Trusted Hardware Off-Chain Swaps for Digital Currency
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Solution Overview
Problem
Existing digital currency transaction systems face challenges with slow transaction speeds, high fees, poor scalability, and security issues in cross-chain transactions, particularly in off-chain swaps, which are inefficient and insecure, especially when using centralized or decentralized swap solutions.
Innovation Solution
A method for digital currency intra-chain and cross-chain off-chain swaps using trusted hardware, involving the generation and management of public-private key pairs by trusted hardware systems to ensure secure and efficient transactions, with rescue objects for key recovery in case of hardware failure, and utilizing time-locked transactions or smart contracts based on digital currency capabilities.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Speed
If centralized swap solutions are used, then transaction speed is improved, but security is worsened
Solution Approach 1:
The patent introduces a trusted hardware system as an intermediary between the initiator and responder in off-chain swap transactions. This trusted hardware generates and manages key pairs, with the public key being transferred to the counterparty. The trusted hardware acts as a secure mediator that enables fast off-chain transactions while maintaining security through cryptographic key management, thus resolving the contradiction between speed and security.
2Reliability
If decentralized swap solutions are used, then security is improved, but transaction speed is worsened
Solution Approach 1:
The patent segments the swap transaction process into two distinct phases: off-chain swap execution and on-chain asset transfer. The off-chain phase uses trusted hardware for rapid key pair generation and public key exchange, achieving fast and secure swaps. The on-chain phase only handles final asset settlement. This segmentation allows the system to enjoy both the speed of off-chain transactions and the security of on-chain verification, resolving the speed-security tradeoff.
3Loss of energy
If off-chain transactions are used, then transaction fees are reduced, but cross-chain support is worsened
Solution Approach 1:
The trusted hardware system implements a universal key management mechanism that can handle multiple digital currency types and cross-chain scenarios. The same trusted hardware can generate key pairs for different blockchains and facilitate swaps across various chains through standardized protocols. This multi-functionality allows off-chain transactions to maintain low fees while supporting diverse cross-chain use cases.
Data Source
AI summary
A digital currency intra-chain and cross-chain off-chain swap method based on trusted hardware. An initiator sends a swap message containing a public-private key pair to be swapped by a initiator to a responder, and deletes the public-private key pair to be swapped by the initiator; after receiving the swap message, the responder saves and locks the public-private key pair to be swapped by the initiator, locks the public-private key pair to be swapped by the responder, and sends a response message containing the public-private key pair to the initiator; after receiving the response message, the initiator saves the public-private key pair to be swapped by the responder and sends a confirmation message to the responder; after receiving the confirmation message, the responder deletes the public-private key pair to be swapped by the responder and unlocks the public-private key pair to be swapped by the initiator to complete the swap.