Wallet ID Registry for Secure Digital Transaction Verification
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Solution Overview
Problem
Digital service providers and marketplaces, such as NFT providers, face high risks of unverified transactions and fraud due to system compromises, which are largely uninsurable, and they must balance privacy and monitoring requirements with the need for targeted advertising, making existing solutions inadequate.
Innovation Solution
A wallet ID registration and verification system that allows for secure registration and verification of user information without disclosing personal details, using tokens and blockchain technology to ensure transaction legitimacy and facilitate insurance provision, while maintaining user privacy.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If wallet ID registration and verification system is implemented, then fraud risk is reduced and transaction security is improved, but system complexity and implementation difficulty increase
Solution Approach 1:
The patent introduces a registry system as an intermediary between users and third parties. The registry receives wallet ID registration requests, stores verification data on blockchain, and provides verification services to third parties without disclosing personal information. This intermediary structure enables secure verification while maintaining privacy, resolving the contradiction between security and complexity by distributing trust through a decentralized registry rather than requiring complex point-to-point verification systems.
Solution Approach 2:
The system segments the verification process into distinct components: wallet ID registration, blockchain storage of verification data, token generation, and verification querying. Each component operates independently with clearly defined interfaces. The verification data is segmented into essential information stored on blockchain and personal information kept private, allowing security verification without exposing sensitive data, thus reducing overall system complexity.
2Reliability
If personal information is disclosed for verification, then transaction legitimacy can be confirmed, but user privacy is compromised
Solution Approach 1:
The patent extracts only the essential verification data needed for transaction legitimacy from the user's personal information and stores it on the blockchain. The registry system separates verification-essential information (wallet ID, verification status) from sensitive personal information (name, address, ID numbers). Third parties can verify transaction legitimacy by querying the blockchain for the extracted verification data without accessing the user's complete personal information, thus confirming legitimacy while preserving privacy.
Solution Approach 2:
The system creates a copy of the verification data and stores it on the blockchain rather than requiring third parties to access the original personal information. The registry generates verification tokens and stores verification status on blockchain as a copy that suffices for legitimacy confirmation. This copy mechanism allows unlimited verification queries without exposing or risking the original personal information, maintaining privacy while enabling transaction legitimacy verification.
3Reliability
If blockchain technology is used for verification, then fraud prevention is enhanced, but implementation cost and technical requirements increase
Solution Approach 1:
The registry system is designed as a universal platform that handles multiple functions: wallet ID registration, verification data storage on blockchain, token generation, and verification querying by third parties. The blockchain infrastructure is used for its universal properties of immutability and decentralization to serve the specific function of storing verification data. This multi-functional design reduces implementation complexity by consolidating fraud prevention capabilities into a single registry system rather than requiring separate solutions for each verification need.
Solution Approach 2:
The system leverages the blockchain's inherent self-service properties of automatic verification and immutability. Once verification data is stored on the blockchain, it automatically provides fraud prevention without requiring additional complex verification logic. The blockchain network itself performs the verification function through its consensus mechanism, reducing the implementation burden on the registry system. The system uses blockchain's self-service capabilities to enhance fraud prevention while minimizing the complexity of custom implementation.
Data Source
AI summary
Systems and methods for wallet information and/or user information registration and verification are disclosed. Wallet information, such as a wallet identification (ID), and/or user information may be requested to be registered with an wallet ID registry. A record of the registration may be generated for the wallet ID registry such that the wallet ID registry may be searchable and/or offer functionality such as contractual obligations, insurance provision, and/or verification, among other benefits and functionalities.