Hierarchic Blockchain for High-Frequency Trading Validation

The patent divides the blockchain system into multiple hierarchical levels (Level 0, Level 1, Level 2, etc.), where each level processes transactions at different speeds. Level 0 provides the highest speed for time-sensitive transactions, while higher levels provide increasing validation thoroughness. This segmentation allows the system to simultaneously offer both fast transaction processing and strong integrity guarantees by routing transactions to appropriate levels based on their requirements.

The patent introduces intermediate validation layers between the transaction source and the main blockchain ledger. These intermediate layers perform preliminary validation and grouping of transactions before they are committed to the main ledger, acting as mediators that reduce the validation burden on all nodes while maintaining security. This intermediary approach speeds up processing by distributing validation work across multiple hierarchical levels.

The validation process is segmented across multiple hierarchical levels. Not all nodes validate all transactions at all levels. Instead, nodes at different levels perform validation appropriate to their level's security requirements and processing capabilities. This segmentation of validation responsibilities reduces the time each transaction spends in the system while maintaining overall security through layered validation.

The patent applies partial validation at intermediate levels rather than requiring full validation by all nodes for every transaction. Transactions receive sufficient validation at each hierarchical level to ensure security appropriate to that level's risk profile, without requiring the complete validation process to occur at every level. This partial action approach reduces total validation time while maintaining adequate security.