Blockchain DAG Transaction System with Smart Contract Incentives
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Solution Overview
Problem
Current transaction systems face challenges in maintaining robustness, reliability, and security against malicious attacks while efficiently processing transactions in a decentralized environment, particularly in ensuring the verification of work and incentivizing participating nodes.
Innovation Solution
A transaction system utilizing a blockchain with a directed acyclic graph (DAG) for defining relationships between blocks, where smart contracts define consideration for work completion, and temporary data/code is stored and modified within the DAG to optimize transaction processing, incorporating encryption and obfuscation for enhanced security.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If a blockchain arrangement with encryption is used to secure transactions, then security against malicious attacks is improved, but transaction processing speed and system efficiency deteriorate
Solution Approach 1:
The patent segments the blockchain structure into blocks that are processed in parallel using a directed acyclic graph (DAG) arrangement. Each block contains specific transaction data and is verified independently through cryptographic hashing, allowing simultaneous processing of multiple transactions rather than sequential processing, thus maintaining security while improving throughput
Solution Approach 2:
The patent replaces traditional mechanical consensus mechanisms (like proof-of-work mining) with a cryptographic verification system based on hash chains and digital signatures. The DAG structure enables cryptographic verification of transaction validity without requiring energy-intensive computational puzzles, substituting mechanical brute-force verification with efficient cryptographic proof validation
2Reliability
If a distributed ledger system is implemented to verify work and incentivize nodes, then reliability and robustness are improved, but system complexity and computational overhead increase
Solution Approach 1:
The patent creates a universal smart contract framework that handles multiple functions within a single standardized structure: transaction verification, incentive distribution, work validation, and state management all occur through the same contract execution mechanism. This multi-functionality reduces the need for separate specialized components, simplifying the overall system architecture while maintaining distributed verification capabilities
Solution Approach 2:
The patent introduces smart contracts as intermediary entities that mediate between participating nodes and the blockchain ledger. These contracts automatically enforce transaction rules, validate work completion, and distribute incentives without requiring direct complex interactions between nodes, thereby reducing system complexity through automated intermediary management
3Reliability
If encryption and obfuscation are applied at each transaction step, then security is enhanced, but energy consumption and processing time increase
Solution Approach 1:
The patent applies preliminary cryptographic hashing to transaction data before inclusion in blocks. By pre-computing hash values and preparing encrypted transaction structures in advance, the system reduces the computational burden during actual transaction processing and verification, lowering energy consumption while maintaining security through pre-established cryptographic protections
Data Source
AI summary
There is provided a transaction system that includes a plurality of computing nodes that are mutually interconnected via a data communication network to exchange encrypted data therebetween. The transaction system employs a blockchain whose entries are recorded in a ledger. A directed acyclic graph (DAG) is utilized for defining relationships between blocks of the blockchain. The DAG comprises a plurality of proposed solutions to problems posed in the one or more smart contracts. Each of the one or more smart contracts includes machine-readable elements including at least one of: a data specification, an initial mining algorithm, an objective function for scoring the plurality of proposed solutions. The transaction system operates to cause the DAG to store temporary data and/or extended algorithm code used during an execution of a given transaction, wherein the temporary data and/or extended algorithm code stored in the DAG is to be removed once the execution of the given transaction is complete, further wherein the temporary data and/or extended algorithm code stored in the DAG is to be modified in response to new solutions arising during operation of the transaction system. The transaction system operates to accommodate a given smart contract defining a problem that is to be solved, giving a plurality of parties of the transaction system an opportunity to receive consideration when the problem is solved, and wherein the consideration is a quantity representing at least one of: an access to data storage, an access to data memory, an access to data communication system bandwidth, access to data communication channels or ports, data processor energy use, data processor energy dissipation, an access time taken by data processing resources during transactions, heat generation in computing hardware, cooling energy applied to computing hardware or any other measure associated with one or more CPU cycles.