Cryptocurrency Transaction Control With On-Demand Price Updates
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Solution Overview
Problem
Existing cryptocurrency transaction systems incur significant blockchain transaction fees and impermanent losses due to the need to constantly update market prices, which hinders efficient transactions.
Innovation Solution
A transaction apparatus and method that includes a verification unit for digital signatures, an update unit for current price information, an impermanent loss measurement unit, and a rejection/execution sequence to manage transactions based on allowable impermanent loss and delay time, reducing the need for continuous blockchain updates.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If market price is reported in real time using a price determination algorithm, then impermanent loss is eliminated, but blockchain transaction fees increase significantly
Solution Approach 1:
The system transitions from continuous real-time price reporting to periodic price updates triggered by transaction requests. The price determination algorithm is executed only when needed (at transaction time) rather than continuously, reducing blockchain transaction fees while maintaining adequate price accuracy for transaction execution
Solution Approach 2:
The transaction apparatus performs self-verification by measuring impermanent loss itself using block timestamp information and price data, eliminating the need for external oracle services or continuous third-party price reporting. This self-service approach reduces dependency on frequent external price feeds and associated transaction fees
2Loss of information
If market price is updated every block, then price information is current, but transaction fees exceed 1.4 million won per day even without cryptocurrency transactions
Solution Approach 1:
Price information is updated periodically based on transaction demand rather than continuously at every block. The system retrieves price data at transaction request times using block timestamp information, achieving sufficient price freshness without the costly continuous updates
Solution Approach 2:
The system extracts only the essential price information needed for transaction execution at the moment of trading, rather than maintaining continuous real-time price feeds. This extraction approach obtains sufficient price data without incurring continuous update fees
3Reliability
If digital signature verification and impermanent loss measurement are performed for each transaction request, then transaction security and accuracy improve, but processing complexity increases
Solution Approach 1:
The transaction apparatus performs self-verification of digital signatures and self-measurement of impermanent loss using its own computational resources and block information. This self-service verification approach enhances security and accuracy without requiring complex external verification systems or additional trusted parties
Data Source
AI summary
The transaction method of the cryptocurrency may include acquiring the price information on the actual asset exchange from the information collection node and submitting the price information to the transaction apparatus of the cryptocurrency when a user node requests the transaction of the cryptocurrency.