Ledger Metadata Architecture for Private Transaction Validation
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Solution Overview
Problem
Existing digital currency transactions on block chains provide anonymity but lack mechanisms for securely storing and accessing additional transaction metadata, which can be sensitive and require different access frequencies than the block chain itself, posing challenges for fraud detection and transaction validation.
Innovation Solution
A separate non-public database stores transaction metadata, accessible at different frequencies than the block chain, with POS terminals appending metadata to transactions and integrating it with merchant and manufacturer policies for automated processing of returns and warranties.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If transaction metadata is stored on the blockchain, then transaction validation is improved, but user privacy and anonymity are compromised
Solution Approach 1:
The patent segments data storage into two distinct locations: the blockchain stores only essential transaction identifiers and hashes, while detailed transaction metadata is stored separately in a non-public database. This segmentation allows validation to occur through cryptographic verification of hashes without exposing sensitive information, thus maintaining both reliability and privacy.
Solution Approach 2:
The patent introduces a non-public database as an intermediary layer between the blockchain and detailed transaction information. This intermediary stores metadata that can be accessed by authorized parties for validation purposes without requiring the metadata to be publicly visible on the blockchain, thereby preserving anonymity while enabling verification.
2Stability of the object's composition
If all transaction metadata is stored with the same access frequency as the blockchain, then data consistency is improved, but access efficiency is reduced
Solution Approach 1:
The patent implements dynamic access mechanisms where different metadata can be accessed at different frequencies and by different authorized parties. The system allows flexible retrieval of transaction metadata based on specific needs, enabling efficient access to frequently needed information while maintaining consistency with the blockchain through cryptographic verification without requiring synchronized access patterns.
3Object-affected harmful factors
If sensitive transaction metadata is made accessible for fraud detection, then security is improved, but user anonymity is compromised
Solution Approach 1:
The non-public database acts as a controlled intermediary that allows authorized entities (such as investigators or auditors) to access transaction metadata for fraud detection purposes without making this information publicly visible. This maintains the cryptographic anonymity on the blockchain while enabling security investigations through controlled access to the intermediary storage layer.
Data Source
AI summary
A system has a storage medium encoded with program instructions, and a processor coupled to access the program instructions. The instructions configure the processor for: receiving a first request at a POS terminal to surrender a previously purchased first asset in exchange for at least a portion of a second asset that was used to purchase the first asset, receiving the private key from the first asset; accessing a set of rules stored in a distributed electronic ledger, the set of rules specifying conditions associated with the first request; transmitting an authorization to return the at least a portion of the second asset in exchange for surrender of the first asset, in the case where the conditions are satisfied; and invalidating the first request in the case where one or more of the conditions are not satisfied.