification resolves the reliability-simplicity contradiction.
2Reliability
If multi-signature transactions are used to secure physical currency transmission, then the reliability is improved with verified delivery, but the device complexity increases
Solution Approach 1:
The patent segments the transaction into distinct phases: virtual currency transfer, physical currency delivery, and confirmation. The multi-signature requirement is segmented into two separate signatures - one from the sender and one from the receiver confirming delivery. This segmentation allows the complex security mechanism to be broken down into manageable steps, reducing the perceived complexity while maintaining high reliability.
Solution Approach 2:
The patent uses a virtual currency copy as a digital representation of the physical currency transaction. The virtual currency transaction record on the blockchain serves as a verifiable copy that proves the transfer without requiring physical tracking. This copying approach simplifies the verification process while maintaining security, as the blockchain record provides immutable proof of the transaction.
Data Source
AI summary
Virtual currency ledger secured physical currency transmissions include receiving a physical currency transfer request from a physical currency receiver device of a physical currency receiver, and identifying a physical currency deliverer device of a physical currency deliverer. A physical currency delivery confirmation code is then associated with a recipient identified in the physical currency transfer request, and a virtual currency address controlled by the physical currency deliverer and included in a virtual currency public ledger is identified to the physical currency receiver device. A reimbursement request code is then received from the physical currency deliverer device and verified using the physical currency delivery confirmation code. In response to the verification, a multi-signature transaction that has been previously signed by the physical currency receiver is then signed to cause a virtual currency amount to be transferred via the virtual currency public ledger to the virtual currency address controlled by the physical currency deliverer.