Smart Contract Network for Atomic Digital Asset Swaps
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Solution Overview
Problem
Existing methods for redeeming a digital asset for another digital asset are inefficient, requiring multiple transactions, significant time delays, and excessive consumption of technical resources, often necessitating the use of intermediate assets.
Innovation Solution
A smart contract network enables real-time redemption of a first digital asset for a second digital asset by minting tokens of the second digital asset on-demand, eliminating the need for intermediate assets and optimizing transactions into a single, atomic operation.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If traditional redemption methods are used, then digital assets can be redeemed, but multiple transactions and intermediate assets are required, causing significant time delays and excessive technical resource consumption
Solution Approach 1:
The patent combines multiple separate redemption transactions into a single atomic swap operation. The smart contract network merges the redemption of first digital assets with the minting of second digital assets in one unified transaction, eliminating the need for separate sell and purchase operations and reducing overall transaction time.
Solution Approach 2:
The patent introduces a smart contract network as an intermediary that enables direct peer-to-peer asset swapping. This intermediary automates the redemption process through programmable contracts, eliminating manual intervention and reducing the time required for traditional multi-step redemption procedures.
2Ease of manufacture
If traditional redemption methods are used, then digital assets can be redeemed, but multiple transactions are required, leading to excessive consumption of technical resources
Solution Approach 1:
The patent merges multiple resource-consuming transactions into a single operation. By combining asset redemption, validation, and new asset minting into one atomic transaction, the system significantly reduces the computational resources, network bandwidth, and processing power required compared to traditional multi-transaction approaches.
Solution Approach 2:
The smart contract network performs automatic validation and execution of redemption transactions without requiring manual intervention or complex intermediary processes. The system self-validates transaction conditions and automatically executes the swap, reducing the technical resources needed for manual processing and oversight.
3Ease of operation
If traditional redemption methods are used, then digital assets can be redeemed, but the process requires intermediate assets, increasing device complexity
Solution Approach 1:
The patent extracts and eliminates the intermediate asset requirement from the redemption process. By implementing direct swap functionality where first digital assets are exchanged directly for second digital assets through smart contracts, the system removes the need for fiat currency or other intermediate assets, simplifying the overall system architecture.
Solution Approach 2:
The smart contract network serves multiple functions within a single system: it validates transactions, executes swaps, mints new digital assets, and manages liquidity pools. This multi-functional approach consolidates what would otherwise require separate systems and intermediate assets, reducing overall system complexity.
Data Source
AI summary
Implementations of the present disclosure can include actions of receiving, by a first smart contract and from a first account, a redemption request for a swap transaction to redeem an amount of the first digital asset for an amount of the second digital asset, responsive to the redemption request, initiating, by the first smart contract, a transfer of a first number of tokens of the first digital asset from the first account to the second account, and notifying, by the first smart contract, a second smart contract, and in response to notification by the first smart contract, initiating, by the second smart contract, minting of the second number of tokens of the second digital asset and transfer of the second number of tokens of the second digital asset to the first account.