SOCOACT Smart Contract System for Secure Microtransactions

Resolve Bottlenecks,
Find Innovative SolutionsGenerate Solutions

Solution Overview

Problem

Current Bitcoin implementations lack protection for users against fraudulent or erroneous transactions, and they are not feasible for microtransactions due to high transaction costs, which limits their usage in various applications such as resource tracking and voting systems.

Innovation Solution

The Smart Rules and Social Aggregating, Fractionally Efficient Transfer Guidance, Conditional Triggered Transaction system (SOCOACT) utilizes blockchain technology for secure, transparent, and efficient transactions, enabling microtransactions by transforming smart contract requests into transaction confirmation outputs through components like the Virtual Currency Component and Blockchain Component, allowing for conditional and fractional transactions.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If Bitcoin transaction system is used, then transaction security is improved through cryptographic verification, but transaction cost increases making microtransactions infeasible

Engineering Contradiction:

Improvetransaction securityVSAvoidtransaction cost

Core Design Contradiction:

ReliabilityVSLoss of energy

Solution Approach 1:

The patent segments the transaction verification process by introducing light clients that can verify transactions without processing the entire blockchain. This divides the computational workload between full nodes (which maintain complete blockchain state) and light clients (which perform selective verification), thereby reducing the energy cost for individual transaction verification while maintaining security through cryptographic proofs.

Inventive Principle:

Principle #1Segmentation

Solution Approach 2:

The patent introduces intermediary structures such as transaction pools and verification layers that mediate between transaction submission and blockchain confirmation. These intermediaries pre-process and validate transactions before they enter the main blockchain, reducing the computational burden on the core protocol and lowering transaction costs while preserving security guarantees.

Inventive Principle:

Principle #24Intermediary (Mediator)

2Reliability

If traditional transaction verification is used, then transaction authenticity is ensured, but processing time increases limiting scalability

Engineering Contradiction:

Improvetransaction authenticityVSAvoidprocessing time

Core Design Contradiction:

ReliabilityVSLoss of time

Solution Approach 1:

The patent implements preliminary verification mechanisms where transactions are pre-validated and placed in transaction pools before being included in blocks. This preliminary action separates authentication verification from the main consensus process, allowing transactions to be authenticated in advance and reducing the time required for final confirmation while maintaining authenticity through cryptographic signatures.

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

The patent introduces dynamic verification strategies where the level of verification performed depends on the transaction type, amount, and risk profile. High-value or suspicious transactions receive more rigorous verification, while routine low-value transactions undergo faster verification, thereby optimizing processing time while maintaining authenticity where most critical.

Inventive Principle:

Principle #15Dynamics

3Reliability

If complete blockchain verification is performed, then transaction integrity is guaranteed, but computational complexity increases reducing efficiency

Engineering Contradiction:

Improvetransaction integrityVSAvoidcomputational complexity

Core Design Contradiction:

ReliabilityVSDevice complexity

Solution Approach 1:

The patent applies local quality by enabling different verification depths for different transactions and users. Light clients can perform localized verification of specific transactions using Merkle proofs without needing to verify the entire blockchain state. This allows transaction integrity to be guaranteed for verified transactions while avoiding the computational complexity of complete blockchain verification for every operation.

Inventive Principle:

Principle #3Local quality

Solution Approach 2:

The patent implements partial verification where light clients verify only the necessary portions of the blockchain relevant to their transactions (e.g., Merkle path proofs for specific transactions) rather than performing excessive complete blockchain verification. This partial action maintains integrity for verified transactions while dramatically reducing computational complexity for end-users.

Inventive Principle:

Principle #16Partial or excessive action

Data Source

PatentUS20170085545A1Smart Rules and Social Aggregating, Fractionally Efficient Transfer Guidance, Conditional Triggered Transaction, Datastructures, Apparatuses, Methods and Systems

Publication Date: 2017.03.23 FMR CORP

AI summary

The Smart Rules and Social Aggregating, Fractionally Efficient Transfer Guidance, Conditional Triggered Transaction, Datastructures, Apparatuses, Methods and Systems (“SOCOACT”) transforms smart contract request, crypto currency deposit request, crypto collateral deposit request, crypto currency transfer request, crypto collateral transfer request inputs via SOCOACT components into transaction confirmation outputs. A selection of a crypto smart rule type for a crypto smart rule associated with an aggregated crypto transaction trigger entry may be obtained from a user. A crypto smart rule generator user interface (UI) for the selected crypto smart rule type may be provided. Selections of a threshold constraint and of an aggregated blockchain oracle for the crypto smart rule may be obtained from the user via the UI. The aggregated crypto transaction trigger entry may be generate based on the selections and instantiated in a socially aggregated blockchain datastructure.