Blockchain Interoperability: Towards a Sustainable Payment System

Debasis Mohanty, Divya Anand, Hani Moaiteq Aljahdali and Santos Gracia Villar
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Debasis Mohanty: School of Computer Science and Engineering, Lovely Professional University, Phagwara 144411, India
Divya Anand: School of Computer Science and Engineering, Lovely Professional University, Phagwara 144411, India
Hani Moaiteq Aljahdali: Faculty of Computing and Information Technology, King Abdulaziz University, Jeddah 37848, Saudi Arabia
Santos Gracia Villar: Higher Polytechnic School/Industrial Organization Engineering, Universidad Europea del Atlántico, Isabel Torres 21, 39011 Santander, Spain

Sustainability, 2022, vol. 14, issue 2, 1-20

Abstract: The highly fragmented blockchain and cryptocurrency ecosystem necessitates interoperability mechanisms as a requirement for blockchain-technology acceptance. The immediate implication of interchain interoperability is automatic swapping between cryptocurrencies. We performed a systematic review of the existing literature on Blockchain interoperability and atomic cross-chain transactions. We investigated different blockchain interoperability approaches, including industrial solutions, categorized them and identified the key mechanisms used, and list several example projects for each category. We focused on the atomic transactions between blockchain, a process also known as atomic swap. Furthermore, we studied recent implementations along with architectural approaches for atomic swap and deduced research issues and challenges in cross-chain interoperability and atomic swap. Atomic swap can instantly transfer tokens and significantly reduce the associated costs without using any centralized authority, and thus facilitates the development of a sustainable payment system for wider financial inclusion.

Keywords: blockchain; interoperability; atomic; swap; P2P; cryptocurrency; exchange (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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