Circle Chain: A Peer-to-Peer Electronic Asset Management System

Abstract

Circle Chain is a cloud-based distributed peer-to-peer system for managing virtual assets including ownership and identity certificates. Unlike traditional blockchain systems that store data locally, Circle Chain leverages cloud storage to provide a more extensive and accessible blockchain and wallet service. The system allows for secure transfer of ownership and identity certificates using Circle Coin as the medium of exchange.

Figure 1: Circle Chain System Architecture Overview, showing the relationships between cloud storage, node network, and user interface

1. Introduction

The emergence of blockchain technology has revolutionized how we think about digital ownership and identity. Circle Chain builds upon these foundations to create a comprehensive system for managing virtual assets in a secure, distributed manner. The system uses Circle Coin as its native token to facilitate the exchange of ownership and identity certificates.

2. Transactions

2.1 Currency Transaction

Circle Chain's currency transaction system is designed to facilitate the transfer of Circle Coins between addresses. The system implements the following features:

Figure 2.1: Currency Transaction Process Diagram, showing the complete transaction flow from creation to confirmation

• Transaction Structure

  • Input: Previous transaction outputs (UTXOs)

  • Output: Recipient address and amount

  • Fee: Small amount of Circle Coins for network processing

  • Timestamp: Transaction creation time

  • Signature: Digital signature of the sender

• Transaction Types

  1. Standard Transfer: Direct transfer of Circle Coins between addresses

  2. Multi-signature: Transactions requiring multiple signatures

• Transaction Process

  1. Creation: Sender creates transaction with recipient details

  2. Signing: Transaction is signed with sender's private key

  3. Broadcasting: Transaction is broadcast to the network

  4. Validation: Network nodes validate transaction

  5. Confirmation: Transaction is included in a block

• Security Features

  • Double SHA-256 hashing for transaction IDs

  • P2PKH (Pay to Public Key Hash) for address verification

  • Input/output validation to prevent double-spending

  • Minimum fee requirement to prevent spam

• Transaction Fees

  • Base fee: 10 li per assets transaction such as Ownership and Identity Certificates.

  • Size-based fee: Additional fee based on transaction size, 0 at the present.

  • Priority fee: Optional fee for faster processing, 0 at the present.

2.2 Ownership Certificates

Ownership certificates represent the right to possess virtual assets within the blockchain. These certificates can be transferred between addresses with a nominal fee of 10 li (Circle Chain's smallest unit). Each transfer generates a new unique ownership identifier (UID) for the recipient.

Figure 2: Ownership Certificate Transfer Process Diagram, showing the complete process and validation mechanism

2.3 Identity Certificates

Identity certificates serve as proof of identity within the blockchain ecosystem. Like ownership certificates, they can be transferred between addresses with a fee of 10 li. Each transfer creates a new unique identity identifier.

Figure 3: Identity Certificate Management System Architecture, showing the components of identity verification and management

2.4 Transfer Mechanism

The transfer system allows for flexible movement of both ownership and identity certificates:

• Transfers can occur between any two different addresses

• Users can transfer between their own addresses

• Each transfer requires a small fee in Circle Coin

• New UIDs are generated for each transfer

3. Proof-of-Work

Circle Chain implements a proof-of-work system similar to Bitcoin's, with some key differences:

• Multi-threaded mining support for improved performance

• Cloud-based storage of blockchain data

• Configurable mining difficulty

• Support for both single-thread and multi-thread mining operations

Figure 4: Circle Chain Mining Architecture, showing the implementation of single-thread and multi-thread mining

4. Network Architecture

4.1 Node Types

Circle Chain supports two primary node types:

1. Clouder Nodes: Handle cloud storage and API services

2. Miner Nodes: Participate in block creation and validation

Figure 5: Node Types Diagram, showing the functions and interactions of different node types

4.2 P2P Network

The network operates on a peer-to-peer basis with:

• Automatic node discovery

• Heartbeat mechanism for node synchronization

• Block and transaction broadcasting

• Fork resolution through block tails

Figure 6: P2P Network Architecture Diagram, showing node communication and data synchronization mechanisms

5. Security

5.1 Cryptographic Features

• Public/private key pairs for wallet addresses

• P2PKH (Pay to Public Key Hash) protocol for transaction locking

• RSA encryption for asset data

• Double SHA-256 hashing for block and transaction IDs

Figure 7: Security Architecture Diagram, showing the implementation of encryption and validation mechanisms

5.2 Wallet Security

Circle Chain offers two wallet types:

1. Cloud Wallet: Stores private keys in secure cloud servers

2. Local Wallet: Stores private keys locally for maximum security

Figure 8: Wallet Architecture Diagram, showing the implementation of cloud and local wallets

6. Asset Management

6.1 Circle Coin

Circle Coin serves as the native token for:

• Paying transaction fees

• Exchanging ownership certificates

• Transferring identity certificates

• General value transfer

Figure 9: Circle Coin Ecosystem Diagram, showing the token's application scenarios in the system

6.2 Virtual Assets

The system supports two main types of virtual assets:

1. Ownership Certificates

   • Represent rights to virtual assets

   • Transferable with fees

   • Unique UID generation

2. Identity Certificates

   • Represent blockchain identity

   • Transferable with fees

   • Unique UID generation

Figure 10: Asset Management Process Diagram, showing the creation, transfer, and management of virtual assets

7. Implementation

7.1 Cloud Storage

Circle Chain's cloud storage system provides:

• Distributed data storage

• High availability

• Automatic backup

• Scalable architecture

Figure 11: Cloud Storage Architecture Diagram, showing data storage and backup mechanisms

7.2 API Layer

The system exposes several API categories:

• User APIs for account management

• Wallet APIs for asset management

• Block APIs for blockchain interaction

• Clouder APIs for cloud services

• Miner APIs for mining operations

Figure 12: API Architecture Diagram, showing the functions and interactions of various API categories

8. Conclusion

Circle Chain represents a significant advancement in blockchain technology by combining the security of traditional blockchains with the accessibility and scalability of cloud computing. The system's focus on virtual asset management, particularly ownership and identity certificates, makes it uniquely suited for modern digital asset management needs.

References

[1] Nakamoto, S. (2008). Bitcoin: A Peer-to-Peer Electronic Cash System

[2] Circle Chain Technical Documentation

[3] Blockchain Technology: Principles and Applications