DAG Ledger Structure for Higher-Throughput Transaction Processing
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Existing distributed ledger systems face inefficiencies in transaction processing, particularly in public blockchains due to slow performance and transaction conflicts, and enterprise blockchains face issues with transaction rejection and lack of scalability.
Innovation Solution
Implementing a Directed Acyclic Graph (DAG) structure for transaction processing in a distributed ledger system, combined with a weight mechanism to adjust performance based on business requirements, and utilizing Hyperledger Fabric for permissioned and private networks with channels for transaction privacy and consensus protocols.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If a linear blockchain structure is used for transaction processing, then transaction history can be recorded in a simple sequential manner, but transaction throughput is limited and processing time increases
Solution Approach 1:
The patent segments the linear blockchain structure into a parallel DAG structure where transactions are organized into levels and batches. This allows multiple transactions to be processed simultaneously across different branches of the graph rather than sequentially, thereby increasing throughput while maintaining manageable structural complexity through systematic organization.
Solution Approach 2:
The patent transitions from a one-dimensional linear chain to a multi-dimensional DAG structure with levels, batches, and branches. This dimensional expansion enables parallel processing of transactions at different levels and batches, significantly improving throughput and reducing processing time while providing richer structural information.
2Productivity
If miners prioritize transactions with higher fees in public blockchains, then economic incentive is maintained, but transaction processing performance deteriorates
Solution Approach 1:
The patent implements preliminary actions by pre-organizing transactions into batches and levels before final processing. Transactions are prepared and validated in advance within their respective batches, and the DAG structure is configured to accommodate multiple transaction types ahead of time, reducing conflicts and rejections during actual processing and improving overall performance.
Solution Approach 2:
The patent changes the parameter of transaction organization from sequential to parallel batch processing. By introducing batch IDs, levels, and branches as organizing parameters, the system can process multiple transactions simultaneously without the fee-prioritization constraints of traditional blockchains, thereby improving performance while reducing conflicts.
3Productivity
If permissioned ledgers are used to improve accountability and governance, then trust and control are enhanced, but scalability and transaction volume are limited
Solution Approach 1:
The patent segments the permissioned ledger into multiple levels and batches within the DAG structure. This segmentation allows permissioned participants to process transactions in parallel across different levels and batches, significantly increasing transaction volume and scalability while maintaining governance control through the organized hierarchical structure.
Solution Approach 2:
The patent adds dimensional structure to permissioned ledgers by organizing transactions into levels, batches, and branches. This multi-dimensional organization enables parallel processing and increased scalability while the hierarchical nature provides clear governance pathways and trust mechanisms, resolving the scalability-governance trade-off.
4Reliability
If channels are introduced in Hyperledger Fabric for transaction privacy, then data confidentiality is improved, but system complexity and setup overhead increase
Solution Approach 1:
The patent segments the network into separate channels within the DAG structure, where each channel can be configured with specific privacy and governance parameters. This segmentation enables transaction privacy for specific participant groups without requiring complete network reconfiguration, thereby improving confidentiality while managing complexity through modular channel design.
Data Source
AI summary
Described herein are systems and methods for a DAG based transaction processing system and method in a distributed ledger. In accordance with an embodiment, a DAG based transaction processing system and method in a distributed ledger can be introduced. The model can help achieve improved throughput performance. With additional weight mechanism, the final performance can be adjusted based on various business requirements. This is different from existing work that uses linear structure and can achieve better performance.