Cross-Chain Digital Asset System for Secure Trading and Payment

Abstract

Blockchain as a ledger technology is attractive without the need for central servers. There are many types of blockchains in different fields, such as digital asset trading and payment, which have business interactions. In the fields, the digital asset and payment information on their blockchains need to be securely cooperative with each other. However, some business activities are on different blockchains, which have different consensus algorithms and network architectures, thus limiting the interoperability among these activities and making each blockchain an island. Cross-chain technology can connect different blockchains and realize the interoperability and sharing of information among them. This work designs a cross-chain digital asset system for secure trading and payment. It builds two parallel chains, i.e., digital asset chain (DAC) and payment chain (PC), and their functions are analyzed and designed. The cross-chain, i.e., relay chain (RC), is used to realize cross-chain interoperability, where the cross-chain message format and authority setting are designed to endow parallel chains with the ability to recognize. The decentralized characteristic of the RC allows cross-chain messages to be safely transmitted to ensure secure trading and payment. Through testing and analysis, the proposed system can provide more secure trading and payment than its peers.