On October 6, 2020, Datachain launched Cross Framework, a framework that enables the development of cross-chain smart contracts that reference data and execute functions distributed across different blockchains without relying on a specific centralized system, and applied for a patent for its application to transaction systems.
Datachain will continue to contribute to the advancement of blockchain implementation in society by promoting research and development centered on the Cross Framework and releasing this technology as OSS.
In the HTLC method and the general two-way-peg method, there is a risk of not receiving the securities even though the funds equivalent to the settlement amount have been transferred, if the participants fail to respond within a certain time frame or if the settlement chain cannot check the compliance with the rules of the securities chain (e.g., whether the maximum number of transferors has been reached, whether the transferee users have been KYC'd, etc.).
The Cross Framework enables the atomic execution of smart contracts between different blockchains and avoids the risk of "straggling" of participants in DvP transactions.
In addition, Cross Framework allows secure execution of smart contracts on one blockchain from another blockchain, making it possible to perform processing based on arbitrary data (e.g., whitelist) information in other blockchains.
Currently, it is available on Hyperledger Fabric® / Tendermint®, and we are planning to conduct a demonstration experiment with a major system integrator in Japan for DvP payments. We are also working on the development of other blockchains such as Corda® and Quorum®.
Backgrounds
Blockchains generally lack the ability to interconnect with different blockchains, and there is a need for a mechanism to reference information and perform functions distributed across multiple blockchains. However, conventional methods require the intervention of a specific centralized system that interconnects multiple blockchains or developers' development of a secure communication protocol between blockchains, which can lead to the loss of transparency and robustness of blockchains as well as high development difficulty. However, some issues need to be addressed.
In addition, the requirements for blockchains differ depending on the services provided by companies, regulations, countries, etc. More diverse blockchain networks will be formed in the future, and the development of cross-chain smart contracts will be required for various use cases. Therefore, it is expected that more diverse blockchain networks will be formed in the future, and the development of cross-chain smart contracts will be required for various use cases.
In particular, the importance of cross-chain smart contracts is expected to increase in payments using digital currencies, such as CBDC*, which has been the subject of much debate in recent years.
To address this issue, Datachain has developed the Cross Framework, a framework that enables application developers to easily develop cross-chain smart contracts without relying on the intervention of a specific centralized system. The Cross Framework is a framework that enables application developers to develop cross-chain smart contracts without relying on intermediaries easily.
Cross Framework is now available as OSS. : https://github.com/datachainlab/cross
*CBDC: Central Bank Digital Currency (CBDC)
Key Features of Cross Framework
Mutual state verification between multiple blockchains is possible.
It supports a protocol (Cosmos ICS) for data sharing between blockchains after verifying the state between different blockchains, thus enabling interconnection without relying on a specific centralized system.
Cross-chain smart contract development made easy.
The ability to develop cross-chain smart contracts, including complex protocols such as cross-chain value transfer, allows a single blockchain to execute smart contracts on different blockchains.
Not only Fungible Token but also smart contracts related to various asset tokens and other various data can be executed between multiple blockchains in a secure and atomic manner.
Scalable to various blockchain/DLT platforms
Based on Cosmos ICS, it is compatible with a wide range of blockchains and DLTs such as Hyperledger Fabric®, Corda®, Quorum®, Tendermint®, etc., and can be extended to meet future use cases and needs. *Partially under development.
These features make it possible to easily implement cross-chain smart contracts in use cases where multiple blockchain networks are required for a single service, such as DvP settlement between digital assets such as security tokens and bills of lading and cryptocurrencies such as CBDCs, or automatic execution of insurance benefit claims and payments based on access to death information.
In addition, even when the ledger is distributed by data disclosure range to protect privacy, only some of the data required for transaction execution can be linked to the destination blockchain for processing.
Future Initiatives
Datachain will continue its research and development around the Cross Framework to enable application developers to easily build services that combine multiple blockchains without losing the characteristics of blockchains. By releasing the Cross Framework as an OSS technology, Datachain will strive to solve issues related to the development of interconnected / cross-chain smart contracts and contribute to the advancement of the social implementation of blockchain as a whole.