BLOCKCHAIN-DRIVEN SMART CONTRACTS FOR SECURE TRANSACTIONS

Abstract

The present invention relates to a blockchain-driven system for executing secure and automated transactions using smart contracts. The system incorporates a multi-layer blockchain architecture to enhance scalability and transaction throughput, an interoperability module to enable cross-chain execution of contracts, and an advanced security module utilizing AI/ML algorithms for real-time anomaly detection and protection against attacks. Additionally, the system integrates an oracle interface to verify off-chain data, allowing smart contracts to make decisions based on real-world information. An automatic dispute resolution mechanism ensures efficient and transparent resolution of conflicts, making the system suitable for a wide range of applications, including decentralized finance, supply chain management, and legal agreements.

Specification

Description:The embodiments of the present invention generally relates to the field of blockchain technology, specifically to systems and methods utilizing blockchain-driven smart contracts for secure transactions. The invention aims to enhance the reliability, security, and efficiency of digital agreements by leveraging decentralized ledgers, cryptographic algorithms, and programmable automated contracts. It provides a robust framework for executing transactions across various industries, such as finance, supply chain, and legal services, by automating the process of verification, enforcement, and execution without relying on intermediaries.
BACKGROUND OF THE INVENTION
The following description of related art is intended to provide background information pertaining to the field of the disclosure. This section may include certain aspects of the art that may be related to various features of the present disclosure. However, it should be appreciated that this section be used only to enhance the understanding of the reader with respect to the present disclosure, and not as admissions of prior art.

The traditional methods of executing agreements and transactions often require the involvement of intermediaries, such as banks, legal professionals, or trusted third parties, to ensure that the terms of a contract are fulfilled. This reliance on intermediaries not only increases the cost and time required to complete transactions but also introduces potential risks, such as human errors, fraud, and data breaches. As digital transactions become more prevalent, there is a growing need for a more secure, efficient, and transparent way of managing and enforcing agreements.

Blockchain technology has emerged as a promising solution to address some of these issues by providing a decentralized and immutable ledger for recording transactions. Unlike centralized systems, blockchain networks distribute the transaction data across multiple nodes, making it highly resistant to tampering and unauthorized alterations. Smart contracts, which are self-executing contracts with the terms of the agreement directly written into code, take this one step further by automating the enforcement of contractual obligations. However, the existing implementations of smart contracts still face significant challenges.

One major challenge is the lack of interoperability between different blockchain networks, making it difficult for smart contracts to interact and execute transactions across multiple platforms. For instance, a smart contract designed for the Ethereum network may not be compatible with other blockchain systems like Hyperledger or Solana, limiting its usability in a multi-chain environment. Furthermore, smart contracts are vulnerable to various security threats, such as reentrancy attacks and logic errors, which can be exploited by malicious actors, leading to significant financial losses.

Another key issue is the reliance on on-chain data for decision-making, which limits the scope of smart contracts. Many real-world applications require external data inputs, such as stock prices, weather conditions, or delivery status, to execute transactions accurately. To address this, oracles have been introduced as intermediaries that provide off-chain data to smart contracts. However, oracles themselves can become points of failure or manipulation, reducing the overall trustworthiness of the system. Additionally, there is a need for mechanisms to resolve disputes automatically when discrepancies arise between the expected and actual outcomes of smart contract executions.

OBJECTIVE OF THE INVENTION

Some of the objects of the present disclosure, which at least one embodiment herein satisfies are listed herein below.

An objective of this invention is to develop a blockchain-driven smart contract system that addresses the limitations of existing solutions by providing a secure, scalable, and interoperable framework for executing digital agreements.

Another objective of the present invention is to enhance the efficiency of transactions by eliminating the need for intermediaries, thereby reducing operational costs and minimizing the time required for agreement fulfillment.

Another objective of the present invention is to introduce a multi-layer blockchain architecture that can handle complex transaction logic while maintaining high levels of scalability. By leveraging multiple layers, the system can distribute the processing load across various nodes, ensuring that the network can handle a large volume of transactions without significant delays or bottlenecks.

Another objective of the present invention is to improve interoperability between different blockchain networks by incorporating an interoperability module. This module enables seamless communication and execution of smart contracts across various blockchain platforms, allowing users to benefit from a unified and versatile transaction environment. This cross-chain compatibility is particularly beneficial for applications involving multiple stakeholders who may operate on different blockchain networks.

Another objective of the present invention is to enhance the security of smart contracts through the integration of advanced AI and machine learning algorithms. These algorithms will continuously monitor the transaction process for anomalies, detect potential security threats, and take proactive measures to prevent attacks.

Another objective of the present invention is to safeguard users' assets and data from common vulnerabilities, such as reentrancy attacks, logic errors, and unauthorized access.

Another objective of the present invention is to allow the integration of off-chain data into the decision-making process. This enables the smart contracts to access and verify real-world information, such as asset prices, shipment status, or user identity, before executing transactions. The use of verified external data enhances the accuracy and reliability of automated agreements.

Another objective of the present invention is to implement an automatic dispute resolution mechanism within the smart contract module. In the event of discrepancies or disagreements between the parties involved, the system can initiate a predefined arbitration process using verified off-chain data provided by oracles.
Another objective of the present invention is to minimize the need for manual intervention and streamline the resolution process, thereby increasing user trust in the system.

Another objective of the present invention is to provide a versatile and adaptable solution that can be applied across various industries.

SUMMARY OF THE INVENTION
This section is provided to introduce certain objects and aspects of the present disclosure in a simplified form that are further described below in the detailed description. This summary is not intended to identify the key features or the scope of the claimed subject matter.

In an aspect, the present invention introduces a comprehensive system for secure, automated transactions using blockchain-driven smart contracts. It features a multi-layer blockchain architecture that enhances scalability and transaction throughput. The system includes an interoperability module that allows seamless execution of smart contracts across various blockchain networks, ensuring broader applicability and compatibility in a decentralized environment.
The invention also integrates an advanced security layer utilizing AI/ML algorithms to detect and mitigate potential threats in real time, enhancing the reliability and safety of smart contract executions. Additionally, it employs oracles for accessing and verifying off-chain data, thus enabling more accurate decision-making and automatic dispute resolution. By addressing the limitations of current smart contract implementations, this invention provides a robust, scalable, and secure framework for executing digital agreements across multiple industries.
BRIEF DESCRIPTION OF DRAWINGS
The accompanying drawings, which are incorporated herein, and constitute a part of this invention, illustrate exemplary embodiments of the disclosed methods and systems in which like reference numerals refer to the same parts throughout the different drawings. Components in the drawings are not necessarily to scale, emphasis instead being placed upon clearly illustrating the principles of the present invention. Some drawings may indicate the components using block diagrams and may not represent the internal circuitry of each component. It will be appreciated by those skilled in the art that invention of such drawings includes the invention of electrical components, electronic components or circuitry commonly used to implement such components.

FIG. 1 illustrates an exemplary method for executing secure blockchain-based transactions, in accordance with an embodiment of the present disclosure.

DETAILED DESCRIPTION OF THE INVENTION

In the following description, for the purposes of explanation, various specific details are set forth in order to provide a thorough understanding of embodiments of the present disclosure. It will be apparent, however, that embodiments of the present disclosure may be practiced without these specific details. Several features described hereafter can each be used independently of one another or with any combination of other features. An individual feature may not address all of the problems discussed above or might address only some of the problems discussed above. Some of the problems discussed above might not be fully addressed by any of the features described herein.

The ensuing description provides exemplary embodiments only and is not intended to limit the scope, applicability, or configuration of the disclosure. Rather, the ensuing description of the exemplary embodiments will provide those skilled in the art with an enabling description for implementing an exemplary embodiment. It should be understood that various changes may be made in the function and arrangement of elements without departing from the spirit and scope of the disclosure as set forth.

Specific details are given in the following description to provide a thorough understanding of the embodiments. However, it will be understood by one of ordinary skill in the art that the embodiments may be practiced without these specific details. For example, circuits, systems, networks, processes, and other components may be shown as components in block diagram form in order not to obscure the embodiments in unnecessary detail. In other instances, well-known circuits, processes, algorithms, structures, and techniques may be shown without unnecessary detail to avoid obscuring the embodiments.

Also, it is noted that individual embodiments may be described as a process that is depicted as a flowchart, a flow diagram, a data flow diagram, a structure diagram, or a block diagram. Although a flowchart may describe the operations as a sequential process, many of the operations can be performed in parallel or concurrently. In addition, the order of the operations may be re-arranged. A process is terminated when its operations are completed but could have additional steps not included in a figure. A process may correspond to a method, a function, a procedure, a subroutine, a subprogram, etc. When a process corresponds to a function, its termination can correspond to a return of the function to the calling function or the main function.

The word "exemplary" and/or "demonstrative" is used herein to mean serving as an example, instance, or illustration. For the avoidance of doubt, the subject matter disclosed herein is not limited by such examples. In addition, any aspect or design described herein as "exemplary" and/or "demonstrative" is not necessarily to be construed as preferred or advantageous over other aspects or designs, nor is it meant to preclude equivalent exemplary structures and techniques known to those of ordinary skill in the art. Furthermore, to the extent that the terms "includes," "has," "contains," and other similar words are used in either the detailed description or the claims, such terms are intended to be inclusive in a manner similar to the term "comprising" as an open transition word without precluding any additional or other elements.

Reference throughout this specification to "one embodiment" or "an embodiment" or "an instance" or "one instance" means that a particular feature, structure, or characteristic described in connection with the embodiment is included in at least one embodiment of the present disclosure. Thus, the appearances of the phrases "in one embodiment" or "in an embodiment" in various places throughout this specification are not necessarily all referring to the same embodiment. Furthermore, the particular features, structures, or characteristics may be combined in any suitable manner in one or more embodiments.

The terminology used herein is for the purpose of describing particular embodiments only and is not intended to be limiting of the disclosure. As used herein, the singular forms "a", "an", and "the" are intended to include the plural forms as well, unless the context indicates otherwise. It will be further understood that the terms "comprises" and/or "comprising," when used in this specification, specify the presence of stated features, integers, steps, operations, elements, and/or components, but do not preclude the presence or addition of one or more other features, integers, steps, operations, elements, components, and/or groups thereof. As used herein, the term "and/or" includes any and all combinations of one or more of the associated listed items.

The present invention relates to a blockchain-driven system for executing secure transactions using enhanced smart contracts. This system leverages a decentralized architecture, interoperability modules, and advanced security mechanisms to automate the execution of agreements across various domains. Below are three detailed embodiments of the invention:

In first embodiment, the invention introduces a multi-layer blockchain architecture to address the scalability challenges commonly associated with traditional blockchain networks. The architecture consists of three layers:

The base layer functions as the primary decentralized ledger that records all transactions and ensures their immutability. It is designed to maintain a high level of security using consensus algorithms such as Proof of Stake (PoS) or Delegated Proof of Stake (DPoS). The core blockchain network is responsible for validating transactions and executing basic smart contract operations. This layer also maintains a record of the hash of each transaction to ensure its integrity and authenticity.

The processing layer acts as a middle tier that handles the execution of smart contracts. This layer is specifically designed to process complex business logic and computational tasks without overloading the base layer. By offloading resource-intensive operations to this layer, the system can achieve greater efficiency and reduce latency. The processing layer is equipped with a virtual machine (e.g., Ethereum Virtual Machine or WebAssembly) that executes the code of the smart contracts. It also includes a mechanism for gas optimization to lower transaction fees.

The topmost layer is the application layer, which provides user interfaces and APIs for interacting with the smart contracts. This layer facilitates integration with third-party applications, enabling seamless access to the smart contract functionalities. Users can initiate transactions, create new contracts, and monitor the status of ongoing agreements through this interface. Additionally, the application layer offers developer tools for building decentralized applications (DApps) that leverage the underlying blockchain infrastructure.

This multi-layer approach significantly enhances the scalability and performance of the system, enabling it to handle a large volume of transactions without compromising on speed or security.

The second embodiment focuses on the interoperability module, which enables seamless communication and execution of smart contracts across different blockchain networks. This module addresses the issue of limited interaction between various blockchain platforms by facilitating cross-chain transactions.

The interoperability module uses a cross-chain communication protocol based on atomic swaps and hashed time-locked contracts (HTLCs). This protocol allows smart contracts on one blockchain (e.g., Ethereum) to interact with contracts on another blockchain (e.g., Hyperledger or Binance Smart Chain). The atomic swap mechanism ensures that the transaction is either completed on both chains or not executed at all, preventing partial or failed transfers.

To further enhance interoperability, the system incorporates a blockchain bridge, which acts as a trusted intermediary for verifying transactions across different networks. The bridge utilizes a network of relayers who monitor transactions on both chains and submit proofs to verify their execution. Once the conditions of the smart contract are met on the source chain, the bridge triggers the execution of the corresponding contract on the target chain, thus completing the cross-chain transaction.

The interoperability module includes standardized smart contract interfaces to ensure compatibility across various blockchain platforms. These interfaces define a common set of functions and data structures that can be implemented by smart contracts on different networks, allowing them to interact seamlessly. The standardized approach reduces the need for custom coding and facilitates the deployment of cross-chain applications.

This embodiment provides a robust solution for executing smart contracts across multiple blockchain networks, enabling a wide range of use cases in decentralized finance (DeFi), supply chain management, and inter-organizational agreements.

The third embodiment of the invention introduces an enhanced security module that leverages artificial intelligence (AI) and machine learning (ML) algorithms to monitor and protect the smart contract execution process. This module aims to address the vulnerabilities present in existing smart contract implementations, such as reentrancy attacks, logic errors, and unauthorized access.

The security module employs a set of ML models trained on historical blockchain transaction data to identify abnormal patterns that may indicate fraudulent activities or malicious attacks. These models use techniques such as clustering, outlier detection, and predictive analytics to monitor transaction flows in real-time. For instance, if a series of transactions exhibit unusual patterns, such as repetitive small-value transfers or irregular call sequences, the module can flag these as potential security threats and halt the execution of the smart contract.

To mitigate the risk of reentrancy attacks, the security module implements a reentrancy guard mechanism that tracks the state of each smart contract call. Before executing any function, the guard checks whether the contract is already in an execution state, preventing recursive calls that could drain funds from the contract. This approach helps safeguard the contract against one of the most common types of attacks in decentralized applications.

The system also incorporates role-based access control to restrict access to sensitive functions within the smart contract. By defining specific roles (e.g., owner, admin, user) and assigning permissions accordingly, the module ensures that only authorized entities can execute certain actions, such as modifying contract parameters or initiating high-value transactions. This access control mechanism adds an extra layer of security, reducing the risk of unauthorized tampering.

The security module includes an audit and logging mechanism that records every interaction with the smart contract, including transaction details, caller information, and execution timestamps. This comprehensive logging system enables post-execution analysis and helps in identifying the root cause of any security incidents. The logs are stored on the blockchain to ensure immutability and provide a transparent record of all activities.

This embodiment significantly enhances the security of the blockchain-driven smart contract system, making it resilient to various attack vectors and increasing user confidence in the platform.

While considerable emphasis has been placed herein on the preferred embodiments, it will be appreciated that many embodiments can be made and that many changes can be made in the preferred embodiments without departing from the principles of the invention. These and other changes in the preferred embodiments of the invention will be apparent to those skilled in the art from the disclosure herein, whereby it is to be distinctly understood that the foregoing descriptive matter to be implemented merely as illustrative of the invention and not as limitation.
, Claims:1. A system for executing secure transactions using blockchain-driven smart contracts, comprising:
a decentralized blockchain ledger for recording and validating transactions,
a smart contract module configured to automate the execution of transaction agreements based on predefined rules,
an interoperability module designed to enable seamless interaction and execution of smart contracts across multiple blockchain networks,
a security module utilizing AI/ML algorithms to detect anomalies in real-time and mitigate malicious attacks,
an oracle interface to integrate off-chain data for smart contract validation.

2. The system of Claim 1, wherein the smart contract module includes a dispute resolution mechanism that automatically triggers an arbitration process using verified off-chain data provided by oracles.

3. The system of Claim 1, wherein the interoperability module supports multiple blockchain protocols, including but not limited to Ethereum, Hyperledger, and Polkadot, enabling cross-chain smart contract execution.

4. The system of Claim 1, wherein the security module monitors transactions in real-time using machine learning models to detect patterns indicative of fraud, unauthorized access, or potential reentrancy attacks.

5. A method for executing secure blockchain-based transactions, comprising:
receiving a transaction request from a user and initiating a smart contract based on predefined rules,
validating the transaction using data from one or more oracles,
executing the smart contract upon meeting all required conditions,
recording the validated transaction on the blockchain ledger,
triggering an automatic dispute resolution process if discrepancies are detected during transaction validation.

6. The method of Claim 5, wherein the validation step includes cross-verification of off-chain data through oracles to ensure the authenticity of the information before smart contract execution.

7. The method of Claim 5, further comprising a step of utilizing an AI/ML-based security module to continuously monitor the transaction for any anomalies and take preventive actions if any suspicious activity is detected.

Documents