Transaction Verification Using Merkle Invariants and Hash Proofs
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Solution Overview
Problem
Existing methods for verifying transactions between entities, such as blockchains and smart contracts, are inefficient, costly, and complex, often disclosing too much information or requiring sophisticated cryptography and trust assumptions.
Innovation Solution
A method using historical extended Merkle trees to verify transactions by ensuring data integrity through hash values and invariants, allowing entities to share only required information while maintaining data security and reliability.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If blockchains and smart contracts are used for transaction verification, then reliability of verification is improved, but device complexity and energy consumption increase significantly
Solution Approach 1:
The patent extracts only the essential verification functionality from complex blockchain systems by using simple hash functions and digital signatures. Instead of implementing full blockchain consensus mechanisms, the invention extracts the core capability of cryptographic verification to ensure transaction integrity without the overhead of distributed consensus protocols.
Solution Approach 2:
The patent uses lightweight, computationally inexpensive cryptographic primitives (hash functions and digital signatures) that can be executed quickly and discarded after verification. These cryptographic operations serve as temporary, disposable verification mechanisms rather than persistent complex system states.
2Reliability
If blockchains and smart contracts are used for transaction verification, then reliability of verification is improved, but energy consumption increases significantly
Solution Approach 1:
The patent employs energy-efficient cryptographic operations (hash functions and digital signatures) that consume minimal computational resources compared to blockchain consensus mechanisms. These lightweight cryptographic primitives provide sufficient verification reliability without the high energy costs of mining, proof-of-work, or other resource-intensive consensus protocols.
3Reliability
If existing verification methods are used, then data security is maintained, but too much information is disclosed to other entities
Solution Approach 1:
The patent extracts only the necessary verification data from transactions using selective disclosure techniques. By using cryptographic commitments and zero-knowledge proofs, the system reveals only the minimal information required for verification (e.g., transaction validity, balance sufficiency) while keeping other sensitive data private.
Solution Approach 2:
The patent applies different levels of information disclosure to different parts of the transaction data. Sensitive fields remain encrypted or hidden, while only specific verification-critical fields are revealed through cryptographic proofs, creating a localized information disclosure strategy that balances security and privacy.
Data Source
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AI summary
The invention relates to a method for verifying a transaction (T, T2) of a first entity (V1), wherein the first entity (V1) comprises a local repository (DB1) in which at least one item with corresponding data items is stored, wherein the transaction (T, T2) to be verified modifies the at least one item and its corresponding data items in the local repository (DB1). The method comprises the following steps: requesting (S1) information with respect to the transaction (T, T2) from the first entity (V1), receiving (S2) the requested information comprising a final value of at least one data item of the at least one item after the transaction (T, T2) and a hash value of an internal value of the corresponding transaction (T, T2) of the first entity (V1), and verifying (S3) the hash value of the internal value of the corresponding transaction (T, T2) of the first entity (V1) and verifying the final value of the at least one data item using an invariant with respect to a second value of the at least one data item of the item of the transaction (T, T2). The invention further relates to a corresponding first entity (V1), a second entity (V2) and a system (1) comprising these entities (V1, V2).