Hierarchy-Based Blockchain with Tiered Transaction Verification
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Solution Overview
Problem
Large organizations managing transactions between many legal entities face a significant processing burden due to the need for each entity to maintain its own blockchain, which requires substantial computational resources and energy consumption, especially as the number of entities increases.
Innovation Solution
Implementing a hierarchy-based blockchain system that allows related legal entities to contribute to a centralized blockchain using a rule-based method, integrating smart contracts and consensus-based transactions, where transactions are authenticated by a consensus-based method, and the consensus-based method ensures that only a predetermined tier of nodes need to verify transactions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If each legal entity maintains its own distributed ledger to track transactions, then transaction privacy and entity-specific control are improved, but computational resources and processing burden increase significantly
Solution Approach 1:
Multiple legal entities under the same corporate umbrella share a single distributed ledger instead of maintaining separate ledgers. The system allows these entities to contribute to and access the same blockchain, reducing redundant computational resources while maintaining transaction privacy through selective visibility and entity-specific access controls.
Solution Approach 2:
The system segments the blockchain into different visibility layers, allowing transactions to be private to specific entities or groups while still being recorded on a shared ledger. This enables transaction privacy at the entity level without requiring separate blockchains, resolving the contradiction between privacy and resource efficiency.
2Reliability
If more nodes are added to verify transactions and prevent malicious control, then data integrity and security are improved, but energy consumption and processing burden increase
Solution Approach 1:
The system implements entity-specific visibility rules that allow transactions to be visible only to relevant nodes rather than all nodes. This localizes the verification process to only those nodes that need to see the transaction, reducing the total number of verifications required while maintaining security through targeted validation.
3Productivity
If a centralized blockchain is used to reduce computational burden, then processing efficiency and energy usage are improved, but transaction privacy and entity-specific control may be compromised
Solution Approach 1:
The system implements entity-specific visibility rules that allow transactions to be private to specific entities or groups while still being recorded on a shared ledger. This localizes the verification process to only those nodes that need to see the transaction, reducing the total number of verifications required while maintaining security through targeted validation.
Data Source
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AI summary
A computer-implemented method comprising receiving a transaction request from a first node within the plurality of nodes, the transaction request corresponding to a pending transaction between the first node and a second node; identifying a blockchain associated with the pending transaction, the blockchain including a first block instance having a hierarchy file indicating a hierarchy among the first node, the second node, and the third node; identifying a second block instance having an executable file to approve the transaction request received from the first node; executing the executable file, wherein the executable file is configured to retrieve data from a data source associated with the third node and analyze data to approve or deny the transaction request; and appending a third block instance comprising the set of transaction attributes to the blockchain.