Blockchain Off-Chain Data Storage via Trusted Entity
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Solution Overview
Problem
Blockchain systems face challenges with high transaction costs, scalability limitations, and privacy concerns due to the need for extensive data storage and public recording of transactions, which hinder widespread adoption in industries requiring efficient and secure data management.
Innovation Solution
A method utilizing a trusted third-party entity to facilitate off-chain transactions and smart contracts, where data is securely fed into a blockchain ledger through a certification system, enabling efficient and private transaction verification and validation, thereby reducing the burden on the blockchain network and enhancing transaction security and scalability.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If data is stored on the blockchain network, then data integrity and shared truth are achieved, but transaction costs increase significantly
Solution Approach 1:
The patent extracts large volumes of data from the blockchain storage system and stores them off-chain in distributed databases, while only storing cryptographic hashes and essential transaction metadata on-chain. This maintains data integrity verification capabilities while dramatically reducing storage costs and energy consumption for data management.
Solution Approach 2:
The patent segments data storage into two layers: critical verification data (hashes, transaction metadata) stored on-chain for integrity and authenticity, and bulk data stored off-chain in distributed databases. This segmentation allows the system to maintain reliability through on-chain verification while reducing the energy burden of storing complete datasets.
2Loss of information
If more data is stored on the blockchain, then more information is available for verification, but transaction verification speed decreases
Solution Approach 1:
The patent extracts bulk data from on-chain storage and places it in off-chain distributed databases, keeping only essential verification data (cryptographic hashes, transaction metadata) on the blockchain. This allows nodes to verify transaction authenticity quickly using compact on-chain data while accessing detailed information from off-chain storage when needed.
Solution Approach 2:
The patent implements preliminary data organization in off-chain distributed databases with efficient indexing and retrieval mechanisms. This preliminary structuring allows verification nodes to quickly access and validate specific data without scanning entire on-chain datasets, thereby improving transaction verification speed while maintaining data availability.
3Reliability
If all transactions are recorded on the blockchain, then public transparency is achieved, but privacy is compromised
Solution Approach 1:
The patent extracts sensitive personal and business information from public blockchain records and stores it in private off-chain databases with controlled access. Only non-sensitive transaction metadata and cryptographic hashes are published on-chain, maintaining public transparency for verification while protecting confidential information through selective data extraction and private storage.
Solution Approach 2:
The patent applies different quality levels of data publication: public transparency for transaction validity verification (hashes, metadata) and private protection for sensitive information (personal details, business secrets). This local differentiation allows the system to simultaneously achieve public transparency where needed and privacy protection where required.
4Productivity
If block size limit is increased to handle more transactions, then transaction volume capacity increases, but network verification burden increases
Solution Approach 1:
The patent extracts bulk transaction data from on-chain blocks and stores it in off-chain distributed databases, keeping only essential verification data on-chain. This allows the system to handle high transaction volumes without proportionally increasing the verification burden on network nodes, as they only need to verify compact cryptographic proofs rather than process complete transaction datasets.
Solution Approach 2:
The patent uses cryptographic hashing to create compact copies/representations of large datasets that can be verified on-chain without storing the full data. These hash copies serve as efficient verification tokens that prove data integrity and authenticity while occupying minimal space on the blockchain, enabling high transaction throughput with low verification overhead.
Data Source
Figure 1
AI summary
The method of the invention implements the access to a blockchain ledger or to feed smart contracts with message related data, in at least one of the previous steps, the output resulting from carrying out any one or at least one of said steps is then submitted to the trusted entity to feed a smart contract so the said trusted entity may feed the smart contract with the electronic certificate; then the trusted entity may submit information to a blockchain to be used by smart contracts. By doing so the data resulting from any of the cited steps is loaded as a smart contract that can be invoked when needed to retrieve data from the blockchain and use it, for example, to prove the veracity of any message related data loaded.