Exchange Node Mediation for Cross-DLT Double-Spending Prevention
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Solution Overview
Problem
Existing DLT networks face challenges in communicating and preventing double-spending of digital currency due to incompatible communication protocols and lack of verification mechanisms when transferring between different networks.
Innovation Solution
An exchange node acts as a trusted intermediary, installing monitoring agents and smart contracts on DLT networks to detect transaction requests, destroying the digital currency on the source network, and recreating it on the target network using the same collateral, ensuring the same value is maintained across networks.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Speed
If digital currency is transferred between multiple DLT networks without a trusted intermediary, then transaction speed and autonomy are improved, but double-spending security deteriorates due to incompatible communication protocols and lack of verification mechanisms
Solution Approach 1:
The patent introduces an exchange node as a trusted intermediary between DLT networks. This exchange node monitors transaction requests, verifies currency destruction on the source network, and confirms recreation on the target network. The intermediary resolves the contradiction by providing centralized verification that prevents double-spending while enabling cross-network transfers that would otherwise be too slow or insecure to perform autonomously.
2Reliability
If monitoring agents and smart contracts are installed on DLT networks to detect transaction requests, then double-spending prevention is improved, but device complexity and implementation difficulty worsen
Solution Approach 1:
Rather than requiring complex modifications to multiple DLT networks, the patent places the monitoring intelligence in the exchange node intermediary. The exchange node receives transaction requests, verifies destruction on the source network, and confirms recreation on the target network. This approach achieves reliable double-spending prevention without requiring complex agent installation and coordination across multiple autonomous networks, thereby reducing overall system complexity.
3Reliability
If digital currency is destroyed on the source network before recreation on the target network, then double-spending security is improved, but loss of time occurs during the destruction and recreation process
Solution Approach 1:
The exchange node performs preliminary verification by monitoring and confirming the destruction of digital currency on the source network before initiating recreation on the target network. This preliminary action ensures security by preventing double-spending while minimizing time loss through efficient monitoring and batch processing of destruction confirmations, rather than requiring sequential verification of each individual transaction.
Data Source
AI summary
A method for preventing the double-spending of digital currency that transfers between multiple distributed ledger technology (DLT) networks. The method includes detecting a request to transfer a first digital currency from the a DLT network of a first type to a second DLT network of a second type. The method further includes, in response to an indication from an exchange node that the first digital currency is to be destroyed, destroying the first digital currency from the first DLT network. The method further include creating a second digital currency on the second DLT network. Creating the second digital currency on the second DLT network further includes attaching a serial number to the second digital currency.