Blockchain Record Security via Distributed Validation Nodes
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Solution Overview
Problem
Conventional systems for assessing transaction risk rely on single sources of information, such as credit bureaus, which can be slow, burdensome, and prone to errors due to human or computer malfunctions, necessitating improved methods for risk evaluation.
Innovation Solution
A distributed system generates an electronic record for users, comprising transaction records signed by service providers using private keys, with hashed user and transaction details combined and signed to ensure authenticity, allowing resource providers to verify transactions and assess risk without relying on traditional credit checks.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If conventional systems use single-source credit bureaus for risk assessment, then the process is simplified and easier to operate, but the system becomes slow, burdensome, and prone to errors
Solution Approach 1:
The patent segments the centralized credit bureau system into multiple distributed validation nodes that independently verify transaction records. Each node maintains its own copy of the blockchain and validates transactions autonomously, eliminating the single-point-of-failure architecture of traditional credit bureaus while improving both reliability through redundancy and operational efficiency through parallel processing
Solution Approach 2:
The patent introduces a blockchain-based intermediary layer that mediates between resource providers and users. This decentralized ledger serves as a neutral, tamper-proof record-keeping mechanism that eliminates the need for traditional credit bureaus as intermediaries, allowing direct verification of user credibility through cryptographic proof of transaction history
2Device complexity
If centralized credit bureaus store user data, then data retrieval is centralized and simple, but the data can be corrupted or erroneous due to human error or computer malfunction
Solution Approach 1:
The patent implements local quality by allowing each validation node to maintain its own local copy of the blockchain with identical data integrity properties. Each node independently validates and stores transaction records with the same cryptographic security guarantees, ensuring that data integrity is preserved locally at each node rather than relying on a single centralized storage system
Solution Approach 2:
The patent applies beforehand cushioning through cryptographic hashing and digital signatures that are embedded in each transaction record before it is added to the blockchain. These cryptographic mechanisms serve as preventive measures that protect against data corruption, tampering, or loss, ensuring that even if individual nodes fail, the overall system maintains data integrity through the immutable chain of cryptographic proofs
3Reliability
If multiple sources of transaction data are used for risk assessment, then accuracy and reliability improve, but the system complexity and data processing burden increase
Solution Approach 1:
The patent merges multiple sources of transaction data into a single unified blockchain ledger that all validation nodes can access. Instead of managing separate databases from multiple credit bureaus, the system combines all transaction records into one decentralized, chronologically-ordered chain that provides a comprehensive view of user credit history while simplifying data access through a common interface
Solution Approach 2:
The patent uses copying by distributing identical copies of the blockchain ledger to multiple validation nodes. Each node maintains a complete copy of the transaction history and can independently verify user credibility without needing to query multiple external sources. This copying mechanism eliminates the need for complex data aggregation while providing redundant access paths for risk assessment
Data Source
AI summary
Described herein is a system in which an electronic record is stored within a distributed environment. In this system, a validation node may receive a transaction record from an acceptance node. The validation node may verify that the acceptance node is authorized to participate in a blockchain network, identify a user associated with the transaction record, and append the transaction record to an electronic record. The transaction record may be associated with a digital signature formed by hashing multiple data elements, and then encrypting the hashed data elements using a private encryption key.