Node-Staked Digital Asset Validation for Off-Main Ledger Payments
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Solution Overview
Problem
Current payment systems are vulnerable to security breaches, fraud, and identity theft, and digital asset payments like cryptocurrencies face scalability issues, operational complexity, and high transaction costs, making them unsuitable for widespread merchant acceptance.
Innovation Solution
A digital asset-based interaction system utilizing a multi-layer digital ledger technology network with on-main and off-main ledger layers, including a digital asset backing computing entity and exchange computing entities, enables real-time digital asset transactions while maintaining privacy and security, and addresses scalability through offloading verification to off-main ledger layers.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If traditional payment card systems are used, then transaction security and validation are maintained, but system complexity, processing time, and transaction costs increase
Solution Approach 1:
The system segments the payment validation process into multiple independent components: digital asset backing computing entities that validate transactions against stored digital assets, exchange computing entities that handle asset conversion, and a multi-layer digital ledger network that maintains transaction records. This segmentation allows each component to perform its specific function efficiently, reducing overall system complexity while maintaining security through specialized validation roles.
Solution Approach 2:
The patent introduces digital asset backing computing entities as intermediaries between the payment processing system and the digital asset ledger. These intermediaries validate transactions by checking digital asset balances and statuses, acting as trusted mediators that simplify the validation process and reduce the complexity of direct peer-to-peer verification across the entire network.
2Speed
If digital asset transactions are processed on the main ledger, then transaction speed increases, but network scalability and transaction throughput decrease
Solution Approach 1:
The system transitions from a single-layer main ledger to a multi-layer architecture where off-main ledger layers handle high-speed transaction processing and the main ledger maintains the authoritative state. This dimensional expansion allows transactions to be processed in parallel across multiple layers, significantly increasing throughput while maintaining security through the main ledger's validated state.
Solution Approach 2:
The patent extracts validation and processing functions from the main ledger by introducing off-main ledger layers that handle transaction verification and execution. These extracted functions operate independently and concurrently, improving transaction speed and throughput while the main ledger only performs periodic state synchronization and final validation.
3Measurement precision
If comprehensive transaction verification is performed, then transaction accuracy improves, but processing time and computational resources increase
Solution Approach 1:
The system performs preliminary validation actions by pre-storing digital asset information, balances, and transaction histories in the digital asset backing computing entities. Before processing a transaction, the system retrieves pre-validated data from these pre-computed stores, significantly reducing the time required for verification while maintaining accuracy through continuous background updates of the pre-stored data.
Solution Approach 2:
The patent creates copies of transaction validation logic across multiple distributed computing entities. Instead of performing comprehensive verification through a single complex validation process, multiple independent copies of the validation logic execute in parallel, each checking different aspects of the transaction. This parallel verification approach maintains accuracy while reducing processing time through concurrent execution.
4Reliability
If multiple validation layers are implemented, then transaction security and fraud detection improve, but system complexity and operational overhead increase
Solution Approach 1:
The multi-layer validation system implements feedback mechanisms where each validation layer reports results to higher layers. The off-main ledger validation results feed back to the main ledger for final confirmation, and any detected anomalies trigger feedback loops that initiate investigation procedures. This structured feedback approach improves fraud detection through layered verification while managing complexity through clear information flow and responsibility assignment.
Data Source
AI summary
A digital asset-based interaction computing entity includes a processing module operable to store system digital assets in a validation computing entity account associated with at least one validation computing entity node associated with an off-main ledger layer of a multi-layer digital asset distributed ledger technology network associated with a digital asset. The processing module is further operable to initiate an interaction involving the digital asset, lock an amount of system digital assets for the interaction, provide desired assets to a second computing entity of the interaction, connect to a plurality of consensus network computing entity nodes of an on-main ledger layer of the multi-layer digital asset distributed ledger 10 technology network to verify obtaining an amount digital asset from a first computing entity of the interaction, and when the plurality of consensus network computing entity nodes validate offloaded verification, the processing module unlocks the amount of the system digital assets.