Permissioned Blockchain Layer 2 Bridge for Off-Chain Cryptocurrency Payments
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Private blockchains lack a default currency, making it difficult to ensure their worth and facilitating transactions using existing cryptocurrencies.
Innovation Solution
A method for securing cryptocurrency transactions on a permissioned blockchain by receiving a join request, verifying the execution of an enroll transaction, crediting an account with the cryptocurrency balance, and transferring the balance to another account on the private blockchain, utilizing Byzantine Fault Tolerant (BFT) proofs for security and efficiency.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If a permissioned blockchain is created, then transaction efficiency and security are improved, but the lack of a default currency reduces its versatility and value
Solution Approach 1:
The patent introduces a bridge smart contract deployed on the public blockchain as an intermediary between the permissioned and permissionless blockchains. This bridge contract holds cryptocurrency assets in escrow and enables their representation on the private blockchain through verified enrollment transactions, allowing the permissioned blockchain to use external cryptocurrencies without compromising its security model
Solution Approach 2:
The system segments the cryptocurrency asset representation into two distinct components: the actual cryptocurrency assets held on the public blockchain and the corresponding tokens or representations on the permissioned blockchain. This segmentation allows each blockchain to operate independently with its own security model while maintaining asset portability across chains
2Adaptability or versatility
If transactions are executed on a public blockchain, then cryptocurrency availability is improved, but transaction speed and cost increase
Solution Approach 1:
The patent moves cryptocurrency transactions from the single dimension of public blockchain execution to a two-dimensional architecture where enrollment and verification occur on the public blockchain but subsequent transactions execute on the permissioned blockchain. This dimensional shift enables transactions to leverage the availability of public cryptocurrencies while achieving the speed and cost benefits of private blockchain execution
3Adaptability or versatility
If cryptocurrency assets are transferred between blockchains, then interoperability is improved, but security verification complexity increases
Solution Approach 1:
The bridge smart contract on the public blockchain performs self-service verification by automatically monitoring and verifying enrollment transactions. The contract autonomously updates its internal state to reflect enrolled assets and generates verification data that the permissioned blockchain can trust without requiring complex external validation mechanisms
Solution Approach 2:
The system implements feedback loops where the permissioned blockchain receives verification data from the public blockchain bridge contract, and the bridge contract receives enrollment transaction data from the permissioned blockchain. This bidirectional feedback mechanism maintains consistent state across both chains while simplifying verification through automated information exchange
Data Source
Figure 1
Figure 2
Figure 3
AI summary
A method for securing a cryptocurrency transaction on a permissioned blockchain, which involves cryptocurrencies of a permissionless public blockchain, includes receiving a join request including a transaction identification. The transaction identification identifies an enroll transaction involving a public smart contract deployed on the permissionless public blockchain, the enroll transaction identifying a permissioned blockchain public key being valid on the permissioned blockchain and transferring a cryptocurrency balance to the public smart contract. The method further includes verifying that the enroll transaction was properly executed, crediting an account corresponding to the permissioned blockchain public key with the cryptocurrency balance, and receiving a send request identifying a second cryptocurrency balance and a second permissioned blockchain public key being valid on the permissioned blockchain. The method also includes transferring the second cryptocurrency balance from the permissioned blockchain public key to the second permissioned blockchain public key.