Proposal of Decentralized P2P Service Model for Transfer between Blockchain-Based Heterogeneous Cryptocurrencies and CBDCs

Abstract

This paper proposes a solution to the transfer problem between blockchain-based heterogeneous cryptocurrencies and CBDCs, with research derived from an analysis of the existing literature. Interoperability between heterogeneous blockchains has been an obstacle to service diversity and user convenience. Many types of cryptocurrencies are currently trading on the market, and many countries are researching and testing central bank digital currencies (CBDCs). In this paper, existing interoperability studies and solutions between heterogeneous blockchains and differences from the proposed service model are described. To enhance digital financial services and improve user convenience, transfer between heterogeneous cryptocurrencies, transfer between heterogeneous CBDCs, and transfer between cryptocurrency and CBDC should be required. This paper proposes an interoperable architecture between heterogeneous blockchains, and a decentralized peer-to-peer (P2P) service model based on the interoperable architecture for transferring between blockchain-based heterogeneous cryptocurrencies and CBDCs. Security threats to the proposed service model are identified and security requirements to prevent the identified security threats are specified. The mentioned security threats and security requirements should be considered when implementing the proposed service model.

InterMat: A Blockchain-Based Materials Data Discovery and Sharing Infrastructure

“…If traditional databases implement unilateral maintenance of data, blockchain implements multi-party maintenance of the same data to ensure data security and business fairness. For this reason, although blockchain was initially used in digital currencies [11][12][13], its decentralization and traceability make it an effective solution for sharing data across different organizations [14][15][16][17][18][19].…”

Managing Cybersecurity Threats and Increasing Organizational Resilience

“…In [10], a solution is provided for the transfer between blockchain-based heterogeneous cryptocurrencies and central bank digital currencies (CBDCs). The researchers focus on and draw from existing interoperability studies and solutions.…”