Distributed Ledger Metadata Segmentation for Asset Return Validation
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Solution Overview
Problem
Existing digital currency transactions on block chains provide anonymity but lack mechanisms for securely storing and accessing additional transaction metadata, which can be sensitive and require different access frequencies than the transaction records, and there is a need for efficient validation and execution of asset exchanges and returns.
Innovation Solution
A system that includes a POS terminal and a separate metadata database to store transaction metadata, which is accessible at different frequencies than the block chain, and utilizes smart contracts to automate asset exchanges and returns based on predefined conditions stored in a distributed electronic ledger.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If transaction metadata is stored on the block chain alongside transaction records, then data integrity and reliability are improved, but access efficiency and retrieval speed deteriorate due to the need to query the entire block chain
Solution Approach 1:
The patent segments the data storage system into two distinct components: a block chain for storing transaction records and a separate metadata database for storing transaction metadata. This segmentation allows each component to be optimized independently - the block chain maintains data integrity through cryptographic linking while the metadata database provides efficient query access through traditional database indexing and search capabilities.
2Loss of information
If all transaction information is stored anonymously on the public ledger, then user privacy is improved, but fraud detection and compliance monitoring deteriorate due to lack of accessible metadata
Solution Approach 1:
The patent introduces a metadata database as an intermediary layer between the anonymous block chain and compliance monitoring systems. This metadata database stores additional transaction information and context that aids fraud detection and compliance monitoring, while the block chain maintains anonymity through its cryptographic structure. The system thus achieves both privacy protection and fraud detection capability through the intermediary metadata layer.
Data Source
AI summary
A system has a storage medium encoded with program instructions, and a processor coupled to access the program instructions. The instructions configure the processor for: receiving a first request at a POS terminal to surrender a previously purchased first asset in exchange for at least a portion of a second asset that was used to purchase the first asset, receiving the private key from the first asset; accessing a set of rules stored in a distributed electronic ledger, the set of rules specifying conditions associated with the first request; transmitting an authorization to return the at least a portion of the second asset in exchange for surrender of the first asset, in the case where the conditions are satisfied; and invalidating the first request in the case where one or more of the conditions are not satisfied.