Blockchain asset verification system and method

Blockchain asset verification system and method

Glossary

Term DefinitionBlockchain is a distributed ledger technology that uses cryptographic methods to link data blocks together to form an immutable record. Smart Contract is a self-executing contract stored on the blockchain that automatically executes the terms of the contract when the preset conditions are met. Node is a computer connected to the blockchain network that can verify transactions and store copies of the blockchain. Verifier is a node responsible for verifying asset information, such as verifying the authenticity of a real estate certificate. Miner is a node responsible for adding new blocks to the blockchain and is rewarded by solving cryptographic puzzles. Consensus Protocol is a mechanism for nodes in a blockchain network to reach consensus, such as proof of work (PoW) or proof of stake (PoS). Stake is a validator who locks a certain amount of cryptocurrency as collateral to obtain the right to verify transactions and participate in consensus. Reputational Score is an indicator that reflects the credibility of a node, which can be evaluated based on its behavior in the network. Private Key is a key used to sign transactions and prove identity, which is kept secret by the user. The public key is used in pairs with the private key to verify the key of the digital signature and can be made public. Short answer question

What are the two main features of blockchain technology? The two main features of blockchain technology are decentralization and immutability. Decentralization means that data is not stored in a single location, but distributed across multiple nodes in the network. Immutability means that once data is added to the blockchain, it cannot be changed or deleted.

What role do smart contracts play in blockchain? Smart contracts are self-executing contracts stored on the blockchain that automatically execute the terms of the contract when the preset conditions are met. They can be used to automate various processes such as payments, voting, and supply chain management.

How do validators verify assets in the system? Validators use their expertise and resources to verify the authenticity of asset information. For example, real estate validators can view property certificates and investigate property information to verify property ownership.

How do miners add new blocks to the blockchain? Miners verify transactions and create new blocks by solving complex cryptographic puzzles. Once a solution is found, the miner broadcasts the new block to the network, and other nodes verify it and add it to the blockchain.

What is Proof of Stake (PoS)? Proof of Stake is a consensus mechanism where validators are awarded the right to verify transactions and create new blocks based on the amount of cryptocurrency they stake. Compared to Proof of Work (PoW), PoS is more energy-efficient and environmentally friendly.

How does reputation score affect the credibility of a validator? Reputation score is a measure of the credibility of a validator. Validators with higher scores are considered more reliable and more likely to provide accurate verification.

How does the system ensure that validators perform verification honestly? The system ensures the honesty of validators through a staking mechanism and a reputation scoring system. If a validator provides false information or violates consensus rules, they will lose some or all of their staked cryptocurrency and their reputation score will also be reduced.

Describe how validators sign new blocks. Validators digitally sign new blocks using their private keys to prove their identity and ensure the integrity of the block content.

How do miners verify the signature of a new block? Miners use the public key of the validator to verify the digital signature of the new block to ensure that the signature was created by the validator holding the corresponding private key.

Briefly describe how the system uses smart contracts to manage the digital sale of assets. The system can use smart contracts to automate the digital sale process of assets. For example, a smart contract can define the terms of a sale, manage the payment process, and automatically transfer ownership of the asset to the buyer once all conditions are met.