Privacy-Preserving Payment Gridlock Resolution with Zero-Knowledge Proofs

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Solution Overview

Problem

Centralized databases suffer from single points of failure, network dependency, and limited data access, leading to inefficiencies and challenges in gridlock resolution in interbank and cross-border payment systems, especially without a central authority.

Innovation Solution

A blockchain-based system utilizing a distributed ledger and smart contracts to resolve gridlock by aggregating zero-knowledge proofs from participants, ensuring a global nettable set of payments is achieved without revealing sensitive balance information, and using a consensus mechanism to ensure fairness and immutability.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Ease of operation

If a centralized database is used to manage payment data, then data management and control are simplified, but the system has a single point of failure and limited data access

Engineering Contradiction:

Improvedata management and controlVSAvoidsingle point of failure

Core Design Contradiction:

Ease of operationVSReliability

Solution Approach 1:

The patent divides the centralized database into multiple distributed nodes across the payment network. Each node maintains a copy of the ledger, eliminating the single point of failure while preserving data management capabilities through distributed consensus mechanisms.

Inventive Principle:

Principle #1Segmentation

Solution Approach 2:

The patent introduces a distributed consensus mechanism as an intermediary that coordinates data management across multiple nodes. This mediator enables centralized-like control without requiring a single central authority, resolving the contradiction between ease of operation and reliability.

Inventive Principle:

Principle #24Intermediary (Mediator)

2Ease of operation

If a centralized database is used for gridlock resolution, then coordination is simplified, but the central bank infrastructure becomes overburdened

Engineering Contradiction:

ImprovecoordinationVSAvoidcentral bank infrastructure capacity

Core Design Contradiction:

Ease of operationVSProductivity

Solution Approach 1:

The patent segments the gridlock resolution function from the central bank by distributing it across multiple nodes in the payment network. Each node independently participates in resolving gridlocks through the consensus mechanism, reducing the burden on central bank infrastructure while maintaining coordination effectiveness.

Inventive Principle:

Principle #1Segmentation

Solution Approach 2:

The payment network participants autonomously perform gridlock resolution through the distributed consensus mechanism without requiring central bank intervention. This self-service approach eliminates infrastructure overburden while preserving coordination through peer-to-peer interaction.

Inventive Principle:

Principle #25Self-service

3Measurement precision

If traditional methods are used to verify payment balances, then settlement accuracy is ensured, but sensitive balance information is exposed

Engineering Contradiction:

Improvesettlement accuracyVSAvoidprivacy of balance information

Core Design Contradiction:

Measurement precisionVSLoss of information

Solution Approach 1:

The patent applies different properties to different parts of the data: balance amounts are encrypted to protect privacy, while transaction validity and settlement accuracy are verified through zero-knowledge proofs and cryptographic signatures. This local differentiation resolves the contradiction between precision and privacy.

Inventive Principle:

Principle #3Local quality

Solution Approach 2:

The patent introduces zero-knowledge proofs as an intermediary that enables verification of settlement accuracy without exposing balance information. This cryptographic mediator allows the system to achieve both measurement precision and information privacy simultaneously.

Inventive Principle:

Principle #24Intermediary (Mediator)

4Productivity

If multiple devices access the same data simultaneously in a centralized database, then data availability is improved, but data integrity and consistency become problematic

Engineering Contradiction:

Improvedata access concurrencyVSAvoiddata consistency

Core Design Contradiction:

ProductivityVSStability of the object's composition

Solution Approach 1:

The patent segments data access across multiple distributed nodes, allowing simultaneous access without conflicts. Each node independently validates and processes transactions, maintaining data consistency through the consensus mechanism while enabling high concurrency.

Inventive Principle:

Principle #1Segmentation

Solution Approach 2:

The patent implements a feedback mechanism where each node communicates transaction validity and state changes to the network. This continuous feedback loop ensures data consistency across all nodes while maintaining high access concurrency through parallel validation.

Inventive Principle:

Principle #23Feedback

Data Source

PatentUS12443927B2Privacy-preserving gridlock resolution

Publication Date: 2025.10.14 INTERNATIONAL BUSINESS MACHINE CORPORATION

AI summary

An example operation may include one or more of receiving gridlock resolution messages from participants of a gridlocked payment network, each gridlock resolution message comprising a subset of local payments to be performed and a zero-knowledge proof that indicates that the subset of local payments creates a positive post-balance for the respective participant without revealing the positive-post balance, determining whether zero knowledge proofs included in the gridlock resolution messages are valid, aggregating the subsets of local payments to be performed from the gridlock resolution messages to create a global nettable set of payments, and publishing the global nettable set via a data block among a hash-linked chain of data blocks of a distributed ledger accessible to the participants.