Co-Chain Blockchain Asset Transfer Mechanism

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Solution Overview

Problem

Existing blockchain systems face challenges in providing secure, scalable, and private transaction mechanisms, particularly in permissioned private blockchain environments, where traditional methods are slow, vulnerable, and lack regulatory compliance.

Innovation Solution

The implementation of co-chains, which are private blockchains interoperable with public blockchains, using the Algorand consensus protocol, enables secure and efficient asset transfers by creating permissioned, private networks that can scale and comply with regulatory requirements through zero-knowledge commitments and threshold signature schemes.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If traditional public blockchain systems are used for transactions, then transparency and security are improved, but transaction speed and scalability deteriorate

Engineering Contradiction:
Improvetransaction securityVSAvoidtransaction speed
Core Design Contradiction:
ReliabilityVSProductivity

Solution Approach 1:

The system segments the blockchain network into private blockchains (for fast, secure transactions among known entities) and public blockchain (for transparency and final settlement). This segmentation allows each layer to optimize for its specific purpose, resolving the contradiction between speed and security.

Inventive Principle:
Principle #1Segmentation

Solution Approach 2:

The patent introduces an intermediary layer that bridges private and public blockchains. This intermediary enables transactions to be processed privately and quickly on the private blockchain while still maintaining security through eventual settlement on the public blockchain, resolving the speed-security tradeoff.

Inventive Principle:
Principle #24Intermediary (Mediator)

2Productivity

If private blockchain networks are used for transactions, then transaction speed and privacy are improved, but transparency and regulatory compliance deteriorate

Engineering Contradiction:
Improvetransaction speedVSAvoidtransaction transparency
Core Design Contradiction:
ProductivityVSLoss of information

Solution Approach 1:

The system segments information visibility by allowing private blockchain participants to transact with full transparency among themselves, while only essential settlement information is published to the public blockchain. This segmentation preserves both speed/privacy and necessary transparency.

Inventive Principle:
Principle #1Segmentation

Solution Approach 2:

The patent applies partial transparency by publishing only the necessary minimum information to the public blockchain (such as settlement data and compliance information) while keeping detailed transaction information private. This partial action maintains transparency requirements without compromising privacy or speed.

Inventive Principle:
Principle #16Partial or excessive action

3Adaptability or versatility

If complex smart contracts are used for cross-chain payments, then functionality is improved, but vulnerability and complexity increase

Engineering Contradiction:
Improvepayment functionalityVSAvoidsystem complexity
Core Design Contradiction:
Adaptability or versatilityVSDevice complexity

Solution Approach 1:

The patent extracts complex smart contract logic from the cross-chain payment mechanism itself and places it in separate, pre-validated smart contracts on各自 blockchains. This extraction simplifies the core payment mechanism while maintaining functional versatility through the separated logic layers.

Inventive Principle:
Principle #2Taking out (Extraction)

Solution Approach 2:

The system introduces intermediary components that handle the complexity of cross-chain coordination without requiring complex smart contracts in the payment logic itself. The intermediaries manage the intricate details of chain interoperability, leaving the payment functionality simple and secure.

Inventive Principle:
Principle #24Intermediary (Mediator)

Data Source

PatentEP4032052B1Performing transactions using private and public blockchains
Publication Date: 2024.02.14 ALGORAND LABS SRL
  • EP4032052B1 patent drawingFigure 1
  • EP4032052B1 patent drawingFigure 2
  • EP4032052B1 patent drawingFigure 3

AI summary

Among other things, we describe a method of enabling one or more entities of a blockchain system to carry out a series of operations. The blockchain system includes a main chain, a co-chain, wherein the co-chain has a corresponding account on the main chain, an asset owned by the corresponding account on the main chain and owned by an account on the co-chain, and a co-chain account possessing the asset. The operations include posting an authenticated transaction on the co-chain, the authenticated transaction authorizing a transfer of the asset from the co-chain account to an account of the main chain, determining that the authenticated transaction is posted on the co-chain, and posting, on the main chain, a transaction assigning the asset to the account of the main chain.