Hybrid Blockchain Architecture for Loyalty Transaction Settlement

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Solution Overview

Problem

Current transaction settlement systems face challenges in balancing performance, security, and ease of traversal, particularly in distributed ledger and blockchain implementations, where trade-offs are needed between node trust, complexity, and transaction propagation efficiency.

Innovation Solution

A hybrid distributed ledger architecture is proposed, combining private and public blockchain networks for loyalty points management, using private nodes for secure ledger maintenance and public nodes for clearing and settlement, with smart contracts for loyalty transaction processing and communication interfaces for data exchange.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If a public blockchain network is used for loyalty points management, then transparency and trust are improved, but transaction propagation speed and settlement efficiency deteriorate

Engineering Contradiction:

Improvetransparency and trustVSAvoidtransaction propagation speed and settlement efficiency

Core Design Contradiction:

ReliabilityVSProductivity

Solution Approach 1:

The system segments the blockchain network into public nodes for transparency-critical functions (clearing and settlement) and private nodes for efficiency-critical functions (loyalty points management). This segmentation allows each segment to operate with appropriate characteristics without compromising the other.

Inventive Principle:

Principle #1Segmentation

Solution Approach 2:

Private nodes act as intermediaries between the loyalty platform and public nodes. They validate and prepare transactions locally before propagating to public nodes, reducing the burden on the public network and improving overall transaction throughput while maintaining public oversight.

Inventive Principle:

Principle #24Intermediary (Mediator)

2Productivity

If a private blockchain network is used for loyalty points management, then transaction propagation speed and settlement efficiency are improved, but transparency and trust deteriorate

Engineering Contradiction:

Improvetransaction propagation speed and settlement efficiencyVSAvoidtransparency and trust

Core Design Contradiction:

ProductivityVSReliability

Solution Approach 1:

The system merges private and public blockchain networks into a hybrid architecture where private nodes handle fast transaction processing and public nodes provide transparent verification. This combination allows the system to simultaneously achieve high efficiency and transparency.

Inventive Principle:

Principle #5Merging (Combining)

Solution Approach 2:

The hybrid blockchain system performs multiple functions: private nodes provide rapid transaction validation and data storage, while public nodes provide transparent clearing and settlement. This multi-functionality allows the system to address both efficiency and transparency requirements within a single platform.

Inventive Principle:

Principle #6Universality (Multi-functionality)

3Reliability

If only public nodes are used, then data integrity and trust are improved, but system complexity and difficulty of operation increase

Engineering Contradiction:

Improvedata integrity and trustVSAvoidsystem complexity and difficulty of operation

Core Design Contradiction:

ReliabilityVSDevice complexity

Solution Approach 1:

Private nodes perform self-service validation of transactions and loyalty points operations locally, reducing the need for constant public network verification. This self-service capability simplifies operation for end users while maintaining data integrity through cryptographic verification.

Inventive Principle:

Principle #25Self-service

4Ease of operation

If only private nodes are used, then ease of operation and traversal are improved, but security and vulnerability resistance deteriorate

Engineering Contradiction:

Improveease of operation and traversalVSAvoidsecurity and vulnerability resistance

Core Design Contradiction:

Ease of operationVSReliability

Solution Approach 1:

Different parts of the system have different security characteristics: private nodes provide fast, easy-to-access loyalty points management with controlled security, while public nodes provide enhanced security through transparent verification. This local quality differentiation optimizes both ease of operation and security where needed.

Inventive Principle:

Principle #3Local quality

Data Source

PatentUS20180268401A1Systems and methods for hybrid blockchain platform

Publication Date: 2018.09.20 ROYAL BANK OF CANADA

AI summary

There is provided a computer-implemented system for blockchain transaction settlement, the system including: a plurality of private nodes, each private node including at least one computing device and configured to maintain and update a private distributed ledger; and at least one communication interface between at least one of the plurality of private nodes and at least one public node of a plurality of public nodes which maintain and update a public distributed ledger. At least one private node may be configured for activities relating to the public nodes, such as receiving information, monitoring, verifications, among others.