Datachain and NTT DATA Successfully Verified a Bridge Between Ethereum and Hyperledger Fabric using Cosmos IBC
Datachain, with the cooperation of NTT DATA, successfully demonstrated that DVP settlement between digital currency on Ethereum and digital assets on Hyperledger Fabric using Cosmos IBC is possible.
We chose Ethereum and Hyperledger Fabric as blockchain platforms and Cosmos IBC as a communication protocol between the two blockchains to examine the feasibility of commercialization.
To promote commercialization, we will continue to improve our solutions related to Cosmos IBC, such as YUI, a Hyperledger Lab, and Cross Framework. Also, we believe that Cosmos IBC is useful in the enterprise space as well; we will continue to explore the enterprise use-cases using Cosmos IBC to achieve interoperability.
Background
There has been a rapid acceleration in the commercialization of blockchain in the enterprise domain. Various digital assets such as electronic bills of lading (B/Ls), which are used in international trade, and digital securities, which are used to digitize stocks and real estate, are now traded on the blockchain.
In addition, there has been an increase in movements around digital currencies, such as Central Bank Digital Currencies (CBDC), which are being introduced in Cambodia and China, and privately issued stable coins such as USD Coin (USDC) and Diem.
This has led to a growing demand for digital asset payments in digital currencies. In other words, it is increasingly necessary to transfer digital assets and digital currencies simultaneously.
In order to realize simultaneous transfer between different blockchains, it is required to interconnect two different blockchains (achieve interoperability) and execute transactions on both platforms simultaneously.
To address these challenges, Datachain conducted a demonstration experiment with the cooperation of NTT DATA to achieve interoperability between Ethereum and Hyperledger Fabric.
Summary of The Experiment
To start the experiment, Datachain chose digital assets on the Hyperledger Fabric and digital currencies on Ethereum (ERC 20 tokens such as USDC) to transfer value through DVP settlement.
Datachain also uses YUI, a Hyperledger Lab that was initially contributed by Datachain, to interconnect Hyperledger Fabric and Ethereum for interoperability using IBC. In addition, we selected Cross Framework to execute transactions on both blockchains simultaneously.
As a result, Datachain successfully confirmed that two assets can be exchanged simultaneously by DVP settlement between digital assets on services built with Hyperledger Fabric and digital currencies on Ethereum using IBC.
Based on the results, Datachain provided interoperability technology for a new trade settlement experiment jointly conducted by Tokio Marine & Nichido Fire Insurance, STANDAGE, TradeWaltz and NTT DATA Corporation.
Reference: Demonstration Experiment for the Realization of a New Trade Settlement System (January 12, 2022)
Technical Achievements
(1) Using IBC to achieve interoperability between Hyperledger Fabric and Ethereum
Datachain confirmed it is possible to achieve interoperability between Hyperledger Fabric and Ethereum using IBC. The module to connect the two blockchains using IBC (IBC Module) is currently available on OSS as YUI, a Hyperledger Lab.
We used the multisig method for verifying blockchain. As for verification methods, it will continue to develop more efficient and trustless methods.
(2) Simultaneous execution of transactions on multiple blockchains with Cross Framework
By interoperating both blockchains and using the Cross Framework, Datachain successfully executed transactions on two different blockchains simultaneously.
*Cross Framework is a framework developed by Datachain that enables cross-chain transactions. It is also available on OSS. The use case of DVP settlements using Cross Framework is patented in Japan (Patent №6982345).
Future Initiatives
Based on this experiment, Datachain will continue to work with NTT DATA to commercialize the technology, including verification with operators.
We believe that Cosmos IBC is useful in the enterprise space as well, so we are welcome to have a conversation with anyone interested in Cosmos IBC in the enterprise use-cases.
If you are interested in using Cosmos IBC in the enterprise space, please get in touch with us from the link below.
