Blockchain system for multiple digital assets

Blockchain system for multiple digital assets

Blockchain system architecture:

Digital asset types: The blockchain contains different types of digital assets, mainly digital tradable tokens (miqi) and inventory tokens (mimi). Miqi represents a certain amount of a physical asset (such as gold) and is designed to be interchangeable; mimi contains identification information about these physical assets.

Transaction type: The system implements a transaction type that contains both miqi and mimi, which satisfy a predetermined relationship in quantity, which is determined by the verification rules of the blockchain.

Verification rules and security:

Verification rules: The verification rules of the blockchain rely on the quantity of miqi and mimi satisfying a specific relationship. For example, when creating a miqi, an equal amount of mimi must be created at the same time to ensure that the miqi is supported by the corresponding physical assets.

Preventing double spending: The immutability and distributed nature of the blockchain prevent the double spending problem, that is, the same asset cannot be spent multiple times.

Enhanced security: The security and credibility of transactions are ensured through encrypted signatures and the consensus mechanism of the blockchain.

Application scenarios:

Financial transactions: The system is particularly suitable for financial transactions, such as clearing and settlement of futures and options contracts, where miqi can be traded as digital currency.

Digitalization of physical assets: Through the combination of miqi and mimi, the system realizes the digital representation of physical assets (such as gold), which is convenient for trading and auditing.

Anti-fraud mechanism: The system has a built-in anti-fraud mechanism to prevent issuer fraud by regularly checking the correspondence between inventory tokens and physical assets.

Blockchain operation and process:

Transaction reception and verification: The blockchain node receives data messages containing miqi and mimi creation, transfer or destruction requests and verifies them according to predefined verification rules.

New block generation: After verification, a new block containing these transactions is generated and added to the blockchain. The new block is connected to the previous block through a hash chain to form an unalterable record.

Transaction confirmation: After the new block is verified and accepted by other nodes in the network, the transaction is confirmed as the final state.

System flexibility and scalability:

Dynamic rule adjustment: The system allows dynamic adjustment of verification rules through a consensus mechanism to adapt to different market needs and regulatory requirements.

Multi-asset support: The blockchain architecture is not limited to precious metals such as gold, but can also be extended to other uniquely identifiable physical assets or financial assets.

Integration with other systems: The system can be seamlessly integrated with existing financial market infrastructure (such as clearing houses) to improve overall transaction efficiency and transparency.

Implementation examples and case analysis:

Specific transaction examples: The document provides multiple transaction examples showing how to create, transfer and destroy miqi and mimi, and how these operations affect the state of the blockchain.

Technical implementation details: The technical implementation details of the blockchain module, transaction data structure and verification process are described in detail, including hash calculation, Merkle tree and script verification.

Compliance and regulation:

Audit support: The transparency and immutability of the blockchain enable regulators to easily audit transactions and assets within the system.

Compliance requirements: The system can be adjusted according to different regulatory requirements to ensure compliance with local laws and regulations.

Short answer questions:

What are the two main digital assets included in the blockchain, and explain the relationship between them?

The blockchain mainly contains two types of digital assets: digital tradable tokens (miqi) and inventory tokens (mimi). Miqi represents a certain amount of a physical asset (such as gold) and is designed to be interchangeable; mimi contains identification information about these physical assets (such as serial number, weight, etc.). The relationship between them is that when miqi is created on the blockchain, an equal amount of mimi must be created at the same time to ensure that miqi is backed by the corresponding physical asset, and the number of miqi and mimi must meet the predetermined relationship in any transaction.

How does blockchain prevent double spending?

Blockchain prevents double spending through its immutability and distributed nature. Once a transaction is verified and added to the blockchain, it becomes part of the permanent record in the blockchain, and due to the structure of the hash chain, subsequent blocks reference the hash value of the previous block, making it extremely difficult to tamper with the blockchain. In addition, each blockchain node keeps a complete copy of the blockchain, which further increases the difficulty of tampering. Therefore, the same asset cannot be spent multiple times on the blockchain.

What is the main use of digital tradable tokens (miqi)?

The main use of digital tradable tokens (miqi) is to be traded on the blockchain as a digital representation of a physical asset (such as gold). Miqi can circulate like traditional currency for payment, investment or trading, but its value is backed by actual physical assets, providing additional stability and credibility. In addition, miqi can also be used for trading and settlement of financial derivatives such as futures and options.

How do blockchain verification rules ensure the security and credibility of transactions?

The verification rules of blockchain ensure the security and credibility of transactions through a series of measures. First, the transaction must contain the necessary signature and authorization information to prove the identity and authority of the transaction initiator. Second, the number of miqi and mimi in the transaction must meet the predetermined relationship, which ensures that miqi has the corresponding physical asset support. Finally, the transaction is sent to the nodes in the blockchain network for verification, and the verification process includes checking the transaction signature, the balance of inputs and outputs, and whether it complies with the consensus rules of the blockchain. Only verified transactions will be added to the blockchain to form an unalterable record.

How does the system prevent issuer fraud?

The system prevents issuer fraud through multiple mechanisms. First, the issuer is required to create an equal amount of mimi at the same time as creating miqi, and ensure that the physical asset identification information contained in the mimi is consistent with the actual physical asset. Secondly, the system allows for regular audits of the correspondence between inventory tokens and physical assets to verify whether the issuer has complied with the rules. Finally, the transparency and immutability of the blockchain make any fraud easy to detect and track, increasing the cost and risk of fraud for the issuer.