Smart Contract Dispute Resolution via Distributed Third-Party Consensus
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Solution Overview
Problem
Blockchain technology faces challenges in authenticating and verifying the trustworthiness of data inputs, particularly when untrustworthy inputs lead to irreversible and invalid transactions, highlighting the need for additional layers of distributed consensus to validate data before it is immutably recorded.
Innovation Solution
The system provides additional layers of distributed consensus by receiving and analyzing disputed contract outcomes through a network of third-party analysis, determining a consensus contract outcome based on matching third-party decisions, and recording this outcome on a distributed ledger, while also rating and incentivizing third-parties for accurate information.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If additional layers of distributed consensus are added to validate data inputs, then data integrity and trustworthiness are improved, but system complexity and processing time increase
Solution Approach 1:
The system performs preliminary validation of data inputs through multiple distributed consensus layers before the data is immutably recorded on the blockchain. This includes pre-validation checks, source authentication, and consensus verification that occur prior to final ledger recording, preventing invalid transactions from being committed in the first place
Solution Approach 2:
The patent introduces intermediary validation layers between data sources and the blockchain ledger. These intermediaries include distributed validators, consensus mechanisms, and verification protocols that act as mediators to authenticate and verify data integrity before it reaches the immutable ledger, adding trust without requiring changes to the core blockchain structure
2Measurement precision
If multiple third-parties are involved in analyzing disputed contract outcomes, then consensus accuracy is improved, but processing time and computational resources increase
Solution Approach 1:
The system employs a threshold-based consensus mechanism where a predetermined number of third-party validators (excessive action) are engaged to review disputed outcomes. This ensures that even if some validators fail or act maliciously, the consensus result remains accurate as long as the threshold is met, providing robust accuracy without requiring all possible validators to complete their analysis
Solution Approach 2:
The validation process is segmented into multiple independent stages: initial dispute submission, parallel third-party analysis, consensus threshold evaluation, and final outcome recording. This segmentation allows different numbers of validators to work simultaneously on different aspects of the dispute, reducing overall processing time while maintaining accuracy through the segmented verification pipeline
Data Source
AI summary
Code which when executed on a server is for recording a verified contract outcome associated with contracts before adding to a blockchain. The code receives protocols associated with a triggering event intended to occur in the future. If no disputed information is received within a predetermined amount of time after the triggering event, then recording the contract outcome information on a distributed ledger. If disputed information is received within the predetermined amount of time, then having a decentralized network of third-parties perform a third-party analysis of the disputed information. Displaying graphical representations associated with status information before a consensus contract outcome is determined based upon third-party analysis. Consensus contract outcome information associated with the consensus contract outcome is configured to display graphical representations to the parties of the contract and the consensus contract outcome information is recorded as the verified contract outcome on a distributed ledger.