Proof-of-Transactions Blockchain Fee Allocation
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Solution Overview
Problem
Current blockchain systems face scalability issues due to the 'free-rider' problem, where nodes that provide security are not incentivized to contribute to the network's bandwidth and connectivity, leading to increased costs and potential network decentralization threats.
Innovation Solution
Implementing a proof-of-transactions system that uses a multi-player voting mechanism to allocate fees between nodes that provide bandwidth and connectivity and those that ensure security, allowing for a more equitable distribution of revenue and incentivizing both types of nodes to contribute to the network.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If proof-of-work security system is used to secure the blockchain, then network security is improved, but bandwidth and connectivity contributions from nodes are reduced as miners free-ride on the peer-to-peer network
Solution Approach 1:
The patent segments the node population into two distinct categories: miners who provide security through proof-of-work, and peer-to-peer nodes that provide bandwidth and connectivity. This segmentation allows for differentiated incentive mechanisms where P2P nodes receive direct compensation for their network contributions, resolving the free-rider problem by clearly separating security functions from network infrastructure functions.
Solution Approach 2:
The patent implements a feedback mechanism where P2P nodes are rewarded with transaction fees based on their measured bandwidth and connectivity contributions to the network. This creates a positive feedback loop where nodes that contribute more to the peer-to-peer network receive proportionally more rewards, incentivizing continued and increased contribution of network resources.
2Adaptability or versatility
If non-payment information is included in Bitcoin transactions for messaging applications, then open-access messaging capability is improved, but blockchain storage costs and bandwidth requirements increase significantly
Solution Approach 1:
The patent extracts non-payment information from the main blockchain by implementing a separate data structure for storing messaging and non-financial data. This allows the blockchain to maintain its core payment functionality with minimal bloat while still supporting diverse applications like messaging, effectively separating payment ledger requirements from application data requirements.
Solution Approach 2:
The patent creates a universal data structure that can accommodate both payment transactions and non-payment information in a unified manner. The system allows the same blockchain infrastructure to serve multiple purposes: secure payment processing, messaging, and other application-layer functions, without requiring separate systems for each purpose.
3Productivity
If transaction fees are increased to drive messaging transactions off the network, then payment transaction efficiency is improved, but network decentralization is threatened as nodes shut down due to high costs
Solution Approach 1:
The patent applies local quality by implementing differentiated fee structures for different transaction types and network functions. Payment transactions can maintain higher fees to ensure efficiency and priority processing, while messaging and other non-payment transactions can utilize lower fees or alternative pricing models. P2P nodes receive targeted rewards for their network contributions, allowing the system to maintain decentralization even with elevated payment fees.
Data Source
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AI summary
Novel tools and techniques are provided for implementing blockchain transactions, and, more particularly, to methods, systems, and apparatuses for securing a blockchain with proof-of-transactions. The blockchain system utilizes a proof-of-transactions approach that is based on a multi-player voting system and that is not susceptible to a free-rider problem that affects many other cryptocurrencies. The proof-of-transactions approach allows the cryptocurrency network to divide revenue between the nodes in the peer-to-peer network that provides bandwidth and connectivity and a set of other nodes that solve computational puzzles that safeguard the security of the blockchain system.