Automatic salary payment by smart contract: Method and system for efficient transfer of cryptocurrency

Automatic salary payment by smart contract: Method and system for efficient transfer of cryptocurrency

Glossary

Term definitionBlockchainA decentralized distributed system consisting of blocks containing transaction information, each block contains the hash value of the previous block, forming an immutable transaction record. Smart ContractA computer program stored on the blockchain that can automatically execute predefined agreement terms. CryptocurrencyA digital or virtual currency that uses cryptographic principles to ensure transaction security and control currency creation. Digital AssetAn asset that exists in the form of electronic data, such as cryptocurrency, tokens, etc. TokenA digital unit that represents a specific asset or utility that can be stored and traded on the blockchain. NodeA participant in the blockchain network that is responsible for verifying and forwarding transaction information. Public KeyA key used to encrypt information that can be shared publicly. Private KeyA key used to decrypt information that must be kept strictly confidential. GeneratorThe parameters used to generate a key pair, usually determined by negotiation between the two parties. Metadata describes the information of data, such as salary payment information, employee information, etc. Output Script defines the script for unlocking the transaction output, including unlocking conditions and the recipient's public key. Transaction Record records the transaction information on the blockchain, including the two parties to the transaction, the transaction amount, timestamp, etc. Hash is an algorithm that converts data of any length into a fixed-length string to ensure the integrity of the data. Symmetric Key Algorithm is an algorithm that uses the same key for encryption and decryption, such as the AES algorithm. Shared Secret is a key for encrypted communication determined by negotiation between the two parties. Multi-signature is a mechanism that requires multiple user signatures to authorize a transaction. Short answer question

What is the main purpose of the present invention? (2-3 sentences)

The present invention aims to provide a method and system for efficiently and securely transferring cryptocurrencies on the blockchain, especially in scenarios such as salary payment systems. It uses smart contracts and encryption technology to ensure the security and efficiency of transactions.

How does the present invention solve the problems in the existing salary payment system? (2-3 sentences)

The traditional wage payment system relies on centralized institutions, which has security risks and low efficiency. The present invention uses the decentralized and secure features of blockchain to eliminate reliance on third-party institutions, and realizes automated wage payment through smart contracts, which improves efficiency and security.

What is a generator and what role does it play in the present invention? (2-3 sentences)

The generator is a parameter used to generate a key pair, which is usually determined by negotiation between the two parties to the transaction. In the present invention, the generator is used to generate a unique public key associated with a specific wage payment, ensuring the security of the transaction.

Explain the concept and role of the "output script" in the present invention. (2-3 sentences)

The output script defines the conditions for unlocking the transaction output, including the public key of the recipient and the conditions required to unlock the transaction. In the present invention, the output script contains metadata related to wage payment, such as employee information, wage amount, etc.

How does the present invention ensure the secure transmission of metadata? (2-3 sentences)

The present invention uses a shared key between the two parties to encrypt metadata. The two parties use the generator and their respective keys to calculate the same shared key for encryption and decryption of metadata, ensuring the security of data transmission.

How does the present invention use the characteristics of blockchain to improve the security of the wage payment system? (2-3 sentences)

The decentralization and immutability of blockchain ensure the transparency and security of transaction records. The present invention records wage payment information on the blockchain, prevents data from being tampered with, and allows relevant parties to verify transactions.

What does "tokenization" mentioned in the present invention mean? (2-3 sentences)

Tokenization refers to the representation of assets or rights in the real world in the form of digital tokens. In the present invention, employee rights, such as annual leave, can be issued in the form of tokens and can be traded on the blockchain.

Give an example of how the tokens mentioned in the present invention are applied to employee benefits? (2-3 sentences)

The company can issue employees' annual leave in the form of tokens, and employees can use these tokens to exchange vacation time or transfer tokens to other colleagues.

What is the role of the "multi-signature" mechanism mentioned in the present invention? (2-3 sentences)

The multi-signature mechanism can improve the security of transactions. For example, in the wage payment scenario, it can be set that both the employer and the employee need to sign to complete the transaction to prevent unilateral operation.

What are the advantages of the present invention compared to the traditional wage payment system? (2-3 sentences)

This invention uses blockchain technology and smart contracts to achieve decentralized, secure, transparent and efficient wage payment. Compared with the traditional wage payment system, it is more secure and reliable, and can reduce costs and improve efficiency.

Paper title

Discuss how blockchain technology changes the traditional wage payment system and analyze its potential advantages and challenges.

Explain the encryption technology used in this invention and evaluate its effectiveness in protecting the security of wage payment information.

Analyze how the concept of "tokenization" proposed in this invention is applied to employee benefits management and discuss its potential impact on enterprises and employees.

Compare and contrast this invention with other blockchain-based wage payment solutions and evaluate their advantages and disadvantages.

Discuss the challenges that this invention may face in practical applications, such as laws and regulations, technical standards, and user acceptance, and propose corresponding solutions.