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This repository was archived by the owner on Aug 24, 2023. It is now read-only.
docs(token-bridge): add draft for MetaChain Token & Bridge (#102)
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#### What this PR does / why we need it:
As per the title, this PR is a working draft version of MetaChain Token
& Bridge.
Signed-off-by: Fuxing Loh <[email protected]>
Co-authored-by: Eli <[email protected]>
| Trusted bridges depend upon a central entity or system for their operations. | Trustless bridges operate using smart contracts and algorithms. |
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| They have trust assumptions with respect to the custody of funds and the security of the bridge. Users mostly rely on the bridge operator's reputation. | They are trustless; the security of the bridge is the same as that of the underlying blockchain. |
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| Users need to give up control of their crypto assets. | Through smart contracts, trustless bridges enable users to remain in control of their funds. |
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In a nutshell, we can say that trusted bridges have trust assumptions, whereas trustless bridges are trust-minimized and
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don’t make new trust assumptions beyond those of the underlying domains. Here’s how these terms can be described:
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-**Trustless**: having equivalent security to the underlying domains.
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-**Trust assumptions**: moving away from the security of the underlying domains by adding external verifiers in the
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system, thus making it less crypto-economically secure.
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## MetaChain Trustless Bridge
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DeFiChain Native<->Meta Bridge is a trustless bidirectional asset bridging between NativeChain (UTXO) and MetaChain
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(Account). MetaChain Bridge has the equivalent security of a trustless bridge without the security worries of the underlying
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domains. MetaChain and NativeChain operate under the same domain, and the same [consensus](/consensus) mechanism within
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the same ecosystem keeps the validators honest.
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DeFiChain introduces a set of Smart Contracts on each platform/chain to perform the bidirectional minting and burning.
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The supply of all DFI comes from the NativeChain; all DFI on MetaChain are bridged from the NativeChain.
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