Privacy-Preserving Smart Contract Validation via Segmented Ledger Data

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Solution Overview

Problem

Current decentralized and centralized ledger systems lack the capability to handle various types of transactions beyond payment transactions, fail to ensure transaction confidentiality, control access, audit transactions, and provide accountability of validating entities, particularly in systems that utilize smart contracts.

Innovation Solution

A system and method that enable the creation of digital messages specifying validator computer systems, with encrypted computer program instructions accessible only to authorized entities, allowing for validation and execution of transactions while maintaining confidentiality and accountability through a network of computer systems, including processors, memory, and computer program instructions.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If transactions are made public in a ledger for verification purposes, then transparency and verifiability are improved, but transaction privacy and confidentiality deteriorate

Engineering Contradiction:

Improvetransaction verifiabilityVSAvoidtransaction privacy

Core Design Contradiction:

ReliabilityVSLoss of information

Solution Approach 1:

The patent segments transaction information into public components (transaction validity, execution results) and private components (confidential data, participant identities). Validators process and verify transactions while maintaining separation between what must be public for verification and what must remain private for confidentiality.

Inventive Principle:

Principle #1Segmentation

Solution Approach 2:

The patent introduces validators as intermediary entities that receive confidential transactions, verify their execution, and produce public validation results without exposing the underlying confidential data. Validators act as mediators between the need for public verification and the requirement for private transaction details.

Inventive Principle:

Principle #24Intermediary (Mediator)

2Reliability

If all validators can access all transactions for validation, then validation thoroughness is improved, but access control and transaction confidentiality deteriorate

Engineering Contradiction:

Improvevalidation thoroughnessVSAvoidaccess control

Core Design Contradiction:

ReliabilityVSEase of operation

Solution Approach 1:

The patent implements local quality by assigning different access rights to different validators based on their roles and the specific transaction requirements. Each validator receives only the transactions and data necessary for their specific validation function, rather than universal access to all transaction details.

Inventive Principle:

Principle #3Local quality

Solution Approach 2:

The patent changes the parameter of validator access rights from a static all-or-nothing model to a dynamic, transaction-specific model where access permissions are adjusted based on the validation requirements of each individual transaction or smart contract execution.

Inventive Principle:

Principle #35Parameter changes

3Loss of information

If transaction details are hidden for privacy preservation, then confidentiality is improved, but auditability and accountability deteriorate

Engineering Contradiction:

Improvetransaction confidentialityVSAvoidauditability

Core Design Contradiction:

Loss of informationVSReliability

Solution Approach 1:

The patent creates copies of transaction validation results and execution outcomes that can be made public for auditing purposes without exposing the underlying confidential transaction data. These copies provide sufficient information for auditability while preserving the privacy of the original transaction details.

Inventive Principle:

Principle #26Copying

Solution Approach 2:

The patent transforms confidential transaction information into a different form (validation results, execution outcomes, cryptographic proofs) that maintains the essential verification properties needed for auditing while changing the appearance and nature of the data to preserve confidentiality.

Inventive Principle:

Principle #32Color changes

4Ease of operation

If a centralized entity manages the ledger for better control, then system coordination is improved, but decentralization and distributed verification deteriorate

Engineering Contradiction:

Improvesystem coordinationVSAvoiddistributed verification

Core Design Contradiction:

Ease of operationVSAdaptability or versatility

Solution Approach 1:

The patent creates a hybrid system where validators perform multiple functions: they operate autonomously as distributed nodes for verification, yet simultaneously follow coordinated rules and protocols for maintaining ledger consistency. The system accommodates both centralized coordination mechanisms and distributed verification capabilities within a single framework.

Inventive Principle:

Principle #6Universality (Multi-functionality)

Data Source

PatentUS9992028B2System, method, and computer program product for privacy-preserving transaction validation mechanisms for smart contracts that are included in a ledger

Publication Date: 2018.06.05 INTERNATIONAL BUSINESS MACHINE CORPORATION

AI summary

The system, method, and computer program product described herein may provide the capability to handle a variety of types of transactions, not just payment transactions. In addition, system, method, and computer program product described herein may provide the capability for users to be able to control the confidentiality of their transactions, for the system to control access to transactions, for the system to be capable of auditing transactions, and to provide accountability of the validating entities.