Token-Based Blockchain Sharding for Low-Latency Throughput Scaling

Resolve Bottlenecks,
Find Innovative Solutions
Generate Solutions

Solution Overview

Problem

Blockchain-based token transaction systems face performance issues due to low transaction throughput and increased latency caused by cross-shard transactions, which are computationally expensive and sequential block processing.

Innovation Solution

Implement UTXO-based sharding that assigns tokens to specific shards rather than users, using a token map to identify the appropriate shard for transactions, reducing the need for cross-shard communications and optimizing transaction processing within individual shards.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Productivity

If user-based sharding is implemented to divide blockchain systems into subsystems, then transaction throughput is improved, but cross-shard transactions become computationally expensive and significantly increase transaction latency

Engineering Contradiction:
Improvetransaction throughputVSAvoidtransaction latency
Core Design Contradiction:
ProductivityVSLoss of time

Solution Approach 1:

The patent segments the blockchain system into multiple shards (subsystems), each handling a subset of tokens and their associated transactions independently. This segmentation allows parallel processing of transactions across different shards, thereby improving overall transaction throughput while minimizing cross-shard communication requirements through token-based assignment

Inventive Principle:
Principle #1Segmentation

2Reliability

If transactions are accumulated sequentially into blocks for addition to the blockchain, then consensus coordination is maintained, but transaction processing times increase

Engineering Contradiction:
Improveconsensus coordinationVSAvoidtransaction processing speed
Core Design Contradiction:
ReliabilityVSProductivity

Solution Approach 1:

The patent divides the single blockchain into multiple independent blockchains (shards), each capable of independently accumulating transactions into blocks and maintaining consensus coordination within its own subset. This parallel block accumulation across multiple shards dramatically increases transaction processing speed while preserving consensus reliability through independent verification in each shard

Inventive Principle:
Principle #1Segmentation

Solution Approach 2:

The patent transitions from a single-dimensional sequential block processing model to a multi-dimensional parallel processing model by creating multiple independent blockchains that can simultaneously accumulate and process transactions. This dimensional change from one blockchain to many enables concurrent transaction processing while maintaining consensus through separate validation in each shard

Inventive Principle:
Principle #17Another dimension (Dimensionality change)

3Adaptability or versatility

If cross-shard transactions are performed to move tokens between blockchains, then user transactions between different shards are enabled, but computational cost increases significantly

Engineering Contradiction:
Improvecross-shard transaction capabilityVSAvoidcomputational cost
Core Design Contradiction:
Adaptability or versatilityVSUse of energy by moving object

Solution Approach 1:

The patent performs preliminary action by assigning each token to a specific shard at the time of token creation or transfer into the sharded system. This preliminary assignment ensures that subsequent transactions involving the token remain within the same shard, eliminating the need for costly cross-shad transactions and reducing computational overhead for routine transfers

Inventive Principle:
Principle #10Preliminary action

Data Source

PatentUS20260004262A1Blockchain transaction sharding for improved transaction throughput
Publication Date: 2026.01.01 HSBC SOFTWARE DEV (GUANGDONG) LTD
  • US20260004262A1 patent drawing
  • US20260004262A1 patent drawing
  • US20260004262A1 patent drawing

AI summary

A method of performing a blockchain transaction in a transaction network comprising a plurality of transaction network shards is disclosed, where each shard maintains a respective blockchain for recording blockchain transactions. A transaction request for transferring asset value represented by one or more tokens is received and an input token for use in the transaction is determined. The method then identifies a given one of the plurality of shards associated with the input token and forwards transaction information for the transaction to a shard controller associated with the identified shard to initiate performance of the transaction by the shard controller. The method may, for example, find application in cryptocurrency networks.