Smart Contract Intervention via Virtual Court Server
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Solution Overview
Problem
Distributed ledger systems face challenges in effectively intervening in the operation of smart contracts, particularly when they execute illegal transactions or contain logical errors, due to their immutability, which prevents stopping or correcting such contracts.
Innovation Solution
A system comprising a virtual court server, judge systems, and a judgment database that allows for the evaluation and recording of judgments against smart contracts, enabling intervention by preventing the execution of contracts found to be illegal or flawed, and potentially reversing erroneous transactions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If immutability is implemented in distributed ledger systems, then data reliability and security are improved, but the ability to intervene in or correct problematic smart contracts deteriorates
Solution Approach 1:
The patent segments the smart contract execution into two phases: a pre-execution evaluation phase where legal and compliance checks are performed, and an execution phase where the contract is deployed to the distributed ledger. This segmentation allows intervention during the pre-execution phase without compromising the immutability of the executed contract, thus maintaining both reliability and intervention capability.
Solution Approach 2:
The system performs preliminary actions by evaluating smart contracts against legal rules, compliance requirements, and security criteria before deployment to the distributed ledger. This preliminary evaluation enables the system to prevent problematic contracts from being executed while maintaining the immutability of contracts that pass validation, resolving the contradiction between reliability and intervention capability.
2Productivity
If smart contracts are made executable automatically, then transaction efficiency is improved, but the ability to detect and prevent illegal or erroneous transactions deteriorates
Solution Approach 1:
The system performs preliminary evaluation of smart contracts against legal rules, compliance requirements, and security criteria before automatic execution. This preliminary action enables detection and prevention of illegal or erroneous transactions while maintaining efficient automatic execution for contracts that pass validation, thus resolving the contradiction between productivity and detection capability.
Solution Approach 2:
The system implements feedback mechanisms that continuously monitor smart contract execution and provide information about compliance status, legal validity, and potential issues. This feedback enables the system to maintain efficient automatic execution while detecting and addressing problematic transactions, resolving the contradiction between productivity and detection capability.
Data Source
AI summary
A method of remedying erroneous transactions in a distributed ledger system may include: determining, by a court system associated with the distributed ledger system, a judgment that a transferring, by a contract of the distributed ledger system during a conducting of a financial transaction, of a quantity of tokens of the distributed ledger system, from a first account corresponding to a first counterparty to a second account corresponding to a second counterparty, is erroneous; and in response to determining the judgment, executing, by a court contract of the distributed ledger system, a transfer function, configured to be responsive to the court contract, to transfer at least a portion of the quantity of tokens from the second account to the first account.