MONETARY SYSTEM HAVING PUBLIC KEY INFRASTRUCTURE

Abstract: A monetary system using a public-private key infrastructure in which a central server which provides one of the keys of a key pair such as a public key and as well, effects authorised transfer of monetary value to and from each of a plurality of users of individual electronic data holding members such as smart cards each of which members contains a user's private key and public key and otherwise contains an operating system and other programs which are open. The members are also described as being useful for incidental payments in service or commodity supply situations.

Description: MONETARY SYSTEM HAVING PUBLIC KEY INFRASTRUCTURE TECHNICAL FIELD This invention relates to payment systems. Currently it is known for governments to provide rights which are generally referred to as "money" which are then used in units to effect transfers of value between various parties. BACKGROUND ART While a government usually provides a secure assessable real value backing the money or currency, governments currently use institutions such as banks which are licensed to effect distribution of money, and provide through extensive networks, both receipt, transfer and payment arrangements for persons using the money. This is appropriate in so far that providing such extended distribution and other appropriate services requires a large infrastructure, techniques for effecting charges to persons using the system and the ability to deal in a commercial way in many transactions such as providing money for loans, providing safe storage for others and an interest return and so on. In other words, although a currency is provided by government, it is other institutions that effect in a physical sense the management of that currency. This of itself causes some difficulties. For instance, payments by a government to its suppliers or receipt of monies are generally again handled by an institution whether or not it is an institution such as a bank that might even be fully owned by the government itself. There is however currently this need to use an extensive network or in practice many networks such as banks to handle the extensive monitoring, distribution lending and charging relating to handling of currencies. The use of credit cards providing access to credit is conventional but of itself does not provide any more assistance to a user than a further authorisation to access to credit or a justification of credit. More recently, there are devices such as cards holding electronic components providing logic and better security controls but such arrangements now are still on the basis of a proprietary system where a commercial entity provides further facilities such as access to credit but where the members themselves are provided as a closed system to users or others who may otherwise wish to provide supporting services. To some extent, the proprietorial nature of these devices so far has been considered essential to maintain security. DISCLOSURE OF THE INVENTION In accordance with my proposal, I propose an arrangement for a monetary system wherein there is a direct connection between the creation of value through providing banking and facilities associated with a monetary system and the users of that system. In one form, this is achieved by providing that there is a central server which provide one of the keys of a key pair such as a public key and private key in a public key infrastructure arrangement, and as well, authorises the use by users of individual members each of which contain a user's private key and otherwise contains an operating system and other programs which are open. BEST MODE FOR CARRYING OUT THE INVENTION The application can be considered with relation to a smart card, but it is to be understood that any device which has inbuilt electronic logic can be applicable. Use of public-private key infrastructure (PKI) incorporates the use of a key pair which includes a public key and private key and provides very strong authentication and encryption services. The key pair associated with a particular user has a "certificate" which is established and authenticated by a person of high credibility and it is in this way then that security can be maintained. In public -key cryptography- a public key and its corresponding private key are a key pair. A private key may be used for the following: to compute the corresponding public key; to make a digital signature which may be verified by the corresponding public key; to decrypt the message encrypted by corresponding public key; or, together with other information to compute a piece of common shared secret information. Public Key cryptography is based on the principal that: you can create two keys which are related you cannot in practice get either key from the other data encrypted with either key can be decrypted with the other one key you keep secret, and the other you make public Public key encryption is based on a certain type of mathematical algorithm that provides one way encryption/decryption. That is, a public key algorithm allows you to encrypt a message with a special key that has some very special properties. 1. Encrypted messages can only be unencrypted with a single private key. 2. It would be beyond the realm of probability to break the secret key through possession of the public key and an encoded message. Thus, rather than distributing your private decryption and encryption keys to trusted parties and crossing your fingers, you distribute your public key to anyone who wants it with full confidence that messages sent to you that have been encrypted with your public key will only be readable by you. Any sender can encrypt their message with your public key and that message will only be able to be unencrypted with your private key. There are several good algorithms for public key encryption including RSA, Diffe-Helman, and Ellyptic curve cryptography. There is another function of private keys that should be mentioned. Private keys also have the added benefit that a portion of text which has been encrypted with the private key, can be verified through the use of the public key to have been encrypted by the holder of the private key. This is called a digital signature and can provide message authenticity because only the holder of the private key could encrypt such a message. The same method can be used to verify message integrity because a hash digest may be created by the sender representing the pre-transmission file state. This then allows for security to be maintained by means other than restricting access to an internal encryption algorithm or other knowledge of the actual internal programming functions of a member having such logic. This then leads to the possibility that for each member for instance a smart card can be a totally open system so that there need be no secondary infrastructure such as a bank or other entity holding rights by reason of proprietary interest or by maintenance of secrecy of an operating system and as such then, for the first time, there is the possibility for a government itself without having to go through the various well known systems of creating and supporting currency including the creation of cash in a generally non duplicable manner by others and so on. There are significant advantages to a government which can use this system either for sub groups in the economy or for communities that are separate either temporarily or for longer periods away from a mainstream of the community. Firstly, if each member of a community for instance those constrained on board a boat, are provided with a smart card which has on board logic including an arrangement to effect its use with respect to a central server and to any reader to which a user might apply the card. A central server for instance on board a boat is simply then programmed to authorise to provide a selected credit for each user at each of selected times during a day, week, month or year and each user can then by use of a card simply access such credit associated with that unique authentication of a particular user from time to time. This in this case uses the public-private key encryption technique. There is therefore a plurality of smart cards each of which is individually programmed to hold both a private key and a public key. The private key is exclusive to a specific user. When the member being a smart card is first loaded it is loaded with an open system in this case Windows Powered Smart Card. Such a card can also have as an option a PIN access constraint. If a PIN is used then there is less chance of the card being misused if stolen from an authorised user. The card has embedded both a private key and a public key pair. The central server will have means to identify the source of a signal and as appropriate use a public key appropriate to that user to de-encrypt a message. By use of the public-private key infrastructure (PKI) this enables an open system to be used as far as the programs are concerned which has significant advantages by allowing competition in the provision of alternate systems for carrying cash value and further however, in being able to directly monitor as from a government point of view, all of the characteristics of the "value transactions". Further, because the issued "value" is only in electronic form as an available value there will be the ability to reduce the amount of "cash" that needs to be floated to a unit which may not be able to top up such cash on a short time span. This might for instance be the case with an aircraft carrier where there is normally a huge cash requirement for a voyage that may last some months. In accord with this invention then there are provided a plurality of smart cards that are each loaded with an open operating system and they are each able to interconnect with one or more smart card readers on board the vessel. Each smart card reader allows each user to communicate with a server that is also able to communicate with other computers, for instance by satellite to a base station perhaps located in Washington. The communication itself is conducted safely by the PKI system and in this way the user, let us say, a navy employee, may from time to time and securely download any "value" that is available in the relevant account for that user. Alternatively, the user can return cash "value" as a credit to the account or simply check the available "values". Further however, various services can be provided on board the ship where for instance the user wishes to purchase a bottle of beverage from a machine. This "machine" will include a smart card reader and will have a global key and may then check the smart card to ensure that there is a valid private key but does not have means to read the private key. However, the machine can then "extract" the value of the purchase from the smart card data base and it can then itself communicate with the central server from time to time to reconcile "values". Firstly, by having the government itself create the asset means that a record of the transactions, the velocity of transactions, and other useful data for managing the economy can be directly gained rather than indirectly through the facility of banks or other credit institutions. Governments then can apply common rules which apply to currency in general or to the monetary system in general and can institute furthermore, personal monitoring, and can make various decisions in relation to taxation or other control of transfer of currency. Because it is the central server that is providing the public key authentication, it becomes necessary from time to time for the member to be introduced into a reader to effect communication and thus have any transactions that may have occurred with incidental devices for instance those requiring small levels of value may have imposed in terms of debit in the card itself. Because there is now a central server with open access, this then allows a government the significant advantages described. It is the open nature of the system that provides this possibility with however the effective authentication and authorization requirements of PKI that will maintain the system as in integral system. With previous closed systems, or where the system had to accommodate a multitude of different proprietary systems operating in the same environment, then there exists the need for the same extensive infrastructure provided by banks with the overall necessity because of the private nature of a bank, to offer continuing privacy and therefore a complete lack of an ability to provide in a general sense a monetary system. Also, the fact that a float of money is not transferred to other entities means that the cost of that money, as for instance an interest cost, is no longer there. The invention in one form then could be said to reside in an arrangement where there is a government controlling a central server which holds one of a key pair of a public key infrastructure and that there are a plurality of readers of members disbursed through an area of interest, and a plurality of members such as smart cards or the like, contain an openly accessible operating system and have security in relation to retained information on credit or debit values where the security to such information is again through the public key infrastructure arrangement and the system is arranged such that a member can from time to time be used to effect communication with a central server where allocated debits and credits as far as the value accessible by the user can be made available or can be effected for transfer. For assistance some references are now further explained: Public Key Infrastructure (PKI) is usually referred to as the set of hardware, software, people, policies and procedures needed to create, manage, store; distribute, and revoke Public Key Certificates (PKCs) based on public- key cryptography; Public Key Certificate (PKC) is usually referred to as data structure containing the public key of an end-entity and some other information, which is digitally signed with the private key of the Certification Authority (CA) which issued it; Certification Authority (CA) is usually referred to as an authority trusted by one or more users to create and assign public key certificates; optionally the CA may create the user's keys; A PKI consists of five types of components [MISPC]: Certification Authorities (CAs) that issue and revoke PKCs; Organizational Registration Authorities (ORAs) that vouch for the binding between public keys and certificate holder identities and other attributes; PKC holders that are issued certificates and can sign digital documents and encrypt documents; Clients that validate digital signatures and their certification paths from a known public key of a trusted CA; Repositories that store and make available PKCs and Certificate Revocation Lists (CRLs).

Claims: CLAIMS 1. A monetary system in which there is a central server which provides one of the keys of a key pair such as a public key in a public key infrastructure arrangement, and as well, effects authorised transfer of monetary value to and from each of a plurality of users of individual electronic data holding members each of which member contains a user's private key and public key and otherwise contains an operating system and other programs which are open. 2. A system for providing monetary enablement in which there is a central server which provides one of the keys of a key pair such as a public key in a public key infrastructure arrangement, and as well, effects authorised transfer of monetary value to and from each of a plurality of users of individual electronic data storage members, each of which contain a user's private key and public key for encryption of information to be transmitted and otherwise contains an operating system and other programs which are open. 3. An arrangement where there is an entity controlling a central server which holds one of a key pair of a public key infrastructure security arrangement and at least one reader of electronic data storage members, and a plurality of electronic data storage members at least one of which contains an open accessible operating system and has security in relation to retained information on credit or debit values where the security to such information is established by having a private key through a public key infrastructure arrangement and the arrangement being such that the said electronic data storage member is adapted from time to time to be used to effect communication with the central server where allocated debits and credits as far as the value accessible by the user can be made available or can be effected for transfer to or from the electronic data storage member. 4. An arrangement as in the immediately preceding claim further characterised in that the there are in addition at least one service or commodity supply unit which includes a reader and a global key and a computer program such that with the insert of an electronic data storage member into the reader, then there can be extracted a selected value from such member in accord with the service or commodity provided. 5. An arrangement as in any one of the preceding claims further characterised in that at least one of the electronic data storage members is a smart card. 6. An arrangement where there is a government controlling a central server which holds one of a key pair of a public key infrastructure and at least one reader of electronic data storage members, and a plurality of electronic data storage members at least one of which contains an open accessible operating system and has security in relation to retained information on credit or debit values where the security to such information is established through the public key infrastructure arrangement and the system being arranged such that the said electronic data storage member can from time to time be used to effect communication with a central server where allocated debits and credits as far as the value accessible by the user can be made available or can be effected for transfer to or from the electronic data storage members . 7. An arrangement as in the immediately preceding claim further characterised in that the key pair associated with a particular user has a "certificate" which is established and authenticated by a person of high credibility. 8. An arrangement as in any one of the preceding claims further characterised in that each electronically accessible data storage member includes an open operating system 9. An arrangement as in any one of the preceding claims further characterised in that the central server is located on a boat. 10. An arrangement as in any one of the preceding claims further characterised, and adapted such that when an electronic data storage member is introduced into a reader to effect communication from time to time and thus have any transactions recorded that may have occurred with incidental devices for instance those requiring small levels of value may have imposed in terms of debit in the card itself. 11. A method of effecting a monetary system which includes a government controlling a central server which holds one of a key pair of a public key infrastructure and at least one reader of electronic data storage members, and a plurality of electronic data storage members at least one of which contains an open accessible operating system and has security in relation to retained information on credit or debit values where the security to such information is established through the public key infrastructure arrangement and the system being arranged such that the said electronic data storage member is from time to time used to effect communication with the central server where allocated debits and credits as far as the value accessible by the user can be made available or can be effected for transfer to or from the electronic data storage member.

Inventors: BENSON KEITH, BENSON, KEITH
Applicants: BENSON KEITH, FUNGE SYSTEMS INC, BENSON, KEITH
Application year: 2001
Main classification: G07F19
IPC codes: G06Q10, G06Q20, G06Q40, G09C1, H04L9