Atomic Digital Asset Transfers with Locks and Execution Nodes
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Solution Overview
Problem
In distributed ledger systems, the risk of non-performance by intermediary nodes during token or digital asset transfers along a chain of nodes is a significant issue, leading to potential failures and incomplete transactions due to system outages, human errors, or intentional non-delivery, especially in multi-party transactions.
Innovation Solution
A computer system and method that utilize digital locks and computational nodes to ensure atomic transactions by verifying cryptographic authorization and sufficient asset availability among nodes, enabling simultaneous recording of component transactions on a distributed ledger with common timestamps, and using execution nodes to unlock and transfer assets atomically.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If intermediary nodes are used to facilitate transactions between multiple nodes, then transaction routing and asset transfer capability are improved, but the number of failure points and security risks increase
Solution Approach 1:
The system performs preliminary verification of cryptographic authorization and sufficient asset balance for all participating nodes before the transaction is executed. Digital locks are placed on assets in advance to prevent double-spending or unauthorized transfers. This preliminary action ensures that even if intermediary nodes fail, the transaction can be completed atomically without compromising reliability.
Solution Approach 2:
The patent introduces a coordinator node that acts as a mediator to manage the atomic transaction process. This coordinator orchestrates the verification, locking, and execution steps across multiple nodes, ensuring that all participants are ready before execution begins. The intermediary coordinator reduces overall system risk by centralizing the transaction management logic while maintaining distributed asset custody.
2Reliability
If cryptographic verification and digital locks are implemented for all nodes, then transaction security and integrity are improved, but computational overhead and processing time increase
Solution Approach 1:
Cryptographic verification of node authorization and checking of asset balances are performed in advance before the actual transaction execution. Digital locks are established beforehand on the assets involved. This preliminary verification ensures that when the transaction executes, the time-consuming security checks have already been completed, reducing the perceived processing time while maintaining high security standards.
Solution Approach 2:
The transaction process is segmented into distinct phases: verification phase, locking phase, and execution phase. Each phase handles specific computational tasks independently. The verification phase checks cryptographic authorization, the locking phase places digital locks on assets, and the execution phase transfers assets. This segmentation allows parallel processing of independent verification tasks across multiple nodes, improving overall throughput while maintaining security.
Data Source
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AI summary
The present disclosure relates to methods and systems to settle a transaction involving a plurality of digital assets (7), comprising receiving a notification of a proposed transaction (5) comprising a plurality of proposed component atomic transactions that atomically transfer at least a portion of the plurality of digital assets from one or more transferring nodes to one or more receiving nodes (9, 11, 17). The method further comprises at least in part determining or verifying that each transferring and receiving computer node (9, 11, 17) is cryptographically authorized to receive and/or transfer at least some of the plurality of digital assets (7), and that each transferring and receiving computer node (9, 11, 17) has a sufficient amount of the plurality of digital assets. The method further comprises sending an authorization notification to at least one execution node (19) to transfer the plurality of digital assets (7) from the transferring computer nodes to the receiving computer nodes to settle the proposed transaction.