CrossDeFi: A Novel Cross-Chain Communication Protocol

Shezon Saleem Mohammed Abdul (), Anup Shrestha and Jianming Yong
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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

Future Internet, 2024, vol. 16, issue 9, 1-33

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.

Keywords: DeFi (decentralized finance); cross-chain asset transfer; blockchain interoperability; finality guarantee in the blockchain; smart contract security; CrossDeFi protocol (search for similar items in EconPapers)
JEL-codes: O3 (search for similar items in EconPapers)
Date: 2024
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