Batched Smart Contract for Low-Fee Custodial Withdrawals
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Solution Overview
Problem
Custodial token platforms face significant transaction fee overhead due to the need for multiple withdrawal transactions when managing cryptocurrency transfers, which can become resource-intensive and costly as hundreds or thousands of transactions are performed daily.
Innovation Solution
Deployment of a batched smart contract on a blockchain network to manage multiple withdrawals via a single transaction, aggregating individual withdrawal requests into a batched smart contract that facilitates transfers to external addresses through a single transaction on the blockchain ledger.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If multiple withdrawal transactions are processed individually on the blockchain network, then each withdrawal request can be handled independently and quickly, but the number of transactions increases significantly leading to higher transaction fee overhead and resource consumption
Solution Approach 1:
The patent combines multiple individual withdrawal transactions into a single batched transaction. The smart contract aggregates multiple withdrawal requests and processes them together in one blockchain transaction, thereby reducing the total number of transactions from N individual transactions to 1 batched transaction, significantly lowering transaction fee overhead while maintaining the ability to handle multiple withdrawal requests
2Ease of operation
If multiple individual withdrawal transactions are used, then withdrawal processing can be simple and direct, but the complexity of wallet orchestration increases as the platform needs to manage complex wallet operations across various wallets
Solution Approach 1:
The patent introduces a batched smart contract as an intermediary between the withdrawal requests and the blockchain network. This smart contract acts as a mediator that receives multiple withdrawal requests, validates them, aggregates them into a single transaction, and executes the transfers. This intermediary layer simplifies the wallet orchestration complexity by centralizing the transaction management logic in the smart contract rather than requiring complex coordination across multiple wallets and transactions
3Loss of energy
If a batched smart contract is deployed to aggregate multiple withdrawals into a single transaction, then transaction fee overhead and resource consumption are significantly reduced, but the system complexity increases due to the need to manage and coordinate batch processing
Solution Approach 1:
The batched smart contract is designed to be self-executing and self-managing. Once deployed, it automatically receives withdrawal requests, validates them against predefined conditions, aggregates them into batches, and executes the transactions without requiring external coordination or manual intervention. The smart contract manages its own state, tracks balances, and handles the batch processing logic internally, thereby reducing the operational complexity of managing batch processing coordination
Data Source
AI summary
A custodial token platform may implement a single smart contract for outbound messages. The custodial token platform may deploy, to a blockchain distributed data store, a self-executing program that batches messages from the self-executing program to multiple addresses of the blockchain distributed data store that are external to a custodial token platform associated with the self-executing program. The custodial token platform may select, from the multiple withdrawal requests and based on selection criteria, a set of withdrawal requests to fulfill via a batch message from the self-executing program. The custodial token platform may broadcast, to the blockchain distributed data store, a message that calls the self-executing program. The message includes an indication of a set of external addresses associated with the set of withdrawal requests, and the message causes a transfer of a set of crypto tokens from the self-executing program to the external addresses via the batch message.