Private Channel Data Verification Using a Global Synchronization Log
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Solution Overview
Problem
Existing distributed ledger systems, such as Bitcoin and Ethereum, lack privacy and regulatory compliance features necessary for financial institutions, as they either expose all transactions or fail to differentiate between participants' roles, leading to potential fraud and cumbersome oversight.
Innovation Solution
A computer system utilizing a global synchronization log that segregates private data stores, ensuring data integrity and confidentiality by using cryptographic hashes to link public and private data, allowing only authorized entities to access private information while maintaining a shared ledger.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If a distributed ledger system is implemented to enable shared access and validation among participants, then transparency and trust are improved, but privacy and data confidentiality deteriorate because all participants can view all transactions
Solution Approach 1:
The patent segments the ledger data into public data (stored on the distributed ledger) and private data (stored locally in private data stores). This segmentation allows different parts of the system to have different access levels, enabling transparency for public information while maintaining confidentiality for private information.
Solution Approach 2:
The patent introduces a synchronization log as an intermediary component that stores cryptographic hashes of private data. This mediator enables verification of data integrity and consistency across the distributed system without exposing the actual private data, thus maintaining both transparency and privacy.
2Reliability
If all participants have full access to the ledger information to ensure validation and trust, then system reliability is improved, but regulatory compliance and data protection requirements deteriorate
Solution Approach 1:
The patent applies local quality by giving different access rights to different participants based on their roles and regulatory requirements. Authorized participants can access and validate private data locally, while unauthorized participants can only access public data, enabling both validation and regulatory compliance simultaneously.
Solution Approach 2:
The system segments access permissions into different levels: full access for authorized participants who need to validate transactions, and limited access for unauthorized participants. This segmentation allows the system to meet both validation requirements and data protection regulations.
3Reliability
If private data is stored centrally to maintain data integrity and consistency, then data verification is improved, but system decentralization and fraud resistance deteriorate
Solution Approach 1:
The patent uses cryptographic hashes as copies of private data that can be stored and verified across the distributed system. Instead of replicating actual private data, the system replicates hash values that serve as verifiable copies, maintaining integrity without requiring centralization of sensitive information.
Solution Approach 2:
The synchronization log acts as a mediator that stores cryptographic hashes to verify data integrity across distributed private data stores. This intermediary approach maintains data consistency without requiring a central authority, preserving decentralization while ensuring reliability.
4Reliability
If cryptographic hashes are used to link public and private data for verification, then data integrity is improved, but computational requirements and system complexity increase
Solution Approach 1:
The patent uses cryptographic hashes as lightweight, computationally efficient representations of private data. These hash values are much smaller and cheaper to store and transmit than the actual private data, enabling integrity verification with minimal computational overhead.
Data Source
AI summary
A computer system comprising: a global synchronization log that stores public data associated with private data wherein the private data is stored in one or more private data stores separate from the global synchronization log; and one or more nodes operable in a mode as a writer node that has access to write the public data associated with private data to the global synchronization log. A reader node may verify the public data on the global synchronization log with private data stored in one or more private data stores.