LiquidBrinX: Frictionless Cross-Chain Data Transfer
Our Latest Code Example Displays a Smooth, Secure Way To Transfer Transaction Data In Between Chains
Exciting news: On Sept 5–6, the DAPP Network will come together to deploy a bridge to Ethereum. DSPs will work together during the weekend to create the code and set up the infrastructure that will allow for tokens to flow freely to Ethereum and back. Read more
Blockchain technology set out to transform key pieces of the financial infrastructure and enhance them with additional transparency, interoperability, and inclusivity. In practice, however, the blockchain-based value is fragmented amongst various mainnets, side-chains, and forks, each a walled garden. The lack of communication between incompatible networks places a ceiling on the growth of both individual networks and the ecosystem as a whole.
We are excited to share code showing how to transfer tokens securely in between chains using DSP Services and their cross-chain functionalities, breaking down the walls between isolated networks to allow data to flow freely between them. This example could serve a wide range of stakeholders, from DeFi dApps looking to pool liquidity and increase the fluidity of token exchange across multiple chains, to NFT creators and traders that wish to enable cross-chain collectibles. Furthermore, by combining vRAM, LiquidScheduler, and LiquidOracles, the architecture to allow for such transfers could potentially be extended beyond tokens to enable the transfer of rich data sets in between chains.
Happy Birthday Bob: A LiquidBrinX Illustration
Essentially, the LiquidBrinX allows users to move tokens in between chains through a set of smart contracts. This means that a single token can exist on multiple chains.
To illustrate the LiquidBrinX example, we’ll tell the story of our fictional friend Alice who wants to transfer EOS to her son Bob’s account, so that Bob can buy a WAX NFT for his birthday. Initially, Alice sent Bob 30 EOS to buy his present. But Bob is a good son and when his NFT of choice only came out to 25 EOS, he decided to send the change back to his mother instead of keeping it for himself.
Step 1: Alice sends Bob 30 EOS, and Bob receives 30 ‘pegged’ EOS on Wax.
Step 2: Bob buys his NFT present!
Step 3: Bob sends 5 “pegged” EOS back to Alice
How We Combined 3 DSP Services to Yield New, Powerful Utilities
As we mentioned earlier, the LiquidBrinX example utilizes several DAPP Network services under the hood to execute the token transfers between chains.
vRAM: The table which tracks the token balance of everyone involved in a token transfer channel is stored using the vRAM System. Thanks to the vRAM System’s cross-chain capabilities, these token balance tables can be transferred across chains just by sending a single hash for each table. This hash acts as both a proof of the data’s integrity, which ensures that the balances are tamper-proof and as a pointer that tells the DSP where to fetch that table from.
LiquidScheduler: LiquidScheduler is used to report on the number of tokens locked in the respective ‘vault’ contract on both chains at regular intervals. For everything to work without users needing to do anything except transfer tokens, the contract periodically receives new transfers and processes them by either releasing locked tokens or issuing new tokens.
LiquidOracles: LiquidOracles allow a contract on Chain A to read the reported amount of tokens locked up on Chain B and adjust its supply accordingly.
Expanding Beyond Tokens To Generic Data Transfers
The architecture of the LiquidBrinX could be generalized to allow for more than just token transfer. Cross-chain token transfers involve the DSPs passing a vRAM hash of the token balance table in between the relevant chains periodically. This mechanism essentially creates a shared memory between chains that allows for more general-purpose data transfer.
With the #DAPPNetwork, blockchains that were previously strangers can now talk to one another. Use the DAPP Network’s cross-chain capabilities to (Click to Tweet your favorite use-case!)
- Build automated market makers (AMMs) that operate trustlessly across multiple chains. (Click to Tweet Use-Case #1)
- Create chain-agnostic NFTs that can be utilized on multiple platforms (Click to Tweet Use-Case #2)
- Migrate to an alternative network seamlessly in times of congestion. (Click to Tweet Use-Case #3)
Having previously-incompatible networks frictionlessly exchange data with one another is essential to the future of blockchain. With the latest code example released, the DAPP Network has taken yet another giant leap in the direction of full interoperability.
Got an idea for implementing LiquidBrinX? Share them with the community on Telegram or Twitter, and don’t forget to use the #LiquidBrinX hashtag!
