Closed-Loop Digital Asset Transactions With Off-Chain Execution
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Existing digital asset transaction systems face inefficiencies due to reliance on distributed ledgers, leading to slow processing speeds and significant computational resource constraints, as well as the need for continuous real-time pricing data to facilitate informed transactions.
Innovation Solution
Implementing a closed-loop environment managed by a central entity that enables off-chain digital asset transactions, allowing real-time processing and secure transactions without a distributed ledger, while providing continuous pricing data to client devices.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If distributed ledger systems are used for digital asset transactions, then security and decentralization are improved, but transaction processing speed and computational efficiency deteriorate
Solution Approach 1:
The system segments transactions into two types: 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 when needed while achieving high-speed processing through centralized coordination for routine transactions, thus resolving the contradiction between security and processing speed.
Solution Approach 2:
The account management system acts as an intermediary between users and the distributed ledger. It manages user accounts, validates transactions locally, and only commits necessary transactions to the blockchain. This intermediary layer reduces the computational burden on the distributed ledger while maintaining security through periodic blockchain anchoring and cryptographic verification.
2Adaptability or versatility
If distributed ledger systems are used for digital asset transactions, then decentralization and trust are improved, but computational resource consumption and processing time increase
Solution Approach 1:
The system performs preliminary validation and account management actions off-chain before transactions are submitted to the distributed ledger. Account balances are pre-calculated, transaction permissions are pre-validated, and only the essential commitment data is submitted to the blockchain. This preliminary action significantly reduces transaction confirmation time while maintaining decentralization through periodic blockchain anchoring.
Solution Approach 2:
The system changes the parameters of transaction processing by implementing configurable time periods for pricing data updates and transaction execution. This allows the system to optimize between real-time processing and resource consumption by adjusting these parameters based on network conditions and user requirements, thereby reducing effective transaction confirmation time while maintaining security.
3Measurement precision
If continuous real-time pricing data is provided for digital assets, then transaction accuracy is improved, but system complexity and computational overhead increase
Solution Approach 1:
The system implements periodic updates of pricing data at configurable time intervals rather than continuous real-time updates. This periodic action maintains sufficient pricing accuracy for transaction execution while significantly reducing system complexity and computational overhead. The configurable time period allows optimization between accuracy and resource consumption based on specific use cases.
Solution Approach 2:
The system obtains pricing data from external sources and maintains local copies for transaction processing. Instead of continuously querying external APIs during transaction execution, the system caches pricing data locally with periodic refreshes. This copying approach reduces system complexity by eliminating the need for real-time external connections while maintaining pricing accuracy for transaction validation.
Data Source
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.