UTXO Blockchain Account Model Emulation via Persistent Identifier
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
The UTXO blockchain model lacks the ability to maintain a persistent identifier across transactions, making it difficult to emulate an account model and manage complex smart contracts effectively, as each UTXO is single-use and lacks identifying information about the entity holding it.
Innovation Solution
A computer-implemented method that determines the presence of a unique identifier in both the input and output of a spending transaction, allowing for validation only when the identifier is present in both, thereby enabling the emulation of an account model by linking transactions through a persistent identifier.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If the UTXO model is used with single-use UTXOs and different public keys for each UTXO, then privacy is improved and scalability is improved, but the ability to maintain a record of which UTXOs are held by any given entity deteriorates
Solution Approach 1:
The patent introduces an account identifier as an intermediary element that mediates between the UTXO model's privacy requirements and the need for entity tracking. This account identifier is embedded in both the locking script and unlocking script, serving as a persistent link between multiple UTXOs and their owner without exposing private key information. The account identifier acts as a mediator that enables entity identification while maintaining the cryptographic privacy guarantees of the UTXO model.
2Loss of information
If each UTXO uses a different public key for locking, then privacy is improved, but the ability to link UTXOs to identify the same entity deteriorates
Solution Approach 1:
The patent adds another dimension to the UTXO structure by embedding an account identifier within the locking script and unlocking script. This creates a new layer of information that persists across transactions without compromising the existing public key mechanism. The account identifier dimension enables entity identification while the public key dimension maintains cryptographic security and privacy.
3Productivity
If the UTXO model is used for blockchain transactions, then computational lightweight operations are achieved and scalability is improved, but the difficulty of maintaining persistent entity identification increases
Solution Approach 1:
The patent applies preliminary action by pre-establishing the account identifier linkage between locking and unlocking scripts before the transaction occurs. The account identifier is embedded in advance in the UTXO structure, so that when validation occurs, the connection between entity and UTXO is already established and can be verified without complex tracking operations. This preliminary establishment of the identifier link enables efficient validation while maintaining entity traceability.
Data Source
Figure 1a
Figure 1b
Figure 2
AI summary
The present disclosure relates to a computer-implemented method of configuring an Unspent Transaction Output, UTXO, blockchain so that upon a spending transaction being received at a node for validation prior to inclusion in a block of the UTXO blockchain, the node: determines the presence of an identifier in an input of the spending transaction; and validates the spending transaction only when the same identifier is also present in an output of the spending transaction.