Two-Stage Token Method and System for Asset-Based Consensus

Abstract

A method and system for implementing a two-stage blockchain ledger is provided. The blockchain system comprises a plurality of connected validator computer nodes that maintain a two-stage blockchain ledger, and a producer node connected to the system. The two-stage blockchain ledger comprises a primary token and a secondary token, and the amount of the secondary token in the ledger depends on the total amount of the primary token. The producer node may receive the newly generated primary token upon issuance. An active validator node selected from the validator nodes based on staking of the secondary token and / or bidding of the primary token forms consensus and validates blocks in the two-stage blockchain ledger. The active validator node may obtain the newly generated secondary token based on the total amount of the primary token.

Description

CROSS-REFERENCE TO RELATED APPLICATIONS

[0001] This application claims priority to U.S. Provisional Patent Application No. 63 / 330,996, filed April 14, 2022. [Technical field]

[0002] The present disclosure relates to a method and system for an asset-based consensus blockchain system. [Background technology]

[0003] Traditionally, asset-backed tokens are issued based on some claim to an off-chain asset. Asset-backed tokens are subject to regulations that limit their tradability and expose them to the risk that bad actors will freely issue the tokens.

[0004] Actual assets and tokens often trigger securities law regulation. If the tokens represent a claim on the assets, this can limit the tokens' ability to be traded freely and easily, further complicating trading activity and potentially causing frustration for traders. These tokens are often referred to as security tokens.

[0005] Regulated securities markets, such as stock markets, offer many products to investors. Regulated service providers are constantly innovating to offer new products to as many users as possible. Regulation of these markets is seen as an important tool to protect investors.

[0006] Even when security tokens are issued legitimately, such tokens often rely on external parties to maintain an accurate link to the underlying off-chain assets. For example, gold-backed tokens rely on off-chain audits of gold stored in vaults. Fiat-backed tokens rely on off-chain audits of the owner's financial position.

[0007] Risk mitigation has been attempted through clever structuring of the underlying assets and through the threat of legal action by bad actors. However, ex post enforcement is often an insufficient remedy. Thus, risk prevention becomes an important consideration when tokens are collateralized by real assets.

[0008] Blockchain technology has emerged as a solution to these challenges by providing a decentralized, transparent and secure platform for storing, managing and exchanging digital information.

[0009] One of the defining characteristics of blockchain-based assets is that they are not collateralized by physical assets such as gold or traditional fiat currencies. Instead, these digital assets derive their value from a variety of factors, including their scarcity, utility, and the consensus of their users. The lack of physical asset collateral presents both unique opportunities and challenges in the development and implementation of blockchain technology.

[0010] The lack of physical collateral brings benefits such as increased flexibility and reduced reliance on centralized authorities, which can lead to faster transaction processing and lower fees. Furthermore, the intangible nature of blockchain-based assets allows for seamless integration into digital ecosystems such as e-commerce platforms, decentralized finance (DeFi) applications, and digital identification systems.

[0011] However, the lack of physical collateral may also pose certain challenges and limitations. For example, the value of blockchain-based assets may be more volatile than traditional assets and subject to market fluctuations and speculation. Additionally, the lack of a tangible substrate may result in skepticism and resistance from certain user segments, regulators, and traditional financial institutions.

[0012] Despite the challenges associated with the intangible nature of blockchain-based assets, significant potential exists for innovation in the development and implementation of blockchain technology.

[0013] Given the aforementioned shortcomings that exist within current asset-based tokens, potential exists for innovation in the development and implementation of blockchain technology. Summary of the Invention

[0014] It is an object of the present disclosure to ameliorate one or more of the shortcomings of the prior art.

[0015] The objective of this disclosure is to provide a two-tier token system with freely tradable tokens, where the supply of tokens is based on physically produced assets.

[0016] The objective of the present disclosure is to provide a secure and reliable consensus process for asset-based tokens.

[0017] The developers of the technology realized that asset-backed tokens are generally issued based on some claim to an off-chain asset, and such asset-backed tokens may trigger regulations that limit their tradability, exposing traditional tokens to the risk that malicious entities may freely issue tokens.

[0018] Traditional proof-of-work based blockchain systems are typically used to verify the integrity of information, prevent double-spending, and confirm transactions by solving cryptographic puzzles. As the size of the blockchain grows, more computing resources are required to solve the cryptographic puzzles, resulting in increased power consumption. This increased consumption has a negative impact on the environment.

[0019] The two-stage blockchain system provided by one or more embodiments of the present technology is based on a proof of work (PoW) component and a proof of stake (PoS) component operating in synergy. The proof of work-based component is used to record asset production information and other value generating productivity, providing an indication of the productivity of the participating parties. The proof of stake component is used to generate primary tokens based on the output of the proof of work component, determine secondary token rewards, stake the secondary tokens, validate block transactions, and reward active validators with secondary tokens. The proof of stake component can verify the integrity of the information. Here, validator nodes may receive secondary tokens in response to staking secondary tokens and may receive bonus secondary tokens in response to bidding primary tokens. The secondary tokens constitute the protocol tokens of the two-stage blockchain and are linked to the number of primary tokens in the two-stage blockchain.

[0020] In accordance with a broad aspect of the present technology, a method of transmitting secondary tokens to a set of activate validator nodes in a blockchain system, the blockchain system comprising a plurality of validator computer nodes connected through a communications network, the blockchain system maintaining a two-stage blockchain ledger, the two-stage blockchain ledger comprising primary tokens, a first type of token associated with a physical asset production, and secondary tokens, a second type of token, a total amount of the secondary tokens dependent on a total amount of the primary tokens, the blockchain system being connected to a producer computer node, the method comprising: receiving asset production sensor data representative of production of a given physical asset from a producer computer node associated with the asset production entity, the asset production sensor data being measured by a sensor of the asset production entity; generating a new amount of the primary tokens based at least on the asset production data; and generating a new amount of the primary tokens based at least on the asset production data. sending a new amount of generated primary tokens to the nodes, where a current total amount of the primary tokens is based on the new amount of generated primary tokens and the total amount of primary tokens; generating a new amount of secondary tokens based on the current total amount of the primary tokens; receiving at least one of a respective bidded amount of primary tokens and a respective staked amount of secondary tokens from a set of validator computer nodes from a plurality of validator computer nodes; selecting a set of active validator computer nodes from the set of validator computer nodes based on the respective bidded amount of primary tokens and at least one of the respective staked amount of secondary tokens; upon consensus by the active validator nodes, validating the pending block and obtaining a new block in the two-stage blockchain ledger, where the new block comprises at least an indication of the generated amount of primary tokens and an indication of the total amount of secondary tokens;transmitting a respective portion of the newly generated amount of secondary tokens, wherein a current total amount of secondary tokens in the two-stage blockchain is based on the newly generated amount of secondary tokens.

[0021] In one or more embodiments of the method, selecting a set of active validator computer nodes from the set of validator computer nodes based on at least one of the respective bidded amounts of primary tokens and the respective staked amounts of secondary tokens includes selecting a subset of the set of validator nodes as super validator nodes based on the respective bidded amounts of primary tokens, where the super validator nodes are a subset of the active validator nodes, and determining respective portions of the new generated amount of secondary tokens for the super validator nodes, where the respective portions for the super validator nodes are greater than the respective portions of the generated amount of secondary tokens for the remainder of the active validator nodes.

[0022] In one or more embodiments of the method, the method further includes burning each bidded amount of primary tokens, the burning causing a reduction in a current total amount of the primary tokens based on each bidded amount of the primary tokens.

[0023] In one or more embodiments of the method, the method further includes transmitting each staked amount of secondary tokens to the active validator nodes.

[0024] In one or more embodiments of the method, generating the new amount of secondary tokens includes determining, upon consensus by the blockchain system, an asset production increase parameter and determining the new amount of secondary tokens generated based on the asset production increase parameter and the total amount of the primary tokens.

[0025] In one or more embodiments of the method, generating a new amount of primary tokens on a producer computer node includes receiving asset production data generated based on the asset production sensor data, receiving trusted production data from a trusted data source connected to the blockchain system, comparing the trusted production data with the trusted production data to obtain a comparison result, and determining a new amount of primary tokens based on the comparison result.

[0026] In one or more embodiments of the method, the method further includes, upon consensus by the active validator nodes, validating a pending block including at least an indication of the amount of primary tokens produced, and generating a current pending block based on the asset production sensor data by a given node of the set of validator nodes before obtaining a new block in the two-stage blockchain ledger.

[0027] In one or more embodiments of the method, the method further includes determining a respective portion of the newly generated amount of secondary tokens to send to the given node.

[0028] In one or more embodiments of the method, the total amount of primary tokens is the total amount of primary tokens in the previous period.

[0029] In one or more embodiments of the method, the method further includes receiving a request from the producer node to be added to the blockchain system as a new validator node, and upon consensus by the validator nodes, adding the producer node to the blockchain system as a new validator node.

[0030] In one or more embodiments of the method, the set of active validator computer nodes is an inappropriate subset of the set of validator computer nodes.

[0031] In one or more embodiments of the method, each validator computer node stores a respective wallet with a respective set of encryption keys, a respective amount of secondary tokens, and a respective amount of primary tokens, and the producer computer node stores a respective producer wallet with a respective set of producer encryption keys, each producer wallet for receiving new amounts of primary tokens generated.

[0032] In one or more embodiments of the method, the given physical asset includes at least one of precious metals, energy commodities, agricultural commodities, and industrial metals.

[0033] In accordance with a broad aspect of the present technology, a system is provided for transmitting respective portions of a new quantity of secondary tokens to a set of activate validator computer nodes in a two-stage blockchain ledger, the two-stage blockchain ledger comprising a first type of token, the primary token, associated with physical asset production, and a second type of token, the secondary token, the total quantity of the secondary tokens being dependent on the total quantity of the primary tokens.

[0034] The system comprises a plurality of validator computer nodes connected through a communications network, the system comprising: receiving asset production sensor data representative of production of a given physical asset from a producer computer node connected to the system, the producer computer node being associated with an asset production entity, the asset production sensor data being measured by a sensor of the asset production entity; generating a new amount of primary tokens based at least on the asset production data; transmitting the generated new amount of primary tokens to the producer computer node, a current total amount of primary tokens being based on the generated new amount of primary tokens and a total amount of primary tokens; generating a new amount of secondary tokens based on the current total amount of primary tokens; and transmitting from a set of validator computer nodes from the plurality of validator computer nodes: the set of active validator computer nodes based on the at least one of the respective bidded amount of primary tokens and the respective staked amount of secondary tokens; selecting a set of active validator computer nodes from the set of validator computer nodes based on the at least one of the respective bidded amount of primary tokens and the respective staked amount of secondary tokens; upon consensus by the active validator nodes, validating the pending block and obtaining a new block in the two-stage blockchain ledger, the new block comprising at least an indication of the generated amount of primary tokens and an indication of a total amount of secondary tokens; and transmitting a respective portion of the new generated amount of secondary tokens to each of the set of active validator nodes, wherein a current total amount of secondary tokens in the two-stage blockchain is based on the new generated amount of secondary tokens.

[0035] In one or more embodiments of the system, selecting a set of active validator computer nodes from the set of validator computer nodes based on at least one of the respective bidded amounts of primary tokens and the respective staked amounts of secondary tokens includes selecting a subset of the set of validator nodes as super validator nodes based on the respective bidded amounts of primary tokens, where the super validator nodes are a subset of the active validator nodes, and determining respective portions of the new generated amount of secondary tokens for the super validator nodes, where the respective portions for the super validator nodes are greater than the respective portions of the generated amount of secondary tokens for the remainder of the active validator nodes.

[0036] In one or more embodiments of the system, the system is further configured for burning each bidded amount of primary tokens, the burning causing a reduction in a current total amount of primary tokens based on each bidded amount of primary tokens.

[0037] In one or more embodiments of the system, the system is further configured for transmitting respective staked amounts of secondary tokens to the active validator nodes.

[0038] In one or more embodiments of the system, generating the new amount of secondary tokens includes determining, upon consensus by the blockchain system, an asset production increase parameter and determining the new amount of secondary tokens generated based on the asset production increase parameter and the total amount of the primary tokens.

[0039] In one or more embodiments of the system, generating a new amount of primary tokens on a producer computer node includes receiving asset production data generated based on asset production sensor data, receiving trusted production data from a trusted data source connected to the blockchain system, comparing the trusted production data with the trusted production data to obtain a comparison result, and determining a new amount of primary tokens based on the comparison result.

[0040] In one or more embodiments of the system, the system is further configured for validating, upon consensus by the active validator nodes, a pending block including at least an indication of the amount of primary tokens produced, and generating a current pending block based on the asset production sensor data by a given node of the set of validator nodes before obtaining a new block in the two-stage blockchain ledger.

[0041] In one or more embodiments of the system, the system is further configured for determining a respective portion of the newly generated amount of secondary tokens to send to a given node.

[0042] In one or more embodiments of the present system, the total amount of primary tokens is the total amount of primary tokens in the previous period.

[0043] In one or more embodiments of the system, the system is further configured for receiving a request from the producer node to be added to the blockchain system as a new validator node, and, upon consensus by the validator nodes, adding the producer node to the blockchain system as a new validator node.

[0044] In one or more embodiments of the system, the set of active validator computer nodes is an inappropriate subset of the set of validator computer nodes.

[0045] In one or more embodiments of the system, each validator computer node stores a respective wallet with a respective set of encryption keys, a respective amount of secondary tokens, and a respective amount of primary tokens, and each producer computer node stores a respective producer wallet with a respective set of producer encryption keys, each producer wallet for receiving new amounts of primary tokens generated.

[0046] In one or more embodiments of the system, a given physical asset includes at least one of precious metals, energy commodities, agricultural commodities, and industrial metals.

[0047] In one or more embodiments, the primary token is further associated with a digital asset production: the digital asset may be produced by the asset production entity and / or other entities, and the primary token may be generated upon validation of the digital asset.

[0048] In the context of this specification, a "server" or "node" is a computer program running on suitable hardware that can receive requests (e.g., from electronic devices) over a network (e.g., a communication network) and execute those requests or have those requests executed. The hardware can be a physical computer or a physical computer system, but neither is necessary in the case for the present technology. In the present context, the use of the expression "server" is not intended to mean that every task (e.g., received instructions or requests) or any particular task is received, executed, or executed by the same server (i.e., the same software and / or hardware), but rather that any number of software elements or hardware devices are involved in receiving / transmitting, executing, or having executed any task or request, or the results of any task or request, all of which may be a server or multiple servers, both of which are included in the expressions "at least one server" and "server".

[0049] In the context of this specification, an "electronic device" is any computing device or computer hardware capable of executing software appropriate for the relevant task at hand. Thus, some (non-limiting) examples of electronic devices include general-purpose personal computers (desktop, laptop, netbook, etc.), mobile computing devices, smartphones, and tablets, as well as network equipment such as routers, switches, and gateways. It should be noted that an electronic device is not excluded in this context from acting as a server to other electronic devices. The use of the expression "electronic device" does not exclude multiple electronic devices used in receiving / transmitting, performing, or causing to be performed any task or request, or the results of any task or request, or the steps of any method described herein. In the context of this specification, a "client device" refers to any of a range of end-user client electronic devices associated with a user, such as a personal computer, tablet, smartphone, etc.

[0050] In the context of this specification, the expression "computer-readable storage medium" (also referred to as "storage medium" and "storage") is intended to include non-transitory media of any nature and type, including but not limited to RAM, ROM, disks (CD-ROM, DVD, floppy disk, hard drives, etc.), USB keys, solid state drives, tape drives, etc. Multiple components may be combined to form a computer information storage medium including two or more media components of the same type and / or two or more media components of different types.

[0051] In the context of this specification, a "database" is any structured collection of data, regardless of its particular structure, database management software, or computer hardware on which the data is stored, implemented, or made available. A database may reside on the same hardware as the processes that store the information or that use the information stored in the database, or it may reside on separate hardware, such as a dedicated server or multiple servers.

[0052] In the context of this specification, the expression "information" includes information of any nature or type that can be stored in a database. Information thus includes, but is not limited to, audiovisual works (images, videos, sound recordings, presentations, etc.), data (location data, numerical data, etc.), text (opinions, comments, questions, messages, etc.), documents, spreadsheets, vocabulary lists, etc.

[0053] In the context of this specification, unless otherwise expressly specified, an "indication" of an information element may be the information element itself, or a pointer, reference, link, or other indirect mechanism that can locate the recipient of the indication to a network, memory, database, or other computer-readable medium location from which the information element is retrieved. For example, an indication of a document may include the document itself (i.e., its contents), or it may be a unique document descriptor that identifies the file to a particular file system, or some other means that directs the recipient of the indication to a network location, memory address, database table, or other location from which the file may be accessed. As one skilled in the art will recognize, the precision required for such an indication depends on the degree of prior understanding of the interpretation to be given to the information exchanged, such as between the sender and recipient of the indication. For example, if, prior to communication between the sender and recipient, the indication of an information element is understood to take the form of a database key for registration in a particular table of a predefined database that contains the information element, then transmission of the database key is all that is required to effectively convey the information element to the recipient, even if the information element itself was not transmitted, such as between the sender and recipient of the indication.

[0054] In the context of this specification, the expression "communications network" is intended to include telecommunications networks such as computer networks, the Internet, telephone networks, telex networks, TCP / IP data networks (e.g., WAN networks, LAN networks, etc.), etc. The term "communications network" includes wired networks or direct-wired connections, as well as wireless media such as acoustic, radio frequency (RF), infrared and other wireless media, and combinations of any of the above.

[0055] In the context of this specification, words such as "first", "second", "third", etc. are used as adjectives only to enable distinction between the nouns they modify, and not to describe any particular relationship between those nouns. Thus, for example, it should be understood that the use of the terms "first server" and "third server" is not intended to imply any particular order, type, sequence of events, hierarchy, or ranking (for example) of / among servers, nor is their use (by itself) intended to imply that any "second server" must necessarily be present in a given situation. Moreover, as explained in other contexts of this specification, reference to a "first" element and a "second" element does not exclude that the two elements are the same actual element. Thus, for example, sometimes the "first" server and the "second" server may be the same software and / or hardware, and in other cases they may be different software and / or hardware.

[0056] Each implementation of the present technology will have at least one, but not necessarily all, of the above-mentioned objectives and / or aspects, and it should be understood that some aspects of the present technology resulting from an attempt to achieve the above-mentioned objective may not meet this objective and / or may meet other objectives not specifically set forth herein.

[0057] Additional and / or alternative features, aspects, and advantages of implementations of the present technology will become apparent from the following description, the accompanying drawings, and the appended claims.

[0058] Further features and advantages of the present technology will become apparent from the following detailed description taken in conjunction with the accompanying drawings. [Brief description of the drawings]

[0059] [Figure 1]1 is a flowchart of a general method for awarding secondary token rewards to active validators, in accordance with one or more non-limiting embodiments of the present technology. [Diagram 2] 1 is a non-limiting example of a chart showing how secondary block rewards vary as a function of the level of primary tokens produced in the previous period. [Diagram 3] 1 is a first active validator node selection procedure in accordance with one or more non-limiting embodiments of the present technology. [Figure 4] 1 is a second active validator node selection procedure, in accordance with one or more non-limiting embodiments of the present technology. [Diagram 5] 11 is a third active validator node selection procedure, in accordance with one or more non-limiting embodiments of the present technology. [Figure 6] 1 is a flowchart of a method for primary token issuance in accordance with one or more non-limiting embodiments of the present technology. [Figure 7] 1 is a flowchart of a method for transmitting a portion of a newly generated amount of secondary tokens to active validator nodes, in accordance with one or more non-limiting embodiments of the present technology. [Figure 8] FIG. 1 is a schematic diagram of an environment and a two-stage blockchain system in accordance with one or more non-limiting embodiments of the present technology. [Figure 9] 1 is a schematic diagram of an electronic device in accordance with one or more non-limiting embodiments of the present technology. DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS

[0060] It will be appreciated that, where considered appropriate, for simplicity and clarity of description, reference numerals may be repeated among the figures to indicate corresponding or similar elements. Additionally, numerous specific details are described to provide a thorough understanding of the embodiments and / or implementations described herein. However, those skilled in the art will understand that the embodiments and / or implementations described herein may be practiced without these specific details. In other instances, well-known methods, procedures, and components have not been described in detail so as not to obscure the embodiments and / or implementations described herein. Additionally, this description should not be considered as limiting the scope of the embodiments described herein, but rather as describing the structure and operation of the various embodiments and / or implementations described herein.

[0061] It should be noted that the methods and systems of the embodiments of the present disclosure and the data described above are not abstract or intangible in any sense. Instead, the data is necessarily in digital form and stored in a physical data storage computer readable medium, such as electronic memory, mass storage device, or other physical, tangible, data storage device and medium. It should also be noted that the data processing and data storage methods described herein cannot be performed manually by a human analyst due to their complexity and the huge number of intermediate results generated for the processing and analysis of even a very small number of data. Instead, the methods described herein are necessarily performed by an electronic computing system having a processor on electronically or magnetically stored data, and the results of the data processing and data analysis are digitally stored in one or more tangible, physical, data storage devices and media. The methods and systems of the present disclosure have tangible and practical advantages, resulting in better and more reliable processing of huge amounts of data. More specifically, one or more embodiments of the present technology provide an incentive-based system for asset producing entities participating in a blockchain system while preserving the anonymity of such asset producing entities and providing verifiability of produced assets through a distributed ledger by a decentralized network of computer nodes. This eliminates the need for a central authority and reduces the risk of single points of failure and potential attacks on data. Additionally, the present method and system provide an immutable record of asset productivity, ownership, and transaction history, with each transaction recorded in a block that is cryptographically linked to the previous block, forming a tamper-resistant chain. This creates a permanent, traceable record of asset productivity and ownership without compromising the anonymity of users.

[0062] Computer nodes that participate in a distributed ledger are incentivized to produce physical goods, in contrast to "traditional" blockchain or ledger-based systems, where there is no incentive and no connection to real-world produced assets.

[0063] Embodiments of the present technology aim to reduce blockchain systems' reliance on power-hungry graphical processing units (GPUs) or application-specific integrated circuit (ASIC) computing rigs, and the technology enables the generation of protocol tokens based on physically produced assets.

[0064] The technology is adapted and configured to utilize a two-stage token system in the consensus process: the technology uses a first type of token ("primary token") that is directly linked to the physically produced assets (and optionally digitally produced assets) submitted to the blockchain system, and a second type of token ("secondary token") that is used as a protocol token to effect transactions.

[0065] The node validates the transaction to earn a new secondary token reward (i.e., a respective amount of secondary tokens). The new secondary token reward corresponds to the newly generated secondary tokens being added to the current total amount of secondary tokens in the blockchain ledger. The secondary token reward is determined based on the total amount of primary tokens generated based on the amount of physically produced assets (and optionally digitally produced assets).

[0066] Because the primary tokens are linked to and / or awarded based on the assets produced, embodiments of the present technology incentivize the production of assets that have tangible utility and intrinsic value. Asset producing entities (i.e., off-chain entities) that do not have secondary tokens and have already been approved by participating nodes (i.e., on-chain entities or validator nodes) in the two-stage blockchain system are awarded primary tokens upon consensus. Secondary tokens are awarded to a subset of validator nodes based on the amount of primary tokens generated based on the assets produced.

[0067] The two-tier token system allows off-chain assets to drive the creation of secondary tokens, which are protocol tokens, and allows the core consensus process to be conducted in a manner that is protected from bad actors and additional regulation. Off-chain assets include physical assets produced by asset producing entities.

[0068] The two-tier token system allows entities associated with an off-chain asset to be awarded a primary token equal to the amount of the associated minted asset. The primary token constitutes a fungible digital record of the asset. In alternative embodiments, other types of tokens, such as NFT tokens, may be used as primary tokens.

[0069] [Environment and Blockchain Systems] Referring to FIG. 8, an environment and blockchain system 800 is shown in accordance with one or more non-limiting embodiments of the present technology.

[0070] The environment and blockchain system 800 includes, among other things, an asset producing entity 802 associated with a producer node 806, a third party data source 810, a trusted data source 812, and a number of computer nodes 822, 824, 826, 828.

[0071] A producer computer node 806, a third party data source 810, an authoritative data source 812, and a number of computer nodes 822, 824, 826, 828 are connected through a communications network 850 via respective communications links 855 (only one of which is numbered).

[0072] It should be noted that while FIG. 8 shows only one asset producing entity 802, one producer computer node 806, one third-party data source 810, and one authoritative data source 812, singular or plural are used interchangeably and the environment and blockchain system 800 may include multiple asset producing entities 802, producer computer nodes 806, third-party data sources 810, and authoritative data sources 812.

[0073] The multiple computer nodes 822, 824, 826, 828 form a two-stage blockchain system 820. For a period of time, the producer node 806 may not be part of the two-stage blockchain system 820, but the producer node 806 may become a node in the two-stage blockchain system 820 at a subsequent period of time.

[0074] [Two-stage blockchain system] The two-stage blockchain system 820 includes a number of computer nodes 822, 824, 826, 828. The number of computer nodes 822, 824, 826, 828 may include validator nodes and active validator nodes (not numbered) over a period of time.

[0075] The two-stage blockchain system 820 maintains a two-stage blockchain ledger 880 comprising a number of blocks.

[0076] The two-stage blockchain ledger 880 comprises a primary token and a secondary token, as described below. The secondary token is the protocol token of the two-stage blockchain ledger 880, i.e., the primary token of the two-stage blockchain ledger 880.

[0077] Validator nodes are responsible for committing (i.e., proposing) new blocks to the two-stage blockchain ledger 880 through voting. Validator nodes may conduct secondary token transactions with other validator nodes. Validator nodes are computer nodes that hold secondary tokens and optionally primary tokens.

[0078] Active validator nodes are a subset of validator nodes selected among the validator nodes in a current period, as described below. In one or more embodiments, active validator nodes may be all validator nodes (i.e., an inappropriate subset of validator nodes). In one or more other embodiments, active validator nodes may be selected among the validator nodes (i.e., a proper subset of validator nodes).

[0079] In one or more embodiments, the validator nodes may include a subset of super validator nodes, which are validator nodes that have bid for primary tokens, increasing the likelihood that they will be selected as active validator nodes, as described below.

[0080] Producer node 806 may become a validator node from the next term onwards.

[0081] It will be understood that the roles of nodes and the number of nodes in the two-stage blockchain system 820 may vary over time, and the following is provided only as a non-limiting example.

[0082] [Computer Node] Multiple computer nodes 822, 824, 826, 828 working together maintain a tamper-evident, secure digital ledger in the form of a two-level blockchain ledger 880.

[0083] In the context of the present technology, each computer node 822, 824, 826, 828 of the plurality of computer nodes 822, 824, 826, 828 may be implemented as a different type of computing device. Non-limiting examples of computing devices are shown in FIG. 9 and described below.

[0084] Each computer node 822, 824, 826, 828 may be associated with a respective entity and / or user (not shown).

[0085] Each computer node 822, 824, 826, 828 is associated with a respective digital wallet 830, referred to as a respective wallet 830 (only one shown for computer nodes 822, 824, 826, 828).

[0086] Each wallet 830 typically includes a public and private key pair (not numbered). The public key is used to receive funds from other users, while the private key is used to sign and approve transactions from the wallet. The private key is kept safe and known only to the wallet owner, while the public key can be shared publicly to receive funds.

[0087] In one or more embodiments, each wallet 830 may further include signing capabilities that require multiple signatures from different parties to approve a transaction. Each wallet may have built-in smart contract functionality that allows for the creation and execution of complex programmable transactions.

[0088] A smart contract is a self-executing computer program that runs on the blockchain system 820 and automatically enforces the terms of an agreement between parties without the need for an intermediary. A smart contract is stored on a storage medium of a component of the blockchain system 820 and is encoded as a series of instructions that are executed by a processor of each of the computer nodes 822, 824, 826, 828.

[0089] For a given computer node 822, 824, 826, 828, each wallet 830 may comprise a respective amount of primary tokens and a respective amount of secondary tokens.

[0090] In one or more embodiments, each computer node 822, 824, 826, 828 has a respective amount of secondary tokens in its respective wallet 830.

[0091] In one or more other embodiments, in order to hold the secondary tokens, the computer nodes 822, 824, 826, 828 have respective amounts of primary tokens in their respective wallets 830. The primary tokens are linked to physical assets produced within the environment and blockchain system 800, as described below.

[0092] [Asset Producing Entity] The asset production entities 802 (only one shown) comprise physical asset production entities and, optionally, digital asset production entities (not separately numbered). Each asset production entity 802 is associated with a respective producer computer node 806.

[0093] A given asset production entity 802 produces one or more respective production assets. Each production asset is associated with respective asset information. In one or more embodiments, the respective asset information for a given asset production entity 802 includes type, quantity, location, quality, condition, ownership, and production capacity.

[0094] Non-limiting examples of physical assets produced by asset producing entity 802 include precious metals (e.g., gold, silver, platinum, and palladium), energy commodities (e.g., crude oil, natural gas, and coal), agricultural commodities (e.g., wheat, corn, soybeans, and cotton), and industrial metals (e.g., copper, aluminum, zinc, and nickel).

[0095] In one or more embodiments, each asset producing entity 802 may be preregistered and approved by the two-stage blockchain system 820. In one or more embodiments, the asset producing entity 802 that produces the physical asset undergoes Know-Your-Customer (KYC) and Anti-Money Laundering (AML) procedures. The physical asset license is checked. It will be understood that registration and approval are optional.

[0096] Each asset production entity 802 has sensors 804 configured to measure, determine, store, and transmit asset production data to a respective producer node 806. It will be appreciated that the sensors 804 are hardware and may comprise computing and software components.

[0097] The sensors 804 may measure pre-, during-, and post-production data of physical assets, such as, by way of non-limiting example, weight, volume, and any other type of physical parameter (e.g., temperature, pH, electrical conductivity, pressure, etc.) of raw or unprocessed materials, intermediates and processes, and final products.

[0098] In some embodiments of the technology, a given asset producing entity 802 may also produce digital assets, such as cryptocurrencies, digital tokens, digital securities, digital art, and digital music.

[0099] [Producer node] Each producer computer node 806, also referred to as a producer node 806, is associated with an asset producing entity 802 that is connected to sensors 804 that receive asset production information, and runs a data management system (not shown). The data management system is compatible with and has already been approved by the two-stage blockchain system 820.

[0100] Each producer node 806 is configured, among other things, to (i) receive asset production sensor data, (ii) submit asset production sensor data to be added to a pending block, and (ii) receive a primary block reward upon validation of the block.

[0101] Each producer node 806 has a respective wallet 808 that stores one or more respective encryption keys, similar to the respective wallets 830 of the multiple computer nodes 822, 824, 826, 828.

[0102] Each producer node 806 has a respective amount of primary tokens associated with the two-stage blockchain ledger 880. Producer nodes 806 generally do not hold secondary tokens.

[0103] To obtain secondary tokens, the producer node 806 must operate as a validator node in the blockchain system 820. To operate as a validator node, the producer node 806 must run the necessary software and have computational resources (i.e., processing and / or memory) that exceed the threshold required for a validator node. The blockchain system 820 may add the producer node 806 as a validator node upon consensus. The threshold computational resources may be dynamically determined based on the computational resources available in the blockchain system 820 and the estimated computational resource requirements of the blockchain system 820.

[0104] [Third-party data source] The third party data source 810 is configured, among other things, to (i) receive requests for information and (ii) transmit information in response to the requests. In one or more embodiments, the authoritative data source 812 may transmit the asset information simultaneously or non-simultaneously.

[0105] As such, a given third-party data source 810 may be implemented as a computing device, a database, a non-transitory storage medium, or the like.

[0106] In one or more embodiments, third party data sources 810 may transmit external information related to physical and digital assets.

[0107] Non-limiting examples of third party data sources 810 include websites, blogs, and devices associated with entities such as businesses and users.

[0108] [Reliable data source] The trusted data source 812 has already been approved by the two-stage blockchain system 820. In one or more embodiments, the trusted data source 812 may be a prior third-party data source that has been voted and approved by the two-stage blockchain system 820.

[0109] Authoritative data sources 812 are configured, among other things, to (i) receive requests for asset information and (ii) transmit asset information in response to the requests. In one or more embodiments, authoritative data sources 812 may transmit asset information simultaneously or non-simultaneously.

[0110] As such, a given trusted data source 812 may be implemented as a computing device, a database, a non-transitory storage medium, etc. Non-limiting examples of trusted data sources 812 include public stock exchanges, regulated financial institutions, government regulators, market information providers, and other blockchain data providers.

[0111] In one or more embodiments, the environment and blockchain system 800 includes a feeder 814. The feeder 814 may be implemented as hardware and software (or a combination thereof) and connected to the two-stage blockchain system 820. The feeder 814 is configured to read data from the third-party data sources 810 and / or the trusted data sources 812 and send the data to the two-stage blockchain system 820.

[0112] [Communication Network] In some embodiments of the present technology, the communication network 850 is the Internet. In alternative non-limiting embodiments, the communication network 850 may be implemented as any suitable local area network (LAN), wide area network (WAN), dedicated communication network, etc. It should be clearly understood that the implementation of the communication network 850 is for illustration purposes only. How the communication links 855 (not separately numbered) between the sensor 804, the producer node 806, the third party data source 810, the authoritative data source 812, and the plurality of computer nodes 822, 824, 826, 828 and the communication network 850 are implemented depends, among other things, on how each of the producer node 806, the third party data source 810, the authoritative data source 812, and the plurality of computer nodes 822, 824, 826, 828 is implemented.

[0113] The communications network 850 may be used to transmit data packets between the sensors 804, the producer node 806, the third party data source 810, the authoritative data source 812, and multiple computer nodes 822, 824, 826, 828.

[0114] Figure 1 illustrates the general operation of an asset-based token to consensus process according to one embodiment, which may be implemented within the environment and two-stage blockchain system 800 of Figure 8.

[0115] In step 101, the amount of assets produced is recorded. The assets produced can be physical assets or commodities such as gold or oil produced by an asset producer (i.e., asset producing entity 802); digital assets such as Bitcoin, Ethereum, or other cryptocurrencies; or any other resource produced or owned by an off-chain user. In some embodiments, assets owned by the entity but not produced by the entity may be recorded, for example, if the asset was produced by a subsidiary or affiliate of the entity, or if the asset was acquired by some other means. Depending on the type of asset, the quality of the asset may also be recorded. For example, different types of oil may have different market values.

[0116] In one or more embodiments, a quantity of an asset is produced by an asset producing entity 802 and measured by a sensor 804 connected to a producer node 806. The sensor 804 may transmit asset production sensor data to the producer node 806 (FIG. 8).

[0117] In step 103, the market value of the physical asset is estimated. In one embodiment, the unit market price of the off-chain asset is recorded via a price feed from a financial data service provider, and the market value of the physical asset is estimated based on the unit price and the quantity of the asset produced.

[0118] In one or more embodiments, the price feed may be from a third party data source 810 and / or an authoritative data source 812. Information related to the unit price of the produced asset may be determined by a feeder 814 based on information from the third party data source 810 and / or the authoritative data source 812.

[0119] An embodiment of the present disclosure provides a two-stage blockchain system 820 that issues primary tokens based on, among other things, the market value of a recorded physical asset. In such an embodiment, the blockchain system 820 uses the primary token as a record of the physical asset production activity. Additionally, the primary token may record the production of a digital asset by the asset producing entity 802.

[0120] In step 105, primary tokens are issued based on the estimated value of the recorded physical assets. Issuance is the process of generating new primary tokens by authenticating data through a proof-of-stake protocol and recording the information in the blockchain ledger 880.

[0121] In step 107, primary tokens are awarded to asset producers in proportion to the assets produced to them. More specifically, respective amounts of primary tokens are awarded to respective wallets 808 of producer nodes 806 based at least on produced asset sensor data from sensors 804 connected to asset producing entities 802.

[0122] In operation, the two-stage blockchain system 820 may form new blocks at regular intervals, e.g., every second. If the block contains transactions, and thus is a non-empty block, secondary token rewards are distributed to all active validators that validate the block. The selection and roles of active validators are described below.

[0123] Steps 105 and 107 are further detailed in the primary token issuance procedure 600 of FIG.

[0124] The determination of the secondary token block reward is performed in step 109. More specifically, the amount of secondary tokens to be distributed to active validator nodes that participated in the validation of the pending block is determined. According to one or more embodiments, the secondary block reward may be set to an initial value, and after each period, a new value may be determined. In each period, the blockchain system 820 decreases the block reward adjusted by the respective amount of primary tokens generated in the previous period. The period may be set to 30 million blocks, which is about one year. Alternatively, a different period may be set.

[0125] Below, we describe an example procedure for determining the secondary block rewards (i.e., the respective amounts of newly generated secondary tokens by the blockchain system 820) to be sent to active validator nodes.

[0126] The secondary token block reward for the current period is determined based on the secondary block reward for the previous period, the primary token reward for the previous period, the previous primary token reward for the previous period, and the asset production increase parameters.

[0127] The initial block reward may be set to n0=5 secondary tokens per block.

[0128] The period 1 block reward, n1, and period 2 block reward, n2, are set equal to n0.

[0129] Subsequently, the reward for period x is called n(x):

[0130] n(x)=n(x-1)*f(delta);

[0131] where n(x) is the current secondary token block reward (i.e., the amount of newly generated secondary tokens to be added to the previous total amount of secondary tokens in the blockchain ledger 880);

[0132] where n(x-1) is the secondary token block reward of the previous period;

[0133] Here, delta = ((the primary token in period x - 1) / (the primary token in period x - 2)) / ((1 + Goal));

[0134] Goal is an asset production increase parameter corresponding to the target growth rate of primary token production, which is set by voting from validator nodes. By default, Goal = 10%.

[0135] f(delta) has two states: normal and abnormal.

[0136] Normal state:

[0137] When 0 < delta < 1, f(delta) = 0.75 + [0.9 - 0.75]*delta;

[0138] Basically, f(delta) floats between [0.75~0.9], so the secondary block reward decreases by [0.75~0.9] times.

[0139] Abnormal state:

[0140] When delta = 0, f(delta) = 0.5;

[0141] Here, the secondary token block reward is halved if the primary token is not produced;

[0142] When delta ≥ 1, f(delta) = min(0.99, 0.01*Math.floor(delta - 1)+0.9);

[0143] f(delta) floats between [0.9~0.99];

[0144] The block reward decreases by [0.9~0.99] only when the primary token production exceeds Goal, and even when the production far exceeds Goal, 0.99 is the upper limit.

[0145] It should be understood that this determination is merely one example and that any suitable definition of n(x) may be used instead. In particular, the initial value n0 and the decrease f(delta) may be any suitable quantity or function.

[0146] 2 illustrates a non-limiting example of a chart 200 showing how the secondary block reward n(x) per block varies based on the amount of primary tokens produced in the previous period. The chart 200 includes three block reward functions, a first block reward function 210, a second block reward function 220, and a third block reward function 230.

[0147] According to the illustrated non-limiting example, the block reward is initially set to 5 secondary tokens per block, and the secondary block reward is automatically decreased every period based on the number of primary tokens produced, where one period corresponds to one year. The lower the primary token production, the lower the secondary token reward per block in each period, as can be seen by the first block reward function 210 corresponding to "good" primary token production, the second block reward function 220 corresponding to "low" primary token production, and the third block reward function 230 corresponding to no primary token production. In the illustrated example, the more primary tokens are issued, the slower the secondary block reward decreases over time. Thus, a higher asset production generates more primary tokens and increases the total secondary tokens issued, and a lower asset production decreases the total secondary tokens issued.

[0148] The secondary block reward is periodically decreased, for example, by 10% to 50%. The secondary block reward sets a supply cap for secondary tokens. The supply cap for secondary tokens has a finite total number determined based on economic production.

[0149] Returning to Figure 1, in step 111, active validators are selected from all validator nodes bidding to obtain active validator status. The selection of active validators is described with reference to Figures 3, 4, and 5. In alternative embodiments, no selection may be performed and any node in the two-stage blockchain system 820 may participate as an active validator node.

[0150] In step 113, the secondary block reward is awarded to the selected active validators via a bidding and staking procedure. Entities operating validator nodes may bid and / or stake to participate in the bidding and staking process as active validator nodes. All entities may "follow" active validator nodes and share rewards by staking secondary tokens with any node. Staking allows open participation in the protocol consensus. Any validator node may stake secondary tokens with any node and share the secondary block reward.

[0151] Staking refers to the process of depositing an amount of secondary tokens as collateral to become eligible to validate transactions and create new blocks in the blockchain ledger 880 as an active validator node. The staked secondary tokens may be returned to the active validator node. It will be appreciated that staking involves the use of cryptographic algorithms and consensus mechanisms to ensure that the blockchain system 820 is secure and operates in a fair and transparent manner. Staking involves the use of cryptographic protocols known in the art and requires sufficient computational resources to be effectively implemented.

[0152] Bidding refers to the process of spending an amount of primary tokens as collateral to become eligible to validate transactions as an active validator node and create new blocks in the blockchain ledger 880. The bidded primary tokens are not returned to the active validator node and are removed from the blockchain ledger 880, a process known as "burning." Burning reduces the total amount of primary tokens in the blockchain ledger 880. Bidding involves the use of advanced algorithms and cryptographic protocols known in the art to ensure that transactions are secure and transparent.

[0153] In one or more embodiments, the staking procedure may be performed as follows:

[0154] Select a validator node and stake your secondary tokens to the validator node. After staking, the staker node must manually unstake the tokens. Any staked secondary tokens will continue to accrue secondary rewards until they are unstaken.

[0155] The secondary block reward distribution function, in one or more embodiments, is determined using the following scheme:

[0156] Total block reward S = block reward n(x) + total gas fee gas

[0157] S is divided into the following parts:

[0158] C: A public token pool used by the votes of validator nodes, in one example 1%*S.

[0159] A and B: Two parts of the proposer bonus given to proposers of a new block. A proposer is a validator node that proposes a pending block that becomes the new block upon validation. In one example: A=1%*S; and B=max4%*S, depending on the proportion of digital signatures obtained from all active validators.

[0160] T: Primary validator bonus given to super validators in the active validator node list. T is distributed among the super active validator nodes based on the proportion of primary token bids, such that the more primary token bids, the more rewards. In one example, T=15%*(number of super active validators) / (number of active validators)*S

[0161] R: The base reward given to each active validator and its stakers. R=SCABT is the remaining part of S.

[0162] R is divided among all active validator nodes. The division helps prevent monopoly events. Each active validator node further divides R equally among all stakers after deducting a small pre-defined fee, as a non-limiting example, 1% to the node owner. In one or more alternative embodiments, the division may be equal.

[0163] 3, 4, and 5 provide different embodiments of the active validator node selection procedure.

[0164] [First active validator node selection procedure] FIG. 3 illustrates a first active validator node selection procedure 300 in accordance with one or more embodiments of the present technology.

[0165] The purpose of the first active validator node selection procedure 300 is for the two-stage blockchain system 820 to select active validator nodes that will participate in the proof-of-stake consensus process. The first active validator selection procedure 300 is performed by the two-stage blockchain system 820.

[0166] In a first active validator node selection procedure 300, validator nodes may bid primary tokens or stake secondary tokens to be selected as active validators. Active validators may receive secondary token rewards upon consensus.

[0167] In some embodiments, producer nodes may partner with other staker nodes to form validator nodes. Alternatively, a producer node may have its own set of stakers, effectively becoming a validator node.

[0168] The first active validator node selection procedure 300 is executed within the two-stage blockchain system 820 at a given frequency. The frequency may be predetermined based on a period and / or a number of blocks, or may be dynamically determined based on a period and / or a number of blocks. As a non-limiting example, the active validator node selection procedure 300 may be executed every five minutes.

[0169] According to step 310, a secondary token validation is performed, where a validator node is required to have the secondary token in order to be part of the set of candidate active validator nodes and obtain active validator node status, i.e., to proceed to step 320A or step 320B.

[0170] In some embodiments, a validator node that wishes to be part of the set of candidate active validator nodes and become an active validator may be required to have a minimum set of computational resources.

[0171] In one embodiment, a validator node may purchase secondary tokens from an exchange platform. Alternatively, a validator node can purchase secondary tokens directly from other validator nodes using a Peer-to-Peer (P2P) protocol. A validator node with a secondary token can subsequently bid for primary tokens or stake the secondary token to achieve active validator node status.

[0172] According to step 320, a given validator node may bid for a primary token (step 320A) or stake a secondary token (step 320B). It will be understood that a given validator node that bids for a primary token must have the secondary token in its respective wallet, but is not required to stake that secondary token.

[0173] In one or more embodiments, each validator node that wishes to participate in the bidding and staking procedure sends an indication of its bid or stake to the two-stage blockchain system 820, which then verifies whether each validator node has (i) respectively staked a number of secondary tokens equal to or greater than the secondary token stake threshold, or (ii) respectively bid a number of primary tokens equal to or greater than the primary token bid threshold.

[0174] According to step 330B, if the number of respective secondary tokens exceeds the respective secondary stake threshold, the respective validator node is added to the set of candidate active validator nodes.

[0175] If the number of respective secondary tokens falls below the secondary bid threshold, the respective validator node is not added to the set of candidate active validator nodes.

[0176] According to step 330A, if the number of respective primary tokens is greater than or equal to the primary bid threshold, the respective validator node is added to the set of candidate active validator nodes and designated as a super validator node.

[0177] As a non-limiting example, a primary threshold (i.e., minimum) for a primary token bid may be one primary token, and a secondary threshold for a secondary token stake may be 158 secondary tokens.

[0178] According to step 332, active validator node selection is performed. In one or more embodiments, the validator nodes perform multiple rounds of selection to form a set of active validator nodes from a set of candidate active validator nodes. In one or more embodiments, the number of selections may be predetermined by the blockchain system 820. As a non-limiting example, there may be two random selections.

[0179] In one non-limiting example, a first random selection may be performed to select up to 100 supervalidator nodes and up to 100 validator nodes from all validator nodes in the set of candidate active validator nodes. Then, a second random selection may be performed to select up to 100 active validators from the nodes selected in the first round. It will be understood that any other suitable number of nodes may be selected each time. It will be understood that supervalidator nodes have a higher chance of being selected as active validator nodes than the remaining nodes in the set of candidate active validator nodes.

[0180] In one or more embodiments, validator nodes may have an equal chance of being selected as an active validator. Alternatively, other selection mechanisms may be used.

[0181] According to step 340, primary tokens used in successful bids by active validator nodes are burned. Secondary tokens used in successful staking are returned to the active validator nodes. Primary and secondary tokens used in unsuccessful bids (i.e., from validator nodes that were not selected as active validator nodes) are returned to the validator nodes. As already mentioned, burning is the process by which primary tokens are removed from the flow and the number of primary tokens in use is reduced. Primary tokens are sent from the wallets of each of the selected active validator nodes that are super validator nodes (i.e., that bid for primary tokens) to wallet addresses that cannot be used for transactions other than receiving primary tokens. Thus, the total amount of primary tokens in the blockchain ledger 880 is reduced.

[0182] [Second active validator node selection procedure] FIG. 4 illustrates a second active validator node selection procedure 400 in accordance with one or more embodiments of the present technology.

[0183] The second active validator node selection procedure 400 is similar to the first active validator node selection procedure 300, except that validator nodes that wish to participate as active validators are only allowed to bid for their respective amount of primary tokens to be burned.

[0184] The purpose of the second active validator node selection procedure 400 is for the two-stage blockchain system 820 to select active validator nodes that will participate in the proof-of-stake consensus process.

[0185] In the second active validator node selection procedure 400, a validator node must stake secondary tokens and, optionally, may bid primary tokens in order to be selected as an active validator.

[0186] According to step 410, a secondary token validation is performed, where a validator node is required to have the secondary token in order to be part of the set of candidate active validator nodes and obtain active validator node status, i.e., to proceed to steps 420A and 420B.

[0187] After the secondary token validation in step 410, all validator nodes perform step 420A. A validator node may optionally perform step 420B.

[0188] According to step 420, a given validator node stakes secondary tokens (step 420A). A given validator node may optionally bid primary tokens (step 420B). An indication of each stake and bid is sent to the blockchain system 820.

[0189] According to step 430A, a respective validator node is added to the set of candidate active validator nodes if the number of respective secondary tokens exceeds the respective secondary token stake threshold.

[0190] If the number of respective secondary tokens falls below the secondary bid threshold, the respective validator node is not added to the set of candidate active validator nodes.

[0191] According to 430B, if the number of each secondary token is greater than or equal to the respective secondary token threshold, and if the number of each primary token is greater than or equal to the respective primary token threshold, the respective validator node is added to the set of candidate active validator nodes and designated as a super validator node.

[0192] As a non-limiting example, the primary token threshold (i.e., minimum value) for a primary token bid may be one primary token, and the secondary token threshold for a secondary token stake may be 158 secondary tokens.

[0193] According to step 432, active validator node selection is performed. In one or more embodiments, the validator nodes perform multiple rounds of selection to form a set of active validator nodes from a set of candidate active validator nodes. In one or more embodiments, the number of selections may be predetermined by the blockchain system 820. As a non-limiting example, there may be two random selections.

[0194] In one non-limiting example, a first random selection may be performed to select up to 100 supervalidator nodes and up to 100 validator nodes from all validator nodes in the set of candidate active validator nodes. Then, a second random selection may be performed to select up to 100 active validators from the nodes selected in the first round. It will be understood that any other suitable number of nodes may be selected each time.

[0195] In one or more embodiments, validator nodes may have an equal chance of being selected as an active validator. Alternatively, other selection mechanisms may be used.

[0196] According to step 440, primary tokens used in successful bids by active validator nodes (i.e., super validator nodes) are burned. Secondary tokens used in successful staking are returned to the active validator nodes. Primary and secondary tokens used in unsuccessful bids (i.e., from candidate validator nodes that were not selected as active validator nodes) are returned to the validator nodes.

[0197] [Third active validator node selection procedure] FIG. 5 illustrates a third active validator node selection procedure 500 in accordance with one or more embodiments of the present technology.

[0198] The third active validator node selection procedure 500 is similar to the first active validator node selection procedure 300 and the second active validator node selection procedure 300, but the validator nodes only bid for their respective amounts of primary tokens to be burned.

[0199] According to step 510, a secondary token validation is performed, where a validator node is required to have a secondary token in order to be part of the set of candidate active validator nodes and obtain active validator node status, i.e., proceed to step 520. In one or more embodiments, the two-phase token validation is performed by a two-phase blockchain system 820.

[0200] According to step 520, a given validator node bids a respective amount of primary tokens. It will be appreciated that in this embodiment, the validator nodes do not stake the secondary tokens, but require the secondary tokens in their respective wallets in order to bid for the primary tokens.

[0201] In one or more embodiments, each validator node that wishes to participate in the bidding process sends an indication of its bid to the two-stage blockchain system 820, which then verifies whether each validator node has each bid an amount of primary tokens equal to or greater than the primary bid threshold.

[0202] According to step 530, active validator node selection is performed. In one or more embodiments, the two-stage blockchain system 800 selects active validator nodes from a set of candidate active validator nodes that each bid an amount of primary tokens equal to or greater than the primary bid threshold. In one or more embodiments, all of the set of candidate active validator nodes may be selected as active validator nodes.

[0203] According to step 540, the primary tokens used in the successful bids are burned. The primary tokens in the unsuccessful bids are returned to the validator nodes that were not selected as active validator nodes.

[0204] [Primary token issuance procedure] 6 illustrates a primary token issuance procedure 600 according to one embodiment. In one or more embodiments, the primary token issuance procedure 600 is performed within the environment and blockchain system 800 of FIG.

[0205] The purpose of the primary token issuance procedure 600 is to generate a primary token in the blockchain ledger 880, which will influence the generation of secondary tokens in the blockchain ledger 880 in subsequent periods.

[0206] According to step 602, a given asset producing entity is selected.

[0207] In one or more embodiments, a given asset producing entity 802 is selected from multiple asset producing entities by the two-stage blockchain system 820.

[0208] A given asset production entity 802 may be in the process of producing a physical asset and measuring asset production sensor data using sensors 804, or may have produced a physical asset and measured asset production sensor data using sensors 804. The asset production sensor data measured by sensors 804 may be transmitted to a producer node 806 associated with the asset production entity 802.

[0209] Selection of a given asset producing entity includes identifying a producer node 806 that will receive the primary token reward. In one or more embodiments, a producer node 806 associated with the asset producing entity 802 is selected and a respective producer node wallet 808 that will receive the primary token reward is identified.

[0210] According to step 604, the two-stage blockchain system receives asset production data based on the amount of assets produced. In one or more embodiments, the two-stage blockchain system 820 receives asset production data generated based on the asset production sensor data and the asset information from the third-party data source 810. The asset production data may be generated by the producer node 806. In other embodiments, the asset production data may be generated by the feeder 814 using data from the third-party data source 810 and the producer node 806.

[0211] According to step 606, the blockchain system 820 receives trusted production data from a trusted data source. In one or more embodiments, the trusted production data is received from a trusted production data source 812. It will be appreciated that the trusted production data may be determined based on trusted production data from multiple trusted production data sources 812, where the trusted production data is obtained by averaging or reviewing data from multiple trusted production data sources.

[0212] In one or more embodiments, the feeder 814 determines and transmits reliable production data to the two-stage blockchain system 820.

[0213] According to step 608, the blockchain system 820 compares the production data with the trusted production data. It will be appreciated that the comparison process is performed to assess the liability of the production data provided by the producer node 806 associated with the asset producing entity 802. In one or more embodiments, step 608 may be performed using a smart contract. In one embodiment, the producer node 806 may provide an upfront payment to the two-stage blockchain system 820.

[0214] Different techniques may be used to compare the production data to the authoritative production data. It will be appreciated that the respective asset information (e.g., type, quantity, location, quality, condition, ownership, and production capacity) linked to a given asset of the production entity 802 may be used to compare the production data to the authoritative production data.

[0215] In one or more embodiments, the two-stage blockchain system 820 obtains the comparison result. As a non-limiting example, the comparison result may be the difference between the asset production data and the trusted production data.

[0216] According to step 610, the two-stage blockchain system determines a primary token reward based on the comparison result. In one or more embodiments, the two-stage blockchain system 820 determines a primary token reward (i.e., an amount of primary tokens) by selecting a minimum between the asset production data and the reliable production data, receiving a primary token reward function, determining a threshold based on the comparison result, and calculating a primary token reward based on the minimum, the threshold, and the primary token reward function. Thus, producer nodes 806 may be penalized if they report inaccurate asset production data.

[0217] The primary token reward increases the total amount of primary tokens in the blockchain ledger 880.

[0218] In one or more embodiments, the information including the comparison result and the information used to calculate the primary token reward may be added to a pending block in the two-stage blockchain ledger 880. It will be appreciated that at least a portion of the information may be encrypted and / or one-way encrypted in the pending block.

[0219] According to step 612, the two-stage blockchain system transmits the primary token reward to the producer node. In one or more embodiments, the two-stage blockchain system 820 transmits the primary token reward to the producer node 806.

[0220] 7, a flow chart of a method 700 for transmitting respective portions of newly generated secondary tokens to active validator nodes is shown. Method 700 may be performed within a blockchain system 820.

[0221] According to processing step 702, the blockchain system 820 receives asset production sensor data representative of the production of a given physical asset from a producer computer node 806 associated with an asset producing entity 802. The asset production sensor data is measured by a sensor 804 of the asset producing entity 802.

[0222] According to processing step 704, the blockchain system 820 generates a new amount of primary tokens based at least on the asset production data. The generation of a new amount of primary tokens is also referred to as token issuance.

[0223] In one or more embodiments, the new amount of primary tokens corresponds to a primary token reward for a period of time. The amount of primary tokens is generated based on a comparison of the asset production data to the trusted asset production data. The asset production data is determined based on data from a third-party data source 810 and the asset production sensor data and is sent to the blockchain system 820. The trusted asset production data is determined based on the asset production sensor data and data from the trusted data source 812. The blockchain system 820 performs the comparison of the asset production data to the trusted asset production data and, upon consensus, determines and generates a new amount of primary tokens.

[0224] According to processing step 706, the blockchain system 820 sends the newly generated amount of primary tokens to the producer computer node 806. The current total amount of primary tokens in the blockchain ledger 880 corresponds to the newly generated amount of primary tokens and the total amount of primary tokens (i.e., the sum generated over the entire time period). The blockchain system 820 sends the generated amount of primary tokens to the producer node wallet 808 of the producer node 806.

[0225] According to process step 708, the blockchain system 820 generates a new amount of secondary tokens based on the current total amount of primary tokens.

[0226] The new amount of secondary tokens corresponds to the total amount of secondary token rewards that will be distributed to active validator nodes for the current period.

[0227] In one or more embodiments, the new amount of secondary tokens is determined based on the secondary block reward for the previous period, the primary token reward for the previous period, and the previous primary token reward for the previous period, as well as an asset production increase parameter.

[0228] According to processing step 710, the blockchain system 820 receives at least one respective bidded amount of primary tokens and respective staked amount of secondary tokens from a set of validator computer nodes from a plurality of validator computer nodes. The set of validator computer nodes that have bid the primary tokens and / or staked the secondary tokens form a set of candidate active validator nodes.

[0229] According to processing step 712, the blockchain system 820 selects a set of active validator computer nodes from the set of validator computer nodes based on at least one of the respective bidded amounts of primary tokens and the respective staked amounts of secondary tokens.

[0230] In one or more embodiments, the set of active validator computer nodes includes a super validator computer node.

[0231] According to process step 714, active validator nodes validate pending blocks during consensus to obtain new blocks in the blockchain ledger 880. Pending blocks are proposed by a given validator node prior to process step 714.

[0232] According to processing step 716, the blockchain system 820 transmits a respective portion of the new amount of secondary tokens to each of the set of active validator nodes. The current total amount of secondary tokens in the two-stage blockchain ledger 880 is based on the new amount of secondary tokens generated.

[0233] In one or more embodiments, prior to processing step 716, the blockchain system 820 determines respective portions of the new amount of secondary tokens, each of which corresponds to a respective amount of secondary token rewards to be sent to each active validator node.

[0234] In one or more embodiments, the blockchain system 820 burns the primary token of each bid from an active validator node, i.e., removes the bid's primary token from the current total amount of primary tokens in the blockchain ledger 880.

[0235] Processing steps 702 through 716 may be repeated in the blockchain system 820 for each new period.

[0236] 9, a computing device 1000 suitable for use with some implementations of the present technology is shown. The computing device 1000 comprises various hardware components including one or more single or multi-core processors collectively represented by a processor 1002, a graphics processing unit (GPU) 1004, a storage drive such as a solid-state drive 1006, random access memory 1008, a display interface 1010, and an input / output interface 1012.

[0237] In one or more embodiments, the computing device 1000 may be used to implement the producer computer node 106 and multiple computer nodes 822 , 824 , 826 , 828 .

[0238] Communications between the various components of computing device 1000 are enabled by one or more internal and / or external buses 1014 (e.g., PCI bus, Universal Serial Bus, IEEE 1394 "Firewire" bus, SCSI bus, Serial-ATA bus, etc.) to which the various hardware components are electronically coupled.

[0239] The input / output interface 1012 may be coupled to a touchscreen 1016 and / or to one or more internal and / or external buses 1014. The touchscreen 1016 may be part of a display. In one or more embodiments, the touchscreen 1016 is a display. The touchscreen 1016 may also be referred to as a screen 1016. In the embodiment shown in FIG. 1, the touchscreen 1016 comprises touch hardware 1018 (e.g., pressure-sensitive cells embedded in a layer of the display that allow for detection of physical interaction between a user and the display) and a touch input / output controller 1020 that allows for communication with the display interface 1010 and / or one or more internal and / or external buses 1014. In one or more embodiments, the input / output interface 1012 may be connected to a keyboard (not shown), a mouse (not shown), or a trackpad (not shown) in addition to or in place of the touchscreen 1016 to allow a user to interact with the computing device 1000.

[0240] According to an implementation of the present technology, the solid-state drive 1006 stores program instructions suitable to be loaded into the random access memory 1008 and executed by the processor 1002 and / or the GPU 1004 for asset-based consensus according to embodiments of the methods presented herein. For example, the program instructions may be part of a library or an application.

[0241] Computing device 1000 may be implemented as a server, a desktop computer, a laptop computer, a tablet, a smartphone, a digital personal assistant, or any device suitable for implementing the present technology as will be appreciated by one of ordinary skill in the art.

[0242] In the proposed two-stage token system for use in the consensus process, the two-stage blockchain protocol incentivizes producer nodes associated with asset producers to run validator nodes and participate in the bidding and staking process for block rewards. Nodes that bid more primary tokens may have an advantage. This incentivizes real economy activity to obtain block rewards. For example, more asset production leads to more primary tokens, more bids, and a higher percentage of rewards per block. Additionally, more asset production leads to more primary tokens, more frequently running validator nodes, and receiving block rewards.

[0243] In the proposed two-stage token system, the consensus process and business interests are separate. The two-stage blockchain protocol issues secondary tokens that are separate from the underlying assets and therefore not subject to the asset-backed token regulations. Asset-producing entities may conduct their business and investment activities independent of the blockchain protocol and operate in accordance with all applicable regulations. The two-stage blockchain protocol has no ownership or claim to any assets or the business activities of asset producers.

[0244] According to an embodiment of the proposed two-stage token system, real assets from asset producing entities are used to issue secondary tokens while preventing malicious entities from freely issuing secondary tokens.

[0245] In some embodiments, secondary tokens are only awarded to nodes that participate in the proof-of-stake consensus process. The technology is a secure proof-of-stake system, making protocol attacks economically infeasible. All nodes require a threshold level of secondary tokens to operate, and attacks against the protocol require a large amount of secondary tokens to be obtained from the market. In addition, bidding for secondary tokens is not guaranteed to lead to the ability to manipulate consensus, since the selection of validator nodes based on secondary bidders is random, and there are also primary nodes involved in the validation process.

[0246] Additionally, secondary tokens are not awarded directly to asset producer nodes associated with the asset producing entities. Producer nodes only need to issue primary tokens and bid for a chance to receive an increased block reward. The asset producing entities must still operate validator nodes and thereby further secure the network before they can earn the secondary reward.

[0247] In the proposed two-stage token system, the primary token serves as a shield to protect the secondary token from dishonest asset producers who attempt to freely issue secondary tokens. Furthermore, embodiments are provided to limit the overall impact of fraudulent asset producers who manage to issue primary tokens in the present two-stage blockchain protocol. As described above, to run a validator node, a producer node must accumulate enough secondary tokens to become an active validator, and optionally bid for primary or secondary tokens. Since validators are selected randomly, there is no guarantee that a fraudulent producer node will be selected as an active validator.

Claims

1. A method for sending secondary tokens to a series of activate validator computer nodes in a blockchain system, The aforementioned blockchain system Equipped with multiple validator computer nodes connected via a communication network, The blockchain system maintains a two-stage blockchain ledger, and the two-stage blockchain ledger is Primary tokens are the first type of token associated with the production of physical assets, A secondary token, which is a second type of token, wherein the total amount of the secondary tokens depends on the total amount of the primary tokens, and the secondary token is a protocol token of the two-stage blockchain ledger used to carry out transactions, wherein a new amount of secondary tokens is generated and awarded to the set of activate validator computer nodes that verify the transactions, and Equipped with, The blockchain system is connected to a producer computer node, and the method is Receiving asset production sensor data representing the production of a given physical asset from the producer computer node associated with the asset production entity, wherein the asset production sensor data is measured by the sensors of the asset production entity. Based at least on the aforementioned asset production sensor data, a new amount of primary tokens is generated, The process involves transmitting the newly generated amount of primary tokens to the producer computer node, wherein the current total amount of primary tokens is based on the newly generated amount of primary tokens and the total amount of primary tokens. Based on the current total amount of the primary tokens, generate the new amount of secondary tokens, Receiving at least one of the bidden amount of primary tokens and the staked amount of secondary tokens from a set of validator computer nodes from the aforementioned plurality of validator computer nodes, Selecting a set of active validator computer nodes from the set of validator computer nodes based on at least one of the bid amounts of primary tokens and the staked amounts of secondary tokens, During consensus by the aforementioned series of active validator computer nodes, the pending blocks are verified and a new block is obtained in the two-stage blockchain ledger, wherein the new block comprises at least the representation of the generated amount of primary tokens and the representation of the total amount of secondary tokens. The process involves transmitting each portion of the newly generated amount of secondary tokens to each of the series of active validator computer nodes, wherein the current total amount of secondary tokens in the two-stage blockchain is based on the newly generated amount of secondary tokens. Methods that include...

2. Selecting the set of active validator computer nodes from the set of validator computer nodes based on at least one of the respective bid amounts of primary tokens and the respective staked amounts of secondary tokens is: Selecting a subset of the set of validator nodes as supervalidator nodes based on the respective bid amounts of primary tokens, wherein the supervalidator nodes are a subset of the set of active validator computer nodes. Determining, for the supervalidator node, each portion of the newly generated amount of secondary tokens, wherein each portion for the supervalidator node is greater than each portion of the generated amount of secondary tokens for the rest of the set of active validator computer nodes. The method according to claim 1, including the method described in claim 1.

3. The method according to claim 2, further comprising burning each of the bidden amounts of primary tokens, wherein the burning results in a decrease in the current total amount of primary tokens based on each of the bidden amounts of primary tokens.

4. The method according to claim 3, further comprising sending the respective staked amounts of secondary tokens to the series of active validator computer nodes.

5. Generating the aforementioned new amount of secondary tokens is, During consensus-building using the aforementioned blockchain system, the parameter for increasing asset production is determined, The newly generated amount of secondary tokens is determined based on the asset production increase parameter and the total amount of primary tokens. The method according to claim 1, including the method described in claim 1.

6. Generating the new amount of primary tokens on the producer computer node is: Receiving asset production data generated based on the aforementioned asset production sensor data, Receiving reliable production data from a trusted data source connected to the aforementioned blockchain system, The asset production data is compared with the reliable production data, and the comparison results are obtained. To determine the new amount of primary tokens based on the comparison results. The method according to claim 1, including the method described in claim 1.

7. During consensus by the series of active validator computer nodes, verify the pending block which includes at least the representation of the generated amount of primary tokens, and before acquiring the new block in the two-stage blockchain ledger, A given node of the series of validator computer nodes generates the pending blocks for the current period based on the asset production sensor data. The method according to claim 1, further comprising:

8. The method according to claim 7, further comprising determining each portion of the newly generated amount of secondary tokens to be transmitted to the given node.

9. The method according to claim 1, wherein the total amount of the primary tokens is the total amount of primary tokens from the previous period.

10. The producer computer node receives additional requests to the blockchain system as a new validator computer node, When consensus is reached by the validator computer node, the producer computer node is added to the blockchain system as a new validator computer node. The method according to claim 1, further comprising:

11. The method according to claim 1, wherein the series of active validator computer nodes is an inappropriate subset of the series of validator computer nodes.

12. Each validator computer node stores its own wallet containing its set of encryption keys, its respective amount of secondary tokens, and its respective amount of primary tokens. The method according to claim 1, wherein the producer computer node stores each producer wallet having each set of producer encryption keys, and each producer wallet is for receiving the newly generated amount of primary tokens.

13. The method according to any one of claims 1 to 12, wherein the given physical asset includes at least one of precious metals, energy commodities, agricultural products, and industrial metals.

14. A system for sending each portion of a new amount of secondary tokens to a series of activate validator computer nodes in a two-stage blockchain ledger, The aforementioned two-stage blockchain ledger is Primary tokens are the first type of token associated with the production of physical assets, A secondary token, which is a second type of token, wherein the total amount of the secondary tokens depends on the total amount of the primary tokens, and the secondary token is a protocol token of the two-stage blockchain ledger used to carry out transactions, wherein a new amount of secondary tokens is generated and awarded to the set of activate validator computer nodes that verify transactions, The aforementioned system, Equipped with multiple validator computer nodes connected via a communication network, The aforementioned system, A producer computer node connected to the system, which is associated with an asset production entity, receives asset production sensor data representing the production of a given physical asset, wherein the asset production sensor data is measured by the sensor of the asset production entity. Based at least on the asset production sensor data, generate the new amount of primary tokens, The process involves transmitting the newly generated amount of primary tokens to the producer computer node, wherein the current total amount of primary tokens is based on the newly generated amount of primary tokens and the total amount of primary tokens. Based on the current total amount of the primary tokens, a new amount of secondary tokens is generated. Receiving at least one of the bidden amount of primary tokens and the staked amount of secondary tokens from a set of validator computer nodes from the aforementioned plurality of validator computer nodes, Selecting a set of active validator computer nodes from the set of validator computer nodes based on at least one of the bid amounts of primary tokens and the staked amounts of secondary tokens, During consensus by the aforementioned series of active validator computer nodes, the pending blocks are verified and a new block is obtained in the two-stage blockchain ledger, wherein the new block comprises at least the representation of the generated amount of primary tokens and the representation of the total amount of secondary tokens. The process involves transmitting each portion of the newly generated amount of secondary tokens to each of the series of active validator computer nodes, wherein the current total amount of secondary tokens in the two-stage blockchain is based on the newly generated amount of secondary tokens. A system configured for that purpose.

15. Selecting the set of active validator computer nodes from the set of validator computer nodes based on at least one of the respective bid amounts of primary tokens and the respective staked amounts of secondary tokens is: Selecting a subset of the set of validator computer nodes as supervalidator nodes based on the respective bid amounts of primary tokens, wherein the supervalidator nodes are a subset of the set of active validator computer nodes. Determining, for the supervalidator node, each portion of the newly generated amount of secondary tokens, wherein each portion for the supervalidator node is greater than each portion of the generated amount of secondary tokens for the rest of the set of active validator computer nodes. The system according to claim 14, including the system described in claim 14.

16. The system according to claim 15, comprising burning each of the bidden amounts of primary tokens, the burning further comprising causing a decrease in the current total amount of primary tokens based on each of the bidden amounts of primary tokens.

17. The system according to claim 16, further configured for sending the respective staked amounts of secondary tokens to the series of active validator computer nodes.

18. Generating the aforementioned new amount of secondary tokens is, During the consensus process using the aforementioned system, the asset production increase parameter is determined, The newly generated amount of secondary tokens is determined based on the asset production increase parameter and the total amount of primary tokens. The system according to claim 14, including the system described in claim 14.

19. Generating the aforementioned new amount of primary tokens is, Receiving asset production data generated based on the aforementioned asset production sensor data, The system receives reliable production data from a reliable data source connected to the aforementioned system. The asset production data is compared with the reliable production data, and the comparison results are obtained. To determine the new amount of primary tokens based on the comparison results. The system according to claim 14, including the system described in claim 14.

20. During consensus by the series of active validator computer nodes, verify the pending block which includes at least the representation of the generated amount of primary tokens, and before acquiring the new block in the two-stage blockchain ledger, The system according to claim 14, wherein a given node of the series of validator computer nodes is further configured to generate the pending blocks for the current period based on the asset production sensor data.

21. The system according to claim 20, further configured for determining each portion of the newly generated amount of secondary tokens to be transmitted to the given node.

22. The system according to claim 14, wherein the total amount of the primary tokens is the total amount of primary tokens from the previous period.

23. The system receives additional requests from the producer computer node as a new validator computer node, When the validator computer node reaches a consensus, the producer computer node is added to the system as a new validator computer node. The system according to claim 14, further configured for the purpose of

24. The system according to claim 14, wherein the series of active validator computer nodes is an inappropriate subset of the series of validator computer nodes.

25. Each validator computer node stores its own wallet containing its set of encryption keys, its respective amount of secondary tokens, and its respective amount of primary tokens. The system according to claim 14, wherein each producer computer node stores a producer wallet having a set of producer encryption keys, and each producer wallet is for receiving the newly generated amount of primary tokens.

26. The system according to any one of claims 14 to 25, wherein the given physical assets include at least one of precious metals, energy commodities, agricultural products, and industrial metals.

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