Blockchain Guarantee Processing with Zero-Knowledge Proofs
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Solution Overview
Problem
Current secure messaging networks, such as SWIFT, face inefficiencies and lack transparency due to complex routing processes, especially when more than two parties are involved, and there is a need for a platform that provides transparent, immutable, and verifiable messaging records while ensuring data privacy.
Innovation Solution
A blockchain-based method for processing guarantees, involving the generation of digital guarantees, encryption, and zero-knowledge proofs, which are stored on a blockchain network for consensus, ensuring secure and transparent transactions between multiple parties.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If traditional secure messaging networks (e.g., SWIFT) are used for guarantee processing, then data security and privacy are maintained through peer-to-peer messaging, but transaction efficiency deteriorates due to complex routing processes especially when more than two parties are involved
Solution Approach 1:
The patent introduces a blockchain network as an intermediary layer between multiple parties. Instead of complex peer-to-peer routing, messages are routed through the blockchain network which provides a standardized, transparent, and efficient communication channel. The blockchain acts as a mediator that maintains security while simplifying the routing process for multi-party transactions.
Solution Approach 2:
The blockchain network provides a universal platform that handles various functions including message routing, consensus verification, immutable record-keeping, and smart contract execution. This multi-functional platform replaces multiple specialized systems and simplifies the overall transaction process for multi-party guarantees.
2Ease of operation
If traditional secure messaging networks are used for guarantee processing, then peer-to-peer communication is established, but transparency deteriorates due to lack of verifiable messaging records
Solution Approach 1:
The system performs preliminary actions by encrypting guarantee data and generating zero-knowledge proofs before submitting to the blockchain. This preliminary preparation ensures that when records are stored on the blockchain, they are already in a verifiable and transparent format that maintains privacy while enabling future verification of transaction validity.
Solution Approach 2:
The patent creates cryptographic copies of guarantee information in the form of zero-knowledge proofs and encrypted data that are stored on the blockchain. These copies preserve the original information's validity and verifiability while maintaining privacy, allowing transparent verification without exposing sensitive data.
3Reliability
If digital guarantees are encrypted and stored on blockchain with zero-knowledge proofs, then data privacy is ensured, but device complexity increases due to cryptographic operations and consensus verification
Solution Approach 1:
The patent replaces complex manual verification processes with automated cryptographic mechanisms. Zero-knowledge proofs and smart contracts automatically verify guarantee validity without requiring manual intervention, reducing operational complexity despite the sophisticated cryptography involved. The system substitutes mechanical verification with algorithmic automation.
4Reliability
If blockchain consensus is required for storing guarantee records, then immutability and verifiability are achieved, but processing time increases due to consensus algorithm execution
Solution Approach 1:
The system applies partial action by using zero-knowledge proofs to verify only the essential elements of guarantee validity without requiring full consensus on all transaction details. This selective verification approach maintains immutability for critical data while reducing processing time by avoiding exhaustive consensus checks on every aspect of the transaction.
Data Source
AI summary
Disclosed herein are methods, systems, and apparatus, including computer programs encoded on computer storage media, for processing blockchain-based guarantee information. One of the methods includes receiving a cyphertext of a digital document specifying a guarantee from a first computing device associated with a first guarantor and one or more zero-knowledge proofs (ZKPs) related to one or more values associated with the guarantee; verifying that the one or more ZKPs are correct; upon verifying that the one or more ZKPs are correct, storing the cyphertext to a blockchain based on performing a consensus algorithm; receiving a first message from a second computing device associated with a beneficiary or a representative of the beneficiary, the first message including an acceptance of the guarantee by the beneficiary; and updating a status of the guarantee to indicate that the guarantee has been accepted by the beneficiary.