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

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 public smart contract, the synchronization process comprising:
• 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 public blockchain network corresponding to the decreasing account to a vault account on the public blockchain network;
• determining if a total token supply on the private blockchain network has increased since an immediate previous synchronization process;
• if the total token supply on the private blockchain network has increased, creating new tokens and sending them to the vault account;
• if the total token supply on the 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 public blockchain network corresponding to the increasing account;
• 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;
• wherein the first private blockchain network has a parameter difference from the public blockchain network selected from the group consisting of block generation time, number of network nodes, number of connected peers, minimum network bandwidth requirement, minimum mining processing power requirement, minimum mining disk input/output requirement, minimum mining memory requirement, mining bootstrap time requirement, transaction throughput, transaction latency, stale block rate, and block propagation delay;
• and
• wherein the first private smart contract is a multi-signature smart contract comprising a plurality of signatures, each signature being associated with a user.

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;
• 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;
• and
• wherein the processor is operable to perform 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;
• wherein the first private blockchain network has a parameter difference from the second blockchain network selected from the group consisting of block generation time, number of network nodes, number of connected peers, minimum network bandwidth requirement, minimum mining processing power requirement, minimum mining disk input/output requirement, minimum mining memory requirement, mining bootstrap time requirement, transaction throughput, transaction latency, stale block rate, and block propagation delay.