Closed-Loop Off-Chain Transaction Processing With Real-Time Pricing

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Solution Overview

Problem

Existing digital asset transaction systems face inefficiencies and slow processing speeds due to reliance on distributed ledgers, which constrain transaction rates and require significant computational resources, while also exposing transaction details to multiple parties, leading to security and verification challenges.

Innovation Solution

Implementing a closed-loop environment managed by a central entity for off-chain digital asset transactions, allowing real-time processing and secure transactions without a distributed ledger public key, and using predictive models to maintain a balanced digital asset central operating account, with continuous pricing data updates for informed transactions.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If distributed ledger systems are used for digital asset transactions, then transaction security and transparency are improved, but transaction processing speed and efficiency deteriorate

Engineering Contradiction:

Improvetransaction securityVSAvoidtransaction processing speed

Core Design Contradiction:

ReliabilityVSProductivity

Solution Approach 1:

The system segments transactions into two categories: on-chain transactions for security-critical operations and off-chain transactions for routine operations. This segmentation allows the system to maintain security through distributed ledger verification while improving processing speed by handling routine transactions through centralized order books that don't require blockchain confirmation for each operation.

Inventive Principle:

Principle #1Segmentation

Solution Approach 2:

The patent introduces an intermediary layer (the exchange platform's order book system) between users and the distributed ledger. This intermediary handles matching, ordering, and initial validation of transactions, reducing the computational burden on the blockchain and enabling faster processing while maintaining security through periodic on-chain settlements.

Inventive Principle:

Principle #24Intermediary (Mediator)

2Reliability

If distributed ledger verification is performed for each transaction, then transaction accuracy and security are improved, but computational resource consumption increases

Engineering Contradiction:

Improvetransaction accuracyVSAvoidcomputational resource consumption

Core Design Contradiction:

ReliabilityVSUse of energy by moving object

Solution Approach 1:

The system performs preliminary validation and matching of transactions off-chain before submitting them to the distributed ledger. Order books pre-validate transaction parameters, match buy/sell orders, and prepare settlement data in advance, reducing the computational work required during on-chain processing and minimizing energy consumption.

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

The patent creates simplified copies of transaction data for off-chain processing. Instead of repeatedly verifying full cryptographic transactions on the blockchain, the system uses lightweight copies represented in the order book for matching and validation, reserving full distributed ledger verification for final settlement only.

Inventive Principle:

Principle #26Copying

3Reliability

If distributed ledger public keys and addresses are required for transactions, then transaction security is improved, but system complexity and ease of operation deteriorate

Engineering Contradiction:

Improvetransaction securityVSAvoiduser operation simplicity

Core Design Contradiction:

ReliabilityVSEase of operation

Solution Approach 1:

The exchange platform provides self-service functionality by managing cryptographic keys and addresses on behalf of users. The system automatically handles key generation, storage, and transaction signing, eliminating the need for users to manually manage complex cryptographic infrastructure while maintaining security through the platform's custodial services.

Inventive Principle:

Principle #25Self-service

Solution Approach 2:

The patent implements a universal account system where users interact with a single exchange account that handles multiple functions: storage, trading, key management, and transaction execution. This multi-functional account replaces the need for users to manage separate wallets, keys, and addresses across different platforms, simplifying operation while maintaining security through the exchange's centralized management.

Inventive Principle:

Principle #6Universality (Multi-functionality)

Data Source

PatentUS20260050941A1Closed-loop environment for efficient, accurate, and secure transaction processing

Publication Date: 2026.02.19 BAKKT MARKETPLACE LLC

AI summary

Various embodiments of the present disclosure provide methods, apparatuses, systems, devices, computing entities for managing digital asset transactions. An example method includes obtaining first current pricing data via an application programming interface, and providing the first current pricing data via a client device. The method further includes, responsive to determining that a first configurable time period has elapsed: obtaining second current pricing data via an application programming interface, and providing the second current pricing data for display via the client device. The method further includes receiving a second transaction request and executing an off-chain digital asset transaction for the second transaction request between a central operating account and the internal user account within a second configurable time period. The method further includes dynamically providing a notification of execution of the off-chain digital asset transaction, and further generating and storing an account balance data object for the off-chain digital asset transaction.