Universal Cryptocurrency Tokenisation via Redeem-Script Metadata
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Solution Overview
Problem
Existing blockchain systems are limited in their versatility and require trusted third parties for secure asset transfer and ownership, lacking efficiency and anonymity.
Innovation Solution
A method utilizing cryptographic keys and hashing techniques to securely control and transfer assets or ownership via a blockchain, enabling tokenization without altering the underlying protocol, ensuring data integrity and anonymity.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Speed
If traditional property transfer methods (physical delivery of documents, negotiable instruments) are used, then security and control of assets are maintained, but transaction speed and efficiency deteriorate due to practical limitations and inability to perform timely transfers across vast distances
Solution Approach 1:
The patent replaces physical delivery mechanisms (mechanical system) with cryptographic verification and blockchain-based digital transfer. Property rights are represented by tokens that can be transferred electronically through cryptographic signatures, eliminating the need for physical document delivery while maintaining security through hash functions and distributed ledger verification.
2Productivity
If blockchain technology is used for digital asset transfer, then transaction efficiency and speed improve, but the need for trusted third parties increases to ensure security and validate transactions
Solution Approach 1:
The patent implements a self-service mechanism where the blockchain network itself validates transactions through distributed consensus and cryptographic verification. Nodes in the network independently verify transaction validity using public-key cryptography and smart contracts, eliminating the need for external trusted third parties while maintaining security and efficiency.
3Adaptability or versatility
If tokens are created to represent assets on blockchain, then versatility and adaptability improve, but memory usage and storage requirements increase due to additional data structures and metadata
Solution Approach 1:
The patent uses cryptographic hash copies of asset metadata rather than storing complete asset representations on the blockchain. Token data structures contain hashed references to asset information, allowing versatile asset representation while minimizing storage requirements. The actual asset data can be stored off-chain with only essential verification data on the blockchain.
4Reliability
If cryptographic verification is implemented for all transactions, then security and data integrity improve, but computational overhead and processing time increase
Solution Approach 1:
The patent performs cryptographic verification in advance during token creation and registration phases. Public keys and cryptographic signatures are established beforehand, allowing subsequent transactions to use pre-validated cryptographic data. This preliminary action reduces computational overhead during actual transaction processing while maintaining data integrity.
Data Source
AI summary
A method of creating, redeeming, and transferring tokens on a peer-to-peer distributed ledger including generating a blockchain transaction having an output related to a quantity of cryptocurrency, and a hash of a redeem script usable for spending the output. The redeem script comprises metadata, which in turn comprises a token representing a tokenised entity. The redeem script additionally comprises at least one public cryptographic key. The metadata is provided in the redeem script at a location designated in the underlying blockchain protocol as a location for a cryptographic key.