A framework for efficient cross-chain token transfers in blockchain networks

Abstract

The proliferation of blockchain technology has resulted in diverse token standards, posing challenges for compatibility, security, and performance in existing cross-chain bridges. This paper introduces a novel framework capable of concurrently facilitating fungible token exchange, as well as the processing of both individual and batch non-fungible tokens (NFTs). We deploy token bridges that meet different token standards to support cross-chain staking and unlocking of ERC20, ERC721, and ERC1155. To minimize both waiting times and handling fees, we relocate processes necessitating frequent transactions and verifications to the sidechain. Additionally, we adopt a batch-processing approach for tokens necessitating cross-chain transfers, leveraging payment channels to facilitate efficiency. The system’s reliability is upheld through the validator group. Validators acquire an initial reputation value by making deposits and enhance both their rewards and reputation by successfully completing NFT auction tasks on the sidechain. We use OpenZeppelin’s security library functions to standardize token operations, and carefully design the validator’s reward, punishment, and reputation mechanisms. Our comprehensive contract security audit and system analysis validate our solution’s effectiveness in mitigating common vulnerabilities and internal threats. Implementation and testing with Ethereum and its test network demonstrate substantial reductions in transmission time for key cross-chain token steps by nearly half. Moreover, our framework showcases efficiency and cost-effectiveness with an average gas cost of 693,379.