Off-Chain Data Attestation for Decentralized Identity Verification
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Solution Overview
Problem
Decentralized Finance (DeFi) on blockchain platforms lacks a viable, efficient, and secure method to bring off-platform identity data securely and safely on-chain, due to limitations in accessing off-chain/off-platform data by smart contracts, which results in asynchronous data retrieval, central points of failure, and lack of consumer control over data access.
Innovation Solution
A system that enables direct, synchronous, and atomic access to off-chain data through KYC (Know Your Customer) Attestations using a KYC Processor and Coordinator, which tokenizes user data, allowing selective release of information and minimizing reliance on oracles, ensuring secure and controlled data access across distributed ledger technology platforms.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If oracles are used to retrieve off-chain data, then smart contracts can access off-platform data, but this introduces a central point of failure and reduces system reliability
Solution Approach 1:
The patent extracts the data retrieval function from the oracle infrastructure and moves it directly to smart contracts. Smart contracts now have built-in capability to request and receive off-chain data without depending on external oracle services, eliminating the central point of failure while maintaining data access functionality
Solution Approach 2:
The patent introduces data attestations as intermediaries between off-chain data sources and smart contracts. These attestations provide verified data in a format that smart contracts can directly consume, eliminating the need for oracle infrastructure while ensuring data reliability through cryptographic verification
2Productivity
If oracles are used for data retrieval, then off-chain data can be accessed, but transactions become asynchronous and efficiency decreases
Solution Approach 1:
The patent merges the data retrieval operation with the smart contract execution into a single atomic transaction. The smart contract requests off-chain data and receives the attestation in the same transaction, eliminating the asynchronous two-step process and improving transaction efficiency
Solution Approach 2:
The patent uses data attestations that are prepared in advance with cryptographic proofs. This preliminary preparation allows smart contracts to verify and use the data immediately without waiting for complex oracle verification processes, reducing data retrieval time
3Ease of operation
If oracles retrieve off-chain data, then smart contracts can utilize external information, but consumers lose control over data access
Solution Approach 1:
The patent implements fine-grained data access control where each smart contract can specify exactly which data attributes it needs. Data attestations contain selective information tailored to each contract's requirements, giving consumers precise control over what information is disclosed to which contracts
Data Source
AI summary
A coordinating network element manages a protocol that makes attestations of off-platform-resolved data and decisions available for use on a blockchain platform or on another decentralized-execution-based platform operational within a multi-tenant environment. By one approach, these teachings provide for off-platform-verified data pertaining to individual-, group- or machine-based users to be blinded from access by the coordinating network element and by the platform while utilizing a tokenized form of such data to enable user-initiated queries that involve solely on-platform vetting of users as a condition of fulfilling user requests for service.