Bitcoin earlier on had solved some of the problems of the reversibility of transactions and trust issues that plagued online commerce, however, new players in the arena are offering replacements for Bitcoin’s peer-to-peer payment solution. Some of these replacements put buyers and sellers at risk of having their financial interactions being controlled, data harvested, and monetized.
Other decentralized asset technologies have been developed parallel to Bitcoin, and out of it has grown an entire ecosystem of decentralized finance. Strides have been made in experimental and practical forms of decentralized finance and autonomous contractual governance.
Hybrix Proposed A System for Meta-level Transfers Across Multiple Distributed Ledgers Without Relying on Centralized Exchanges
Then comes Hybrix that proposed a system for meta-level transfers across multiple distributed ledgers without relying on centralized exchanges or decentralized atomic transaction compatibility. By design, the system is open and transparent. The process of moving value between ledger systems is not controlled by a centralized party, as transactions can be created and signed client-side and sent peer-to-peer among users.
Hybrix started with the usual framework of second-layer tokens specified by storing data attached to transactions, which provides a method of accounting on top of existing ledger systems, but is incomplete without a way to prevent double-spending.
Peer-to-peer Cross Systemic-ledger Network of Validators
To solve this, Hybrix proposed a peer-to-peer cross systemic-ledger network of validators of which said actors are incentivized to cryptographically verify the public history of second-layer transactions. Their work is rewarded by users in the network that need their ledger balance verified, and this simultaneously verifies ledger balances of users that are the source of the ledger state to be verified.
Impostor attacks on the protocol are mitigated by using the consensus mechanisms of the underlying ledger systems to thwart attempts at double-spending. Sybil attacks on the validator network are minimized by way of a service model on a necessity basis.
Apart from this, the user is autonomously able to verify the chain of transactions to ensure the authenticity of their token balance. Hybrix proposed a mechanism for creating new tokens without the need for a centralized index. This provides users the possibility to autonomously issue and mint second-layer electronic tokens. Network fees to issue new tokens make token squatting an expensive undertaking, in order to keep the second layer protocol free of spam.
To ensure the recovery from a 51% attack on anyone single chain, Hybrix proposed a recipe based protocol that enables a token issuer to update the possible chains on which a token can operate. Aside from this, snapshotting by validators enables network users to verify the current ledger and balances state, regardless of transaction history tainted by 51% attack damage.
Hybrix is a multi blockchain platform which leverages the strengths of every individual blockchain, Creating a Freedom of Transaction by letting the value of transaction flow freely across all different ledgers with the first cross-ledger token. Yet many of these solutions need specific implementations and compatibilities that not all ledger systems have on offer and thus are limited in scope. Hybrix solves the existing problem by denominating a common protocol that works on any ledger.
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