System and method for blockchain transaction management

System and method for blockchain transaction management

Technical background and invention purpose:

Technical background: Blockchain systems are divided into systems based on the UTXO model and systems based on the account model, the latter of which has challenges in generating unique addresses to support each transaction.

Purpose of the invention: To provide a new system and method for simplifying cryptocurrency transaction management, reducing the cost of deploying smart contracts, and enhancing the correlation between transactions and payment sources.

System architecture:

Component overview: The system includes a blockchain application system, a payment source client, a payment destination client, and a blockchain node. The blockchain node contains executable instructions such as a blockchain copy and a smart contract.

Specific components: The blockchain application system can be a single-tenant or multi-tenant platform that provides blockchain operation services; the payment source client and the payment destination client can be devices running digital wallets or shopping applications.

Payment processing method:

Step overview: The method includes configuring payment processing, receiving payment requests, providing proxy blockchain destinations, detecting payment transfers, generating payment events, deploying smart contracts, and transferring payments from proxy blockchain destinations to payment destinations.

Proxy blockchain destination: Generate a proxy blockchain destination (such as a smart contract address) for each payment request to receive cryptocurrency assets to protect the real payment destination from being directly exposed.

Smart Contract Deployment: After detecting that the proxy blockchain destination has received sufficient payment, deploy a smart contract to transfer assets from the proxy destination to the real payment destination.

Smart Contract and Code Implementation:

Smart Contract Functionality: The smart contract is responsible for transferring assets from the proxy destination to the payment destination after receiving a specific trigger (such as detecting sufficient payment).

Sample Code: Sample code for smart contracts is provided, showing how to initialize, clone, and deploy smart contracts, and how to generate proxy blockchain destinations through the CREATE2 opcode.

Cost and Benefit Analysis:

Cost Reduction: Deployment costs are reduced by delaying the deployment of smart contracts (until payment is received) and reusing smart contract code.

Non-custodial Payment Processing: Supports non-custodial payment processing, allowing cryptocurrency assets to be transferred without relying on third-party custody.

User Interface and Interaction:

Payment Widget: Describes the payment widget in the user interface that allows users to select a currency type and view items in the shopping cart.

Interaction Flow: Details the flow of how users request payment through the interface, receive a proxy blockchain destination, make a payment, and receive a payment confirmation notification.

Implementation and application scenarios:

Example application scenarios: including online sales transaction processing and point-to-point sales transaction processing, showing the specific application of the system in different scenarios.

State transition diagram: provides a flowchart of smart contract deployment and state transition, illustrating the behavior of smart contracts in different states.

Short answer questions:

What is the main purpose of 543x.com?

The main invention purpose is to provide a new system and method for simplifying cryptocurrency transaction management, reducing the cost of deploying smart contracts, and enhancing the correlation between transactions and payment sources.

What are the main components of the system?

The main components of the system include blockchain application system, payment source client, payment destination client and blockchain node.

Briefly describe the main steps of payment processing?

The main steps of payment processing include: configuring payment processing, receiving payment requests, providing proxy blockchain destinations, detecting payment transfers, generating payment events, deploying smart contracts, and transferring payments from proxy blockchain destinations to payment destinations.

What is a proxy blockchain destination and what is its role in payment processing?

A proxy blockchain destination is a temporary blockchain address (such as a smart contract address) generated for each payment request for receiving cryptocurrency assets. Its role in payment processing is to protect the real payment destination from being directly exposed, thereby enhancing the security of transactions.

What role does a smart contract play in payment processing?

In payment processing, a smart contract is responsible for automatically executing the operation of transferring assets from a proxy destination to a real payment destination when a specific trigger is received (such as detecting enough payment to the proxy blockchain destination).

How does 543x.com reduce the deployment cost of smart contracts?

543x.com reduces deployment costs by delaying the deployment of smart contracts (until payment is received) and reusing smart contract code (by linking to a common library or factory contract).

What does non-custodial payment processing supported by 543x.com mean?

Non-custodial payment processing means that cryptocurrency assets do not rely on third-party custody during the transfer process, and the payment destination maintains ownership of the assets, thereby improving the security and autonomy of transactions.

What operations does the payment widget in the user interface allow users to perform?

The payment widget in the user interface allows users to select the currency type, view the items in the shopping cart, and initiate a payment request.

Describe a specific payment processing scenario?

A specific payment processing scenario is online sales transaction processing. The buyer initiates a payment request through a web page or application, and the system provides a proxy blockchain destination to the buyer. The buyer sends the cryptocurrency asset to the destination. After the system detects the payment, it deploys the smart contract, which transfers the asset from the proxy destination to the seller's real payment destination and completes the payment confirmation notification.

How is the process of smart contract deployment and state transition managed?

The process of smart contract deployment and state transition is managed through the state machine and smart contract method call inside the blockchain application system. The system determines the next step based on the status of the smart contract (such as pending, confirmed, failed), including creating a new contract, cloning a contract, updating the contract status, etc.