Blockchain Settlement System with Smart Contract Verification
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Solution Overview
Problem
Current blockchain systems, particularly those using unidirectional payment channels like Spillman-style or CLTV-style payment channels, do not allow for reverse payments or refunds, as only the service provider can broadcast transactions to the blockchain, making it impossible for users to receive refunds even if the payment amount is updated to a lower amount.
Innovation Solution
A settlement system is implemented where a first blockchain and a second blockchain are cooperated, using a service provider device and user device to transmit template information transactions, payment information transactions with electronic signatures, and smart contracts to verify these transactions, setting multiple output conditions for settlement transactions that become usable when any one condition is satisfied, allowing for efficient reflection of payment cancellations between users and service providers.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If a unidirectional payment channel is adopted where only the service provider can broadcast transactions to the blockchain, then the service provider can control transaction broadcasting, but the user cannot receive refunds even if the payment amount is updated to a lower amount
Solution Approach 1:
The patent inverts the traditional unidirectional control model by enabling the user to broadcast cancellation transactions to the blockchain when the payment amount is updated to a lower amount. This reversal of broadcasting rights allows the user to receive refunds while the service provider retains control for initial payment transactions, thus resolving the contradiction between transaction control reliability and refund capability adaptability
2Ease of operation
If the service provider determines the final transaction amount to be broadcast, then the service provider can manage payment finalization, but the possibility of fraudulent high-value transactions cannot be eliminated
Solution Approach 1:
The patent applies preliminary anti-action by establishing output conditions and smart contract verification mechanisms before the service provider broadcasts the final transaction. The smart contract automatically verifies whether the broadcasted amount matches the agreed-upon final amount based on updated payment information, preventing fraudulent high-value transactions while maintaining ease of operation for legitimate payment finalization
3Adaptability or versatility
If only incomplete transactions are recorded in the blockchain without electronic signatures and payment amounts, then virtual payment is possible on another blockchain, but the cancellation of payment cannot be reflected to the blockchain for cryptocurrency
Solution Approach 1:
The patent introduces smart contracts as intermediaries that bridge the first blockchain (where incomplete transactions are recorded) and the second blockchain (cryptocurrency blockchain). The smart contract verifies payment information transactions, determines final amounts, and controls the broadcasting of settlement transactions to the cryptocurrency blockchain, thereby enabling both cross-chain payment adaptability and reliable cancellation reflection
Data Source
AI summary
A settlement system includes a service provider device 2 which transmits a template information transaction including a template of a transaction to a network 4 of a first blockchain, a user device which transmits, to the network 4 of the first blockchain, a payment information transaction that includes an electronic signature generated by using the template of the transaction and a payment amount, and a smart contract 41, wherein the smart contract 41 verifies the electronic signature by using the payment amount and the template of the transaction, the service provider device 2 generates a settlement transaction by using the template of the transaction, the electronic signature and the payment amount, and transmits the settlement transaction to a network 3 of a second blockchain, a plurality of output conditions are set to the template of the transaction, and the settlement transaction becomes usable when any one of the plurality of output conditions is satisfied.