INDIAN INSTITUTE OF TECHNOLOGY BOMBAY (20240378600). METHODS AND SYSTEMS FOR FORMATION AND TERMINATION OF PAYMENT CHANNEL BETWEEN DISTINCT LEDGERS simplified abstract
Contents
METHODS AND SYSTEMS FOR FORMATION AND TERMINATION OF PAYMENT CHANNEL BETWEEN DISTINCT LEDGERS
Organization Name
INDIAN INSTITUTE OF TECHNOLOGY BOMBAY
Inventor(s)
Siddharth Nimeshbhai Maurya of Mumbai (IN)
Vinay Joseph Ribeiro of Mumbai (IN)
Umesh Rama Rao Bellur of Mumbai (IN)
METHODS AND SYSTEMS FOR FORMATION AND TERMINATION OF PAYMENT CHANNEL BETWEEN DISTINCT LEDGERS - A simplified explanation of the abstract
This abstract first appeared for US patent application 20240378600 titled 'METHODS AND SYSTEMS FOR FORMATION AND TERMINATION OF PAYMENT CHANNEL BETWEEN DISTINCT LEDGERS
Simplified Explanation: Embodiments of the invention describe a mechanism for a cross-chain payment channel protocol that enables fund transfers between accounts on different blockchains off-chain, reducing the number of on-chain transactions.
- Enables fund transfers between accounts on different blockchains off-chain
- Reduces the number of actual cross-shard transactions recorded at the layer 1 blockchain
- Builds a payment channel between accounts from two shards
- Lowers latency of cross-shard transactions compared to existing sharding schemes
- Breaks down funding and withdrawal transactions into multiple transactions
Potential Applications: 1. Facilitating cross-chain transactions between different blockchain networks 2. Enhancing scalability and efficiency of blockchain networks 3. Enabling faster and more cost-effective fund transfers between accounts
Problems Solved: 1. High latency and cost associated with cross-chain transactions 2. Limited scalability of existing blockchain networks 3. Inefficiencies in fund transfers between accounts on different blockchains
Benefits: 1. Reduced latency and cost of cross-chain transactions 2. Improved scalability and efficiency of blockchain networks 3. Enhanced security and privacy of fund transfers between accounts
Commercial Applications: The technology can be utilized in the finance industry for cross-border payments, in supply chain management for transparent transactions, and in decentralized applications for seamless fund transfers.
Questions about Cross-Chain Payment Channel Protocol: 1. How does the cross-chain payment channel protocol improve the efficiency of fund transfers between accounts on different blockchains? 2. What are the key advantages of using a payment channel between accounts from two shards in a sharding system?
Original Abstract Submitted
embodiments herein disclose a formation and termination mechanism for a general-purpose cross-chain payment channel (ccpc) protocol, wherein the ccpc protocol can execute fund transfers between two accounts residing in different blockchains off-chain by building a payment channel between the two accounts and breaking down the funding and withdrawal transactions into multiple transactions. embodiments herein disclose a formation and termination mechanism for a general-purpose cross-shard payment channel (cspc) protocol in a sharding system to perform cross-shard transactions, wherein a payment channel is built between accounts from two shards, which would dramatically reduce the number of actual cross-shard transactions recorded at the layer 1 blockchain, resulting in lower latency of cross-shard transactions, as compared to existing sharding schemes.
