Blockchain Transaction Matching for Auditable Anonymous Recordation
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Solution Overview
Problem
Blockchain technology poses challenges for environments requiring transparency and auditability due to its decentralized and anonymous transaction ledger nature.
Innovation Solution
A computer system interfaces with a blockchain, storing ordered lists of data transaction requests and using a matching engine to identify matches, generating new identifiers for blockchain transactions, and monitoring their incorporation into the blockchain.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If blockchain technology is used for decentralized anonymous transactions, then user anonymity is improved, but transaction transparency and auditability deteriorate
Solution Approach 1:
The system segments transaction information into two distinct layers: public layer (blockchain transactions with cryptographic identifiers) and private layer (actual user identities and detailed transaction data). This segmentation allows simultaneous achievement of anonymity through public blockchain records and transparency through private record-keeping, resolving the contradiction between user anonymity and transaction transparency.
Solution Approach 2:
The patent introduces an intermediary system (the exchange or clearing house) that maintains the bridge between anonymous blockchain transactions and identifiable real-world entities. This intermediary keeps internal records linking cryptographic identifiers to user identities, enabling auditability and transparency while preserving user anonymity on the public blockchain, thus resolving the contradiction.
2Loss of information
If traditional centralized transaction ledgers are used, then transaction transparency is improved, but system decentralization and censorship resistance deteriorate
Solution Approach 1:
The system transitions from a single-dimension centralized ledger to a multi-dimensional architecture combining public blockchain (providing decentralization and censorship resistance) with private off-chain record-keeping (providing transparency and auditability). This dimensional change allows the system to achieve both decentralization and transparency simultaneously, resolving the contradiction.
3Reliability
If cryptographic identifiers are used for blockchain addresses, then user anonymity is improved, but ability to trace and audit transactions deteriorates
Solution Approach 1:
The system performs preliminary action by establishing and maintaining mapping relationships between cryptographic identifiers and user identities in advance (through the intermediary's internal records). This preliminary action enables easy tracing and auditing when needed, while preserving user anonymity during normal transactions, thus resolving the contradiction between anonymity and traceability.
Data Source
AI summary
A computer system is provided that communicates with a distributed blockchain computing system that includes multiple computing nodes. The exchange stores an order book and a plurality of digital wallets associated with different clients. The computer system receives new data transaction requests that are added to the order book. A match is identified between data transaction requests and hashes associated with the digital wallets associated with the respective data transaction requests are generated. The counterparties receive the hashes of the other party along with information on the match and each party causes blockchain transactions to be added to the blockchain of the blockchain computing system. The computing system then monitors the blockchain to determine if both sides of the match has been added to the blockchain.