Part 2: The Value of Blockchain Application

 Hierarchical storage of Blockchain                  

The Internet data from the users can be linked into a series of evidence chain, and all these should be stored and anchored on the Blockchain to solidify the data evidence. However, the data structure that is considered the most secure is basically in order for the Bitcoin transfer transaction, so if you want to store the custom data, the two ways are as follows:

• Store the data in the coinbase transaction. It can hold any data within 100 bytes. However, this is just for the Blockchain creator to write data into the coinbase, that means only through consuming the same amount of calculating to obtain the storage opportunity.
• Hashing and encoding the data for the Bitcoin output, then set the output script as OP_RETURN and broadcast the transaction on the Bitcoin network. This method also applies to such people who is not the Blockchain creator to store the data. However, the limited storage capacity may often cause the network congestion.

In order to optimize the defects of data storage on the Bitcoin Blockchain, Baoquan construct the hierarchical data storage system on the basis of the scheme(2).

Merkle tree calculation

Each user store the hash value on their own user chain, and the system will structure the hash value into a Merkle tree for every minite, then calculate the root hash of the Merkle tree to store and anchor on the Blockchain. This root hash calculation step can be re-executed for every 10 minites, then stored on the Blockchain. (We called this process “anchoring”)

 Hierarchical storage of Blockchain  

All these data on the user chain and anchor chain are stored in the network nodes of Baoquan, which can compose the point-to-point network. The more nodes means the higher security. For the users without the node deployment ability, they should trust Baoquan will not temper the data, meanwhile, the possibility for data tempering will be reduced with other users’ node deployment.

Users should pay no attention to the data on the Blockchain due to the hierarchical data storage system, which can greatly reduce the transmission load and users’ storage pressure.

Reality of judicial recognition

Whether for the blockchain technology or the overall information technology, all technology must meet the current social needs and legal framework. Although the Blockchian believers have declared that “the code is the law”, but the DAO was attacked by hackers, effectively breaking the declaration.

As a result, Baoquan has made the data attestation access to the traditional judicial channel by Blockchain as a mission of the data creation that is corresponding to the reality.