Consent-Managed Sidechains for Distributed Ledger Asset Transfers
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Solution Overview
Problem
Current financial systems face inefficiencies in asset transfers due to the need for point-to-point interactions, reconciliation of duplicated ledgers, and lack of conditional transfer capabilities, which are prone to fraud and theft, and existing blockchain solutions like Bitcoin and Ethereum have limitations in scalability, security, and flexibility.
Innovation Solution
Implementing distributed ledger technology in a cloud-based computing environment with intelligent consensus models, weighted consensus, and consent management to enable efficient, secure, and flexible asset transfer and ownership management through blockchain platforms that support smart contracts and sidechains.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If a single shared ledger is used to record asset ownership, then fraud and theft can be prevented, but the system requires trust in a single party and needs real-time processing capacity that is difficult to achieve
Solution Approach 1:
The patent divides the centralized trusted ledger into multiple distributed ledgers across different blockchain networks. Each organization maintains its own ledger while smart contracts enable automated reconciliation between them, eliminating the need for a single trusted party while maintaining security and reliability.
Solution Approach 2:
The patent introduces smart contracts as automated intermediaries that facilitate trustless transactions between parties. These self-executing contracts encode business logic and conditions, automatically enforcing agreements without requiring manual intervention or trusted third parties, thus resolving the contradiction between reliability and complexity.
2Reliability
If Bitcoin's security model is used, then decentralized digital cash is achieved, but scalability and throughput are limited
Solution Approach 1:
The patent implements a multi-chain architecture where a main blockchain handles security-critical functions while separate sidechains or layer-2 solutions handle high-volume transactions. This segmentation allows the system to maintain Bitcoin-level security on the main chain while achieving high throughput on auxiliary chains through parallel processing.
Solution Approach 2:
The patent extends the single-chain model into a multi-dimensional blockchain ecosystem with main chains, sidechains, and layer-2 protocols operating at different levels. This dimensional expansion enables simultaneous optimization of security (on main chains) and throughput (on sidechains and layer-2 solutions) without compromising either attribute.
3Adaptability or versatility
If Ethereum's smart contract capability is used, then custom asset movement logic is supported, but scalability and efficiency challenges arise
Solution Approach 1:
The patent separates smart contract execution into different layers: complex, resource-intensive contracts run on layer-2 solutions or sidechains with higher throughput, while simple validation and consensus operations occur on the main Ethereum chain. This segmentation preserves full smart contract functionality while improving overall system scalability and efficiency.
4Ease of operation
If point-to-point asset transfer systems are used, then direct transfers between parties are enabled, but reconciliation of duplicated ledgers and overhead costs increase
Solution Approach 1:
The patent implements automated reconciliation mechanisms where smart contracts continuously monitor and reconcile ledgers across multiple chains without manual intervention. The system self-corrects discrepancies through programmed logic, eliminating the need for expensive manual reconciliation processes while maintaining direct point-to-point transfer capabilities.
Data Source
AI summary
Systems, methods, and apparatuses for implementing super community and community sidechains with consent management for distributed ledger technologies in a cloud based computing environment are described herein. For example, according to one embodiment there is a system having at least a processor and a memory therein executing within a host organization and having therein: means for operating a blockchain interface to a blockchain on behalf of a plurality of tenants of the host organization, wherein each of the plurality of tenants are participating nodes with the blockchain; means for receiving a login request from a user device, the login request requesting access to a user profile associated with a first one of the plurality of tenants; means for authenticating the user device and retrieving a user profile from the blockchain based on the authentication of the user device, wherein the user profile is stored as a blockchain asset within the blockchain with a first portion of the user profile comprising non-protected data accessible to all participating nodes on the blockchain and with a second portion of the user profile comprising protected data accessible only to participating nodes having user consent; means for prompting the user device to grant user consent to share the protected data with a second one of the plurality of tenants; and means for sharing the protected data with the second one of the plurality of tenants by permitting access to the protected data within the blockchain asset by the second tenant's participating node. Other related embodiments are disclosed.