zkRelay: Facilitating Sidechains using zkSNARK-based Chain-Relays

We facilitate trusted cross-blockchain state proofs by implementing a chain-relay that validates block headers from proof-of-work blockchains. While current approaches require proof sizes linear to the amount of blocks the state was built on, trusted intermediaries, or economic assumptions, we propose the utilization of off-chain computations through zkSNARKs to provide a cryptographically secure and highly scalable sidechain mechanism. Multiple block headers are included in batches and verified off-chain, while preserving light client support. Only the validity of the off-chain computation is verified on-chain, creating a sidechain mechanism that requires constant verification costs and releases the target ledger from processing and storing every single block header of the source blockchain. We provide a prototypical implementation that facilitates the verification of 504 Bitcoin headers in a single proof on Ethereum using the ZoKrates framework. Hereby, the verification costs are reduced by a factor of 187 compared to current approaches such as BTC Relay

SoK: Communication Across Distributed Ledgers

Since the inception of Bitcoin, a plethora of distributed ledgers differing in design and purpose has been created. While by design, blockchains provide no means to securely communicate with external systems, numerous attempts towards trustless cross-chain communication have been proposed over the years. Today, cross-chain communication (CCC) plays a fundamental role in cryptocurrency exchanges, scalability efforts via sharding, extension of existing systems through sidechains, and bootstrapping of new blockchains. Unfortunately, existing proposals are designed ad-hoc for specific use-cases, making it hard to gain confidence in their correctness and composability. We provide the first systematic exposition of cross-chain communication protocols. We formalize the underlying research problem and show that CCC is impossible without a trusted third party, contrary to common beliefs in the blockchain community. With this result in mind, we develop a framework to design new and evaluate existing CCC protocols, focusing on the inherent trust assumptions thereof, and derive a classification covering the field of cross-chain communication to date. We conclude by discussing open challenges for CCC research and the implications of interoperability on the security and privacy of blockchains

XCC: Theft-Resilient and Collateral-Optimized Cryptocurrency-Backed Assets

The need for cross-blockchain interoperability is higher than ever. Today, there exists a plethora of blockchain-based cryptocurrencies, with varying levels of adoption and diverse niche use cases, and yet communication across blockchains is still in its infancy. Despite the vast potential for novel applications in an interoperable ecosystem, cross-chain tools and protocols are few and often limited. Cross-chain communication requires a trusted third party, as the Fair Exchange problem is reducible to it. However, the decentralised consensus of blockchains can be used as a source of trust, and financial incentives can achieve security. XCLAIM uses these principles to enable collateralised cryptocurrency-backed assets to be created and used. However, full collateralization is inefficient, and to protect against exchange rate fluctuations overcollateralization is necessary. This is a significant barrier to scaling, and as a result, in practice, most systems still employ a centralised architecture. In this work, we introduce XCC, an extension to the XCLAIM framework which allows for a significant reduction in collateral required. By making use of periodic, timelocked commitments on the backing blockchain, XCC decouples locked collateral from issued CBAs, allowing fractional collateralization without loss of security. We instantiate XCC between Bitcoin and Ethereum to showcase practical feasibility. XCC is compatible with the majority of existing blockchains without modification

Trustless communication across distributed ledgers: impossibility and practical solutions

Since the advent of Bitcoin as the first decentralized digital currency in 2008, a plethora of distributed ledgers has been created, differing in design and purpose. Considering the heterogeneous nature of these systems, it is safe to say there shall not be ``one coin to rule them all". However, despite the growing and thriving ecosystem, blockchains continue to operate almost exclusively in complete isolation from one another: by design, blockchain protocols provide no means by which to communicate or exchange data with external systems. To this date, centralized providers hence remain the preferred route to exchange assets and information across blockchains~-- undermining the very nature of decentralized currencies. The contribution of this thesis is threefold. First, we critically evaluate the (im)possibilty, requirements, and challenges of cross-chain communication by contributing the first systematization of this field. We formalize the problem of Cross-Chain Communication (CCC) and show it is impossible without a trusted third party by relating CCC to the Fair Exchange problem. With this impossibility result in mind, we develop a framework to design new and evaluate existing CCC protocols, focusing on the inherent trust assumptions thereof, and derive a classification covering the field of cross-chain communication to date. We then present XCLAIM, the first generic framework for transferring assets and information across permissionless distributed ledgers without relying on a centralized third party. XCLAIM leverages so-called cryptocurrency-backed assets, blockchain-based assets one-to-one backed by other cryptocurrencies, such as Bitcoin-backed tokens on Ethereum. Through the secure issuance, transfer, and redemption of these assets, users can perform cross-chain exchanges in a financially trustless and non-interactive manner, overcoming the limitations of existing solutions. To ensure the security of user funds, XCLAIM relies on collateralization of intermediaries and a proof-or-punishment approach, enforced via smart contracts equipped with cross-chain light clients, so-called chain relays. XCLAIM has been adopted in practice, among others by the Polkadot blockchain, as a bridge to Bitcoin and other cryptocurrencies. Finally, we contribute to advancing the state of the art in cross-chain light clients. We develop TxChain, a novel mechanism to significantly reduce storage and bandwidth costs of modern blockchain light clients using contingent transaction aggregation, and apply our scheme to Bitcoin and Ethereum individually, as well as in the cross-chain setting.Open Acces

Internet of Things From Hype to Reality

The Internet of Things (IoT) has gained significant mindshare, let alone attention, in academia and the industry especially over the past few years. The reasons behind this interest are the potential capabilities that IoT promises to offer. On the personal level, it paints a picture of a future world where all the things in our ambient environment are connected to the Internet and seamlessly communicate with each other to operate intelligently. The ultimate goal is to enable objects around us to efficiently sense our surroundings, inexpensively communicate, and ultimately create a better environment for us: one where everyday objects act based on what we need and like without explicit instructions

Recent Development of Hybrid Renewable Energy Systems

Abstract: The use of renewable energies continues to increase. However, the energy obtained from renewable resources is variable over time. The amount of energy produced from the renewable energy sources (RES) over time depends on the meteorological conditions of the region chosen, the season, the relief, etc. So, variable power and nonguaranteed energy produced by renewable sources implies intermittence of the grid. The key lies in supply sources integrated to a hybrid system (HS)