Design Strategy

Design principles to achieve security and confirmation speed

1. Architecture

Smart Contracts: Deploy a set of smart contracts on each blockchain network that manage private liquidity pools. These contracts will handle deposits, withdrawals, and transfers between chains.

Decentralized Replay Network or Oracle: Use off-chain relayers to facilitate cross-chain communication. These relayers will monitor transactions on one chain and trigger corresponding actions on another chain.

Security Module: Implement a robust security module for authentication, authorization, and validation of cross-chain transactions.

2. Private Pool Management

Creation and Mapping:

• When a user wants to use the bridge, create a private pool (a unique smart contract instance) for their wallet.

• Maintain a mapping of user wallet addresses to their respective private pools.

• Allow multiple wallets or owners have access to their shared private pool.

Deposit Mechanism:

• Users deposit funds into their private pool smart contract on the source chain.

• The smart contract locks the funds and emits an event.

Cross-Chain Transfer:

• Off-chain relayers detect the deposit event, verify it, and initiate a corresponding transaction on the destination chain.

• A private pool smart contract on the destination chain is funded with the equivalent amount. The fund can be deposited from other private pools or from public pools via fulfilling the buy order.

Withdrawal Mechanism:

• Owners can withdraw funds from their private pool on the destination chain, which triggers a withdraw event.

• Off-chain relayers detect the withdrawal and unlock the corresponding amount on the source chain's private pool.

3. Security Enhancements

Multi-Signature Verification:

• Use multi-signature or threshold signatures to authorize cross-chain transactions.

• This adds an extra layer of security, ensuring that a single compromised key cannot authorize malicious transactions.

Rate Limiting and Alerts:

• Implement rate limiting to prevent rapid, large withdrawals that could indicate a security breach.

• Set up alerts for suspicious activities, such as multiple failed transaction attempts or abnormal withdrawal patterns.

Audits and Testing:

• Regularly audit the smart contracts and off-chain components to identify and fix vulnerabilities.

• Conduct thorough testing in different scenarios to ensure the robustness of the system.

4. User Experience

Simplified Interface:

• Provide a user-friendly interface where users can manage their personal pools, track transactions, and perform cross-chain operations with ease.

Support and Documentation:

• Offer detailed documentation and customer support to help users understand and effectively use the bridge.