A Dynamic Tree Structure for Hierarchical On-Chain Asset Management

TL;DR

The paper addresses the need for scalable, mutable, on-chain management of hierarchical assets in the circular economy. It introduces Sarv, a non-monolithic, tree-based data structure that represents products and their sub-components as a forest of token trees, with bond-level operations (break/make) and a two-layer authorization scheme that combines ASA ownership with hierarchical control. Key contributions include the formalization of bond management, delegation and claim-back mechanics, and an API-centric integration model that supports off-chain processing and monetization. The approach offers a practical framework for tracking products through multiple life cycles with secure, granular control, enabling real-world applications in asset management, refurbishment, and circular supply chains. Potential future work includes cross-platform integration, performance optimization, and standardized protocols for broader adoption.

Abstract

In this paper, we introduce the Sarv, a novel non-monolithic blockchain-based data structure designed to represent hierarchical relationships between digitally representable components. Sarv serves as an underlying infrastructure for a wide range of applications requiring hierarchical data management, such as supply chain tracking, asset management, and circular economy implementations. Our approach leverages a tree-based data structure to accurately reflect products and their sub-components, enabling functionalities such as modification, disassembly, borrowing, and refurbishment, mirroring real-world operations. The hierarchy within Sarv is embedded in the on-chain data structure through a smart contract-based design, utilizing Algorand Standard Assets (ASAs). The uniqueness of Sarv lies in its compact and non-monolithic architecture, its mutability, and a two-layer action authorization scheme that enhances security and delegation of asset management. We demonstrate that Sarv addresses real-world requirements by providing a scalable, mutable, and secure solution for managing hierarchical data on the blockchain.

Figures (6)

• Figure 1: Simple forest of token trees denoting different products, their product parts, and the hierarchy of the physical product.
• Figure 2: Breaking the bonds between one product part K and its original product token (with root 3) and build a new bond to another token tree (with root 2) under sub-product F.
• Figure 3: High-level view of each node of the tree in the system.
• Figure 4: Layered authorization system
• Figure 5: Break bond action (breaking mutual bond: parent to child and vice versa)

Theorems & Definitions (2)

• Definition 1
• Definition 2