Cryptocurrency Offline Trading System

Cryptocurrency Offline Trading System

Term DefinitionBlockchainA distributed ledger technology that uses cryptography to record transaction data in a network consisting of multiple nodes.BlockThe basic unit in the blockchain, containing a set of verified transaction records.CryptocurrencyA digital or virtual currency that uses cryptography to make it secure.Off-ChainA transaction that is not directly conducted on the blockchain network, usually used to increase transaction speed and reduce costs.Blockchain AssetA digital asset stored on the blockchain, such as Bitcoin, Ethereum and other cryptocurrencies.Off-Chain Asset DataA copy of blockchain asset data stored on the device, used for offline transactions.Settlement ModelA set of rules and processes used to verify and process offline transactions.Secure Payment TerminalA device that provides a secure environment for downloading blockchain asset data to the device or uploading offline asset data to the blockchain.DeviceA secure device that can store and manage offline asset data, such as smart cards, wearable devices, etc. Private Key is a key used to authorize and sign cryptocurrency transactions and must be stored confidentially. Public Key is a key that can be made public and is used in pair with a private key to verify transaction signatures. Unspent Transaction Output (UTXO) refers to a transaction output that has not been used as any transaction input and can be used as input for subsequent transactions. Account Settlement Model uses transaction IDs to verify and track offline transaction settlement models. Authority Settlement Model relies on certificates signed by trusted institutions to verify offline transaction settlement models. Stochastic Settlement Model uses statistical methods and compressed blockchain data to verify offline transaction settlement models. Physically Unclonable Function (PUF) is a security technology based on differences in physical properties that can be used to generate unique device identifiers or keys.

Short Answer Question

What problem does the system described in this patent aim to solve?

The system aims to solve the problem of slow and high cost of cryptocurrency transactions. By using offline asset data for transactions, transaction efficiency can be improved and transaction fees can be reduced.

Explain the concept of "offline asset data" and its role in the system.

Offline asset data refers to a copy of blockchain asset data stored on the device, which can be traded without connecting to the blockchain network, thereby realizing offline transactions.

List and briefly describe the three settlement models mentioned in the patent.

Key settlement model: Using private keys as a means of payment, the recipient confirms the transaction by verifying the blockchain asset corresponding to the private key.

UTXO settlement model: Using unspent transaction output (UTXO) as a means of payment, the recipient confirms the transaction by verifying the status of UTXO on the blockchain.

Account settlement model: The device is pre-loaded with blockchain asset data and uses transaction IDs to track and verify offline transactions.

Explain the role of secure payment terminals in the system.

Secure payment terminals are used to download blockchain asset data to the device and upload offline asset data on the device to the blockchain, acting as a bridge between the device and the blockchain network.

What role does PUF play in the system?

PUF can generate a unique identifier or key for the device, which is used to enhance the security of the device and prevent the device from being cloned or forged.

Describe the working principle of the key settlement model.

The payer sends the private key to the payee, and the payee verifies whether the blockchain asset corresponding to the private key exists and whether the balance is sufficient by querying the blockchain. After confirmation, the payee accepts the payment.

What are the advantages of the UTXO settlement model compared to the key settlement model?

UTXO can be split, allowing more flexible transaction amounts, and the status of UTXO can be verified by querying the blockchain without trusting the payer.

How does the account settlement model solve the problem of too many transaction IDs?

The account settlement model can aggregate multiple transaction IDs into one account by using smart contracts or trusted institutions as intermediaries, reducing the number of transaction IDs that need to be verified.

Briefly describe the working principle of the random settlement model.

The payer provides a statistical proof that it has sufficient assets, and the receiver confirms the transaction by verifying the proof without querying the complete blockchain data.

What are the potential advantages of the proposed technical solution?

Increase the speed of cryptocurrency transactions.

Reduce the cost of cryptocurrency transactions.

Enhance the security of cryptocurrency transactions.

Expand the application scenarios of cryptocurrency.