Cross-chain Transaction Validation using Lock-and-Key Method for Multi-System Blockchain

Abstract

Blockchains have profoundly impacted finance and administration, but there are several issues with the current blockchain platforms, including a lack of system interoperability. Currently used blockchain application platforms only work within their networks. Although the underlying concept of all blockchain networks is mainly similar, it involves centralised third-party mediators to transact from other blockchain networks. The current third-party intermediates establish security and trust by keeping track of “account balances” and attesting to the validity of transactions in a centralised ledger. The lack of sufficient inter-blockchain connectivity hinders the mainstream adoption of blockchain. Blockchain technology may be a solid solution for many systems if it grows and works with other systems. For the multi-system blockchain concept to materialise, a mechanism that would connect and communicate with the blockchain systems of various entities in a distributed manner (without any intermediary) while maintaining the property of trust and integrity established by individual blockchains is required. Several methods for verifying cross-chain transactions have been explored in this paper among various blockchains. The efficient verification of cross-chain transactions faces many difficulties, and current research has yet to scratch the surface. In addition to summarising and categorising these strategies, the report also suggests a novel mechanism that gets beyond the existing drawbacks.