Private Blockchain Decentralized External Gateway

Private Blockchain Decentralized External Gateway

Term Definition Private Blockchain A blockchain network that is accessible and accessible only to specific authorized users, providing increased security and privacy. Decentralized Gateway An intermediary system that allows external users to interact with a private blockchain without relying on a single point of control. Validators Nodes responsible for validating transactions, maintaining a copy of the ledger, and ensuring network consensus. Source Tokens Tokens from an external network (such as Bitcoin or Ethereum) that can be exchanged for root tokens. Root Token (R) Tokens pegged to the value of an external asset, stored on a private blockchain, and redeemable for leaf tokens. Leaf Token (L) Tokens derived from the root token that are used for day-to-day transactions within the private blockchain network. Ledger A distributed database that records the history of all transactions, maintained by all validating nodes. Consensus Mechanism An algorithm that ensures that all validating nodes agree on the order of transactions and the state of the ledger. PoET (Proof of Elapsed Time) A consensus mechanism that selects a leader to validate transactions based on a random draw based on the waiting time of nodes. Smart Contracts Programs stored and automatically executed on the blockchain that define and enforce rules such as token exchange, minting, and destruction.

Short Answer Questions

What are the main differences between private and public blockchains?

What role does a decentralized gateway play in a private blockchain system?

What is a validator? What are its responsibilities in a private blockchain?

Please explain the relationship between source tokens, root tokens, and leaf tokens.

What is the PoET consensus mechanism? How does it work to ensure network security?

Why are two different processor protocols needed to process transactions in a private blockchain?

Please describe the exchange process from source tokens to root tokens.

How are leaf tokens traded within a private blockchain network?

What do "minting" and "burning" mean in token management?

How do users redeem leaf tokens back to external assets?

Short answer questions

The main difference between private and public blockchains is access and participation. Private blockchains restrict access to authorized users, while public blockchains allow anyone to join and participate.

A decentralized gateway acts as a bridge between external users and a private blockchain. It allows external users to interact with a private blockchain without compromising network security and privacy.

Validators are special nodes responsible for validating transactions, maintaining a copy of the ledger, and ensuring network consensus. They maintain the integrity and security of the network by enforcing the consensus mechanism.

Source tokens come from the external network and can be used to redeem root tokens stored on a private blockchain. Root tokens can be further exchanged for leaf tokens for daily transactions within the private blockchain network.

PoET is a consensus mechanism that randomly selects leaders to validate transactions based on proof of elapsed time. The longer a node waits, the greater the probability of being selected as a leader, which prevents malicious nodes from manipulating the network.

The use of two different processor protocols is to distinguish between processing transactions from external networks and internal networks. Processing transactions from external networks requires verifying external data, while processing internal transactions only requires verifying data on the private blockchain.

The exchange process from source tokens to root tokens requires users to send exchange requests to the validating nodes. After the validating nodes verify the request and source tokens, they update the ledger to generate confirmation information and send the corresponding root tokens to the users.

When leaf tokens are traded within the private blockchain network, users need to send transaction requests to the validating nodes. After the validating nodes verify the transaction, they update the ledger to reflect the new token balance.

"Minting" refers to the creation of new leaf tokens using root tokens, while "burning" refers to the destruction of leaf tokens and the return of corresponding root tokens. Both processes are managed by smart contracts to ensure the stability of token supply.

Users can do this by redeeming leaf tokens back to root tokens, and then redeeming root tokens back to external assets through a decentralized gateway. This process requires interaction with an exchange that supports the corresponding external asset.