Escrowed Token Marketplace Using Zero-Knowledge Ownership Proofs
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Solution Overview
Problem
Existing transaction systems that involve intermediaries often require revealing sensitive transaction details and compromise user privacy, and existing blockchain solutions do not adequately protect the confidentiality of token contents during transfers.
Innovation Solution
A blockchain-based escrow marketplace uses non-interactive zero-knowledge proofs (NIZKP) and encrypted tokens to verify ownership without revealing token contents, allowing anonymous transactions between parties through an intermediary that maintains token confidentiality.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If an intermediary is used to hold and verify properties being traded, then transaction security is improved, but user privacy and token confidentiality are compromised
Solution Approach 1:
The patent uses a cryptographic intermediary mechanism where the escrow service acts as a mediator without actually seeing the token contents. The escrow verifies ownership through zero-knowledge proofs and facilitates transfers by publishing encrypted token information and verification credentials, maintaining security while preserving confidentiality.
Solution Approach 2:
The patent transforms the verification mechanism from direct inspection of token contents to verification of cryptographic parameters. Instead of examining the actual token, the system verifies mathematical proofs (zero-knowledge proofs) that demonstrate ownership without revealing the underlying asset, changing the verification parameter from content-based to proof-based.
2Measurement precision
If traditional escrow systems are used to facilitate transactions, then transaction verification is improved, but the escrow's workload and complexity increase
Solution Approach 1:
The patent replaces the mechanical/manual escrow process with an automated cryptographic system. Instead of manual verification of asset ownership and transfer, the system uses zero-knowledge proofs, public-key cryptography, and automated publishing of verification credentials to the blockchain, substituting complex manual procedures with streamlined cryptographic operations.
3Measurement precision
If token contents are revealed to the intermediary for verification, then ownership verification is improved, but token confidentiality is compromised
Solution Approach 1:
The patent extracts the verification function from the token itself. Instead of examining the actual token contents, the system extracts and verifies only the ownership proof (zero-knowledge proof) and encrypted metadata. The escrow takes out the verification requirement from the confidential token content, separating what needs to be verified (ownership) from what must remain hidden (token details).
Data Source
Figure 1
Figure 2A
Figure 2B~2C
AI summary
A method may include obtaining, from a first entity, and publishing a predicate, a first purchase price, and a first public key associated with the first entity. The method may also include obtaining, from a second entity, an encryption of a token satisfying the predicate and one or more knowledge-proving credentials. The method may additionally include verifying ownership of the token based on the credentials. The method may also include obtaining, from the first entity, assets corresponding to the first purchase price. The method may also include sending a portion of the knowledge-proving credentials, including at least an updated hash value, to a token blockchain. The method may additionally include verifying the updated hash value is posted to the token blockchain. The method may also include providing the encryption of the token to the first entity and transferring the assets corresponding to the first purchase price to the second entity.