Merkle Tree Data Attestation for Off-Chain Payment Channels

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Solution Overview

Problem

Existing blockchain systems lack the ability to ensure the immutability and integrity of data exchanged off-chain, particularly in payment channels where frequent and low-cost data transfers are necessary.

Innovation Solution

A computer-implemented method that uses a Merkle tree to attest to a sequence of data exchanges between a group, where each data set is hashed to form a leaf node of the Merkle tree, and an attestation transaction is generated with an output locked to the Merkle root, ensuring data authenticity and integrity.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Productivity

If data is exchanged off-chain in payment channels, then transaction frequency and cost efficiency are improved, but data immutability and integrity cannot be guaranteed

Engineering Contradiction:
Improvetransaction frequencyVSAvoiddata immutability
Core Design Contradiction:
ProductivityVSReliability

Solution Approach 1:

The patent segments the data exchange process into off-chain transactions for efficiency and on-chain attestation for integrity. Multiple individual data exchanges occur off-chain without blockchain overhead, while periodic batch attestations are submitted to the blockchain to guarantee integrity. This segmentation allows high-frequency trading while maintaining cryptographic proof of data authenticity.

Inventive Principle:
Principle #1Segmentation

Solution Approach 2:

The patent introduces Merkle trees as an intermediary mechanism between off-chain data exchanges and on-chain verification. The Merkle root serves as a compact cryptographic representation that mediates between the high-volume off-chain data flow and the limited on-chain verification capacity, enabling efficient periodic attestation without requiring every individual transaction on-chain.

Inventive Principle:
Principle #24Intermediary (Mediator)

2Reliability

If all data exchanges are recorded on-chain, then data integrity is ensured, but transaction costs and processing time increase

Engineering Contradiction:
Improvedata integrityVSAvoidtransaction cost efficiency
Core Design Contradiction:
ReliabilityVSProductivity

Solution Approach 1:

The patent applies partial action by recording only essential integrity information (Merkle roots) on-chain rather than every individual data exchange. This partial on-chain recording provides sufficient cryptographic guarantee of data integrity while avoiding the excessive costs of full on-chain transaction recording, achieving the minimum necessary verification.

Inventive Principle:
Principle #16Partial or excessive action

Solution Approach 2:

The patent performs preliminary hashing of data into Merkle trees before on-chain submission. By pre-processing data into compact Merkle root representations, the system prepares verification-ready summaries in advance, reducing the computational and transactional overhead when submitting to the blockchain, thus improving cost efficiency while maintaining integrity.

Inventive Principle:
Principle #10Preliminary action

3Productivity

If periodic batch attestations are used instead of individual transaction recording, then transaction costs are reduced, but verification complexity increases

Engineering Contradiction:
Improvetransaction cost efficiencyVSAvoidverification complexity
Core Design Contradiction:
ProductivityVSDevice complexity

Solution Approach 1:

The patent creates cryptographic copies (hashes) of data in the form of Merkle roots that serve as compact verification representations. Instead of storing or verifying individual data items, the system uses these cryptographic copies that condense entire batches of data into single verifiable values, reducing verification complexity while maintaining security guarantees.

Inventive Principle:
Principle #26Copying

Solution Approach 2:

The patent implements periodic batch attestation where multiple individual data exchanges are aggregated into periodic verification batches. This periodic action reduces the frequency of on-chain interactions, lowering transaction costs, while the structured batch format maintains verification simplicity through consistent Merkle tree construction and validation procedures.

Inventive Principle:
Principle #19Periodic action

Data Source

PatentUS20250158839A1Data exchange attestation method
Publication Date: 2025.05.15 NCHAIN LICENSING AG
  • US20250158839A1 patent drawing
  • US20250158839A1 patent drawing
  • US20250158839A1 patent drawing

AI summary

A computer-implemented method of attesting to a sequence of data exchanges between a group, wherein the group comprises a receiving party and one or more sending parties, and wherein the method is performed by the receiving party and comprises: receiving a sequence of two or more respective sets of data items, each respective set being sent by a respective sending party; and for each respective set of data items in the sequence: generating a respective attestation transaction, wherein the respective attestation transaction comprises a respective output locked to a respective Merkle root of a respective Merkle tree, wherein the respective Merkle tree is based on the respective set of data items and each previous respective set of data items in the sequence; and sending the respective attestation transaction to at least the respective sending party that sent the respective set.