Dongshi Mountain Company Patent Application: A Secure and Efficient Method for Implementing a Fiat-to-Blockchain Oracle

Dongshi Mountain Company Patent Application: A Secure and Efficient Method for Implementing a Fiat-to-Blockchain OracleOn December 2nd, 2024, the State Intellectual Property Office of China revealed that Dongshi Mountain (Shanghai) Digital Technology Co., Ltd

Dongshi Mountain Company Patent Application: A Secure and Efficient Method for Implementing a Fiat-to-Blockchain Oracle

On December 2nd, 2024, the State Intellectual Property Office of China revealed that Dongshi Mountain (Shanghai) Digital Technology Co., Ltd. submitted a patent application titled "A Method for Implementing an Oracle Mapping Fiat Currency to Blockchain," with publication number CN119048080A and an application date of November 2024. This patent application aims to solve the problem of interoperability between fiat currency and blockchain, proposing a secure, transparent, efficient, and low-cost on-chain payment system. The core of this solution lies in its innovative oracle implementation method, which cleverly combines blockchain technology, smart contracts, and a validator mechanism to achieve secure and reliable data mapping between fiat currency and blockchain.

The patent abstract details the specific steps of this oracle implementation method, primarily comprising three core processes: the validator application process, the deposit process, and the withdrawal process. These three processes are interconnected, forming a complete on-chain payment closed loop that ensures the security and reliability of the entire system.

Step 1: Validator Application Process (S1)

Before system operation, a reliable validator system needs to be established to ensure the authenticity and integrity of system data. The validator application process (S1), as the cornerstone of the entire system, rigorously screens validators participating in the on-chain payment system. Applicants must submit applications to the on-chain payment issuance contract. The system automatically reviews applications, checking for any history of misconduct. Only applicants who pass the system review are approved as validators, joining the system's validator network and participating in subsequent transaction verification. This process effectively enhances system security and avoids potential risks. The strict validator screening mechanism ensures that only trustworthy participants can participate in system operation, reducing the likelihood of malicious attacks or manipulation.

Step 2: Deposit Process (S2)

The user deposit process (S2) is a crucial step in converting fiat currency into on-chain assets. Users first need to make an offline fiat transfer and then initiate a deposit declaration in the on-chain payment issuance contract. The system verifies and confirms the user's deposit declaration. Only after verification is complete does the entire deposit process conclude. This design ensures the authenticity and validity of user deposits, preventing fraudulent deposits. By combining offline transfers and on-chain declarations, the system achieves double verification, maximizing fund security.

To further enhance security, the system may also employ techniques such as timestamps and hash value verification to ensure the integrity and immutability of deposit records. The application of these technical measures makes the entire deposit process more secure and reliable, effectively preventing data tampering or forgery.

Step 3: Withdrawal Process (S3)

The withdrawal process (S3) is the key step in converting on-chain assets into fiat currency. Users initiate a withdrawal request through the on-chain payment issuance contract, and the banking system queries the transaction status on the blockchain using the provided order number. The system verifies the accuracy of the information by comparing hash values, finally disbursing cash to the user's designated account. This double verification mechanism further ensures the security of the withdrawal process, preventing theft or misdirection of funds.

The design of the entire withdrawal process fully considers user experience and security. Users can complete withdrawal requests with simple operations, while the banking system verifies transactions using blockchain technology, ensuring transaction transparency and traceability. This design not only simplifies the withdrawal process but also improves transaction efficiency, providing users with a more convenient payment experience.

System Advantages: Secure, Transparent, Efficient, and Low-Cost

The core advantage of Dongshi Mountain Company's patent application lies in combining blockchain technology, smart contracts, and validator services to build a secure, transparent, efficient, and low-cost on-chain payment system. All transaction records are permanently recorded on the blockchain, ensuring data transparency and traceability, making all transactions clearly visible, thereby increasing system trust and reliability. This is significant for boosting user confidence in digital payments and promoting the development of the digital economy.

Efficiency is reflected in the automation and simplification of the entire payment process. Automated execution via smart contracts reduces manual intervention, improving transaction efficiency and lowering transaction costs. Low cost is achieved by reducing intermediary links and lowering transaction fees, saving users money. The application of this patented technology is expected to significantly reduce the cost of converting between fiat currency and digital currency in the future, promoting the healthy development of the digital economy.

In summary, Dongshi Mountain (Shanghai) Digital Technology Co., Ltd.'s patent application for "A Method for Implementing an Oracle Mapping Fiat Currency to Blockchain" provides a new approach to solving the problem of fiat currency and blockchain interoperability. Its secure, transparent, efficient, and low-cost characteristics give it broad application prospects, promising to promote the further application and development of blockchain technology in the financial field. The successful application of this technology will contribute to building a more secure and reliable digital economic system.