Blockchain Transaction Authorization Through Work Requirements
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Solution Overview
Problem
Existing blockchain systems lack efficient mechanisms to authorize transactions based on user or token participation within the network, particularly for utility tokens, which are not subject to federal securities regulations, and face challenges in scalability, latency, and transaction costs.
Innovation Solution
A system and method for authorizing blockchain network transactions using nodes that determine user or token participation through smart contracts, employing utility tokens and non-fungible tokens, and utilizing a Clearinghouse architecture to manage transactions efficiently.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If traditional blockchain validation mechanisms are used, then transaction validation is maintained, but transaction authorization based on user participation cannot be efficiently implemented
Solution Approach 1:
The patent introduces a work requirement satisfaction mechanism as an intermediary layer between transaction initiation and blockchain validation. Nodes evaluate whether a user or token has satisfied predetermined work requirements before authorizing transactions, enabling selective authorization without fundamentally changing the blockchain validation architecture.
Solution Approach 2:
The system performs preliminary evaluation of work requirement satisfaction before transaction authorization. Nodes assess whether users or tokens meet predetermined criteria (such as network participation thresholds) in advance, and only authorize transactions for those who have satisfied the work requirements, thereby enabling efficient participation-based authorization.
2Reliability
If utility tokens are used for transactions, then regulatory compliance is improved, but transaction scalability and efficiency face challenges
Solution Approach 1:
The patent implements self-service mechanisms where nodes automatically evaluate work requirement satisfaction and authorize transactions without requiring external intervention. The system uses smart contracts and automated node evaluation to handle transaction authorization, reducing manual processing and improving throughput while maintaining compliance through programmed work requirement criteria.
3Reliability
If work requirement satisfaction is evaluated by nodes, then transaction authorization reliability is improved, but network latency increases
Solution Approach 1:
The system evaluates work requirement satisfaction to a sufficient degree to ensure reliable authorization without requiring exhaustive verification of all possible conditions. Nodes assess whether predetermined work requirements are met using efficient evaluation criteria, avoiding unnecessary computational overhead while maintaining adequate reliability for transaction authorization.
Data Source
AI summary
Systems and methods are provided that authorize blockchain network transactions based on a work requirement. A blockchain network has a plurality of nodes. At least one node of the plurality of nodes is configured to determine whether a token has satisfied a work requirement. The work requirement represents participation of performing work within the blockchain network. The at least one node is further configured to approve a transaction as a function of determining that the work requirement has been satisfied and, to disapprove the transaction as a function of determining that the work requirement has not been satisfied. By enabling the transaction to be approved based on a work requirement, the token, for example, can be authenticated as having an inherent functional value. In this way, the blockchain network or token exchange can attest to the token not being a security, which would be subject to federal securities and regulations.