Decentralized Exchange Timestamp Server for Order Determinism

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Solution Overview

Problem

Existing decentralized exchanges in distributed networks face challenges with trust and timing issues, as each node maintains its own matching engine and transactions are recorded asynchronously, leading to uncertainty in order execution and incentivizing chain forking during market moves.

Innovation Solution

A decentralized exchange with a centralized server that timestamps orders and broadcasts them to nodes, allowing each node to maintain a matching engine for order placement and validation, and implementing a bidding process to select the next block signer, such as in the GammaCoin blockchain, where nodes bid to sign blocks based on factors like order priority and market liquidity.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Extent of automation

If each node maintains its own matching engine for decentralized order processing, then system decentralization and distributed autonomy are improved, but transaction ordering consistency and trust reliability deteriorate due to asynchronous recording and timing issues

Engineering Contradiction:

Improvedecentralized order processingVSAvoidtransaction ordering consistency

Core Design Contradiction:

Extent of automationVSReliability

Solution Approach 1:

The patent introduces a centralized timestamp server as an intermediary that provides authoritative timing information to all distributed nodes. This mediator resolves the ordering conflict by providing a common time reference that all nodes can use to sequence transactions deterministically, without requiring full centralization of the matching engine.

Inventive Principle:

Principle #24Intermediary (Mediator)

Solution Approach 2:

The system performs preliminary timestamping of transactions before they are processed by matching engines. By assigning timestamps in advance and broadcasting them to all nodes, the ordering decision is made beforehand, eliminating the need for nodes to independently determine transaction order during asynchronous processing.

Inventive Principle:

Principle #10Preliminary action

2Productivity

If transactions are recorded asynchronously across distributed nodes, then processing speed and system throughput are improved, but trust and timing uncertainty increase leading to chain forking incentives

Engineering Contradiction:

Improvetransaction processing throughputVSAvoidtrust and timing certainty

Core Design Contradiction:

ProductivityVSReliability

Solution Approach 1:

The system implements a feedback mechanism where the centralized server continuously broadcasts timestamp information to all nodes. This feedback loop ensures that all distributed participants have access to the authoritative timing information, allowing them to verify transaction order independently and eliminating incentives for chain forking.

Inventive Principle:

Principle #23Feedback

Solution Approach 2:

By providing all nodes with equal access to the same timestamp data through broadcasting, the system creates equipotential conditions where every participant operates from the same timing reference. This eliminates timing uncertainty and ensures all nodes can independently verify the same transaction order.

Inventive Principle:

Principle #12Equipotentiality

3Reliability

If a centralized server timestamps and broadcasts orders to all nodes, then transaction ordering determinism and trust reliability are improved, but system complexity and centralization increase

Engineering Contradiction:

Improveorder execution certaintyVSAvoidsystem architecture complexity

Core Design Contradiction:

ReliabilityVSDevice complexity

Solution Approach 1:

The patent segments the system into distinct functional components: a centralized timestamp server that handles only timing functions, and distributed nodes that handle matching and execution. This segmentation allows each component to be optimized for its specific function, reducing overall system complexity despite the introduction of a centralized element.

Inventive Principle:

Principle #1Segmentation

4Productivity

If nodes bid to sign blocks based on order priority and market liquidity, then transaction priority and market efficiency are improved, but system complexity and energy consumption increase

Engineering Contradiction:

Improveorder execution priorityVSAvoidbidding process energy consumption

Core Design Contradiction:

ProductivityVSUse of energy by moving object

Solution Approach 1:

The system changes the parameter of block signing from fixed or random selection to a dynamic bidding process where nodes compete based on market factors. This parameter change allows priority to be allocated according to market liquidity and order importance, improving execution efficiency for high-value transactions.

Inventive Principle:

Principle #35Parameter changes

Data Source

PatentUS11303457B2Techniques for processing transactions of order-dependent blockchain protocols

Publication Date: 2022.04.12 SIDEPIT INC

AI summary

Disclosed embodiments include a server included in a network. The server is operable to determine a next block signer in a blockchain. The server includes processor(s) and memory containing instructions executable by the processor(s). As such, the server is operable to receive bids from nodes of the network and to select a bid from the received bids. The selected bid is provided by a node from the nodes of the network. The server is further operable to grant a right to sign a next block in a blockchain to the node that provided the selected bid.