Method and system for tuning blockchain scalability for fast and low-cost payment and transaction processing

1. A method of synchronizing transactions between blockchains comprising:

receiving a first plurality of transactions on a first private blockchain network;

recording the first plurality of transactions to a first private block on the first private blockchain network;

receiving a second plurality of transactions on the first private blockchain network;

recording the second plurality of transactions to a second private block on the first private blockchain network;

generating a first merged block comprising the first private block and the second private block;

recording the first merged block to a single block on a second blockchain network;

recording each of the first private block, the second private block, and the first merged block to a smart contract linked to the first private blockchain network, defining a first private smart contract; and

performing a synchronization process between the first private smart contract and a second smart contract linked to the second blockchain network, defining a second smart contract.

2. The method of claim 1 wherein:

the second blockchain network is a public blockchain network; and

the second smart contract is a public smart contract.

3. The method of claim 1 further comprising performing a checkpointing process between the first private smart contract and the second smart contract comprising recording the state of the first private smart contract to the second smart contract, defining a checkpointed first private smart contract.

4. The method of claim 1 wherein:

the first plurality of transactions comprises a plurality of transactions between two users, each transaction between the two users comprising a transfer of tokens from one user to the other, each user having an account on each of the first private blockchain network and the second blockchain network; and

the first merged block comprises a combined transaction comprising a net token value equaling the net of transfers of tokens between the two users in the plurality of transactions between the two users.

5. The method of claim 4 wherein the first private smart contract is a multi-signature smart contract comprising a plurality of signatures, each signature being associated with a user.

6. The method of claim 5 wherein an identity of a user having a signature comprised by the first private smart contract is validated by an identity verification and certification procedure.

7. The method of claim 6 wherein the identity verification and certification procedure comprises retrieving identity verifying information from an identity verification blockchain network.

8. The method of claim 5 wherein the first private smart contract comprises at least three signatures, each signature being associated with a separate user.

9. The method of claim 1 further comprising:

receiving a third plurality of transactions on a second private blockchain network;

recording the third plurality of transactions to a third private block on the second private blockchain network;

receiving a fourth plurality of transactions on the second private blockchain network;

recording the fourth plurality of transactions to a fourth private block on the second private blockchain network;

generating a second merged block comprising the third private block and the fourth private block;

recording the second merged block to a single block on the second blockchain network;

recording each of the third private block, the fourth private block, and the second merged block to a smart contract linked to the second private blockchain network, defining a second private smart contract; and

performing a synchronization process between the second private smart contract and the second smart contract.

10. The method of claim 9 further comprising performing a checkpointing process between the second private smart contract and the second smart contract comprising recording the state of the second private smart contract to the second smart contract, defining a checkpointed second private smart contract.

11. The method of claim 1 further comprising:

receiving a third plurality of transactions on a second private blockchain network;

recording the third plurality of transactions to a third private block on the second private blockchain network;

receiving a fourth plurality of transactions on the second private blockchain network;

recording the fourth plurality of transactions to a fourth private block on the second private blockchain network;

generating a second merged block comprising the third private block and the fourth private block;

recording the second merged block to a single block on the second blockchain network;

recording each of the third private block, the fourth private block, and the second merged block to a smart contract linked to the second private blockchain network, defining a second private smart contract; and

performing a synchronization process between the second private smart contract and a second smart contract linked to the second blockchain network, defining a second smart contract.

12. The method of claim 11 further comprising performing a checkpointing process between the second private smart contract and the second smart contract comprising recording the state of the second private smart contract to the second smart contract, defining a checkpointed second private smart contract.

13. The method of claim 1 wherein the synchronization process comprises:

determining an account on the first private blockchain network that has a token balance decrease, defining a decreasing account;

moving a value of the token balance decrease from an account on the second blockchain network corresponding to the decreasing account to a vault account on the second blockchain network;

determining if a total token supply on the first private blockchain network has increased since an immediate previous synchronization process;

if the total token supply on the first private blockchain network has increased, creating new tokens and sending them to the vault account;

if the total token supply on the first private blockchain network has not increased, burning an amount of tokens from the vault account equal to the token balance decrease;

determining an account on the first private blockchain network that has a token balance increase, defining an increasing account; and

moving a value of the token balance increase from the vault account to an account on the second blockchain network corresponding to the increasing account.

14. The method of claim 1 wherein the second blockchain network is a second private blockchain network and the second smart contract is a second private smart contract, the method further comprising

receiving a third plurality of transactions on the first private blockchain network;

recording the third plurality of transactions to a third private block on the first private blockchain network;

receiving a fourth plurality of transactions on the first private blockchain network;

recording the fourth plurality of transactions to a fourth private block on the first private blockchain network;

generating a second merged block comprising the third private block and the fourth private block;

recording the second merged block to the second private blockchain network; and

generating a third merged block comprising each of the first and second merged blocks; and

recording the third merged block to a third blockchain network.

15. The method of claim 14 wherein:

a block generation time of the first private blockchain network is within a range from 1 millisecond (ms) to 10 ms;

a block generation time of the second private blockchain network is within a range from 1 second to 10 seconds; and

a block generation time of the third blockchain network is within a range from 1 minute to 10 minutes.

16. The method of claim 14 further comprising:

recording the third and fourth private blocks and the second merged block to the first private blockchain smart contract;

performing a synchronization process between the first private smart contract and the second smart contract;

recording each of the first, second, and third merged blocks to a third smart contract linked to the second private blockchain network, defining a third private smart contract; and

performing a synchronization process between the third private smart contract and a fourth smart contract linked to the third blockchain network, defining a fourth smart contract.

17. The method of claim 14 wherein the third blockchain network is a public blockchain network.

18. The method of claim 1 further comprising:

applying a filter to the first plurality of transactions;

determining a subset of transactions of the first plurality of transactions; and

excluding the subset of transactions from being recorded to the first merged block.

19. A method of synchronizing transactions between private and public blockchains comprising:

receiving a first plurality of transactions on a first private blockchain network;

recording the first plurality of transactions to a first private block on the first private blockchain network;

receiving a second plurality of transactions on the first private blockchain network;

recording the second plurality of transactions to a second private block on the first private blockchain network;

generating a first merged block comprising the first private block and the second private block;

recording the first merged block to a single block on a public blockchain network;

recording each of the first private block, the second private block, and the first merged block to a smart contract linked to the first private blockchain network, defining a first private smart contract;

performing a synchronization process between the first private smart contract and a smart contract linked to the public blockchain network, defining a second smart contract; and

performing a checkpointing process between the first private smart contract and the second smart contract comprising recording the state of the first private smart contract to the public smart contract, defining a checkpointed first private smart contract.

20. A system for synchronizing transactions between blockchains comprising:

a processor;

a data store positioned in communication with the processor; and

a network communication device positioned in communication with each of the processor, the data store, and a network;

wherein the network communication device is operable to receive a first plurality of transactions on a first private blockchain network;

wherein the processor is operable to record the first plurality of transactions to a first private block on the first private blockchain network;

wherein the network communication device is operable to receive a second plurality of transactions on the first private blockchain network;

wherein the processor is operable to record the second plurality of transactions to a second private block on the first private blockchain network;

wherein the processor is operable to generate a first merged block comprising the first private block and the second private block;

wherein the processor is operable to record the first merged block to a single block on a second blockchain network;

wherein the processor is operable to record each of the first private block, the second private block, and the first merged block to a smart contract linked to the first private blockchain network, defining a first private smart contract; and

wherein the processor is operable to perform a synchronization process between the first private smart contract and a second smart contract linked to the second blockchain network, defining a second smart contract.