Smart Flow Contracts on Consortium Blockchain for Asset Tracking
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Solution Overview
Problem
Existing financial systems face challenges such as lengthy settlement times, high intermediary fees, reconciliation overhead, difficulty in tracking asset ownership, and fraud prevention, which are exacerbated by the need for centralized ledgers and limited programmability of existing blockchain technologies like Bitcoin and Ethereum.
Innovation Solution
Implementing distributed ledger technology in a cloud-based computing environment using intelligent consensus models, smart contracts, and weighted consensus protocols to facilitate efficient, secure, and scalable asset management across a network of financial institutions, leveraging blockchain platforms for transparent and immutable record-keeping.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Loss of information
If a centralized ledger is used to record asset ownership, then asset tracking becomes easier, but trust in a single party and technical capacity requirements increase
Solution Approach 1:
The patent segments the centralized ledger into multiple distributed ledgers across different financial institutions. Each institution maintains its own ledger while participating in a consortium, dividing the trust requirement across multiple entities rather than relying on a single centralized authority.
Solution Approach 2:
The patent combines multiple distributed ledgers into a unified consortium blockchain system where all participants share access to the same immutable ledger. This merging allows asset tracking across institutions while distributing trust among all consortium members through cryptographic verification.
2Loss of energy
If blockchain technology is used for decentralized asset management, then intermediary fees are reduced, but transaction throughput and scalability are limited
Solution Approach 1:
The patent implements dynamic consensus mechanisms that can adjust between different protocols (e.g., Proof of Work, Proof of Stake, Practical Byzantine Fault Tolerance) based on transaction volume and network conditions. This allows the system to optimize throughput by switching from energy-intensive PoW during low-volume periods to more efficient PoS or PBFT during high-volume periods.
Solution Approach 2:
The patent introduces professional node operators and validation services as intermediaries that specialize in blockchain transaction validation. These intermediaries handle the computational overhead, allowing regular financial institutions to participate without bearing the full burden of transaction processing, thereby improving overall system throughput.
3Reliability
If existing blockchain platforms like Bitcoin are used, then decentralized digital cash is enabled, but programmability and smart contract capabilities are limited
Solution Approach 1:
The patent creates a universal blockchain platform that combines the decentralized security of Bitcoin with enhanced programmability features. The system supports multiple asset types (cryptocurrencies, securities, commodities), various consensus mechanisms, and customizable smart contracts, making it adaptable to different financial applications while maintaining decentralized trust.
Solution Approach 2:
The patent combines elements from different blockchain platforms into a composite system. It integrates Bitcoin's security model with Ethereum's smart contract capabilities and other specialized features, creating a hybrid platform that leverages the strengths of each underlying technology to achieve both reliability and versatility.
4Adaptability or versatility
If a shared ledger supports sophisticated logic for asset transfers, then transaction flexibility increases, but system complexity and reconciliation overhead increase
Solution Approach 1:
The patent implements smart contracts that automatically execute transaction logic based on predefined conditions. The system performs self-verification of transfer conditions, ownership validation, and compliance checks without requiring manual reconciliation. This automation reduces complexity by eliminating the need for complex intermediary coordination while maintaining flexible transaction capabilities.
Data Source
AI summary
Smart flow contracts using distributed ledger technologies in a cloud based computing environment are described herein. For example, a system may include a processor and a memory therein executing within a host organization and having therein: means for operating a blockchain interface to a blockchain on behalf of tenants of the host organization. The tenants may be participating nodes with the blockchain. A login request may be received from a user device. The user device may be authenticated with the host organization. Input from the user device indicating a plurality of smart contract blocks may be received. The smart contract blocks may be translated into a native programming language to form a smart contract to execute via the blockchain. The smart contract may be transacted onto the blockchain.