Customized Blockchain Token Rules for Transaction Security
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Solution Overview
Problem
Existing centralized data storage systems face issues with single points of failure, data tampering, unauthorized disclosure, and loss of control due to a central authority, which can be compromised by malicious attackers.
Innovation Solution
Implementing a decentralized peer-to-peer (P2P) system using a blockchain data structure to distribute storage across multiple nodes, ensuring byzantine fault tolerance and preventing unauthorized modifications by requiring consensus among nodes.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If a centralized data storage system is used, then ease of operation and control is improved, but reliability and security deteriorate due to single points of failure and vulnerability to attacks
Solution Approach 1:
The patent divides the centralized data storage system into multiple distributed nodes across a peer-to-peer network. Each node stores copies of the ledger data, eliminating the single point of failure. The data is segmented and distributed across multiple locations, so that no single node holds complete control or represents a sole vulnerability point.
Solution Approach 2:
The patent introduces cryptographic intermediaries (digital signatures, hash functions, and consensus mechanisms) that mediate between nodes to establish trust without requiring a central authority. These cryptographic intermediaries enable secure operations while maintaining decentralization, resolving the contradiction between ease of control and security.
2Reliability
If a decentralized P2P system is implemented, then reliability and resistance to attacks are improved, but device complexity increases due to consensus requirements and distributed architecture
Solution Approach 1:
The patent changes the operational parameters of the system by implementing automated consensus algorithms (such as Proof of Work or Proof of Stake) that replace complex manual coordination. These parameter changes transform the consensus process into standardized computational procedures, reducing the perceived complexity while maintaining reliability and attack resistance.
3Reliability
If data is distributed across multiple nodes, then security and fault tolerance are improved, but loss of time increases due to consensus requirements for transactions
Solution Approach 1:
The patent implements a mechanism where only a threshold number of nodes (partial action) need to agree on a transaction for it to be validated, rather than requiring complete consensus from all nodes. This partial consensus approach reduces the time required for transaction processing while maintaining adequate fault tolerance and security.
Data Source
AI summary
Various aspects of the disclosure relate to distributed ledger computing systems and customizing tokens for securing and facilitating transactions recorded in the distributed ledger. A token customization module may be used to build customized controls into a token for use in a blockchain system. The token customization module may personalize or otherwise customize rules based on requirements of a user's particular use of the distributed ledger system. The customized rules may be used to trigger alerting behavior, prevent and/or automate particular transactions, provide geofencing and/or regional restrictions for transactions of a specified type, among others. Once built, the rules may be incorporated into the tokens and immutably memorialized in the distributed ledger. The customized tokens may be associated with or incorporate a smart contract to layer additional functionality.