One of the biggest pitfalls of the cryptocurrency has been the lack of liquidity across different blockchains. Mainstream centralized exchange platforms have lessened the blow of this problem, but are prone to multiple security issues. While this has driven the growth of decentralized exchanges such as DEx.top, but due to technical challenges, these have often been limited to trading assets issued on the blockchain on which the exchange is developed – until now.
DEx.top has successfully pioneered a method for implementing cross-chain transactions, demonstrating landmark innovation in the cryptocurrency space. This is conducted through a protocol known as the Open Federated Gateway Protocol, which was jointly developed by DEx.top and mobile wallet provider, iBitcome.
The Open Federated Gateway Protocol [OFGP] derives its name from being an open-source software that functions on the Braft Consensus Algorithm. It is also referred to as a gateway as it can transfer the ownership of digital assets across blockchains.
The support for OFGP on DEx.top was announced for Bitcoin Cash [BCH], with plans in the making for more cross-chain trading pairs such as Bitcoin [BTC] and EOS. The implementation essentially allows users to conduct seamless cross-chain transaction between the BCH and Ethereum [ETH] networks.
Moreover, the protocol can be adapted for use with any blockchain, thus making DEx.top the first exchange to potentially support trading between any assets from any blockchains.
The gateways in the protocol are maintained by three parties, namely signers, watchers, and Key Store Services. Signers are the parties who maintain the multi-sig addresses and/or smart contracts on the connected blockchains. Their activities can be tracked on blockchain explorers, offering an additional level of insurance to the process.
Watchers are parties who detect transactions and alert the signers, who then proceed to issue “wrapped tokens” on the paired blockchain. Due to the nature of the Braft Consensus Algorithm, the addresses that manage token escrow and sidechain issuance are multisig addresses that require the signature of two-thirds of the nodes involved before undertaking certain actions.
This is simply one of the multiple measures employed by the OFGP to ensure maximum security concerning the escrowed funds. The contracts require signatures from multiple nodes in order to move the funds contained within them, meaning that one node cannot steal assets held in escrow addresses. An additional layer of security is added using key store services that securely contain the keys of the multi-sig addresses.
Due to its nature as an open-source protocol, OFGP allows any user to create their own gateway. Other users can use their preferred gateway, thus incentivizing honest behavior and lower-cost services from better gateways.
The first gateway developed under the OFGP protocol is Mallow, and is supported by prominent mining pools such as BTC.com and Antpool. This effectively allows for cross-chain liquidity between the BCH and ETH chains by utilizing an ERC20 token known as Wrapped BCH [WBCH].
DEx.top is establishing itself as a technical leader by pioneering initiatives such as OFGP, partnering with wallets and DApp browsers such as iBitcome and Trust Wallet and more, in the pursuit for a robust and interconnected decentralized ecosystem.
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