Micro-ledger Data Exchange via Segmented DAG Architecture
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Solution Overview
Problem
Current blockchain-based systems for secure financial transactions are slow and costly due to the need for consensus algorithms, which creates bottlenecks and is not scalable for high-speed data exchange in decentralized applications, and they lack efficient solutions for non-monetary data and metadata management.
Innovation Solution
The implementation of micro-ledgers with decentralized identifiers (DIDs) and verifiable credentials, using a directed acyclic graph (DAG) data structure, allows for tokenless, off-chain data exchange control, enabling each party to manage its own data and agreements without the need for consensus fees or centralized authorities, and facilitates human and machine-readable contracts.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If blockchain consensus algorithms are used for secure financial transactions, then security and reliability are improved, but transaction speed and scalability deteriorate
Solution Approach 1:
The patent segments the blockchain system into multiple independent micro-ledgers, each handling specific data types or transactions. This segmentation allows parallel processing across multiple ledgers, eliminating the single-chain consensus bottleneck while maintaining security through cryptographic linking between ledgers.
Solution Approach 2:
The patent introduces an intermediary layer that manages micro-ledger creation, data routing, and cross-ledger coordination without requiring full blockchain consensus for each transaction. This intermediary enables fast off-chain processing while maintaining security through selective on-chain verification.
2Reliability
If blockchain consensus algorithms are used for secure financial transactions, then security is improved, but system complexity and operational cost worsen
Solution Approach 1:
The patent divides the complex blockchain consensus process into simpler micro-ledger operations that require minimal or no consensus. Each micro-ledger operates independently with simplified validation rules, reducing overall system complexity while maintaining security through cryptographic proofs and selective consensus for critical operations.
3Productivity
If micro-ledgers are used for data exchange control, then transaction speed and scalability are improved, but the need for consensus mechanisms deteriorates
Solution Approach 1:
The patent extracts the consensus mechanism from the data exchange process itself, allowing micro-ledgers to operate independently without requiring consensus for each transaction. Consensus is taken out and applied only to critical anchor points or dispute resolution scenarios, enabling high-speed data exchange while maintaining reliability through selective verification.
4Reliability
If blockchain systems are used for data management, then security is improved, but cost and accessibility worsen due to consensus fees and crypto wallets
Solution Approach 1:
The patent employs disposable, ephemeral micro-ledgers that can be created, used, and discarded without the overhead of traditional blockchain infrastructure. These temporary ledgers eliminate the need for expensive crypto wallets and consensus fees, making secure data management accessible to anyone with minimal resources while maintaining security through cryptographic techniques.
Data Source
AI summary
Disclosed are data contract systems and methods using micro-ledgers. One or more computer processors are configured to: in response to receiving input from a first party, configure a first software agent with one or more revocable permissions to act on behalf of the first party, the one or more revocable permissions including signing a contract between the first party and a second party; in response to receiving input from the second party, configure a second software agent with one or more revocable permissions to act on behalf of the second party, the one or more revocable permissions including signing the contract; and record one or more events using the first and second software agents, each acting within its respective revocable permissions, to one or more micro-ledgers. The one or more events either form or evidence the contract, which is human readable, machine readable, and legally enforceable.