Token Transaction Validation Using Mint Trace Proofs
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Solution Overview
Problem
Blockchain-based digital cash systems face challenges in efficiently validating and transferring tokens, particularly in tracing transactions back to issuance transactions to ensure validity.
Innovation Solution
A computer-implemented method for validating token transfer transactions involves obtaining and verifying inputs and outputs with locking scripts, ensuring that token amounts are balanced and traced back to mint transactions, using a blockchain network to propagate and record transactions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If traditional blockchain validation methods are used to trace transactions back to issuance transactions, then transaction validity can be ensured, but validation efficiency and speed deteriorate due to the complex tracing process
Solution Approach 1:
The patent applies preliminary action by pre-computing and storing Merkle proofs of issuance transactions in the token data structure before validation is needed. This allows the validation process to simply verify the pre-prepared proof rather than tracing back through the entire transaction history, significantly improving validation efficiency while maintaining reliability
Solution Approach 2:
The patent introduces Merkle proofs as an intermediary element that mediates between the issuance transaction and the validation process. The Merkle proof serves as a compact verification mechanism that proves the token's origin without requiring direct access to or processing of the original issuance transaction, thus resolving the contradiction between thorough validation and efficient processing
2Reliability
If comprehensive transaction tracing is performed to ensure token legitimacy, then security and integrity are improved, but computational resources and time consumption increase
Solution Approach 1:
The patent extracts the essential verification information from the complete transaction history and encapsulates it in a compact Merkle proof within the token data. This extracted proof contains only the necessary information to verify legitimacy, eliminating the need to process the entire transaction history and thus reducing validation time while maintaining security
Solution Approach 2:
The Merkle proof is pre-computed and embedded in the token when it is created or transferred. This preliminary preparation of verification data means that when validation is needed, the system only needs to verify the pre-prepared proof rather than performing comprehensive tracing, significantly reducing validation time without compromising token legitimacy verification
Data Source
AI summary
A computer-implemented method of validating a token transaction as part of a token protocol using a blockchain, comprising: obtaining a candidate token transaction; obtaining, for each respective input of the candidate token transaction that references a respective token transaction, a respective list of transactions tracing back to a respective token mint transaction linking the candidate token transfer transaction to the respective token mint transaction; and validating the candidate token transfer transaction by: verifying that each respective input of the candidate token transaction references a respective token mint transaction or can be traced back, using the respective list of transactions, to a respective token mint transaction; and verifying that a sum of the respective token amounts comprised by the respective outputs of the candidate transaction is equal to a sum of the respective token amounts comprised by the one or more respective outputs referenced by the candidate transaction.