Blockchain and off-chain homogeneous databases

Blockchain and off-chain homogeneous databases

Technical background and purpose:

Existing blockchain technology: mainly tracks cryptocurrencies of interchangeable value, such as Bitcoin or Ethereum, rather than specific tangible assets.

Purpose: Provide a blockchain-based method to generate, transfer and track "asset tokens" representing complex tangible assets.

Asset token definition and characteristics:

Asset token: is a digital token mapped to one or more data records of tangible assets, which are stored in a tokenized system.

Non-fungible assets: Asset tokens can represent unique assets, such as land, machinery or aircraft.

Data capacity: Asset token data can be stored in a hierarchical hash-linked tree structure, and the amount of data can be arbitrarily large.

Combination of blockchain and off-chain storage:

Off-chain storage: The detailed data of asset tokens is stored in an off-chain homogeneous database, rather than directly on the blockchain.

Blockchain storage: Only the root hash value and smart contract status are stored to reference and verify off-chain data.

Data immutability: The immutability of data is ensured by hash links, while reducing the need for blockchain storage.

Generation and modification of asset tokens:

Generation process: Generate asset tokens when an asset is manufactured or enters the existence stage, including root nodes and child nodes.

Modification response: Generate new child nodes and update the hash tree structure when an asset is modified (such as assembly, disassembly).

Destruction mechanism: When an asset is destroyed or no longer available, the corresponding asset token will also be destroyed.

Smart contracts and ownership transfer:

Smart contracts: Used to control the transfer and ownership changes of asset tokens and record related events on the blockchain.

Ownership changes: The ownership transfer of asset tokens is achieved by modifying the hash value in the smart contract.

Permission control: Only authorized users with private keys can modify the data of asset tokens or transfer ownership.

Application scenarios and advantages:

Supply chain management: Track the ownership and location of complex assets in the supply chain to reduce errors, costs and delays.

Audit and verification: Provide an unalterable audit trail through blockchain records without the need for additional audit records.

Automated processes: Combine IoT devices and smart contracts to automate asset transfers and payments.

Specific implementation:

Flowchart: The flowchart shows the specific steps of asset token generation, modification and ownership transfer.

Data structure example: The data structure of an asset token containing multiple sub-assets, such as a wheelbarrow containing wheels, a frame and a bucket.

Short answer:

What is an asset token and explain its importance?

An asset token is a digital token that maps to one or more data records of a tangible asset. Its importance lies in the ability to use blockchain technology to generate, transfer and track digital identifiers representing complex tangible assets, thereby achieving transparency, security and traceability of asset information.

Why is asset token data not stored directly on the blockchain?

Asset token data is not stored directly on the blockchain mainly because the storage capacity of the blockchain is limited and the transaction cost is high. By storing the detailed data of the asset token off-chain and storing only the root hash value and smart contract status on the blockchain, the demand for blockchain storage can be greatly reduced, while using the immutability of the blockchain to ensure the authenticity and integrity of the data.

Briefly describe the process of asset token generation and modification.

The generation process of asset tokens usually occurs when the asset is manufactured or enters the existence stage, at which time a hierarchical hash link tree structure containing a root node and child nodes is generated. When the asset is modified (such as assembly, disassembly), new child nodes are generated and the hash tree structure is updated to reflect the latest status of the asset. If the asset is destroyed or no longer available, the corresponding asset token will also be destroyed.

What is the role of smart contracts in asset token systems?

Smart contracts play a central role in asset token systems. They are used to control the transfer and ownership changes of asset tokens, record related events on the blockchain, and provide an automated execution mechanism. Through smart contracts, it is possible to ensure that the ownership transfer and status update of asset tokens are carried out according to predetermined rules and conditions, thereby achieving transparency, automation and security in asset management.

What are the application advantages of the method proposed by 543x.com in supply chain management?

The method proposed by 543x.com has significant application advantages in supply chain management. First, it can achieve transparent tracking of the ownership and location of complex assets in the supply chain, reducing errors, costs and delays. Secondly, blockchain records provide an audit trail that cannot be tampered with, which can simplify the audit process and reduce audit costs. In addition, combined with IoT devices and smart contracts, it can also automate asset transfers and payments, improving the efficiency and flexibility of supply chain management.