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Ethereum-based DEx.top has successfully implemented cross-chain transactions through the Open Federated Gateway Protocol, becoming the first decentralized exchange to achieve cross-chain trading. DEx.top now supports bitcoin Cash (BCH), with plans to add support for more cross-chain trading pairs such as BTC and EOS in the future.
What’s the Open Federated Gateway Protocol?
Jointly developed by DEx.top and iBitcome, the Open Federated Gateway Protocol (OFGP) is a fully open-source protocol that enables cross-chain transactions.
Open refers to the protocol being open-source: any individual can develop their own gateway.
Federated refers to the nature of the Braft consensus algorithm used in OFGP. In a network with 3f+1 nodes, specified addresses that manage token escrow and sidechain issuance are multisig addresses that require the approval (i.e.: signature) of >2/3 of the nodes before undertaking certain actions.
Gateway refers to the protocol enabling assets to be transferred across blockchains.
A fuller technical explanation of OFGP may be found in the.
Tackling The Weak Link
The lack of cross-chain trading pairs on decentralized exchanges is one of their most critical disadvantages when compared to centralized exchanges. OFGP tackles this weak link by enabling fully transparent escrows, allowing DEx.top to theoretically support any asset from any blockchain. Each gateway developed using OFGP is maintained by three roles: signers, watchers, and key store services.
The transaction below illustrates the responsibilities of each role:
- A group of Signers control multi-signature addresses or smart contracts on a pair of blockchains, such as Ethereum and bitcoin Cash. These addresses and contracts can be tracked on blockchain explorers.
- Alice deposits 5 BCH into an escrow address on the bitcoin Cash blockchain.
- Watchers detect Alice’s transaction and alert the signers.
- 5 WBCH (“wrapped” BCH) is issued on the Ethereum blockchain by the signers to an address designated by Alice.
- Key Store Services help signers store their private keys safely. OFGP provides heterogenous key store services, such as software and hardware solutions.
Multiple Layers of Security
As with any escrow mechanism, security measures are often a user’s top concern. OFGP employs multiple layers of security to ensure the safety of users’ assets: firstly, all escrow addresses and contracts require signatures from multiple nodes to move their funds, preventing any single node from stealing any assets held in escrow. Key store services also provide an additional layer of security.
Furthermore, OFGP is an open-source protocol that anybody can use to create their own gateway. Users are free to “vote with their feet” and use their preferred gateway for cross-chain transactions, incentivizing honest behavior and faster, lower-cost services.
Mallow – The First OFGP Gateway
DEx.top will be using an implementation of OFGP named Mallow, which is supported by several notable partners including leading mining pools BTC.COM and Antpool. Named for a protagonist from Isaac Asimov’s Foundation series, Mallow is also the first gateway to be developed using the Open Federated Gateway Protocol.
Launching Cross-Chain Liquidity
With Mallow, DEx.top is the first decentralized exchange to successfully support cross-chain liquidity. BCH will be the first asset supported in the form of WBCH (“wrapped” BCH), an ERC20 token that enables seamless value transfer between bitcoin Cash and the Ethereum network. Mallow is also fully extensible to other blockchain protocols such as EOS and BTC. Already, several EOS sidechain developers are building DApps using OFGP that will also be accessible to BTC and BCH users.
Interoperability is a major focus area for blockchain research today. To unlock the next wave of blockchain’s potential applications, or perhaps even the next, cracking the cross-chain puzzle is an absolute necessity. DEx.top is establishing itself as a technical leader by pioneering initiatives such as OFGP, partnering with wallets and DApp browsers such as iBitcome and Trust Wallet and more, in the pursuit of a robust and interconnected decentralized ecosystem.
About DEx.top
DEx.top is a leading Ethereum-based that utilizes the ROC (Replayed On Chain) trading mechanism, supporting off-chain orderbooks and on-chain settlement to ensure asset security and enable instant trading. DEx.top is committed to provide the most secure, efficient, and low-cost decentralized trading environment to customers of all levels.
Published at Sun, 28 Oct 2018 11:23:04 +0000
