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CrossDeFi: A Novel Cross-Chain Communication Protocol

Author

Listed:
  • Shezon Saleem Mohammed Abdul

    (School of Business, University of Southern Queensland, Toowoomba, QLD 4350, Australia)

  • Anup Shrestha

    (School of Business, University of Southern Queensland, Toowoomba, QLD 4350, Australia)

  • Jianming Yong

    (School of Business, University of Southern Queensland, Toowoomba, QLD 4350, Australia)

Abstract

Decentralized finance (DeFi) is rapidly evolving, promising to revolutionize financial services through blockchain technology. Successful integration of asset transfers across diverse DeFi platforms hinges on effective interoperability and transaction finality, ensuring security and cost efficiency. This paper introduces CrossDeFi, a novel cross-chain communication protocol tailored to address the challenges posed by heterogeneity in consensus mechanisms, smart contracts, and token systems. CrossDeFi introduces two key mechanisms: Miner and bridge selection (MBS) and improved transfer confirmation (ITC). The MBS mechanism optimizes the selection of miners and bridges based on the unique characteristics of each blockchain, significantly improving transfer accuracy, cost efficiency, and speed. Meanwhile, the ITC mechanism leverages cryptographic primitives to secure asset transfer confirmations, ensuring robust transaction finality. The protocol’s effectiveness is demonstrated through detailed efficiency and security analyses, complemented by a prototype evaluation that showcases its capabilities in reducing transfer durations and costs. These findings underscore the potential of CrossDeFi to transform the DeFi ecosystem.

Suggested Citation

  • Shezon Saleem Mohammed Abdul & Anup Shrestha & Jianming Yong, 2024. "CrossDeFi: A Novel Cross-Chain Communication Protocol," Future Internet, MDPI, vol. 16(9), pages 1-33, August.
    • Handle: RePEc:gam:jftint:v:16:y:2024:i:9:p:314-:d:1466871
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    References listed on IDEAS

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    1. Vincent Gramlich & Tobias Guggenberger & Marc Principato & Benjamin Schellinger & Nils Urbach, 2023. "A multivocal literature review of decentralized finance: Current knowledge and future research avenues," Electronic Markets, Springer;IIM University of St. Gallen, vol. 33(1), pages 1-37, December.
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