A New Consensus Protocol for Blockchain Interoperability Architecture

Abstract

Blockchain is widely recognized as a potential disruptive technology that has gained much popularity recently. Despite many promising results, the current blockchain landscape is fragmented, in which many blockchain systems exist in silos. Interoperability becomes a critical functionality to facilitate broad blockchain adoption and starts to attract attention in both industry and academia research. In this paper, we propose a new consensus protocol, Multi-tokens Proof of Stake (MPoS), for blockchain interoperability architecture. The MPoS protocol is able to strengthen the token network effects in a cross-chain ecosystem and grow the user base of blockchain systems dramatically. We also provide an analytical model to analyze and proof that the MPoS protocol can offer better security compared to traditional single-token PoS consensus protocols.

Keywords: blockchain, interoperability, cross-chain, consensus protocol, Proof of Stake (PoS), tokens, cryptocurrency, token network effects, bootstrapping, security

JEL Classification: P40