Multi-Chain Architecture For Blockchain Networks: Kristián Košt'ál
Multi-Chain Architecture For Blockchain Networks: Kristián Košt'ál
∗
Kristián Košt’ál
Institute of Computer Engineering and Applied Informatics
Faculty of Informatics and Information Technologies
Slovak University of Technology in Bratislava
Ilkovičova 2, 842 16 Bratislava, Slovakia
[email protected]
Abstract Keywords
This paper focuses on interoperability between blockchain blockchain, cross-chain, multi-chain, atomic swaps, inter-
networks, whether existing or new. The issue of interop- operability
erability is a very current topic and is the subject of re-
search by many articles or institutions. The current trend
in the articles is to address interoperability only between 1. Introduction
homogeneous networks, i.e. the so-called Sharding, and We live in a digital age. The Internet is used for everyday
not at all dealing with interoperability between different communication, bill payments, shopping, charity support
networks. The second trend is to focus on two specific or just for fun. Among them, blockchain technology cre-
blockchain networks and interconnect them as efficiently ates another digital dimension and offers new business
as possible. However, both of these trends are flawed, as opportunities.
a large number of new heterogeneous networks have re-
cently emerged, which are incompatible with each other, A key feature is storing data and transactions that change
so that all processes take place in isolation. If they want to it in block strings. It acts as a distributed database that
communicate with another network, this is almost impos- processes an ever-growing list of transactions for which
sible because there is no standard for interlock blockchain no authority owns the data. Thanks to this function, the
communication. The only option is to exchange assets blockchain is extremely resistant to unauthorized modifi-
within the exchange, but this is only a scenario for cryp- cations to the stored data. The financial sector was there-
tocurrencies and not for other use cases. Based on the fore the largest supporter. Publicly, the most perceived
research, an architecture is proposed that uses an API to blockchain applications are cryptocurrencies [8, 24]. Even
connect existing blockchain networks and allows commu- some of the most dominant regulators in the United States,
nication between any blockchain. From this blockchain it such as Commodity Futures Trading Commission (CFTC)
is possible to derive other blockchains that are scalable. and Securities and Exchange Commission (SEC), see the
The architecture has been implemented and experimen- positive potential of this technology.
tal verification has shown scalability up to 18,000 trans-
actions per second. In addition to its use in cryptocurrencies transactions,
the benefits of blockchains, such as decentralized infor-
Categories and Subject Descriptors mation verification and tamper resistance, have been no-
C.2.1 [Networks]: Network Architecture and Design— ticed by various sectors [20, 21, 10]. Important applica-
distributed networks; C.2.4 [Networks]: Distributed Sys- tions include the value register, the valuable website and
tems—distributed applications, distributed databases; value ecosystem services. Related application industries
D.2.12 [Software Engineering]: Interoperability; H.2.4 include logistics, financial systems, medical records, data
[Database Management]: Systems—distributed collection and verification in Internet of Things (IoT),
databases supply chain management, stock or option trading, so-
cial networking software, electronic patient records, mi-
cropayments / mobile payment systems , asset transac-
∗Recommended by thesis supervisor: Prof. Ivan Kotuliak
tions and distribution of digital products. People hope
Defended at Faculty of Informatics and Information Tech- that blockchains will be able to play the role of trusted
nologies, Slovak University of Technology in Bratislava on machines in the operation of these systems. Keeping a
September 22, 2020.
detailed record of related information and resolving in-
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the first page or initial screen of a display along with the full citation. In the cases used above, a large amount of information
Copyrights for components of this work owned by others than ACM will need to be recorded on the blockchain [14].
must be honored. Abstracting with credit is permitted. To copy other-
wise, to republish, to post on servers, to redistribute to lists, or to use We will need more robust blockchain networks than are
any component of this work in other works requires prior specific per- used today to store large amounts of data. This robust-
mission and/or a fee. Permissions may be requested from STU Press,
Vazovova 5, 811 07 Bratislava, Slovakia. ness will mainly face problems with scalability, speed of
transactions and also privacy challenges [28, 25]. The
Košt’ál, K. Multi-Chain Architecture for Blockchain Networks. In-
formation Sciences and Technologies Bulletin of the ACM Slovakia, problem is also in the blockchain community, as there are
Vol. 12, No. 2 (2020) 8-14 many more initiatives aimed at creating new blockchains
Information Sciences and Technologies Bulletin of the ACM Slovakia, Vol. 12, No. 2 (2020) 8-14 9
or cryptocurrencies than at developing possible connec- value. A technique where operations on two inter-
tions and means of communication between existing block- operating chains are set up in a way that they have
chain networks. For such a solution we need interoperabil- the same trigger which is usually a revelation of the
ity [11, 22] between today’s blockchains and that is the pre-image of a particular hash [3]. Hash-locking is
main focus of this work. simpler compared to relay schemes in which some
copy of one ledger must be stored on another ledger
because hash-locking only require an exchange of a
2. State of the Art
single hash between two ledgers thus requires signif-
Blockchain is, simply put, the technology of distributed icant less exchange of data to achieve interoperabil-
ledger book (DLT). Blockchain is a decentralized distribut- ity. The primary focus of hash-locking is to allow
ed database, which is stored as a chain of blocks, that atomic swaps between ledgers without requiring a
are cryptographically ordered. The blocks contain trans- third party as it is with notary schemes [16]. The
actions between addresses of users. All of this happens key drawback of hash-locking is that the underly-
in a peer-to-peer network. There exist more kinds of ing blockchain must support a special type of smart
blockchain technology: public, private, consortium. Fur- contracts, called Hash-TimeLock Contracts.
thermore, these can be divided by two groups: permis-
sionless, permissioned. When we talk about interoperabil-
ity, we think communication between two distinct block- These are three main techniques. Moreover, we can define
chains by any means. Therefore, we need to analyze the 4 potential use-cases for interoperability of blockchains as
options and techniques to achieve inter-operable ledgers. laid out in [3] and [16]:
2.1 Cross-chain
• asset portability - transfer asset from one block-
We can understand cross-chain technology as a bridge chain to another;
connecting more blockchains. Its main application is the
implementation of atomic cross-chain swaps between dif- • atomic swap - swap asset between two blockchains
ferent blockchains, asset conversion or inter-block com- in atomic way;
munication [4]. There are obvious obstacles to the dis-
tribution of value between blockchains. The cross-chain • cross-chain oracles - are used to read data from
is a complex distributed coordination task. It needs not outside of blockchain so it can be act upon them;
only a separate authentication capability for blockchain
• cross-chain asset encumbrance - lock up assets
nodes, but also decentralized input, as well as data ac-
within one ledger based on locking conditions de-
quisition and authentication beyond the blockchain [26].
pendent on another ledger.
Cross-chain technologies currently include [3]:
it more private, faster, scalable and distribute high data nication appeared. However, despite the large number
volumes. Thus it cannot connect more existing blockchain of use cases and attempts to address them, the under-
networks. Interledger Protocol (ILP) [13] is a protocol lying problem of interblockchain communication has not
for communication between any ledgers, not only oriented been clearly defined, nor have the related challenges or
into blockchains but also to ledgers held by existing banks. the existing research [29] been studied. The lack of gen-
However, as the ILP uses Hash Timed Locks, it man- erality and dependence on the specific implementation of
dates that all sides of communication implement con- blockchains are disadvantages known to the vast major-
tracts. The Hyperledger Quilt [15], side by side with ity of existing solutions. All blockchain solutions work on
Ripple, is just a real implementation of Interledger proto- their ”sand” and are not interested in communication be-
col into blockchain technology, so it also shares the same tween a huge number of blockchains and the interconnec-
drawbacks as ILP. Lightning Network [23] is comparable tion of existing solutions. None of the options described
to InfiniteChain but it is not a sidechain. A sidechain above support plug-in connection of existing blockchains.
counts on its own blockchain. This network is, with the Only some of the solutions may comply with some gov-
help of a two-way peg, coupled to the existing blockchain. ernment regulations or may communicate with standard
On the other hand, the Lightning network consists of na- databases. In addition, some of the designs add additional
tive Bitcoin 2-of-2 multi-sig transactions. The cross-chain overheads to already slow and unpredictable blockchain
communication with Lightning Network works as long as networks, which only limits functionality. So there are
all the chains support the same hash function to use for many gaps in interoperability that need to be addressed.
the hash lock. Nodes cooperating in the Lightning Net-
work have to be always online in order to send and re- 3. Research Goals
ceive payments, and this lowers the security as cold wal- According to the references and analyzed solutions, we
lets cannot be used. Rootstock [18] is the next example certainly see room for improved interoperability between
of sidechain, but it has a significant disadvantage, that existing blockchain networks not only specialized in cryp-
it is suited only for Bitcoin blockchain. Despite that, its tocurrencies, but also databases or perhaps government
only use is to make faster transactions with the help of and state technologies.
Simplified Payment Verification2 . TAST project [1] is still
in development and not finished, but their approach with All our research is focused on the use of modern blockchain
tokens in all blockchains requires that each blockchain techniques and related technologies in combination with
has smart contracts functionality to create the tokens. our knowledge of networking and architecture. Summary
Moreover, in order to function, all wallet balances and of the main goals:
movable tokens must be in all participating blockchains.
This can radically higher storage demands. Wanchain
[19], with the help of Ethereum smart contracts, makes • Introduce a new multi-chain blockchain archi-
an interconnection between different Decentralized Apps tecture to connect two or more different blockchains
(DApps), but for now, it works only with Ethereum-based to allow interoperability between them.
blockchains. XClaim [31] is not a universal solution for
blockchain interoperability. By far, it was implemented • Enable attach existing blockchains in an almost
only between Bitcoin and Ethereum. The drawbacks are plug & play manner without the need to implement
the need to have at least one smart contracts compati- specific requirements on their part.
ble blockchain, for each pair of blockchains you need to • Introduce real-world asset backing mechanism
implement specific smart contract only for that pair, and in token-driven blockchain, e.g. a gold-protected to-
the whole trust in transactions is based on a vault, which ken as a store of value to prevent volatility.
locks the funds.
3
https://www.deadalnix.me/2016/11/06/
Figure 1: Color blockchain network. using-merklix-tree-to-shard-block-validation/
12 Košt’ál, K.: Multi-Chain Architecture for Blockchain Networks
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