Bot Transaction System Using Distributed Ledger Consensus
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Solution Overview
Problem
Current financial systems face inefficiencies in asset transfer settlement times, involve high intermediary fees, and struggle with fraud prevention due to the complexity of point-to-point interactions and centralized ledger systems, which can be addressed by recording asset ownership on a single shared ledger but are hindered by trust and technological constraints.
Innovation Solution
Implementing a system that uses Distributed Ledger Technology (DLT) in a cloud-based computing environment, where each bot operates as a node on a blockchain, allowing for transaction requests to be posted, consensus negotiation, and secure recording of transactions without a trusted third party, enabling efficient and secure asset transfers within a permissioned network.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Loss of time
If a single shared ledger is used to record asset ownership, then settlement time is reduced and transparency is improved, but trust requirements increase and technological complexity increases
Solution Approach 1:
The patent segments the trusted third party function into multiple independent nodes distributed across the network. Each node maintains a copy of the ledger and validates transactions independently, eliminating the need for a single centralized trusted entity while reducing settlement time through parallel processing capabilities.
Solution Approach 2:
The patent introduces a blockchain-based intermediary layer that mediates between trading parties. This distributed ledger acts as a neutral mediator that automatically reconciles transactions through consensus mechanisms, reducing both settlement time and the need for mutual trust between parties.
2Loss of information
If a single shared ledger is used to record asset ownership, then transaction transparency is improved, but device complexity increases
Solution Approach 1:
The patent implements a copying mechanism where each node in the distributed network maintains an identical copy of the ledger. This replication strategy ensures complete transaction transparency across all participants while distributing the computational complexity across multiple independent systems rather than concentrating it in a single complex system.
Solution Approach 2:
The patent creates a universal ledger system that serves multiple functions simultaneously: it acts as a transaction record, a verification mechanism, a settlement system, and an audit trail. This multi-functional design reduces the need for separate systems for each function, thereby managing overall complexity while enhancing transparency.
3Loss of energy
If distributed ledger technology is implemented, then intermediary fees are minimized, but consensus negotiation complexity increases
Solution Approach 1:
The patent implements a self-service consensus mechanism where nodes automatically validate and reconcile transactions through predefined protocols. This eliminates the need for external intermediaries to manage consensus, reducing intermediary fees while the automated nature of the process manages complexity through standardization.
Solution Approach 2:
The patent adjusts consensus parameters such as block time, confirmation requirements, and validation rules to optimize the balance between fee reduction and complexity management. By tuning these parameters, the system achieves efficient fee structures while keeping consensus mechanisms computationally manageable.
4Reliability
If blockchain technology is used for asset transfers, then fraud prevention is enhanced, but transaction throughput decreases
Solution Approach 1:
The patent segments the network into multiple channels or layers for different types of transactions. High-value or complex transactions undergo full consensus validation for maximum fraud prevention, while routine transactions use simplified validation paths, thereby maintaining security for critical operations while improving overall throughput.
Solution Approach 2:
The patent applies partial validation for certain transaction types where full consensus may be unnecessary. By using risk-based validation approaches, the system achieves adequate fraud prevention for lower-risk transactions without the full overhead of complete consensus, thereby improving throughput while maintaining security where needed.
Data Source
AI summary
Described herein are means for conducting transactions between bots using Distributed Ledger Technology (DLT) in a cloud based computing environment. According to a particular embodiment, there is a system having at least a processor and a memory therein, in which the system is configurable with means for: operating, by a cloud service provider, an interface to a blockchain, in which each bot is a node on the blockchain; posting a transaction request to a chat log by one of the plurality of bots or an administrator; writing the transaction request, and an identification of the one of the plurality of bots or the administrator requesting the transaction, to the blockchain; negotiating consensus among the plurality of bots as nodes on the blockchain to conduct the requested transaction; and when consensus is reached: writing the transaction to the blockchain; pulling the transaction request from the chat log by one of the plurality of bots; and conducting the transaction by the one of the plurality of bots that pulled the transaction request from the chat log; and posting completion of the transaction to the chat log by the one of the plurality of bots that conducted the transaction. Other related embodiments are disclosed.