Batched Private Stake Rewards Calculation for Blockchain Settlement
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Solution Overview
Problem
Current payment systems using cryptocurrencies are vulnerable to security breaches, fraud, and identity theft, and transactions are inconvenient, time-consuming, and expensive due to reliance on existing payment networks and public blockchain transactions.
Innovation Solution
A secure and trusted cryptocurrency acceptance system that uses a network cryptocurrency wallet backed by collateral cryptocurrency, where transactions are validated by a consensus network and managed off-chain to ensure privacy and security, with collateral cryptocurrency held until confirmations are received, and transaction fees used to reward staking entities for maintaining system security.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If transactions are processed through existing payment networks and public blockchain, then transaction validation and security are provided, but transaction costs increase and processing time is extended
Solution Approach 1:
The system segments transaction processing into two distinct layers: an off-chain layer for rapid transaction execution and validation using a consensus network, and an on-chain layer for periodic settlement and final confirmation. This segmentation allows most transactions to be processed quickly off-chain while only periodic batch settlements require blockchain confirmation, thereby reducing overall processing time while maintaining security.
Solution Approach 2:
The patent introduces a consensus network as an intermediary layer between users and the public blockchain. This consensus network validates transactions and maintains a ledger of transactions locally, acting as a mediator that provides blockchain-like security without requiring direct interaction with the slow and expensive public blockchain for every transaction.
2Reliability
If public blockchain transactions are used, then transparency and immutability are achieved, but transaction privacy is compromised
Solution Approach 1:
The system separates transaction data into two categories: sensitive transaction details that remain private in the off-chain consensus network, and only essential settlement information that is periodically published to the public blockchain. This segmentation preserves privacy for individual transactions while maintaining immutability through periodic on-chain anchoring.
Solution Approach 2:
The patent extracts only the necessary settlement information from complete transaction data before publishing to the public blockchain. By taking out and publishing only minimal required information (such as hashed transaction identifiers or aggregated settlement data) rather than full transaction details, the system maintains blockchain immutability while protecting transaction privacy.
3Reliability
If collateral cryptocurrency is held until confirmations are received, then double spending prevention is achieved, but transaction speed is reduced
Solution Approach 1:
The system performs preliminary validation of transactions through the consensus network before final blockchain settlement. The consensus network pre-validates transactions and holds collateral temporarily, performing the necessary security checks in advance so that when transactions are settled on-chain, the speed penalty is minimized because the heavy validation work has already been completed.
Solution Approach 2:
Instead of requiring confirmation for every single transaction, the system uses periodic batch settlements where multiple validated transactions are grouped and settled together at intervals. This periodic action maintains double-spending prevention through the consensus network's continuous validation while reducing the effective confirmation time experienced by users.
Data Source
AI summary
A method includes determining, by a stake account manager, to distribute rewards to one or more stake accounts of a stake pool, obtaining privately stored stake account information of the one or more stake accounts and a rewards balance of the stake pool, calculating a reward amount of the rewards balance owed to each stake account of the one or more stake accounts based on the privately stored stake account information, and performing a batched and secure calculation technique on the calculated reward amounts to produce a batched and secure rewards distribution summary. The batched and secure rewards distribution summary ensures that each reward amount is calculated correctly and that the privately stored stake account information remains private. The method further includes publishing the batched and secure rewards distribution summary to the blockchain. The publishing the batched and secure rewards distribution summary deposits reward amounts to the each stake account.