Cross-chain Protocols and Plasma HyperLoop
For a long time, blockchains remained siloed. Each chain was a standalone proposition, with no means to travel between them. For instance, if you hodled Bitcoin you couldn’t access Ethereum’s dApps — not until you exchanged your BTC for ETH.
This is still an issue of course, although there are signs that the environment is changing. As a prime example, you can now exchange BTC for Wrapped Bitcoin (wBTC), which is an Ethereum-based version of the coin. This has become an increasingly popular choice, with the market cap of wBTC now sitting at a massive $1.4 billion. To give you an idea of how quickly the market is growing, when the coin first passed the billion milestone a few weeks ago it marked astonishing 900% growth in just two months.
The sudden popularity of cross-chain functionality is largely due to the astonishing growth in DeFi this year, which is attracting greater numbers of users to the Ethereum network. That inward migration of people has not been without problems however, as the blockchain struggles to handle the strain. Gas prices are up, and transaction speeds are down. DeFi has increasingly become a victim of its own success. The solution may once again be found in cross-chain technology.
PlasmaPay’s HyperLoop Bridge Protocol
PlasmaPay is built upon its own unique technology stack including its own proprietary, superfast blockchain: PlasmaDLT. PlasmaDLT is capable of 50,000 TPS and operates with a zero fee model, so it performs at lightning fast pace without users needing to worry about the costs. That’s great for PPAY and the 42 stablecoins that PlasmaDLT supports, but thanks to HyperLoop it’s good news for a whole host of other reasons too.
That’s because PlasmaPay’s bridge protocol, HyperLoop, allows PlasmaPay to represent assets of other chains on PlasmaDLT. This is key because PlasmaPay’s vision is to bring DeFi to the masses. For that to happen DeFi must reach its full potential, and to do so it simply cannot rely on a single solitary blockchain. The limitations of banks and banking is what created the intense demand and need for defi. Now the limitations of Ethereum will hasten the adoption of cross-chain technology including HyperLoop. PlasmaPay intends to play its role in strengthening the sector by delivering the HyperLoop bridge protocol as a gateway to PlasmaDLT, taking the strain from overworked networks. In this way more people can enjoy a superior DeFi experience.
How It Works (Technical Description)
In this example we shall look at how tokens from Ethereum network can be represented on PlasmaDLT with the help of the HyperLoop protocol.
Step one:
The tokens begin on the Ethereum chain. There is a Warp Field contract on both networks to block ERC-20 and Plasma tokens, and to obtain user account information for the target chain. This information is configured to use the account name.
Step two:
The Oracle Teleport network interacts through a fathom smart contract on Ethereum to authorize tokens, price parameters and events. The Replicant smart-contract in the Plasma chain receives events from the Phaton Smart-Contract through a distributed network of oracle Teleports for token replication.
Step three:
The ERC-20 token gets locked into the Warp Field smart-contract of the Ethereum contract. The Faton smart-contract creates an event for the TeleportOracle network, and it, in turn, transmits the event to the Replicant smart-contract on the Plasma chain.
Step four:
Plasma distributes the replicated ERC-20 tokens to the Plasma account. To return the Replicated token to its original state in the Ethereum network, it is required to send an event to the Faton smart-contract on the burning of the replicant ERC-20 token on the Plasma chain, the Faton smart-contract will transfer events to the state of the Teleport Oracle network and authorization of the account to exit the token from the warp contract in the Ethereum network.
Oracle Teleporters
These function in several states in the Plasma chain with simplified state checking and fragmentation networks such as Chainlink and Binance-SmartChain.
Warp field smart-contract
1. Locks the state of tokens and allows tokens to move in both directions using two-way binding.
2. Can create public keys in any chain with the same private key.
3. Can be used to authenticate Ethereum transactions using Plasma or vice versa.
Faton smart-contract
Monitors the state of the warp and signals teleportation events with consensus authorization and virtual prices.
Replicant smart contract
Replicates tokens in both networks, provided that the original asset is blocked in the original chain in warp contracts.
When
We plan to roll it out to the mainnet in early Q2 2021, and from here we plan to add HyperLoop cross-chain support for several different projects, including Binance SmartChain, Polkadot and Cosmos.
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