Private blockchain system with external gateway

Private blockchain system with external gateway

System Overview:

Private blockchain system: The system provides a private blockchain that allows external entities to enter and interact with it through a decentralized external gateway.

Processor Protocol: The system uses two different processor protocols, one for processing transaction consensus from the public network to the private network, and the other for processing transaction consensus within the private network.

Decentralized Gateway:

Verification Node: The system contains multiple computer nodes as verification nodes, which execute verification software packages to process transaction requests.

Hierarchical Verification: Verification nodes are classified according to transaction types (such as from source tokens to root tokens, root tokens to leaf tokens, and leaf tokens to leaf tokens) to handle different types of transaction requests.

Token Mechanism:

Source Tokens, Root Tokens, and Leaf Tokens: The system defines three types of tokens, source tokens represent external assets, root tokens are used as internal reserve assets, and leaf tokens are used for daily transactions.

Minting and Melting: Root tokens can be minted as leaf tokens, and leaf tokens can be melted back to root tokens. This process is implemented through smart contracts to ensure the balance of supply and demand for tokens.

Consensus Mechanism:

Proof of Elapsed Time (PoET): The system adopts the PoET consensus mechanism, which generates transaction blocks by randomly selecting verification nodes and ensures the consistency and finality of transactions.

Time Lock and Verification: The verification node verifies the transaction within a specific time period and generates a confirmation receipt, and other verification nodes verify the confirmation to update the ledger.

Transaction Processing Flow:

Transaction Request Generation: The transaction request is generated by the node within the system and sent to the private network.

Verification and Confirmation: The verification node verifies the transaction request, generates a confirmation and updates the ledger, and other verification nodes verify the confirmation to ensure the validity of the transaction.

Ledger Update: The ledger is updated through the consensus process of the verification node to ensure that the ledger data on all nodes is consistent.

Security and Permissions:

Multi-layer Verification: The system ensures the security of transactions through a multi-layer verification mechanism, including distributed verification from source tokens to root tokens and internal verification from root tokens to leaf tokens.

Permission Control: Verification nodes are classified according to roles and permissions to ensure that only authorized nodes can perform specific operations.

Application scenarios:

Merchant ecosystem: The system is particularly suitable for merchants with high transaction volumes, such as fast food restaurants, grocery stores, etc., to reduce cash handling and improve transaction transparency and speed.

Mobile payment solutions: The system provides infrastructure for mobile payments, supporting fast and low-cost payment processing.

Technical implementation:

Hyperledger Sawtooth: The system uses Hyperledger Sawtooth as a distributed ledger technology to provide flexible transaction processing capabilities and an efficient consensus mechanism.

Smart contracts: Token minting, melting, transfer and other functions are implemented through smart contracts to ensure the automation and transparency of transactions.

Short answer questions:

What is the main function of the system?

The main function of the system is to provide a private blockchain with a decentralized external gateway, allowing external entities to interact with the private blockchain through the gateway while ensuring the security and efficiency of transactions.

What types of tokens are used in the system? And briefly describe their functions.

Three types of tokens are used in the system: source tokens (S), root tokens (R) and leaf tokens (L). Source tokens represent external assets, such as the U.S. dollar or other cryptocurrencies; root tokens are used as reserve assets within the system to mint leaf tokens; leaf tokens are used for daily transactions to facilitate value transfer between merchants and consumers.

What is the PoET consensus mechanism? How is it applied to this system?

PoET (Proof of Elapsed Time) is a consensus mechanism that generates transaction blocks by randomly selecting verification nodes and ensures the consistency and finality of transactions. In this system, PoET is used in the consensus process between verification nodes, which verify transactions within a specific time period and generate confirmation receipts, and other verification nodes verify the confirmation to update the ledger.

What is the role of verification nodes in the system? How are they classified?

Verification nodes are responsible for executing verification packages, processing transaction requests, and generating confirmations to update the ledger in the system. Verification nodes are classified according to transaction types, including nodes that process transactions from source tokens to root tokens, nodes that process transactions from root tokens to leaf tokens, and nodes that process transactions from leaf tokens to leaf tokens. In addition, verification nodes may be further classified according to roles and permissions.

How does the system prevent double spending of tokens?

The system prevents double spending of tokens through a multi-layer verification mechanism and distributed ledger technology. Each transaction is subject to the consensus process of the verification nodes and is recorded on the ledger. Since the ledger is distributed and the ledger data on all verification nodes must be consistent, any transaction attempting to double-spend will be identified and rejected by the system.

What are the main application scenarios of the system?

The main application scenarios of the system include merchant ecosystems and high-volume retail environments (such as fast food restaurants, grocery stores, etc.), as well as mobile payment solutions that require fast and low-cost payment processing. The system improves the performance and security of existing payment systems by providing stable value tokens and decentralized transaction verification mechanisms.