Proof of Transaction Blockchain Security Method and System

Proof of Transaction Blockchain Security Method and System

Glossary

Term Definitions Blockchain A sequence of blocks that record transaction data in chronological order, with each block linked to the previous block. Block A unit of data in a blockchain that contains a set of verified transactions. Transaction A transfer of value in a blockchain network. Node A participant in a blockchain network that can verify and relay transactions. Proof of Transaction A blockchain consensus mechanism that rewards nodes that participate in transaction verification and network routing. Burn Fee The cost of tokens required to create a new block, used to ensure network security. Burn Value The value of tokens associated with a transaction, used to pay for blockchain network services. Candidate Block Potential blocks waiting to be added to the blockchain that need to meet consensus rules. Consensus Rules Rules agreed upon by all nodes in a blockchain network to verify transactions and blocks. Golden Ticket A special block containing a computational puzzle whose solution is used to select nodes and distribute rewards. Lucky Miner The node that successfully solves the computational puzzle in the golden ticket, receives a portion of the reward. Lucky Node The node selected by the golden ticket solution, receives a portion of the reward. Payout Ratio Variable The variable that determines the ratio of reward distribution between lucky miners and lucky nodes. Difficulty Variable The variable that determines the difficulty of the computational puzzle in the golden ticket. Network consensus variables are variables that are adjusted through the block voting mechanism, such as payout ratio variables and difficulty variables. Short Answer Questions

Instructions: Please answer each of the following questions in 2-3 sentences.

How does Proof of Transaction solve the "free rider" problem that plagues other cryptocurrencies?

Answer: Proof of Transaction solves the "free rider" problem by rewarding nodes that participate in transaction propagation and verification. This is different from the Proof of Work mechanism that only rewards block creators, thereby incentivizing all nodes in the network to actively participate.

What is the purpose of "burn fee" in the Proof of Transaction system?

Answer: "Burn fee" is the token cost required to create a new block. It acts as a deterrent to malicious actors attacking the network because attackers need to spend a large amount of tokens to control the network.

How does "burn value" differ from "burn fee"?

Answer: "Burn value" is the token value associated with a specific transaction, which is used to measure the consumption of network resources by that transaction. "Burn fee" is the total token cost required to create a new block, which is paid to the node that successfully created the block.

Describe the process of including a transaction in the blockchain.

Answer: Users create transactions and broadcast them to the network. Nodes verify transactions and add them to the memory pool. Miners pack transactions into candidate blocks and try to solve computational puzzles. When a solution is found, the new block is added to the blockchain.

What role does the golden ticket play in the transaction proof system?

Answer: The golden ticket is a special block that contains a computational puzzle. The node that solves the puzzle (lucky miner) and the node selected by the solution (lucky node) will receive a block reward.

How is the difficulty of the computational puzzle in the golden ticket determined?

Answer: The difficulty of the computational puzzle is determined by the network consensus variable "difficulty variable". This variable can be adjusted through the block voting mechanism to ensure the stability and security of the network.

How does the "payout ratio variable" affect the economic model of the transaction proof system?

Answer: The "payout ratio variable" determines the distribution ratio of the golden ticket reward between the lucky miner and the lucky node. Adjusting this variable can balance the interests of different participants in the network.

Explain how the transaction proof system uses the "block voting" mechanism.

Answer: Nodes can embed "block votes" in the blocks they create to express their willingness to adjust network consensus variables (such as payout ratio variables and difficulty variables). These votes will be counted and take effect after the golden ticket solution is added to the blockchain.

How does the transaction proof system handle "pruning" of the blockchain?

Answer: The transaction proof system can remove transaction data in old blocks through "pruning" to reduce storage space requirements. Unused tokens will be calculated and reintroduced into future block rewards.

What are the potential advantages of the transaction proof system compared to other blockchain systems?

Answer: The transaction proof system can solve the "free rider" problem, improve scalability, and enable more flexible governance through the block voting mechanism.

Essay Question

Instructions: Please answer each of the following questions in short essay format.

Compare and contrast transaction proof and proof of work, focusing on the advantages and disadvantages of each method.

Discuss how the transaction proof system can scale over time to handle more and more transactions.

Analyze how "burn fees" and "block rewards" affect the overall security and stability of the transaction proof system.

Evaluate the effectiveness of using "golden tickets" and "block voting" in proof-of-transaction systems to achieve decentralized governance.

Explore potential real-world applications of proof-of-transaction systems beyond cryptocurrencies.