Research Guide for Asset Trading System of Blockchain

Research Guide for Asset Trading System of Blockchain

Glossary

Term Definition Blockchain A distributed database consisting of multiple computer nodes used to record transaction data, with the characteristics of decentralization, transparency and immutability. Smart Contract A piece of code stored on the blockchain that is automatically executed when pre-set conditions are met, such as transferring assets or executing agreements. Asset Share Token Digital tokens that represent real-world assets, such as stocks, bonds, real estate, etc., can be traded on the blockchain. Currency Token Digital currencies used for transactions on the blockchain, such as Bitcoin, Ethereum, etc., can also be used to pay transaction fees. Exchange A platform that provides digital asset trading services, where users can buy and sell various digital assets. On-chain refers to transactions or operations conducted on the blockchain network, and all transaction data will be recorded on the blockchain. Off-chain refers to transactions or operations conducted outside the blockchain network, and transaction data will not be recorded on the blockchain. Distributed Storage Stores data on multiple different computer nodes to improve data reliability and security. IPFS (InterPlanetary File System) is a peer-to-peer distributed file system used to store and share files. It is decentralized and tamper-proof. Merkle DAG (Merkle Directed Acyclic Graph) is a data structure used to verify data integrity. It can efficiently verify the integrity of large amounts of data. Hash Value is an algorithm used to map data of any length into a fixed-length string, which can be used to verify the integrity of data. Private Key is a key used to sign transactions and authorize operations. It must be kept strictly confidential. Public Key is generated by the private key and can be made public. It is used to verify transaction signatures and encrypt data. Transaction Fee is the fee that users need to pay when conducting transactions on the blockchain. It is used to reward miners for packaging transactions. Native Currency is the currency used by a specific blockchain network. For example, the Bitcoin network uses Bitcoin and the Ethereum network uses Ether. Account Balance Settlement is the process by which the exchange settles the user's account and confirms the user's assets after the user issues a withdrawal request. Oversubscription refers to the situation where the number of subscriptions exceeds the number of issuances when an asset is issued. Seed Random Number is used to generate the initial value of a random number, which can be used to fairly distribute assets. Acquisition refers to a company acquiring the ownership or control of another company. Shareholders are people who hold shares in a company and enjoy the ownership and dividend rights of the company. Questions and Answers

Please explain the advantages and disadvantages of blockchain technology in asset trading systems.

How does the trading system proposed in this patent solve the problems of high transaction fees and slow transaction speeds in blockchain?

Please explain the difference and role of "on-chain" and "off-chain" transactions in this trading system.

How does the trading system proposed in this patent ensure the security and immutability of transaction data?

Please analyze the challenges and risks that this trading system may face in practical applications.

Short Answer Questions

What problems does the trading system proposed in this patent mainly solve?

The trading system proposed in this patent aims to solve the problems of high transaction fees, slow transaction speeds and insufficient data transparency in existing blockchain trading systems.

In this trading system, how do users trade assets?

The user submits a transaction request through the client, and the exchange records the transaction request in the off-chain storage system and regularly packages the transaction data and submits it to the blockchain network for confirmation.

How to ensure the security of user assets in this trading system?

User assets are stored in smart contracts and authorized by private keys to ensure asset security.

How to reduce transaction costs in this trading system?

The system performs most transaction operations off-chain and only submits the final transaction results to the blockchain network, thereby reducing the number of on-chain transactions and reducing transaction costs.

How to ensure the transparency of transaction data in this trading system?

All transaction data will be recorded in the distributed storage system and linked by hash values ​​to ensure that the data cannot be tampered with. Anyone can query and verify the transaction data.

How does this trading system handle user withdrawal requests?

After the user submits a withdrawal request, the exchange will settle the account balance and transfer the user's assets from the smart contract to the address specified by the user after confirmation.

How to deal with the issuance of additional assets in this trading system?

The system uses the random number generation mechanism of the blockchain network to fairly distribute the additional assets.

How does this trading system deal with asset acquisitions?

The acquirer submits the acquisition intention and price to the exchange, and all shareholders can choose to accept or reject the acquisition, and the final result will be recorded on the blockchain.

In this trading system, how to prevent transaction data from being tampered with?

All transaction data are linked by hash values, and any change in data will cause the hash value to change, which can be easily discovered.

What are the advantages of this trading system compared to traditional asset trading systems?

The system has the advantages of decentralization, transparency, security, and efficiency, which can reduce transaction costs, improve transaction efficiency, and enhance the credibility of transaction data.