Distributed Ledger Information Isolation in Cloud Enterprise Systems
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Solution Overview
Problem
Existing financial systems face challenges such as delayed asset transfers, high intermediary fees, complex reconciliation processes, fraud risks, and limited conditional transfer capabilities due to reliance on centralized ledgers.
Innovation Solution
Implementing distributed ledger technology, specifically a blockchain system, to record asset ownership in a decentralized and transparent manner, allowing for real-time transaction processing and supporting advanced logic for various business requirements.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Device complexity
If centralized ledger systems are used for asset transfers, then transaction processing can be simplified, but settlement time increases and intermediary fees increase
Solution Approach 1:
The patent segments the centralized ledger into multiple distributed nodes across a blockchain network. Each node maintains a copy of the ledger and can independently validate transactions, eliminating the need for a single central authority and reducing settlement time by enabling parallel processing across multiple nodes simultaneously.
Solution Approach 2:
The patent introduces smart contracts as automated intermediaries that execute transaction logic without human intervention. These self-executing contracts stored on the blockchain automatically facilitate asset transfers when conditions are met, replacing manual intermediary processes and reducing both settlement time and fees.
2Productivity
If distributed ledger technology is implemented, then settlement time is reduced and intermediary fees are eliminated, but system complexity increases
Solution Approach 1:
The patent creates a universal blockchain platform that can handle multiple asset types (cryptocurrencies, securities, commodities) and various transaction types through a single distributed ledger system. This multi-functional approach consolidates what would otherwise require multiple separate systems, managing complexity while enabling high throughput across diverse applications.
Solution Approach 2:
The patent utilizes cryptographic parameters (hash functions, digital signatures, proof-of-work difficulty) to secure the distributed ledger. By changing and optimizing these cryptographic parameters, the system achieves both security and scalability, allowing increased transaction throughput without proportionally increasing operational complexity.
3Reliability
If blockchain technology is used, then fraud prevention is improved through decentralization, but transaction processing speed decreases
Solution Approach 1:
The patent implements preliminary validation rules and consensus mechanisms that are pre-configured in the blockchain protocol. Transactions are validated against these predetermined criteria before being added to the ledger, enabling fast processing while maintaining security. The consensus algorithm is prepared in advance, allowing nodes to quickly verify transactions without ad-hoc security checks.
Solution Approach 2:
The patent employs dynamic transaction fee mechanisms and adjustable block sizes that respond to network conditions. When network demand is low, transactions are processed quickly with minimal fees. When demand increases, the system dynamically adjusts parameters to maintain security while managing throughput, balancing speed and fraud prevention based on real-time conditions.
Data Source
AI summary
Systems, methods, and apparatuses for isolating information from a cloud services provider hosting an enterprise application software, using a distributed ledger. For example, according to one embodiment there is a system having at least a processor and a memory therein executing within a host organization to host an enterprise application software for an enterprise, receive information input from a customer of the enterprise at a user interface for the enterprise application software, transfer the customer-provided information to a distributed ledger accessible to the system, receive information input from the enterprise at an enterprise interface for the enterprise application software, transfer the enterprise-provided information to the distributed ledger accessible to the system, but maintain no copy of the customer-provided information nor copy of the enterprise-provided information in a permanent store accessible to the system and the host organization.