Blockchain Token Exchange Using Embedded Notification Addresses
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Current blockchain systems require an additional off-chain database to manage public key information for tokenized assets, leading to complexity and the risk of databases becoming out of sync, and lack the ability to securely and automatically transfer assets to anonymous parties while maintaining privacy and security.
Innovation Solution
A method and system that utilizes an autonomous computing agent to generate and modify incomplete blockchain transactions, embedding notification addresses within the blockchain to enable secure, automated transfers and communications to anonymous recipients, eliminating the need for an off-chain database by using cryptographic signatures and traversal of the blockchain to determine current ownership.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If an off-chain database is used to manage public key information for tokenized assets, then asset management functionality is enabled, but system complexity increases and synchronization risks arise
Solution Approach 1:
The patent extracts the public key management functionality from the off-chain database and embeds it directly into the blockchain structure through notification addresses. This eliminates the need for separate database storage and reduces system complexity by consolidating all necessary information within the blockchain itself.
Solution Approach 2:
The patent merges the notification address (containing public key information) with the transaction structure on the blockchain. By combining multiple functions (asset management, notification, and public key storage) into a single blockchain-based system, it eliminates synchronization issues between separate databases and the blockchain.
2Adaptability or versatility
If an off-chain database is used to manage public key information, then asset management is possible, but data synchronization reliability deteriorates
Solution Approach 1:
The patent merges the notification address (containing public key information) with the transaction structure on the blockchain. By combining multiple functions (asset management, notification, and public key storage) into a single blockchain-based system, it eliminates synchronization issues between separate databases and the blockchain.
Solution Approach 2:
The blockchain system becomes self-sufficient by storing all necessary public key information directly within its structure through notification addresses. The system no longer needs external databases, as the blockchain itself provides all necessary data storage and retrieval functionality, ensuring automatic synchronization.
3Ease of operation
If traditional blockchain transactions are used, then basic transfer functionality is provided, but secure automated transfer to anonymous parties is not enabled
Solution Approach 1:
The patent implements preliminary action by embedding the notification address (containing public key information) into the transaction structure before the transfer occurs. This allows the system to automatically determine the recipient's public key from the blockchain data, enabling automated transfers to anonymous parties without requiring pre-established communication channels or external databases.
Solution Approach 2:
The notification address acts as an intermediary that bridges the gap between anonymous parties. It contains the necessary public key information within the blockchain structure, allowing automated systems to securely identify and transfer assets to anonymous recipients without direct communication or pre-shared information.
4Reliability
If privacy is enhanced by hiding recipient information, then security is improved, but the ability to communicate with recipients deteriorates
Solution Approach 1:
The notification address serves multiple functions simultaneously: it provides privacy protection by hiding the recipient's identity, enables secure asset transfer by containing public key information, and facilitates communication by providing a blockchain-based notification mechanism. This multi-functional design resolves the contradiction between privacy and communication capability.
Solution Approach 2:
The notification address acts as an intermediary that bridges the gap between anonymous parties. It contains the necessary public key information within the blockchain structure, allowing automated systems to securely identify and transfer assets to anonymous recipients without direct communication or pre-shared information.
Data Source
AI summary
The invention provides a method and corresponding system for controlling a transfer of an asset via a blockchain. It can also be used to control and record the ownership of an asset represented on the blockchain without the need for a separate registry of ownership. The ownership and transfers thereof can be handled and recorded without the need for knowledge of the parties involved or their identities. According to one embodiment, the method comprises steps of finding an anchor transaction to begin traversal of a transaction history, traversing the transaction history to determine a current unspent transaction output (UTXO) set, and creating a distributed transaction associated with an asset for the determined UTXO. Next, the distribution transaction is broadcasted and re-directed, by an asset owner, to a select private key of the owner. After the re-directing the distribution transaction, the asset is published on the blockchain.