Exchange assets across chains
Friedger Müffke
Crypto Wednesdays, Brussels
5 Januar 2022
Blockchains
- public vs private
- open vs closed
- decentralized vs centralized
- secure vs insecure
Cross Chain Bridges
Source: Dmitriy Berenzon
Features
- Pay for storage on Arweave using Bitcoin
- Join a PartyBid for an NFT on Tezos
- Arbitrage SUSHI prices across DEXs on other chains
Implementations
- Trusted Party
- Insured / Bonded
- Protocol / Smart Contracts
Hashed Timelock Contract (HTLC)
Trustless Bridge
Bob
Alice
2:1
#
2:1
#
Bob
Alice
2:1
#
Bob
Alice
Secret
2:1
#
Bob
Alice
Secret
2:1
#
Bob
Alice
2:1
#
Bob
Alice
Before timeout
2:1
#
Bob
Alice
After timeout
Problem
- Off-chain coordination
- Change of exchange rate
Hashed Timelock Contract (Catamaran Swap)
2:1
Bob
Alice
2:1
Bob
Alice
2:1
Bob
Alice
2:1
Bob
Alice
2:1
Bob
Alice