Selectively Replicated Trustless Store for Financial Data
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Solution Overview
Problem
Current financial instrument trading systems face challenges with data integrity and trust in centralized databases, leading to increased latency and serialization of data distribution due to the need for reconciliation and validation processes, especially in scenarios involving multiple parties and systems.
Innovation Solution
The implementation of a selectively replicated trustless persistent store (SRTPS) using a bilateral distributed ledger (BDL) for replicating and synchronizing transactional data among permissioned parties, ensuring immutability, irrefutability, confidentiality, recoverability, atomicity, and durability, thereby eliminating the need for centralized trust models and reducing latency.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If centralized databases are used for storing transactional data, then data can be managed and updated centrally, but latency increases and serialization of data distribution occurs due to reconciliation and validation processes
Solution Approach 1:
The patent segments the centralized database into multiple distributed ledger nodes, where each node maintains a copy of the transactional data. This segmentation eliminates the single-point bottleneck, allowing parallel validation and reconciliation across multiple nodes simultaneously, thereby reducing latency and improving data distribution speed.
Solution Approach 2:
The patent combines the functions of multiple independent parties into a unified distributed ledger system where all participants share a common view of the truth. By merging validation capabilities across multiple nodes rather than relying on a single centralized authority, the system achieves faster consensus and reduces reconciliation time.
2Reliability
If centralized trust models are used, then data integrity can be maintained through central control, but the need for reconciliation and validation processes increases latency
Solution Approach 1:
The patent implements self-service validation mechanisms where each node in the distributed ledger independently validates transactions against the consensus rules. Rather than requiring centralized verification, each participant performs self-validation, eliminating the time-consuming sequential approval process while maintaining data integrity through cryptographic proof.
Solution Approach 2:
The patent incorporates real-time feedback loops where nodes continuously exchange validation results and transaction states with each other. This distributed feedback mechanism allows the system to rapidly converge on consensus and detect integrity violations immediately, maintaining reliability without the latency of centralized batch processing.
3Reliability
If full replication of blockchain is used, then all transactions are transparent and viewable by all participants, but confidentiality of transactions is lost
Solution Approach 1:
The patent applies local quality by allowing different visibility levels for different transactions based on participant permissions. Sensitive transactions can be marked with access controls that limit visibility to specific authorized parties, while non-sensitive transactions remain fully transparent. This enables the system to maintain confidentiality where needed while preserving transparency where appropriate.
Solution Approach 2:
The patent introduces cryptographic intermediaries such as zero-knowledge proofs and encrypted transaction fields that allow validation of transaction integrity without revealing the actual transaction details. These intermediary mechanisms enable the system to maintain transparency for verification purposes while protecting confidential information from public exposure.
Data Source
AI summary
A computer implemented method and system for a selectively replicated trustless persistent store is provided using a bilateral distributed ledger. The selectively replicated trustless persistent store synchronizes current state data stores shared among multiple parties. Data modifications may be made in any shared store locally and then are automatically replicated across other permissioned stores. The selectively replicated trustless persistent store is responsible for getting the data validated and agreed upon before committing locally.