Zero-Knowledge Blockchain Payments Without Sensitive Data Exposure
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Solution Overview
Problem
Existing transaction processes expose sensitive data, including transaction account data and customer data, across multiple channels, making them vulnerable to interception and theft.
Innovation Solution
A zero-knowledge proof payment system using a blockchain that enables customers to prove knowledge of transaction information without disclosing the actual information, with a smart contract managing account balances and maintaining data security on a distributed ledger.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If traditional transaction processes are used to enable payment between consumer and merchant, then transaction functionality is achieved, but sensitive data including account information and customer details are exposed across multiple channels making them vulnerable to interception and theft
Solution Approach 1:
The patent introduces a blockchain-based intermediary system that mediates between consumer and merchant. Instead of directly sharing sensitive data, the system uses cryptographic proofs and smart contracts on the blockchain to verify transaction validity without exposing account numbers, customer details, or other sensitive information across communication channels.
Solution Approach 2:
The patent extracts sensitive data from the transaction flow entirely. By using zero-knowledge proofs and cryptographic commitments, the system removes the need to transmit or store actual account information and customer details, keeping only verified transaction outcomes on the blockchain.
2Productivity
If sensitive data is transmitted across multiple channels for transaction authorization, then transaction processing is enabled, but the data becomes vulnerable to interception and theft by third parties
Solution Approach 1:
The blockchain acts as a trusted intermediary that receives transaction requests, validates them through smart contracts, and records outcomes. This eliminates the need for sensitive data to traverse multiple communication channels between issuer systems and merchants, as the blockchain verifies transactions using cryptographic proofs instead of raw data.
Solution Approach 2:
The patent replaces the mechanical system of transmitting sensitive data across networks with a cryptographic verification system. Instead of sending account numbers and customer details through communication channels, the system uses cryptographic commitments and zero-knowledge proofs that can be verified without revealing the underlying data.
3Reliability
If traditional payment systems transmit account data and customer information for validation, then authorization can be obtained, but compliance costs and data protection requirements increase
Solution Approach 1:
The patent extracts sensitive data elements from the authorization process. By using cryptographic commitments and zero-knowledge proofs, the system validates transactions without requiring the transmission or storage of actual account numbers, customer names, or other protected information, thereby reducing compliance burdens related to data protection regulations.
Data Source
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AI summary
A zero-knowledge proof purchase system and process using blockchain is disclosed. The system may comprise a customer device, a merchant system, an issuer system, and a blockchain network having a zero-knowledge proof (ZKP) smart contract. The system may implement a zero-knowledge proof algorithm having a key generator function, a proof function, and a validate function. Each function may be configured to perform various tasks in the system to support and enable zero-knowledge proof purchases.