Indirect Token Transfer Channels for Secure Multi-Round Distribution
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Solution Overview
Problem
Existing blockchain token distribution methods face challenges in ensuring secure, deterministic, and trustless token transfer without relying on centralized authorities, particularly in multi-round processes where token loss or theft can occur due to malicious or offline participant nodes.
Innovation Solution
A token transfer protocol using indirect anonymous transfer (IATP) with commitment channels and secret sharing, where participating nodes engage in a set of indirect token transactions, generating commitment channels and utilizing secret shares to ensure all transactions are validated and executed securely, disguising the transferor-transferee relationships.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If a centralized mixing service is used to distribute tokens, then token distribution can be facilitated, but the system becomes vulnerable to theft and regulatory pressure
Solution Approach 1:
The patent introduces an automated smart contract intermediary that replaces the centralized mixing service. The smart contract autonomously executes token distribution according to predefined rules, eliminating the need for a trusted human operator while maintaining the facilitation function. This resolves the contradiction by providing ease of operation through automation while improving reliability by removing the single point of failure and trust vulnerability.
Solution Approach 2:
The system enables self-service token distribution through programmable smart contracts that automatically execute distribution logic without external intervention. The contracts self-manage the entire distribution process, including validating inputs, executing transfers, and handling edge cases, thereby eliminating reliance on centralized services while maintaining operational ease.
2Device complexity
If direct token transfer is used, then the process is simple, but anonymity is compromised
Solution Approach 1:
The patent segments the direct transfer process into multiple indirect transfers through intermediate addresses. Instead of a single direct transfer that reveals the sender-receiver relationship, the token passes through several intermediate steps, each appearing as an independent transaction. This maintains process simplicity at each step while collectively preserving anonymity by breaking the direct link between original sender and receiver.
Solution Approach 2:
The system introduces intermediary smart contracts that act as mediators in the transfer process. These intermediaries receive tokens from senders and forward them to receivers without revealing the underlying relationship. The intermediaries maintain the simplicity of automated execution while protecting anonymity by decoupling the visible transaction chain from the actual participant identities.
3Loss of information
If multi-round token distribution is implemented, then anonymity is improved, but token loss or theft can occur due to malicious or offline nodes
Solution Approach 1:
The patent implements beforehand cushioning through timelock mechanisms and commitment contracts that prevent malicious or offline nodes from causing token loss. Before each distribution round, the system pre-establishes fallback mechanisms and validation rules that ensure tokens can only be transferred if all conditions are met. This cushions against potential failures by having protective measures in place before the distribution occurs, maintaining both anonymity and reliability.
Solution Approach 2:
The system incorporates feedback mechanisms where each node validates the actions of other nodes in real-time during the multi-round distribution process. If a node deviates from the protocol or goes offline, the feedback mechanism detects this and triggers corrective actions, such as halting the distribution or redistributing tokens through alternative paths. This maintains reliability while preserving the anonymity benefits of multi-round distribution.
Data Source
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AI summary
A computer-implemented method to participate in a token transfer process for transferring a first quantity of token from a sender node to a recipient node using a blockchain is disclosed. The token transfer process includes a plurality of participating nodes and execution of a set of indirect token transactions between multiple pairs of the participating nodes. The method is implemented at a participating node and includes: obtaining a subset of the set of indirect token transactions, the subset including only those transactions for which the participating node is either an input node or an output node, wherein the set of indirect token transactions is generated based on the first quantity of tokens and a predefined number of transaction rounds in the token transfer process; for each indirect token transaction in the subset, collaborating with a respective second participating node included in the indirect token transaction to generate a commitment channel for the indirect token transaction between the participating node and the second participating node; and collaborating with all other participating nodes in executing the indirect token transactions of the subset using the generated commitment channels. Each participating node uses a plurality of input and output addresses, one for every indirect token transaction in which it takes part.