Off-Chain State Synchronization for Distributed Chain Database Trade Authorization
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Existing token systems on blockchains, such as those using the Ethereum blockchain with the ERC-20 standard protocol, lack a mechanism to capture and update changes in information that impact trade authorization, leading to potential unauthorized trades due to outdated chain states.
Innovation Solution
A system comprising a trade controller, rules engine, operation auto detector, and execution engine that captures changes in information by obtaining a current state, applying rulesets, generating plans to update the chain state, and executing these plans to ensure trades are authorized based on the most current information.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If the chain state is stored on a distributed chain database, then the system achieves decentralized security and immutability, but the system cannot capture and update changes in information that impact trade authorization in a timely manner
Solution Approach 1:
The system segments the state management into two parts: a local state stored off-chain that can be updated freely, and a chain state stored on the distributed blockchain that provides security. The local state captures changes in information (permissions, token settings, participant data) while the chain state maintains the authoritative record for authorization. This segmentation allows the system to combine the adaptability of off-chain storage with the security of on-chain storage.
Solution Approach 2:
The patent introduces an intermediary component (the state synchronization mechanism involving trade controllers and rule engines) that bridges the local state and chain state. This intermediary captures changes in the local state, applies relevant rulesets, and generates updates to the chain state. The intermediary ensures that the blockchain remains secure while still capturing information changes through the local state that feeds into chain state updates.
2Reliability
If the system uses a regulator service executed on the distributed chain database to authorize trades, then the system ensures decentralized verification, but the regulator service cannot access updated information about participant permissions and token settings
Solution Approach 1:
The system performs preliminary actions by maintaining a local state that proactively captures changes in participant permissions, token settings, and other information before these changes need to be reflected in chain state updates. The local state serves as a pre-computed repository of current information that can be quickly queried by the regulator service, ensuring that authorization decisions are made with the most recent data without requiring constant blockchain transactions.
Solution Approach 2:
The patent creates a copy of the chain state in the form of a local state that can be updated independently and more efficiently. This local copy contains the necessary information about participants, tokens, and permissions, allowing the regulator service to access current data without querying the blockchain directly for every trade authorization. The local state is kept synchronized with the chain state through automated update mechanisms.
3Reliability
If the system stores all state information on the distributed chain database, then the system maintains data integrity, but the system experiences increased transaction costs and slower update speeds for capturing information changes
Solution Approach 1:
The system segments data storage between local state (off-chain) and chain state (on-chain). Frequently changing information such as participant permissions, token settings, and trade parameters are stored in the local state for rapid updates. The chain state stores only the critical authorization-relevant data that requires blockchain immutability. This segmentation enables fast information capture locally while maintaining data integrity through periodic synchronization with the blockchain.
Solution Approach 2:
The patent applies local quality by allowing the local state to have different properties than the chain state. The local state permits rapid, frequent updates without consensus requirements, while the chain state maintains strict integrity through blockchain consensus. Each state serves its specific purpose: the local state optimizes for speed and flexibility in capturing information changes, while the chain state optimizes for security and immutability of authorization records.
Data Source
AI summary
Various embodiments of a system and method for capturing changes in trade information that impact trade authorization and for updating a chain state on a distributed chain database that is used to authorize trades are disclosed herein. In some embodiments, the system comprises: a trade controller configured to obtain a current state from a local database; a rules engine configured to be invoked by the trade controller to apply a ruleset to data extracted from the local database to generate an updated state; an operation auto detector configured to generate a plan to update a chain state on the distributed chain database based at least in part on the updated state; and an execution engine configured to execute the plan and to generate an updated chain state that is used to authorize trades.