BeWater 7th Closed-door Meeting | Cross-Chain Technology
BeWater hosted an in-depth communication at Beijing, 19:30 on September 15th.
Cross-chain Background Introduction:
After Avalanche’s “mining tide”, Solana once again set off chain users’ enthusiasm for DeFi high-yield, and mint/purchase NFTs. At the same time, Rarity, AC built on Fantom, also inherited Loot’s spirit and carried on the combination of on-chain games and NFT. The innovation of the new generation of public chains is gradually catching up with Ethereum.
However, these public chains are bound to face a big problem:
How to transfer “assets” from other public chains to self?
Users are chasing different public chains and the spirit of the times they represent, and public chains rely on different bridge solutions to chase a variety of assets on the chain, including stable coins, wrapped native tokens, and even various types of NFT. We have seen lots of thoughts and solutions in the cross-chain field: centralized exchanges, asset bridges maintained by centralized validators, multi-party validator solutions based on trusted computing, and even the construction of a new public chain to ensure security of bridge solutions.
This time we will discuss two related topics:
-The choice of different cross-chain solutions (Near rainbow bridge, Avalanche bridge, Solana wormhole, etc.), the (non-)necessity of decentralization, the trade-off of security and performance
-Putting aside “assets”, do we expect a general-purpose cross-chain technology?
Cross-chain ecosystem overview: (PPT shared by Junjia He)
What does cross-chain cross?
The current cross-chain solution is mainly asset cross-chain, and there may be more other data that can cross-chain in the future.
Types of bridges:
Questions and goals in cross-chain design:
- Asset cross-chain is better than Message cross-chain. The reason is that asset cross-chain can quantify the risk so that the risk can be handled through mechanisms such as mortgage (prepayment).
- In general, cross-chain bridges should be divided into trusted cross-chain bridges and trustless cross-chain bridges. The difference lies in whether there is a middleman OCP. Trusted bridges include trust without collateral, trust with collateral (with Slash), trust with collateral and compensation for users, etc. All trustless bridges are now much more expensive than trusted bridges. The trustless bridge can be realized by implementing a complete on-chain light client of the original chain in the target chain.
- The financial transactions of all products are the exchange of certain rights and interests, thus assets cross-chain is greatly significant.
- Currently, the most practical and cheapest one is Avalanche’s cross-chain solution.
- If you start to design a new chain, the easiest way is to choose a framework that supports IBC, such as Substrate; in addition, the light on-chain clients are necessary for the current new chain.
- TEE is a solution that can be used in cross-chain, although crypto native are not optimistic.
- How Relayer’s Incentive becomes a decentralized incentive is a problem that needs to be solved.
- The current design of the multi-chain Hub is very light, but in fact, the Hub can be designed as a large public chain of Defi.
- Applications should be built on a dedicated application chain, just as we would not choose to build a factory in Las Vegas.
- But the application chain must be built on a cross-chain bridge to closely connect with Defi.
- Web3.0 is not equivalent to Defi, and there should be more application possibilities.
- Necessity of cross-chain: The current public chain is just a small channel. Defi hits a big wave, and it can be diverted to different small channels once the chains are connected.
- The multi-chain assets issuer should consider symbolic issues, such as BTC on ETH should also be called BTC on another chain.