Ledger-Agnostic Overlay Network for Cross-Network Transaction Management
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Solution Overview
Problem
Current systems fail to efficiently facilitate cross-ledger transactions, as they require intermediaries and are limited by the need for direct communication and smart contract support, restricting scalability and extensibility across heterogeneous computing networks and jurisdictions.
Innovation Solution
A ledger-agnostic overlay network with a Finance Ontology, Transaction Service Bus, and Chained Transfer Handler module that enables seamless value transfers across centralized and distributed ledger systems, using a graph structure to find viable paths and execute transactions through heterogeneous networks with zero knowledge proofs for immutability and privacy.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If direct communication and smart contract support are required for cross-ledger transactions, then transaction reliability is improved, but system complexity and limited scalability worsen
Solution Approach 1:
The patent introduces intermediary components including a wrapped transfer system, translation schema, and finite state machine orchestrator that mediate between heterogeneous ledgers. These intermediaries enable reliable cross-ledger transactions by translating between different ledger protocols and coordinating state changes without requiring direct communication between ledgers, thus maintaining reliability while reducing system complexity.
Solution Approach 2:
The transaction process is segmented into discrete state transitions within a finite state machine framework. Each state represents a specific stage in the cross-ledger transaction process, allowing complex transactions to be broken down into manageable, verifiable steps. This segmentation improves reliability through systematic state validation while making the overall system more manageable and scalable.
2Adaptability or versatility
If intermediaries are used for cross-ledger transactions, then transaction versatility is improved, but transaction speed and efficiency worsen
Solution Approach 1:
The system performs preliminary actions by pre-establishing translation schemas and wrapped transfer mechanisms between ledgers before actual transactions occur. The finite state machine is pre-configured with all possible state transitions and validation rules. This preliminary setup enables versatile cross-ledger transactions while reducing transaction speed penalties during execution, as the intermediary logic is already in place and does not require dynamic computation during the transaction itself.
3Reliability
If ledger-specific tokens and protocols are used, then network security is improved, but cross-network scalability worsens
Solution Approach 1:
The patent creates a universal wrapped transfer system that can operate across multiple heterogeneous ledgers while maintaining each ledger's native security protocols. The translation schema and finite state machine provide a universal framework that adapts to different ledger-specific tokens and protocols, enabling secure transactions on individual ledgers while achieving cross-network scalability through the unified intermediary layer.
Data Source
AI summary
A method and apparatus for providing communications between dissimilar computing networks, such as distributed ledger networks. A ledger-agnostic overlay network and computing architecture spans a range of digital communication networks including transaction only DLT networks like Bitcoin's DLT, smart contract based DLT like Ethereum, and also traditional centralized systems. Implementations communicate transaction information across heterogeneous jurisdictional boundaries, payment networks, banking systems, public and private distributed ledgers, internal corporate accounting systems, and exchanges.