Litepaper Release — v0.1
Orbit Chain: The Multi-Asset Blockchain System
Orbit ensures the safe and reliable transfer of blockchain assets, while securing scalability and security between blockchain and IBC by Delegated Proof-of-Stake Consensus.
Introduction
Orbit-Chain is a multi-asset blockchain that stores, transfers and verifies information and assets which exist on various public blockchains through decentralized Inter- Blockchain Communication (IBC). One of the biggest benefits of utilizing IBC of Orbit Chain is that it to allows isolated public chains to connect to each other’s public blockchain. Orbit Chain is operated by the Orbit consensus algorithm which is based on Byzantine Fault Tolerance (BFT) algorithm. Delegated Proof-of-Stake (DPoS) based consensus ensures fast block generation with instant finality and high transaction performance.
There are two common issues that public chains are currently facing: that (1) How to connect with other public blockchains, and (2) How to ensure scalability while maximizing its utility. To overcome these two problems, public chains are trying to develop their own sidechain to connect with other public chains. However, isolation issues arise due to lack of interoperability. With Orbit IBC as a hub chain of the public chains, almost all blockchains could be connected one to another.
Orbit solves the issues on the blockchain world
[ Interoperability ]
Data and assets on the blockchain usually are limited to their own chain resulting to limited access to data and assets on other blockchains. If some blockchain builds a centralized approach to handle those data and assets, security and verification issues may arise.
However, Orbit Chain had already built a fully working decentralized IBC protocol which runs with Staking based Validator governance, which is reliable and safe. All assets and data are verified and stored on the blockchain and all those processes are transparently open to everyone.
[ Scalability ]
Proof of Work (PoW) based Blockchains usually have issues on scalability, speed and expensive fees.
However, Orbit Chain is working with Staking- based BFT consensus by Validator groups which will provide much more scalable and reliable IBC. All the information including assets and data from public chains are rapidly moved to Orbit Chain. Orbit will support parallel connectivity between Orbit Chain and Public Chains to provide faster transaction speed.
[ Usability ]
Existing blockchains support only one native coin., Additionally, developing and commercializing Dapp services on several blockchains are difficult and are tedious processes. The developer of the Dapp services has to develop for each blockchain for this purpose which consumes a large number of resources and leads to poor and unreliable management.
Orbit as a multi-asset blockchain enables Dapp developers to connect with public chains through the Orbit SDK and develop using on existing and familiar REST, and WebSocket system APIs, which reduces unnecessary resource consumption and helps developers focuses on their Dapp services to develop high-quality services.
Orbit BFT Consensus
The idea of implementing a Byzantine Fault Tolerance (BFT) consensus came from the challenges we faced while building blockchain solutions for banks. We chose Ethereum as the baseline protocol mostly because of its smart contract capability. However, the built-in consensus, proof of work or Ethash, is not the ideal choice when settlement finality and minimum latency is required.
Orbit’s consensus algorithm was designed based on the Practical Byzantine Fault Tolerance (PBFT) algorithm. The logic behind our high performance and instant finality is to support the connection of many assets and usability Dapp services utilizing the Orbit chain. We operate Ethereum-based blockchains that support Ethereum Smart Contract. Ethereum has been used as a platform for a long time to build decentralized applications (DApps) through the stability of Ethereum smart contract. Additionally, Ethereum 2.0 technologies such as Plasma, Casper, and Sharding are constantly being updated to create a fully decentralized and permissionless platform. Orbit chain is operated as a DPoS consensus blockchain based on the Orbit BFT (OBFT) consensus algorithm which improves the existing Ethereum PoW consensus issue.
The Orbit BFT algorithm is a 3-phase consensus algorithm that consists of PRE-PREPARE, PREPARE, and COMMIT. It confirms immediately after block generation by eliminating the issues caused by the generation of multiple blocks at the same height occurring in existing Ethereum, Bitcoin, and EOS. Therefore, the instant finality is expected to be very supportable in a blockchain where many financial transactions occur.
Block generation consensus by a selected few representatives of staking based PoS improves transaction performance limited to 10–30 per second in previous Ethereum to enable fast block generation and high transaction throughput.
Orbit Chain Network Architecture
Orbit Chain ( Hub chain )
- All Public blockchains will be connected to Orbit Chain through the IBC zone to share information, data and asset using a standard format. Orbit Chain will work as the hub chain to gather all the information, data, and assets from all different public blockchains. Dapps can easily utilize with smart contracts for their utility.
- Orbit Chain will also support simultaneous communication for multiple public blockchains.
Orbit Inter Blockchain Communication zone ( IBC zone )
- Orbit Chain and Public Chain will communicate through a decentralized Inter-Blockchain Communication (IBC) Zone. The IBC Zone will verify information and data from each public blockchain. Those verifications will be processed on the blockchain so it is safer, more reliable and will operate with decentralized communication which doesn’t require centralized operating and validating process.
Network components
- Block proposer
- Verifies, and consents to generate block on Orbit Chain
2. Validator
- Verifies and audits both of Orbit Chain and Public Chain. Also responsible for verification of Inter-block communication process
3. Operator
- Operates Inter-block Communication to relay messages between public chains . Everyone could participate in as an operator.
4. Fishermen
- Monitors the operation of validators and operators through a periodical check or bad signal.
Orbit Inter -Blockchain Communication with other blockchains
Lack of communication made it hard to exchange and transfer the value of assets between chains, leaving their economy isolated. It has been a common practice to mint assets such as USD and BTC in a chain through fixed value in a centralized method using the FIAT Gateway method, and utilize them in a chain. This method is based on the trust of the centralized subject. There are questions about the uncertainty due to lack of information and the security of the assets. To resolve these issues, many protocols have emerged for communication between unconnected blockchains through decentralization of the communication.
Orbit IBC protocol enables a decentralized 2-way pegging based on existing lightning network (micropayment for bitcoin) and Plasma (scalability solution for Ethereum 2.0) for public chain scalability and communication.
The method presented as Plasma Cash is a single plasma operator method but there are two problems with this approach.
- The Plasma operator can withhold a single block, forcing all users to exit the chain before they can spend their coins
- The Plasma operator can censor and order transactions
Due to these two problems, Plasma operators are in need of higher dependence on trust. This leads to show most of the problems present in a centralized exchange.
The Orbit IBC protocol solves the problems concentrated on one operator by implementing IBC with the DPoS- based validation.
Bonding Deposit
- To participate as validator requires registration and deposit/staking of a certain amount of tokens.
- Validator activity requires proof of staked assets procedure
Inter Blockchain Communication Design
STEP 1: Propose Orbit Chain block
STEP 2: Make merkle object block
STEP 3: Validate object block
STEP 4: Synchronize object block to public chain
Inter- Blockchain Communication(IBC) Implementation
Operator
- Listen to orbit chain and public chain
- Manage Relay Deposit / Relay Withdraw
- Sending Deposit information to orbit chain
- Sending Withdraw transaction to public chain
- Anyone who is connected to network could be operator.
Validator
- Listen to orbit chain and public chain
- Verify information from public and orbit chain
- Signing deposit and withdraw information
- N = 3F + 1 ( N: total validator number , F: Bad validator number )
- Constantly increase validators to enhance network security.
- Staked asset will determine the scale of verification.
- Rewards are given for diligent and successful verification on their duty.
- Malicious actions will cause penalty on staked token by governance agreement.
Fishermen
- Checks and monitors the operation of validators and operators through periodic check or bad signals.
- Get rewards by disclose validator’s misconduct / malicious action
Inter- Bblockchain Communication (IBC) process
Implementation and process of IBC are vary by structure of Public blockchain but commonly design with below rules.
- Fixed asset on mainnet cannot be transferred or changed by a single validator
- Asset deposit will be verified in parallel by validators under consensus of Orbit Chain
- Asset withdrawal will be managed by smart contracts on Orbit Chain, which will be verified by Validators simultaneously.
- All communication and settlement between Validators will be on smart contract. There is no off-chain communication and consent.
Blockchain system will be classified by following system/structure. Blockchain system built with these common conditions / specifications.
- UTXO-based blockchain ( BTC, BCH .. )
- Implement via multiple-signature wallet
- Balance-based blockchain ( ETH, EOS .. )
- Implement via smart contract
- Ledger-based blockchain ( XRP )
- Implement via multiple-signature wallet
Orbit SDK
Definition of service system layer for blockchain (fig. Blockchain based service layer) shows that there is some limitations in providing commercialized service on blockchain.
Limitations of Single Layer Block Chain Services
- Synchronizing data on legacy centralized database with blockchain database
- Slow and limited throughput of blockchain client
- Limited blockchain query
- Limited interoperability between various blockchain and centralized service
Orbit Chain will provide Orbit SDK to commercialize blockchain based service through following system layer after many trials and bug fix by ourselves.
- Service layers that considered for direct service and user experience
- Provide REST, SOCKET which will support easy, stable and reliable connectivity between centralized legacy services and decentralized blockchain based service.
- Unified API to connect all blockchain by Orbit SDK
- System that can provide centralized experience without harm to decentralized governance/system
- JSON RPC wrapper layer
- Provide lower level standard communication protocol to communicate with various public chains such as Bitcoin, Ethereum and other chains and support extension and interoperability.
- Sync module : distributed ledger to RDB
- Instance syncing multi-database system
Use cases
1. Side-chain for Public chains
Orbit Chain is a hub chain of every public chain which is not dependent for a specific public chain. So it means that with Orbit Chain, public chains could be connected to each other to solve the isolation issue and get flexibility and interoperability.
One of the key benefits of using Orbit Chain is that it is able to provide borderless multi-chain asset cross transaction without developing a direct communication channel.
Orbit Chain is already supporting cross transaction between BTC, ETH, XRP and will connect Stable coin based blockchain soon. It will give Dapps for more possibilities, utility and even more user pool from the various environment.
2. Benefits of Interoperability
Most public chains have their own DEX protocol, or they run a DEX in which their own token is playing a trading pair role but, they have some difficulties in the following:
1) Exchanging Dapp tokens with other major coins/tokens other than their native token,
(Dapp Token -> Main Chain Coin -> Centralization Exchange Transfers -> Other Coins / Tokens Exchange)
2) Securing liquidity and users that is the most important feature of cryptocurrency exchange, and
3) Developing 2-way pegging system between different chains. There always has been a demand of an intercommunication system but it is difficult to satisfy the demand because the commercialized cases are rare and it requires high development resources for building the system.
Those problems can be easily, quickly, and efficiently solved by Orbit Chain, which has demonstrated the high-level technology by operating and commercializing the pegging/interworking system for a year.
In the future, Orbit chain will become more diverse by adding more liquidity supply, enabling stable exchange of tokens and allow cross-flow of cross-chain users through linking and interoperability.
3. DEX protocol, Defi protocol
Existing decentralized exchanges are built on the basis of a smart contract in the public chain, and most of them provide decentralized trading services through sharing orders off-chain and instant simple exchange, in order to overcome several challenges such as high latency and transaction costs. In addition, all DEXs are subordinated to a specific chain, causing low liquidity and limitation in a few types of coins they can handle.
On the basis of rapid block production and high completion of the chain, Orbit’s DEX system take the advantages of centralized exchanges to on-chain. The advantages include the fast transaction speed, trading with other chains’ coins, and quick deposit/withdrawal process. Unlike centralized exchange liquidity, the shared pool in the on-chain is shared by several exchanges to ensure scalability.
By utilizing the Orbit IBC, the assets in the public chain can be moved quickly to Orbit- Chain, which can be used as a DEX channel for decentralized transactions.
The Orbit DEX system is designed to be used as the most basic module for Dapps such as DeFi, payment, and non-fungible token exchanges, since all transaction records and functions are implemented as on-chain smart contracts. At the same time, Dapps can take advantage of the existing high fluidity into their Dapp service or chain.
Vision of Orbit Chain
Orbit Chain is a hub chain which provides the transaction channel of all public chains developed to solve the isolation and limited scalability of existing public chains. Disconnections between chains isolate them and hinder development. Orbit Chain will continue to connect with all public chains and provide connectivity and scalability to the connected public chain. It will form a shared pool of various services to overcome the low liquidity problem of decentralized services.
