Smart Contract Voucher Transfers for Reliable Digital Asset Payments
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Solution Overview
Problem
Blockchain transactions for digital assets are irreversible, leading to significant risks of errors and financial losses due to incorrect address transfers, which are not easily reversible like in traditional financial systems.
Innovation Solution
A system using a smart contract and digitally signed vouchers to ensure secure and reliable transfers by creating a payment channel, generating and verifying vouchers with sequence numbers, validity dates, and expiration dates to prevent errors.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If direct blockchain transaction is used for digital asset transfer, then transaction speed and simplicity are improved, but reliability and security deteriorate due to irreversible nature and address errors
Solution Approach 1:
The system performs preliminary verification actions before the actual asset transfer. A payment voucher is created and verified by the recipient's device before the blockchain transaction is executed. This preliminary check includes validating the recipient address and confirming payment details, preventing irreversible errors from occurring in the first place
Solution Approach 2:
A payment voucher acts as an intermediary between the transferor and recipient. Instead of directly transferring assets based on potentially erroneous address inputs, the system introduces a verified voucher that mediates the transaction. The voucher contains validated recipient information and serves as a trusted intermediary that ensures the transfer reaches the correct destination
2Reliability
If payment verification steps are added to prevent errors, then reliability is improved, but device complexity and operation difficulty increase
Solution Approach 1:
The recipient's device performs self-verification of the payment voucher using automated validation logic. The device independently checks the voucher's digital signature, validates the recipient address format, and verifies payment details without requiring complex manual inspection by the user. This self-service approach maintains high reliability while minimizing operational complexity
Solution Approach 2:
The verification process is segmented into distinct, manageable components: digital signature verification, address validation, and payment detail confirmation. Each verification step is handled by a separate function or module, making the overall complex verification process easier to implement, maintain, and understand
3Measurement precision
If manual address verification is required, then measurement precision is improved, but ease of operation deteriorates
Solution Approach 1:
The manual mechanical process of visually verifying addresses is replaced with automated digital verification mechanisms. The system uses cryptographic digital signature verification and algorithmic address validation to automatically ensure address accuracy, eliminating the need for users to manually check long alphanumeric strings while maintaining high precision
4Object-affected harmful factors
If blockchain immutability is maintained, then security against tampering is improved, but ability to correct errors deteriorates
Solution Approach 1:
Error prevention actions are taken before the irreversible blockchain transaction occurs. The payment voucher system performs comprehensive verification including recipient address validation and transferor authorization checks prior to transaction execution. This preliminary action ensures that errors are caught and corrected before they become permanent on the blockchain
Solution Approach 2:
The system provides a safety cushion through the payment voucher mechanism that absorbs potential errors before they reach the blockchain. The voucher verification process acts as a buffer, preventing erroneous transactions from being submitted to the immutable ledger in the first place
Data Source
AI summary
Methods, systems and software designs are disclosed that may be used to enable simple, safe and secure transfers of digital assets such as cryptocurrencies, fungible tokens, and non-fungible tokens (NFTs) from a transferor to a recipient through a payment channel established by a smart contract on a blockchain. Transfers are enacted by the recipient presenting a voucher to the smart contract, said voucher being digitally signed by the transferor and transmitted to the recipient at a prior date and time. The voucher may be transmitted through an out-of-band channel, for example, through email, or a messenger application, and may take the form of a quick-response code (QR code), a base 64 encoded string, a hexadecimal string or some other representation. The smart contract may impose limitations on a minimum and/or maximum amount that may be transferred, and on a time period in which the voucher may be redeemed.