Cryptographic Resource Batching for Scalable Blockchain Communications
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Solution Overview
Problem
Blockchain technology faces challenges such as high energy consumption, specialized knowledge requirements, scalability issues, and privacy concerns, limiting its practical implementation in complex operations and applications.
Innovation Solution
A novel cryptographic resource standard with batch designations allows for batch cryptographic resource transfers and on-chain batching, enabling self-executing programs to perform functions on designated batches of cryptographic resources, irrespective of fungibility or current storage applications, and includes attributes for reversible operations in case of errors.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If blockchain technology is used to ensure immutable and decentralized transactions, then security and trust are improved, but transaction costs and energy consumption increase
Solution Approach 1:
The patent segments blockchain transactions into different types (Layer 1 and Layer 2) with different security guarantees. Layer 1 provides full cryptographic immutability for critical transactions, while Layer 2 provides faster, cheaper execution for non-critical transactions. This segmentation allows the system to provide security where needed without paying the full energy cost for all transactions.
Solution Approach 2:
The patent introduces an intermediary layer (Layer 2) that mediates between the immutable blockchain (Layer 1) and application-layer transactions. This intermediary handles the bulk of transaction processing off-chain, reducing the energy burden on the main blockchain while maintaining security through periodic commitments to the Layer 1 ledger.
2Reliability
If blockchain technology is used to provide decentralized consensus, then trustless operation is improved, but transaction speed and scalability deteriorate
Solution Approach 1:
The patent divides the blockchain system into two segments: Layer 1 for consensus and finality, and Layer 2 for high-speed transaction processing. This segmentation allows Layer 2 to achieve high transaction throughput without being constrained by Layer 1's consensus speed, while Layer 1 maintains security and decentralization.
Solution Approach 2:
The patent adds a temporal dimension to transaction processing by separating immediate execution (Layer 2) from final settlement (Layer 1). Transactions can be executed and confirmed quickly on Layer 2, with the option to settle on Layer 1 later if needed, effectively adding a 'speed layer' to the traditional blockchain model.
3Reliability
If traditional blockchain standards are used for cryptographic resource transfers, then security is improved, but transaction costs and complexity increase for batch operations
Solution Approach 1:
The patent merges multiple individual cryptographic resource transfers into a single batch transaction on Layer 2. Instead of requiring separate transactions for each resource transfer, the system combines multiple transfers into one atomic operation, reducing transaction complexity and costs while maintaining cryptographic security through the underlying Layer 1 blockchain.
Solution Approach 2:
The patent creates a universal batch transfer mechanism that can handle multiple types of cryptographic resources (tokens, NFTs, etc.) in a single transaction. This multi-functional approach eliminates the need for separate transaction logic for different resource types, simplifying the user experience while maintaining security through standardized cryptographic proofs.
4Loss of information
If blockchain technology is used to provide public ledgers, then transparency is improved, but user privacy deteriorates
Solution Approach 1:
The patent extracts sensitive transaction data from the public Layer 1 blockchain and stores it privately on Layer 2. Only essential settlement information is committed to the public ledger, while detailed transaction data remains private but verifiable through cryptographic proofs. This extraction allows transparency where needed while protecting privacy where possible.
Solution Approach 2:
The patent applies different transparency levels to different parts of the transaction data. Critical settlement information is made public on Layer 1 for transparency, while personal and sensitive information is kept private on Layer 2. This local differentiation of quality allows the system to provide transparency for what matters while protecting what should remain private.
Data Source
AI summary
Methods and systems for uses and/or improvements to blockchain technology. In particular, the methods and systems described herein implement a novel cryptographic resource standard that provides functionality for complex communications. The novel cryptographic resource standard allows for blockchain functions that may involve single cryptographic resource transfers or batch cryptographic resource transfers as well as on-chain batching of one or more cryptographic resources.