What is it?
A way to move coins from slow blockchains to fast blockchains capable to be as fast to confirm a transaction as Visa or MasterCard. Or, at least move to a bloclchain able to confirm a transaction below 10 seconds. In other words, move your funds from a saving account to an operation account to buy things or to send to another account.
What does it do?
Actually, coins are limited to reside within the boundaries of a single blockchain. More than often, this blockchain is too slow to reasonably allow transactions to be performed with it. Take, for example, Bitcoin, its delays for transaction confirmation can be up to hours and even days. Imagine, for a moment, if coins like bitcoin could be freely moved to faster blockchains, not for speculation, but for real commercial transactions, and still be redeemable as Bitcoin again with its full value. All this without any recourse to an exchange and coin to coin variation. Is it possible without complex routines and magical incantations?
here is how we do it at Interblockchain
How does it work?
The first prototype runs in a centralized server. Then the final system is a network of processing servers. What distinguishes a network of processing server compared to a blockchain is that, in contrast to blockchains, only one server can execute a smart contract. So, on the one hand, a blockchain executes N times (N being equal to the number of servers) a smart contract to update its ledger. On the other hand, in a network of processing servers, only one can execute the smart contract. The smart contract executing server is elected by the system on two factors a) a trust index based on the number of times the server processed correctly the smart contracts, b) the amount of coins at stake the associated to the server. Moreover, each server is uniquely identified by a certificate delivered by a certified authority.
The script is published on the network by an event handler. It is identified by a hash and sent to the network for processing. Then the elected processing server sends the hash to the script emetter and the latter sends the key to open the script to be executed. A monitor check any transaction performed on the target blockchain contract and compare it to the entry recorded into the transaction blockchain. If equal, then no further action occurs. If there is any discrepencies or if the transaction is not performed on the right account within a certain period, then, the transaction is considered suspicious and the processing server discarted from the network.
Because it is very crucial that the process has to be as secure as possible, we will perform a rigourous test procedure and external audit.