Blockchain Cheque Script UTXO Asset Transfer
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Solution Overview
Problem
Current blockchain networks face inefficiencies in transferring assets due to the need for the entity and amount to be specified upfront, leading to high transaction costs and limitations in facilitating future payments, as funds must be escrowed, making certain transactions uneconomic.
Innovation Solution
Implementing a cheque system within blockchain networks that allows funds to be managed through unspent transaction outputs (UTXOs), enabling the drawer to create a cheque script with a signature, generating an UTXO, and transferring crypto assets, allowing the payee to claim a portion while allowing the drawer to retain or reclaim remaining funds.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If funds are escrowed in blockchain networks with upfront specification of entity and amount, then transaction security is improved, but transaction flexibility and economic viability deteriorate
Solution Approach 1:
The patent segments the fund transfer process into multiple stages: (1) drawer creates cheque script with signature, (2) system generates UTXO satisfied by script and signature, (3) crypto assets are transferred to UTXO, (4) payee executes script to claim portion of assets. This segmentation allows the drawer to retain control over remaining funds while ensuring secure transfer of specified amount, resolving the contradiction between security and flexibility.
Solution Approach 2:
The drawer performs preliminary actions by creating the cheque script with signature and generating the UTXO before the actual fund transfer. The UTXO is pre-configured with the script and signature conditions, allowing the payee to claim funds only when conditions are met. This preliminary setup ensures security while maintaining flexibility for future payments.
2Loss of information
If entity and amount are specified upfront in blockchain operations, then transaction clarity is improved, but transaction cost efficiency deteriorates
Solution Approach 1:
The drawer creates the cheque script and generates the UTXO with the specified amount in advance. This preliminary action establishes clear transaction parameters (entity and amount) before execution, ensuring transaction clarity. The system then efficiently processes only the necessary conditions verification during execution, reducing overall transaction costs and energy consumption.
Solution Approach 2:
The cheque script automatically executes itself when conditions are met. The payee simply needs to provide the signature to trigger the automatic transfer of the specified amount from the UTXO. This self-service mechanism eliminates the need for complex manual processing, reducing transaction costs and improving efficiency while maintaining clarity.
3Reliability
If funds must be escrowed for future payments, then payment security is improved, but economic viability deteriorates
Solution Approach 1:
The patent segments the fund control into two parts: (1) the specified amount is locked in the UTXO satisfying the cheque script, ensuring payment security, and (2) the drawer retains control over remaining funds in their wallet. This segmentation allows the drawer to maintain economic viability by not having to escrow all funds, while still ensuring secure payment of the specified amount when the cheque is cashed.
Solution Approach 2:
The drawer creates the UTXO with the specified amount in advance, establishing a secure foundation for future payments. However, the drawer retains the ability to spend or reclaim remaining funds before the cheque is cashed. This preliminary action ensures payment security for the specified amount while maintaining economic viability for the drawer through retained control over additional funds.
Data Source
AI summary
A network may receive a cheque script with a signature from a drawer and generate an unspent transaction output (UTXO) satisfied by the script and the signature from the drawer. The Network may also transfer crypto assets of the drawer to the UTXO and execute the cheque script to claim a portion of the crypto assets for a payee.