Tags:cross-chain communication, decentralized exchange and time-lock puzzle
Abstract:
Many proposals for token exchange mechanisms between multiple parties have centralization points. This prevents a completely trustless and secure exchange between those parties. The main issue lies in the fact that communications in projects using a blockchain are asynchronous: classical result asserts that in an asynchronous system a secure exchange of secrets is impossible, unless there is a trusted third party. In this paper, we propose our preliminary results in the creation of our Broadcast Time-Lock Exchange (BTLE) protocol. The core of BTLE is the introduction of synchronicity in communications through the use of time-lock puzzles. This makes it possible to exchange secrets between two parties while eliminating the need for a trusted third party.
Towards a Broadcast Time-Lock Based Token Exchange Protocol