Bilateral Assertion Model for Confidential Transaction Consensus
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Solution Overview
Problem
Current financial systems and electronic transaction processing systems face challenges in achieving consensus among participants for transaction rules, leading to inefficiencies and lack of confidentiality in transactions.
Innovation Solution
The implementation of a bilateral assertion model (BAM) using a bilateral distributed ledger (BDL) provides a framework for electronically achieving consensus among participants through a protocol that specifies participation, access, and validation protocols, enabling secure and confidential transaction processing.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If a replicated ledger with full transparency is used (e.g., Bitcoin blockchain), then transaction integrity and reliability are improved, but transaction confidentiality deteriorates
Solution Approach 1:
The patent segments the replicated ledger into multiple views or projections, where different participants can access different levels of detail or filtered information. This allows transaction integrity to be maintained through replication while enabling transaction confidentiality by restricting access to specific information based on participant roles or permissions.
Solution Approach 2:
The patent implements local quality by allowing different participants in the distributed ledger system to have different access rights and visibility levels. Each participant can access the ledger with customized filters or projections that maintain their need for transaction integrity while preserving confidentiality requirements for specific transactions or parties.
2Loss of information
If a centralized system is used for transaction processing, then transaction confidentiality can be maintained, but system reliability and participant trust deteriorate
Solution Approach 1:
The patent merges the benefits of centralized control for confidentiality with distributed replication for reliability by implementing a hybrid model. A centralized consensus mechanism or coordinator maintains transaction confidentiality through controlled access, while distributed ledger replication ensures system reliability and participant trust through cryptographic verification and redundancy.
Solution Approach 2:
The patent introduces a trusted intermediary or coordinator component that facilitates transaction processing while maintaining confidentiality. This intermediary acts as a mediator between participants, enabling them to verify transaction integrity through distributed consensus while the intermediary manages access controls and confidentiality requirements.
3Reliability
If a distributed replicated ledger is used, then system reliability is improved, but achieving consensus among participants becomes more complex
Solution Approach 1:
The patent implements a universal consensus protocol framework that can adapt to different transaction processing requirements without requiring custom complex protocols for each scenario. The framework provides multi-functional capabilities including conflict resolution, consistency maintenance, and participant coordination through standardized mechanisms that reduce overall system complexity while maintaining reliability.
Solution Approach 2:
The patent utilizes parameter changes in the consensus protocol to optimize performance and complexity based on specific operational conditions. By dynamically adjusting parameters such as consensus thresholds, validation rules, or synchronization mechanisms, the system maintains high reliability while managing the complexity of achieving consensus among distributed participants.
Data Source
AI summary
The disclosed embodiments relate to implementation of an electronic framework, also referred to as a protocol or architecture, for electronically achieving, recording and implementing, via an electronic communications network, consensus among participants for the definition, implementation and operation of an electronic transaction processing system as a precursor to the operation of that transaction processing system in processing transactions according to the consensus among the participants. The disclosed consensus framework provides a system and protocol by which new electronic transaction processing systems may be developed and implemented among participants via an electronic negotiation and implementation of the operational rules therefore. The disclosed embodiments eliminate the need for out of band consensus negotiations and provide flexibility for participants to negotiate acceptable operational rules which can support complex transactional processes in an electronic environment.