Contract Transaction Ledger Using Encrypted Shared Commitments
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Solution Overview
Problem
Conventional account-based systems are slow, error-prone, and complex due to synchronization challenges across disjointed ledgers, lack auditable transaction trails, and require time-consuming consensus mechanisms, leading to reduced performance and scalability, especially in cross-regional transactions.
Innovation Solution
A contract-based transactions machine is developed, utilizing public key cryptography to encrypt and decrypt data structures for contract proposals and signatories, enabling efficient, secure, and scalable transactions across distributed and centralized ledgers.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If conventional account-based systems use multiple disjointed ledgers with synchronization mechanisms, then security and consistency are maintained, but transaction speed and system performance are reduced
Solution Approach 1:
The patent merges multiple disjointed ledgers into a single unified ledger that all participants share. This eliminates the need for complex synchronization mechanisms between separate ledgers, thereby improving transaction speed while maintaining consistency through a common source of truth that all parties access and update collectively.
Solution Approach 2:
The unified ledger serves multiple functions simultaneously: it acts as the transaction record, the consensus mechanism, and the audit trail. This multi-functionality eliminates the need for separate synchronization systems and add-on components, improving performance while maintaining reliability through a single comprehensive system.
2Reliability
If conventional account-based systems implement two-phase commits for ledger synchronization, then data consistency is ensured, but transaction latency and processing time increase
Solution Approach 1:
The patent extracts and eliminates the two-phase commit mechanism from the transaction flow. By using a unified ledger where all participants share the same data structure, the system removes the need for preparatory and commitment phases, thereby reducing transaction latency while maintaining consistency through direct updates to the shared ledger.
Solution Approach 2:
The unified ledger is pre-configured with all necessary participants and access rights before transactions begin. This preliminary setup eliminates the need for runtime synchronization protocols and two-phase commits, allowing transactions to proceed directly with immediate consistency across all participants.
3Reliability
If distributed ledger systems use consensus mechanisms for security, then transaction security is improved, but system throughput and scalability are reduced
Solution Approach 1:
The patent combines security verification and consensus validation into a single unified ledger structure that all participants inherently trust through shared access. This merging eliminates the need for separate, time-consuming consensus mechanisms while maintaining security through the mathematical properties of the shared data structure and cryptographic validation.
Solution Approach 2:
The unified ledger system is self-validating through its shared nature and cryptographic structure. Each participant independently verifies transactions against the same data structure without requiring external consensus mechanisms, thereby maintaining security while enabling parallel processing and high throughput across all nodes simultaneously.
4Reliability
If account-based systems add add-on systems for transaction auditing and interoperability, then compliance and auditability are improved, but system complexity and operational delays increase
Solution Approach 1:
The unified ledger inherently provides auditability, interoperability, and compliance features through its shared structure. All transactions are automatically recorded in a single auditable trail accessible to all participants, eliminating the need for separate add-on auditing systems and reducing overall system complexity while maintaining full compliance capabilities.
Solution Approach 2:
The patent extracts audit trail functionality from separate add-on systems and integrates it directly into the unified ledger structure. Every transaction is automatically recorded with full audit information in the main ledger, eliminating the need for external auditing components and reducing system complexity while improving operational efficiency.
Applied Scientific Principles
This section explains which scientific principles are used to turn an abstract innovation direction into a practical engineering solution.
Function Achieved in This Case
The system enhances transaction speed and security by providing auditable trails and reducing complexity, allowing seamless interoperability and improved performance in cross-regional transactions.
Implementation Method 1
utilizing public key cryptography to encrypt and decrypt data structures for contract proposals and signatories
Data Source
AI summary
Provided are methods and apparatus for performing a contract-based transaction of a specified number of assets represented in a digital form. In an example, a computer-implemented method can include (i) receiving, at a computing device and from a contract originator user, information describing: (a) commitments for a contract, where the commitments comprise at least a transfer of a specified number of assets represented in a digital form, (b) conditions for a contract, and (c) an additional participant of the contract; (ii) saving, to a contract proposal data structure, information describing: (a) contract data comprising a universally unique transaction reference, (b) a list of participants by public cryptographic key, and (c) a commitment group comprising an expiration date and one or more commitments; and (iii) electronically sending the contract proposal data structure to the additional participant of the contract, wherein the contract proposal data structure is encrypted using public key cryptography.