Blockchain Auction Transactions Using Oracle Multi-Signatures
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Solution Overview
Problem
Existing auction processes require a trusted third party, which can compromise sensitive bidder data if security is breached, and involve undesirable levels of trust.
Innovation Solution
A blockchain-based method for transferring digital assets using multi-signature transactions, where each transaction requires signatures from multiple users to validate and broadcast, minimizing trust in intermediaries and ensuring secure, automated auction processes.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If a trusted third party is used to receive and manage bids in an auction, then the auction process can be centralized and coordinated, but the security of bidder data is compromised and excessive trust is required in the third party
Solution Approach 1:
The patent extracts the trusted third party from the auction system by implementing a decentralized blockchain-based auction platform. Bids are recorded directly on the blockchain without requiring a central intermediary to hold or manage bidder data, eliminating the security vulnerability while maintaining auction coordination through smart contracts
Solution Approach 2:
The patent introduces blockchain technology as a new intermediary that replaces the traditional trusted third party. The blockchain acts as a decentralized mediator that coordinates auctions through its immutable ledger and smart contract execution, providing security without requiring trust in any single entity
2Reliability
If all blockchain transactions are processed and stored on the network, then complete transaction history is maintained, but processing time and memory requirements increase
Solution Approach 1:
The patent applies preliminary action by having bidders sign their bids locally before submission to the blockchain. This pre-signing process validates bid authenticity in advance, reducing the computational burden on the blockchain network during auction execution and accelerating transaction processing while maintaining complete audit trails
Data Source
Figure 1~2
AI summary
A method of transferring a digital asset is disclosed. The method comprises generating first blockchain transactions (T1), each having an output unlockable by means of a digital signature of respective buyer and a digital signature of an oracle, generating a second blockchain transaction (T2) corresponding to each first blockchain transaction and having an input corresponding to the output of the corresponding first blockchain transaction and an output unlockable by means of the digital signature of the corresponding buyer, and generating a third blockchain transaction (T3), corresponding to each first blockchain transaction and having an input corresponding to the output of the corresponding first blockchain transaction and an output unlockable by means of a digital signature of a seller. A first blockchain transaction is selected for signature and is signed with the digital signatures of the respective buyer and the oracle, and the corresponding third blockchain transaction is broadcast to the blockchain to enable the corresponding digital asset to be redeemed by the seller.