CroCoDai: A Stablecoin for Cross-Chain Commerce

• URL: http://arxiv.org/abs/2306.09754v4
• Date: Tue, 15 Oct 2024 03:53:43 GMT
• Title: CroCoDai: A Stablecoin for Cross-Chain Commerce
• Authors: Daniël Reijsbergen, Bretislav Hajek, Tien Tuan Anh Dinh, Jussi Keppo, Henry F. Korth, Anwitaman Datta,
• Abstract summary: Decentralized Finance (DeFi) has grown rapidly in value in recent years. The global DeFi ecosystem is fragmented into multiple blockchains, fueling the demand for cross-chain commerce. Existing approaches for cross-chain transactions, e.g., bridges and cross-chain deals, achieve atomicity by locking assets in escrow. We present CroCoDai to address these challenges.
• Score: 3.5504432743253633
• License:
• Abstract: Decentralized Finance (DeFi), in which digital assets are exchanged without trusted intermediaries, has grown rapidly in value in recent years. The global DeFi ecosystem is fragmented into multiple blockchains, fueling the demand for cross-chain commerce. Existing approaches for cross-chain transactions, e.g., bridges and cross-chain deals, achieve atomicity by locking assets in escrow. However, locking up assets increases the financial risks for the participants, especially due to price fluctuations and the long latency of cross-chain transactions. Stablecoins, which are pegged to a non-volatile asset such as the US dollar, help mitigate the risk associated with price fluctuations. However, existing stablecoin designs are tied to individual blockchain platforms, and trusted parties or complex protocols are needed to exchange stablecoin tokens between blockchains. Our goal is to design a practical stablecoin for cross-chain commerce. Realizing this goal requires addressing two challenges. The first challenge is to support a large and growing number of blockchains efficiently. The second challenge is to be resilient to price fluctuations and blockchain platform failures. We present CroCoDai to address these challenges. We also present three prototype implementations of our stablecoin system, and show that it incurs small execution overhead.

Related papers

• Towards the Blockchain Massive Adoption with Permissionless Storage [0.0]
  In my thesis, new approaches are applied to solve the issues above. The key contribution is the discovery of the useful PoW. Based on this theory, a permissionless storage network is proposed as the new security engine for the blockchain.
  arXiv  Detail & Related papers  (2024-07-25T04:28:52Z)
• The Latency Price of Threshold Cryptosystem in Blockchains [52.359230560289745]
  We study the interplay between threshold cryptography and a class of blockchains that use Byzantine-fault tolerant (BFT) consensus protocols. Existing approaches for threshold cryptosystems introduce a latency overhead of at least one message delay for running the threshold cryptographic protocol. We propose a mechanism to eliminate this overhead for blockchain-native threshold cryptosystems with tight thresholds.
  arXiv  Detail & Related papers  (2024-07-16T20:53:04Z)
• IT Strategic alignment in the decentralized finance (DeFi): CBDC and digital currencies [49.1574468325115]
  Decentralized finance (DeFi) is a disruptive-based financial infrastructure. This paper seeks to answer two main questions 1) What are the common IT elements in the DeFi? And 2) How the elements to the IT strategic alignment in DeFi?
  arXiv  Detail & Related papers  (2024-05-17T10:19:20Z)
• Unveiling Decentralization: A Comprehensive Review of Technologies, Comparison, Challenges in Bitcoin, Ethereum, and Solana Blockchain [1.6070833439280312]
  Bitcoin stands as a groundbreaking development in decentralized exchange throughout human history, enabling transactions without the need for intermediaries. Solana introduces a novel architecture for high-performance blockchain, employing timestamps to validate decentralized transactions. This paper aims to offer valuable insights and comparative analysis for both researchers and practitioners.
  arXiv  Detail & Related papers  (2024-04-07T07:27:03Z)
• chainBoost: A Secure Performance Booster for Blockchain-based Resource Markets [0.6383640665055312]
  We propose chainBoost, a secure performance booster for decentralized resource markets. It expedites service related operations, reduces the blockchain size, and supports flexible service-payment exchange modalities at low overhead. We implement a proof-of-concept prototype for a distributed file storage market as a use case.
  arXiv  Detail & Related papers  (2024-02-25T14:19:41Z)
• SoK: Security of Cross-chain Bridges: Attack Surfaces, Defenses, and Open Problems [43.80265187232706]
  Cross-chain bridges are used to facilitate token and data exchanges across blockchains. Although bridges are becoming increasingly popular, they are still in their infancy and have been attacked multiple times recently. This paper analyzes the security landscape of cross-chain bridges in a holistic manner.
  arXiv  Detail & Related papers  (2023-12-19T20:13:21Z)
• FoodFresh: Multi-Chain Design for an Inter-Institutional Food Supply Chain Network [0.0]
  FoodFresh is a multi-chain consortium where organizations store immutable data on their blockchains. A decentralized hub coordinates the cross-chain exchange of digital assets among the heterogeneous blockchains.
  arXiv  Detail & Related papers  (2023-10-30T11:38:05Z)
• BlockChain I/O: Enabling Cross-Chain Commerce [2.391161450948918]
  We present BlockChain I/O, a framework for cross-chain commerce. We show how to use BlockChain I/O to implement a cross-chain marketplace. We also discuss how its desirable properties continue to hold in the end-to-end system.
  arXiv  Detail & Related papers  (2023-08-04T06:51:50Z)
• Quantum-resistance in blockchain networks [46.63333997460008]
  This paper describes the work carried out by the Inter-American Development Bank, the IDB Lab, LACChain, Quantum Computing (CQC), and Tecnologico de Monterrey to identify and eliminate quantum threats in blockchain networks. The advent of quantum computing threatens internet protocols and blockchain networks because they utilize non-quantum resistant cryptographic algorithms.
  arXiv  Detail & Related papers  (2021-06-11T23:39:25Z)
• Quantum Multi-Solution Bernoulli Search with Applications to Bitcoin's Post-Quantum Security [67.06003361150228]
  A proof of work (PoW) is an important cryptographic construct enabling a party to convince others that they invested some effort in solving a computational task. In this work, we examine the hardness of finding such chain of PoWs against quantum strategies. We prove that the chain of PoWs problem reduces to a problem we call multi-solution Bernoulli search, for which we establish its quantum query complexity.
  arXiv  Detail & Related papers  (2020-12-30T18:03:56Z)
• From Tether to Libra: Stablecoins, Digital Currency and the Future of Money [62.997667081978825]
  It provides a compact definition for stablecoins, identifying the unique features that make them distinct from previously known payment systems. It surveys the different use cases for stablecoins as well as the underlying economic incentives for creating them.
  arXiv  Detail & Related papers  (2020-05-26T18:13:46Z)

This list is automatically generated from the titles and abstracts of the papers in this site.

This site does not guarantee the quality of this site (including all information) and is not responsible for any consequences.