Definition Of Cross-Chain Communication

On this webpage, We will be discussing the Definition Of Cross-Chain Communication. Cross-chain communication between blockchains allows various protocols to verify data and transactions without a centralized third-party service. General Purpose Atomic Cross-chain Transactions. Pinning Procedure

Understanding Cross-Chain Communication

The decentralized functionality of the technology assurance is necessary for cross-chain communication between different blockchains. Exchange of data can be difficult data between chains that have various structures without auxiliary software or third-party interruption. Therefore, increasing the popularity of cross-chain communication methods. Presently, cross-chain communication has various processes for blockchains to exchange information.

Blockchain developers prefer the Atomic swap tool for cross-chain communication as it is the most popular. An atomic swap permit wallet-to-wallet token transfer along with a committed smart contract in contrast to the trade of obtaining cryptocurrency. This process permits straight trade of cryptocurrency and removes the basis of a third-party exchange. Blockchain cross-chain communication has one more tool known as Stateless Simplified Payment Verification (SVP).

This tool doesn’t reserve all information concerning a transaction but permits blockchains to evaluate the legitimacy of transactions. The exchange of a large amount of data is not necessary for the communication of blockchain. Merged consensus connections, relays, and chain federations are other cross-chain communication tools. Monetary involvement is of different levels for these communication tools. The underlying characteristics of the two blockchains involved are important to determine the best approach for cross-chain communication.

Definition Of Cross-Chain Communication

The feature mostly missing in recent blockchain systems is interoperability and its relevance to blockchain developers. While blockchain bridges make certain interoperability, cross-chain communication tools develop an additional functional ecosystem. The hindrance to cross-chain communication performance to its best capacity is due to the absence of blockchain communication between different systems. Blockchain developers can implement has further development and addition to this process. Cryptocurrency users will immediately be at advantage from the expansion of transaction procedure speed and an effortless trade linking various tokens. Cross-chain communication has substantial progress in this regard of blockchain technology.

Detailed Information On Cross-chain Communications

The transferring of information between one or more blockchains is known as Cross-chain Communication. Accessing data and Accessing functionality are the two conditions that drive the distribution system which is also available in other systems. Distributed query languages use in other systems as the first prerequisite of accessing data, Whereas prior distributed systems, work with absolute trust, blockchain systems operate in partly trusted or untrusted environments. Meaning distributed query languages by consumers issue queries to single servers and completely trust the results. Moreover, no authentication to execute remotely.

This means that blockchain systems can indulge node failures, network failures, and malicious actors. In preference to depending on a single entity, blockchain system nodes come to an agreement on the legitimacy of the suggestion of transactions. The cross-chain agreement is a method by which nodes or entities on a destination blockchain have come to an agreement on some fact. It permits the trust of information from a source blockchain to a destination blockchain. . Cross-chain communication protocols properties include Safety, Liveness, and Atomicity.


Cross-chain Communications promote a range of usage scenarios including Cross-chain Decentralized Exchanges, Cross-chain Asset Trading, Cross-chain Decentralized Asset Transformation, Cross-chain Backup, Private Chain as a Key Manager, Information Syndication, Logistics, and Finance Blockchain Collaboration, National Data Sovereignty, and Oracle blockchains.

The core abilities of high-level usage on the bases of atomic swaps, cross-chain messaging, and pinning. Cross-chain consensus protocols describe later in this paper are class base on which of these the protocol primarily aims to deliver. Atomic Swaps Users can move value from one blockchain to another. Atomic Swap can use to affect the value of the transfer.

Definition Of Cross-Chain Communication

An atomic swap is a special case when a value first blockchain moves are unavailable and values are built on a second blockchain. This condition of swap permits the exchange of value across blockchains without a counterparty to swap with.
Cross-chain Messaging is basically the generation of messages by users on one blockchain and engulfing the message on another blockchain. Authorizing the reading and writing of values across blockchains. Nodes on the source blockchain must be able to persuade nodes on the destination blockchain that the message from the source blockchain trusts.

Required Attributes

The prerequisite of a different cross-chain communications system has different types of blockchains and blockchain deployments. That means that the cross-chain communications system may have precise prerequisites or regulations in order to fulfill the purposes of the blockchain deployment.

Licenseless Blockchains

Permissionless Blockchains are blockchains that permit any node to enter the network of nodes. Any account can propose a transaction on any node to the blockchain. Models of public permissionless blockchains are Bitcoin and Ethereum MainNet. Control is not necessary for Permissionless blockchains. They normally have multiple controlling nodes. Any node can make a block on the bases of the consensus protocol rules of the blockchain. To encourage good behavior, cross-chain consensus protocols need a procedure. Bad behavior could be due to negative behavior, but could also be due to network outages, system failures, misconfiguration, and software defects. Permissionless blockchains depend on crypto-economic enforcement, such as charging transaction fees and slashing, to prevent bad behavior.

License Blockchains

Permissioned blockchains typically restrict the nodes that can join the network to only authorized nodes. Additionally, License blockchains may restrict which accounts have the authorization to submit transactions. License blockchains are commonly called Private Licence Blockchains, Private Blockchains or Consortium Blockchains. Examples of License blockchains are blockchains that establish by Enterprise Ethereum platforms such as Hyperledger Besu or ConsenSys Quorum, or other private blockchains platforms such as Hyperledger Fabric. License blockchains may allow any node to join the network but restrict the nodes to that transactions can submit on. This type of network is referred Public License Blockchain.

Definition Of Cross-Chain Communication

Permissioned blockchains need to keep the list of participating nodes private. They need to keep the contents of transactions confidential. They need to keep the rate of transactions private. Permissioned blockchains are often between a small number of participants, By virtue of the small number of participants they have some level of centralization. Some permissions blockchains, such as Hyperledger Fabric and Corda have centralization points. Cross-chain systems typically need to have no centralization points if they use with Licenseless blockchains, whereas some level of centralization may be acceptable for Licence blockchains. Good behavior is an incentive on Licence blockchains by reputation and the use of external enforcement such as taking legal action in a court of law.

Crosschain Protocol Implementation

Requirements Cross-chain protocols can be classified as acting as applications or being part of blockchain platforms. When a cross-chain protocol acts as an application, it does not need changes to the blockchain platform software to operate. It utilizes contracts on the blockchain and servers external to the blockchain to operate. These protocols are appropriate for situations in which users are unwilling or unable to modify their blockchain platform software. In contrast, other protocols require changes to the underlying blockchain software to work. They are part of the blockchain
platform. They do not need contracts or servers external to the blockchain to operate.

Value Swaps Technique

Hashed Timelock Contracts Hashed Timelock Contracts (HTLC) are a mechanism for trustless cross-chain atomic swaps. That is, the technique allows two parties to swap value on one blockchain for value on another blockchain. Agreement occurs off-chain, with on-chain consensus used to ratify the earlier off-chain agreement. Consensus is forming between the two parties on who the two parties are (identify by account numbers that could be different on each blockchain), and on the amounts of value on each blockchain exchange. HTLCs form the basis of the value swap mechanism in Poon and Dryja’s Bitcoin Lightning Network and the Dogecoin to Ethereum bridge.

Definition Of Cross-Chain Communication

If the Requester does not transfer the Bitcoin, then they lose their collateral Ether. If the Vault does not submit the inclusion proof transaction on Ethereum after a period of time, then the Requester can submit the transaction themselves, and the Vault is fined. To transfer Wrapped Bitcoin from Ethereum to Bitcoin, the Requester submits a transaction to call the ISC’s Burn function. This results in an Ethereum Event being emitted that indicates that Bitcoin should be unlocked on the Bitcoin blockchain. The Vault witnesses the event and, after waiting for the event to become probably final, transfers the appropriate number of Bitcoin to the Requester on the Bitcoin blockchain.

From a cross-chain consensus perspective, a consensus is provided by users submitting exit proofs and fraud proofs. Plasma does not provide safety as nefarious actors could steal a user’s tokens if a user is offline during a challenging period or if the nefarious actor could orchestrate a mass exit, thus preventing users from submitting fraud proofs.

Wanchain Cross-chain

Cross-chain Messaging Procedure

Ion Project: The Clearmatics Ion project uses block header transferring in the context of permissioned blockchains. It provides a framework and tools to develop cross-chain smart contracts so that they execute if a state transition has occurred on another blockchain. The system works by having a set of Relayers that wish to transfer block headers from one blockchain to another. At least a threshold number of the Relayers need to sign each block header for the block headers to be accepted by the receiving blockchain. Relayers only transfer a block header once the blocks they relate to are deemed to be final.

For the scenario when the source blockchain is Ethereum, a user executes a transaction on the source blockchain that emits an event. The transaction’s receipt contains the transaction hash, the block number, transaction number, and includes a list of event information. The event information is fed into the transaction hash calculation. The user can now execute a transaction on the destination blockchain, passing in as parameters information relating to the source blockchain’s transaction: the block number, the Merkle Proof, showing the transaction belongs to the block, and the event information.

Definition Of Cross-Chain Communication

The code on the destination blockchain executes a code that verifies the source blockchain’s transaction information. If that information is found to be correct, then the code can use the information in the event to perform some action. Ion allows for the forwarding of events from one chain to another. This allows reading of information. It could be used for function call forwarding and messaging. However, the system does not facilitate atomic behaviour. There is no guarantee that an event will be forwarded. Even if the event is forwarded, there is no guarantee that the transactions will be processed correctly and higher-level protocols will be able to operate correctly based on the event.

The block headers are submitted by Relayers separately.  This means that there are multiple transactions on the destination blockchain per source blockchain block. Unless the Relayers want to sign and forward every block header, they need to analyse which blocks contain transactions that emitted events that are destined for the destination blockchain, and only forward those block headers. Assuming a threshold number of Relayers sign and submit block headers to the destination blockchain, Ion does not have any liveness issues.

Definition Of Cross-Chain Communication

Chain Bridge: Chain Bridge is a technology that allows functions on one blockchain to call functions on another blockchain. Higher-level protocols have been created on top of the technology to provide ERC20 value transfer and ERC721 Non-Fungible Token transfer. ChainBridge works by having applications call a deposit function on a Handler contract. The destination blockchain, contract address, function, and parameter values are emitted in a deposit event. Deposit events on the source chain are detected by a trusted set of off-chain relayers who wait for the block containing the transaction that emitted the event to become final. Each relayer submits a transaction containing the event to the destination blockchain to vote on the validity of the event.

Once a threshold number of relayers have submitted the event, a handler function is called, which in turn calls the function on the contract that was contained inside the event. The system has liveness issues as there is no certainty that a threshold number of relayers will submit an event. Additionally, there are safety issues as even if the threshold is reached, and the function is called on the destination blockchain, there is no certainty that the function will execute as expected. For example, the function may execute correctly on the source blockchain, updating the state, and then the function on the destination contract may cause the state to be reverted. In this situation, the source blockchain would have been updated but not the state on the destination blockchain.

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Celo Optics: Celo Blockchain is a fork of Ethereum that uses the Proof of Stake (PoS) consensus algorithm [54]. Celo Optics [55] is a technology that allows messages to be passed between blockchains. With Celo Optics, transactions on a source chain call a function on the home contract to create messages. Messages are accumulated into a Merkle Tree of messages. The messages from the leaves of the tree. Adding a message changes the root of the tree. A sequence of messages corresponds to a queue of roots. The root of the tree is signed by an off-chain updater. The signed root is submitted to the home contract on the source blockchain. Off-chain relayers forward signed tree roots to replica contracts on destination blockchains.

They could forward one root per message, or at some other frequency. The signed tree roots are only usable after a fraud-proof window. Off-chain watchers check that the off-chain updaters are signing the correct tree roots and that the correct tree roots are being submitted to replica contracts. If a watcher detects that an invalid tree root has been posted to a replica contract, it can post the signed root to the home contract, causing the updater that signed the invalid root to be slashed. Off-chain Processors hold all messages, and submit them, along with Merkle Proofs, to recipients on destination blockchains.

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Applications submit the transactions on the source blockchains to generate the messages and are the recipients on the destination blockchains. Celo requires any function call or value swap protocol to be built on top of the underlying message passing scheme. There are no safety guarantees with the protocol. There is no certainty that messages will be delivered. Additionally, there is no certainty that once messages are delivered, they will be able to be processed correctly. The latency depends on how often signed roots are communicated and how long the fraud window is. A key drawback of the system is that applications need to monitor for invalid messages and tree roots being posted

Cosmos: Cosmos is a multi-blockchain system in which blockchains called “Zones” communicate transactions via a central blockchain called a Hub. The Zones and the Hub typically use Tendermint [57] a type of Practical Byzantine Fault Tolerance [58], [59] consensus algorithm. The system is envisaged to allow heterogeneous blockchain communications, allowing the Zone blockchains to be permissioned or permissionless, to use alternative consensus algorithms, including algorithms that offer probabilistic finality, and allowing for completely different blockchain paradigms. Each Zone blockchain must have a set of validators. The Zone blockchain validators must trust validators in the Hub blockchain and visa-versa. F.

Definition Of Cross-Chain Communication

The Hub blockchain is provided rate control and protected against Denial of Service (DoS) attacks flooding the system with cross-chain transactions by charging for each transaction committed to the Hub blockchain using Cosmos’ digital currency, the Atom. This usage of the Atom could lead to issues for users who do not have adequate Atoms to pay for blocks to be included in the Hub blockchain. In particular, acknowledgements posted by blockchains receiving cross-chain transactions may not be able to be posted to the Hub blockchain if accounts on the receiving blockchain do not have adequate Atoms. The system relies on Zone blockchain validators fully trusting Hub blockchain validators to act correctly. That is, the Hub blockchain acts as a centralisation point for the entire system of blockchains. Cosmos [56] documentation indicates that cross-zone messages can be end-to-end encrypted which would provide confidentiality. This might allow the cross-zone message system to be used between two Private Blockchain Zones.

Definition Of Cross-Chain Communication

Polkadot: Polkadot proposes a multi-chain network consisting of Relay Chains, Parachains, and Bridges. Relay Chains provide shared consensus for all Parachains which receive and process transactions. Bridges provide a mechanism for transactions to be routed to non-Polkadot blockchain systems. Note that, despite the name, Relay Chains do not relay messages between Parachains or Bridges. There are two main roles that participants play in the Polkadot ecosystem: Collator and Validator. Collators collect transactions on Parachains, propose blocks and provide zero-knowledge non-interactive proofs proving the transactions result in invalid state changes to the Validators. Groups of Validators ratify Parachain blocks and publish them to the Parachain. The Validators seal the Parachain block headers to the Relay Chain. The Validators are randomly assigned to Parachains, with the assignment changing regularly. Validators use a PoS consensus algorithm to provide a shared consensus for all Parachains.

Definition Of Cross-Chain Communication

Supportive roles are performed by Nominators and Fishermen.   Nominators provide funds to Validators they trust to execute the PoS consensus. Fishermen observe the Parachains and submit fraud proofs to Validators. Cross-Parachain transactions are identical to typical transactions from external accounts. A transaction on one Parachain results in a message being placed in an outbound queue by a Collator on that chain. A Collator for the target Parachain will gather messages destined for the Parachain and submit them to the Parachain’s incoming queue. The message is then processed as a transaction on the destination Parachain. The messages are trusted by the destination Parachain as the proof that the message relates to a transaction on the originating Parachain can be submitted, and the transaction can be proven to have been included in a block.

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Transactions from Polkadot to Ethereum via a Bridge are achieved by submitting transactions to a special multi-signature Ethereum contract. The signers of the multi-sig wallet are likely to be Validators. Transactions from Ethereum to Polkadot are achieved by calling into a special Ethereum contract which writes an event to the Ethereum event log. This event is interpreted as the outward-bound call. This technology was “archived” in September 2020 [61]. Transactions between Bitcoin and Polkadot can be achieved using the XCLAIM protocol.                                                                                                       

Atomic Cross-chain Transactions for Ethereum Private Sidechains and private Ethereum blockchains: these are a technology that allows for cross-chain function calls that are both synchronous and atomic. This technology uses four key concepts to provide atomic cross-chain function calls: committing to a call tree and subsequently verifying that actual parameter values match expected values, coordination blockchains, threshold signatures, and contract locking. The technology requires changes to the blockchain platform software to operate.

Definition Of Cross-Chain Communication

Call Tree Commitment and Verification: Atomic Cross-chain Transactions are special nested Ethereum transactions in which the most nested transactions are first signed, and the successive encapsulating transactions are signed. The act of creating these nested transactions commits the Atomic Cross-chain Transaction to a specific call tree. Compliance with the committed call tree is verified by comparing the actual parameter values with the expected values in the call tree. When a function executes in the Ethereum Virtual Machine, function parameter values and stored state combine to form the actual values of variables during execution.

Blockchain Signing and Threshold Signatures: The Atomic Cross-chain Transaction system uses BLS Threshold. Function Calls across Blockchains Signatures to prove that information came from a specific blockchain. For example, nodes on one blockchain can be certain of results returned by a node on another blockchain for a function call, as the results are threshold signed by the validator nodes on the other blockchain. Similarly, validator nodes on a blockchain can be certain that validator nodes on another blockchain have mined a nested transaction, locked contracts, and are holding the updated state as a provisional update because validator nodes sign a special Subordinate Transaction Ready message indicating that the nested transaction is ready to be committed.

Definition Of Cross-Chain Communication

Cross-chain Coordination: Crosschain Coordination Contracts exist on Coordination Blockchains. They allow validator nodes to determine whether the provisional state updates related to the Atomic Crosschain Transaction should be committed or discarded. The contract is also used to determine a common timeout for all blockchains and as a repository of Blockchain Public Keys. When a user creates a Cross-chain Transaction, they specify the Coordination Blockchain and Cross-chain Coordination Contract to be used for the transaction and the timeout for the transaction in terms of a block number on the Coordination Blockchain. The validator node that the user submitted to the Atomic Crosschain Transaction (to the Originating Node) works with other validator nodes on the blockchain to sign a Crosschain Transaction Start message.

This message is submitted to the Crosschain Coordination Contract to indicate to all nodes on all blockchains that the Crosschain Transaction has commenced. When the Originating Node has received Subordinate Transaction Ready messages for all nested transactions, it works with other validator nodes to create a Crosschain Transaction Commit message. This message is submitted to the Cross-chain Coordination Contract to indicate to all nodes on all blockchains that the Cross-chain Transaction has been completed, and all provisional updates should be committed. If an error is detected, then a Crosschain Transaction Ignore message is created and submitted to the Crosschain Coordination Contract to indicate to all nodes on all blockchains that the Cross-chain Transaction has failed, and all provisional updates should be discarded. Similarly, if the transaction times out, all provisional updates will be discarded.

Definition Of Cross-Chain Communication

Contract Locking and Provisional State Updates: The act of mining a nested transaction and including it in a blockchain locks the contract. The contract is unlocked when the Cross-chain Coordination Contract is in the Committed or (12) Ignored state, or when the block number on the Coordination Blockchain is greater than the Transaction Timeout Block Number.

The Cross-chain Coordination Contract will change from the Started state to the Committed state when a valid Cross-chain Transaction Commit message is submitted to it, and it will change from the Started state to the Ignored state when a valid Cross-chain Transaction Ignore message is submitted to it. Ordinarily, all nodes will receive a message indicating that they should check the Cross-chain Coordination Contract when the contract can be unlocked. When a node first processes a transaction, it will set a local timer which should expire when the Transaction Timeout Block Number is exceeded. If the node has not received the message by the time the local timer expires, the node checks the Cross-chain Coordination Contract to see if the Transaction Timeout Block Number has been exceeded and whether the updates should be committed ignored.

Definition Of Cross-Chain Communication

Analysis: Atomic Cross-chain Transactions require a set of validators to threshold sign information. The threshold signing mechanism does not reveal any information about the validators who signed or the threshold number of validators that were needed to sign. The identity of the node that submits the Start, Commit and Ignore messages are exposed when the messages are submitted to the Crosschain Coordination Contract. This exposure could be mitigated by using a new randomly generated identity on the Coordination Blockchain for each submission to the contract. The Cross-chain Coordination Contract trusts the messages based on the threshold signatures, and not on the transaction signature. Due to the simple fail-if-locked locking scheme, the system cannot have deadlocks, though could suffer from livelock.

Definition Of Cross-Chain Communication

Due to the global per-transaction timeout offered by the Coordination Blockchain, the system will not have liveness issues. Once a Cross-chain Transaction is committed, ignored, or times out, all contracts are unlocked. If nodes on a blockchain refused to process a Signalling Transaction, then contracts that were part of the cross-chain transaction on the blockchain would remain locked. However, this situation is analogous to nodes refusing to produce any more blocks, and hence not related to crosschain consensus. The system does not allow for partial updates. Errors are returned if a user attempts to read values from a locked contract. As such, this methodology is a safe cross-chain consensus mechanism. The main drawback of Atomic Cross-chain Transactions is that it requires changes to the Ethereum Client software. As such, this technology is not suitable for applications where the Ethereum Client software cannot be modified.

General Purpose Atomic Cross-chain Transactions:

The General Purpose Atomic Cross-chain Transaction (GPACT) protocol is a technology that allows function calls across blockchains that either update or discard state updates on all blockchains. Applications determine parameter values by simulating a call tree and then committing to the call tree. Segments of the call tree execute successfully if the call tree executes using the parameter values to determine the simulation. Values within a contract’s state lock if a call segment updates those values. These provisional updates apply to all lock contracts if the overall cross-chain transaction is successful and could discard if not. The protocol relies on communicating messages between blockchains such that they are trusted. The cross-chain messaging has been achieved by having a set of Attestors for each blockchain sign Ethereum Events.

The Attestors cooperate to sign the events. Users request sign events they design from one of the Attestors. The events trust on destination blockchains if at least a threshold number of Attestors have sign the event. The first step to execute the protocol is to determine the expected parameter values for the entry point function calls for contracts on blockchains.

The application using the protocol needs to fetch the state from the contracts and then execute a simulation of the contract code. To commit to the call tree, a transaction submit to the Root Blockchain’s Cross-chain Control Contract’s Start function. The call tree emits as part of a Start Event. Once the Start Event emits, Segment functions on the Cross-chain Control Contract on blockchains that make up the call tree of the overall transaction call to request a function on a contract call as part of a cross-chain function call. The sign Start Event and an indicator of where the function call lies in the call tree submit as parameters to prove that this function is part of the cross-chain function call.

Definition Of Cross-Chain Communication

The Root function emits a Root Event indicating that all updates on all other blockchains should discard. If any of the Segment functions return error results or if an error occurs while executing the entry point function call. If the timestamp of the most recent block on the Root Blockchain is after the timeout in the Start Event, then any account can submit a transaction that calls the Root function to cancel the cross-chain function call. In this situation, a Root Event emits that indicates that all updates on all other blockchains should discard.

The Signalling function call on blockchains that have updates that need to commit or discard. The sign Root Event and sign Segment Events for the blockchain pass in as parameters. The Root Event indicates whether updates commit or discard. The Segment Events contain the list of contracts containing values that need to unlock. The GPACT protocol guarantees safety by committing to a call tree, checking for correct cross-chain execution, and locking values. And committing or discarding those values depending on the overall execution of the cross-chain transaction. That is, contracts on separate blockchains will have a consistent state by all applying or all discarding changes. Liveness assures the timeout feature of the protocol, as all contracts will unlock.

Pinning Procedure

Merge Mining:

It is a technique that combines the block hash of a low hashing power public blockchain, such as NameCoin. With a more secure higher hashing power blockchain, such as Bitcoin. In this scenario, the Bitcoin miners must validate NameCoin transactions prior to including the Block Hash in a transaction on the Bitcoin network. The mining transaction includes both the Bitcoin and NameCoin blockchains. Merged mining relies on both blockchains using the same consensus algorithm. And assumes that all transactions can view by both blockchains. As such, this technique is not usable in a private blockchain scenario where transactions must not reveal outside the blockchain. The liveness of a merge mined blockchain relies on the miners being sufficiently incentive to include blocks from the merge mined blockchain in the  higher hashing power blockchain

Tethered Blockchains:

Block Hash Posting the Kaleido team developed Tethered Permissioned Private Chains [18],[75] to reduce the risk of state reversion occurring by posting the state of the blockchain onto Ethereum MainNet. In Kaleido’s system, the trust entity uses to submit a block hash on behalf of blockchain participants, thus keeping the participants a secret. The rate of transactions on the consortium chain reveals on Ethereum MainNet due to the number of posted pins. Additionally, the solution lacks a method of contesting a pin posted to Ethereum MainNet

Anonymous Pinning Map:

Anonymous Block Hash Posting Robinson and Brainard proposed Anonymous State Pinning [17] as a method of posting block hashes of a private blockchain to a management blockchain without revealing the identities of participants of the private blockchain or the rate of transactions while allowing posted block hashes to be contested.

Threshold Signed Block Hash Posting

The validators of a blockchain could collaborate to use BLS Threshold Signatures. To threshold sign block hashes that submit to a management blockchain. In this scheme, the public key relates to the private key shares to store the management blockchain. The verification of signed pins to submission for the contract usage to store the pins. Thus accepting only valid pins signed by a majority of the validators. An alternative to using BLS Threshold Signing would be to have multiple parties submit signed block hashes.

If a threshold number of signers submit the block hash, it would deem valid. The advantage of this technique over the Anonymous Block Hash Posting. Is that validators do not need to monitor the management blockchain only accepts valid pins. A disadvantage of this technique is that it is more computationally expensive both on the private blockchain side. Having to threshold sign the pin, and in the smart contract on the management blockchain. where there is a verification of BLS.


A protocol that exempts from safety and liveness problems for consideration to provide basic updates. While the STREAM protocol of both HTLCs and Interledgers depends on hash commitments and preimages. The Interledger conquers the possible griefing problems of HTLCs by transferring deposits incrementally. Although both protocols can utilize collateral deposits to cut down on the chances of griefing. And leave prior to the completion of the transfer. Users can also opt-out of the protocol before the completion of the exchange. Permissionless blockchain platforms work better for these trustless protocols.

The Wanchain, Ion, ChainBridge, Cosmos, Atomic Cross-chain Transactions for Ethereum Private Sidechains. And GPACT relies on threshold signing to achieve cross-chain consensus. In the case of a permissioned blockchain, the validators could also act as the signers. Here, the cross-chain agreement is all round as dependable as the permissioned blockchain itself. Alternatively, if the exchange was from a permissionless blockchain to a permissioned one. The utilization of validators of the permissioned blockchain. Wanchain and Celo Optics combine signing with staking and slashing.

Definition Of Cross-Chain Communication

Since permissionless blockchain depends on crypto-economic incentivization for its security. A Wanchain and Celo Optics are compatible with Lisenceless blockchain. A major issue for each protocol is to ensure that the sum to slash is greater than the likely gains due to bad behaviour. In the case of a finite number of transactions. A major concern with cross-chain protocols is to secure adequate incentivization of operators.

Atomic Cross-chain Transactions for Ethereum Private Sidechains and GPACT provide cross-chain function call capabilities. This means that before finalizing updates on all blockchains. Processing on all blockchains must have been successful. This suggests that state updates across blockchains are consistent. Protocols that only provide cross-chain messaging cannot guarantee this cross-chain consistency. Polkadot though appearing to be a cross-chain protocol is, in fact, a cross-shard protocol.

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When a cross-chain consensus is not necessary. Simplification of the system, and having to trust the Relay Chain that the Parachains integrate with ensures this. Most cross-chain protocols act as blockchain applications. Protocols that require changes to blockchain platform software have limited applicability. As blockchain client software developers do not want to integrate complex cross-chain software into their products.

Future Directions

The cross-chain agreement un exploits the field with numerous areas to explore. Also, additional investigation into trustless cross-chain messaging for permissionless blockchains explore. Recommendation of Staking and slashing methods. Notwithstanding, the relationship between the value transaction via the cross-chain transactions. And staking amount must be in consideration.

In PoS blockchains, although validators stake value and sign block headers. The chances of utilizing the stake are by saving validators for getting the blockchain. Likewise to getting the cross-chain communication exploration. For threshold signing with regards to PoS. A daunting task is how to guarantee that underwriters are in the confirmation contract.

See the List of things to learn.
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  4. DAOs
  5. Crypto
  6. Web 3.0
  7. Altcoin Tokenomics
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