Internal Ledger for Lower-Cost Blockchain Transaction Processing
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Blockchain transactions are computationally expensive and time-consuming for both computing nodes and requesting devices, leading to high resource and financial costs.
Innovation Solution
Implementing a transaction service that facilitates internal transactions on an internal ledger rather than the blockchain, using holding accounts to reduce the number of transactions recorded on the blockchain, while ensuring secure and individual user account ownership through cryptographic keys.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If all user transactions are recorded on the blockchain, then ownership records are secure and auditable, but computational expenses and processing time increase significantly
Solution Approach 1:
The patent segments transactions into two categories: internal transactions (between users within the same exchange) and external transactions (between users of different exchanges or with external entities). Internal transactions are recorded only in the internal ledger, while external transactions are recorded on the blockchain. This segmentation reduces the number of blockchain transactions while maintaining security for critical external operations.
Solution Approach 2:
The patent introduces an internal ledger as an intermediary layer between users and the blockchain. The internal ledger acts as a mediator that handles routine internal transactions, reducing the need for direct blockchain interactions. The system reconciles the internal ledger with the blockchain periodically, maintaining data integrity while reducing computational overhead.
2Loss of information
If all user transactions are recorded on the blockchain, then transaction transparency is maintained, but transaction processing time increases
Solution Approach 1:
The patent segments transactions based on their transparency requirements. Internal transactions (which don't require external transparency) are processed quickly through the internal ledger, while external transactions (which require blockchain transparency) are recorded on the blockchain. This segmentation reduces overall processing time while maintaining transparency where needed.
Solution Approach 2:
The patent creates a copy of the blockchain ledger structure as an internal ledger that mirrors essential transaction data locally. This internal copy enables fast processing of internal transactions without requiring real-time blockchain verification, while still allowing periodic reconciliation to maintain data consistency and transparency.
3Reliability
If individual user accounts are implemented on blockchain, then user ownership is secured, but the number of transactions and computational load increase
Solution Approach 1:
The patent segments user accounts into internal accounts (managed within the exchange) and external accounts (interacting with the blockchain). Internal accounts use cryptographic keys for secure ownership verification without requiring blockchain transactions for every operation. External accounts maintain blockchain-based ownership records for transparency and security. This segmentation improves transaction efficiency while maintaining ownership security.
Solution Approach 2:
The patent implements a system where the internal ledger autonomously manages internal transactions and ownership verification using cryptographic keys, without requiring blockchain network involvement. The system self-reconciles with the blockchain periodically, reducing the frequency of blockchain interactions while maintaining secure ownership records through cryptographic proof.
Data Source
AI summary
Systems, methods, and computer-readable media disclosed herein relate to reducing computation and computing resources for certain blockchain related transactions. Specifically, software algorithms and architecture allow some transactions to avoid the need for recordation on a blockchain, which can be computationally expensive both for a requesting device and for various nodes on the blockchain. Thus, a computer system may receive indications of incoming transactions transferring digital assets to particular user accounts, and in response to requests from user accounts, the computer system facilitates one or more internal transactions between those accounts. In response to a request from a particular internal user account, the computer system may perform an outgoing transaction transferring one or more digital assets to an external user account from one or more internal user accounts. The incoming transactions and outgoing transaction are recorded on the blockchain, but the internal transactions are recorded on an internal ledger rather than the blockchain, saving computational power and improving computer operations.