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Versions: 00 01

Internet Engineering Task Force                              T. Hardjono
Internet-Draft                                                       MIT
Intended status: Informational                             M. Hargreaves
Expires: April 30, 2021                                    Quant Network
                                                                N. Smith
                                                                   Intel
                                                        October 27, 2020


        An Interoperability Architecture for Blockchain Gateways
               draft-hardjono-blockchain-interop-arch-01

Abstract

   With the increasing interest in the potential use of blockchain
   systems for virtual assets, there is a need for these assets to have
   mobility across blockchain systems.  An interoperability architecture
   for blockchain systems is needed in order to permit the secure flow
   of virtual assets between blockchain systems, satisfying the
   properties of transfer atomicity, consistency and durability.  The
   architecture must recognize that there are different blockchain
   systems, and that the interior constructs in these blockchains maybe
   incompatible with one another.  Gateway nodes perform the transfer of
   virtual assets between blockchain systems while masking the
   complexity of the interior constructs of the blockchain that they
   represent.

Status of This Memo

   This Internet-Draft is submitted in full conformance with the
   provisions of BCP 78 and BCP 79.

   Internet-Drafts are working documents of the Internet Engineering
   Task Force (IETF).  Note that other groups may also distribute
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   Drafts is at https://datatracker.ietf.org/drafts/current/.

   Internet-Drafts are draft documents valid for a maximum of six months
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   time.  It is inappropriate to use Internet-Drafts as reference
   material or to cite them other than as "work in progress."

   This Internet-Draft will expire on April 30, 2021.








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Copyright Notice

   Copyright (c) 2020 IETF Trust and the persons identified as the
   document authors.  All rights reserved.

   This document is subject to BCP 78 and the IETF Trust's Legal
   Provisions Relating to IETF Documents
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   described in the Simplified BSD License.

Table of Contents

   1.  Introduction  . . . . . . . . . . . . . . . . . . . . . . . .   3
   2.  Terminology . . . . . . . . . . . . . . . . . . . . . . . . .   3
   3.  Assumptions and Principles  . . . . . . . . . . . . . . . . .   5
     3.1.  Design Principles . . . . . . . . . . . . . . . . . . . .   5
     3.2.  Operational Assumptions . . . . . . . . . . . . . . . . .   6
   4.  Architecture  . . . . . . . . . . . . . . . . . . . . . . . .   6
     4.1.  Goal of Architecture  . . . . . . . . . . . . . . . . . .   6
     4.2.  Overview of Asset Transfer  . . . . . . . . . . . . . . .   7
     4.3.  Desirable Properties of Asset Transfer  . . . . . . . . .   8
     4.4.  Event log-data, crash recovery and backup gateways  . . .   8
     4.5.  Overview of the Phases in Asset Transfer  . . . . . . . .   9
   5.  Pre-transfer Verification of Asset and Identities (Phase 1) .  10
   6.  Evidence of asset locking or escrow (Phase 2) . . . . . . . .  12
   7.  Transfer Commitment (Phase 3) . . . . . . . . . . . . . . . .  14
   8.  Related Open Issues . . . . . . . . . . . . . . . . . . . . .  16
     8.1.  Global identification of blockchain systems and public-
           keys  . . . . . . . . . . . . . . . . . . . . . . . . . .  16
     8.2.  Selection of gateways nodes within a blockchain system  .  16
     8.3.  Commitment protocols and forms of commitment evidence . .  16
   9.  Security Considerations . . . . . . . . . . . . . . . . . . .  17
   10. Policy Considerations . . . . . . . . . . . . . . . . . . . .  17
   11. References  . . . . . . . . . . . . . . . . . . . . . . . . .  18
     11.1.  Normative References . . . . . . . . . . . . . . . . . .  18
     11.2.  Informative References . . . . . . . . . . . . . . . . .  18
   Authors' Addresses  . . . . . . . . . . . . . . . . . . . . . . .  19









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1.  Introduction

   Currently there is little technical interoperability between
   blockchain systems.  This results in the difficulty in transferring
   or migrating virtual assets associated with a public-key (address) in
   one blockchain system to another blockchain system.

   The existing solutions involve a third party that mediates the
   transfer.  This mediating third party is typically an asset-exchange
   entity (i.e. crypto-exchange) operating in a centralized hub-spoke
   fashion.  This reliance on a third party results not only delays in
   transfers, but also in the need for key-holders to open accounts at
   the third party entity.  It diminishes the autonomy of a blockchain
   system and limits its scalability.

   This document describes an architecture for blockchain gateways that
   perform the unidirectional transfer of virtual assets between two
   autonomous blockchain systems which employ the gateways.

   The purpose of this architecture document is to provide technical
   framework within which to discuss the various aspects of a transfer
   between two gateways, including security aspects and transfer
   commitment aspects.

2.  Terminology

   There following are some terminology used in the current document:

   o  Blockchain Domain: The collection of resources and entities
      participating within a blockchain system.

   o  Interior Resources: The various interior protocols, data
      structures and cryptographic constructs that are a core part of a
      blockchain system.  Examples of interior resources include the
      ledger (blocks of confirmed transaction data), public keys on the
      ledger, consensus protocol, incentive mechanisms, transaction
      propagation networks, etc.

   o  Exterior Resources: The various resources that are outside a
      blockchain system, and are not part of the operations of a
      blockchain.  Examples include data located at third parties such
      as asset registries, ledgers of other blockchains, PKI
      infrastructures, etc.

   o  Blockchain nodes: The nodes of the blockchain system which form
      the peer-to-peer network, which collectively maintain the shared
      ledger in the blockchain by following a consensus algorithm.




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   o  Gateway nodes: The nodes of the blockchain system that are
      functionally capable of acting as a gateway in an asset transfer.
      Gateway nodes implement the gateway-to-gateway asset transfer
      protocol.  Being a node on the blockchain system, a gateway has
      read/write access to the interior resources (e.g. ledger) of the
      blockchain.  It participates in the consensus mechanism deployed
      for the blockchain system.  Depending on the blockchain system
      implementation, some or all of the nodes may be gateway-capable.

   o  Blockchain address: This is the public-key of an entity as known
      within a blockchain system, employed to transact on the blockchain
      network and recorded on the ledger of the blockchain.  Also
      referred to as the transaction signing public-key pair.

   o  Entity public-key pair: This the private-public key pairs of an
      entity used for interactions outside the blockchain system (e.g.
      TL1.3).  The term is used to distinguish this public-key from the
      blockchain address.

   o  Asset transfer protocol: The gateway-to-gateway technical protocol
      used by two gateway nodes to perform a unidirectional transfer of
      a virtual asset.

   o  Asset profile: The prospectus of a regulated asset that includes
      information and resources describing the virtual asset.  This
      includes the asset name/code, issuing authority, denomination,
      jurisdiction, and the URLs and mechanisms to validate the
      information.  The asset profile is independent from the specific
      instantiation of the asset (on a blockchain or otherwise) and
      independent from its instance-ownership information.

   o  Virtual Asset: A virtual asset is a digital representation of
      value that can be digitally traded, or transferred as defined by
      the FATF [FATF].

   o  Virtual Asset Service Provider (VASP): Legal entity handling
      virtual assets as defined by the FATF [FATF].

   o  Originator: Person or organization seeking the transfer of virtual
      asset to a beneficiary

   o  Beneficiary: Person or organization receiving the transferred
      virtual asset from an originator.

   o  Travel Rule information: Data regarding the VASPs, originators and
      beneficiaries involved in an asset transfer, as defined by the
      FATF [FATF] and as required by the jurisdiction of operations of
      the VASPs.



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   o  Gateway device identity: The identity of the device implementing
      the gateway functions.  The term is used in the sense of IDevID
      (IEEE 802.1AR) or EK/AIK (in TPM1.2 and TPM2.0) [IDevID].

   o  Gateway owner: The VASP who legally owns and operates a gateway
      node within a blockchain system.

   o  Passive transaction: A transaction aimed at recording some state
      metadata information on the ledger that does not affect assets
      recorded on the ledger.  A passive transaction can be self-
      addressed (or has null as destination address) and can be used to
      signal implicitly to other nodes regarding an state-change of the
      metadata pertaining to an entity or an asset on the ledger.

   Further terminology definitions can be found in [NIST] and [ISO].
   The term 'blockchain' and 'distributed ledger technology' (DLT) are
   used interchangeably in this document.

3.  Assumptions and Principles

   The following assumptions and principles underlie the design of the
   current interoperability architecture, and correspond to the design
   principles of the Internet architecture.

3.1.  Design Principles

   o  Opaque blockchain resources: The interior resources of each
      blockchain system is assumed to be opaque to (hidden from)
      external entities.  Any resources to be made accessible to an
      external entity must be made explicitly accessible by a gateway
      node with proper authorization.

   o  Externalization of value: The gateway protocol is agnostic
      (oblivious) to the economic or monetary value of the virtual asset
      being transferred.

   The opaque resources principle permits the interoperability
   architecture to be applied in cases where one (or both) blockchain
   systems are permissioned (private).  It is the analog of the
   autonomous systems principle in IP networking [Clar88], where
   interior routes in local subnets are not visible to other external
   autonomous systems.

   The value-externalization principle permits asset transfer protocols
   to be designed for efficiency, speed and reliability - independent of
   the changes in the perceived economic value of the virtual asset.  It
   is the analog of the end-to-end principle in the Internet
   architecture [SRC84], where contextual information (economic value)



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   is placed at the endpoints of the transaction.  In the case of a
   transfer of virtual assets, the originator and beneficiary at the
   respective blockchain systems are assumed to have a common agreement
   regarding the economic value of the asset.

3.2.  Operational Assumptions

   The following conditions are assumed to have occurred, leading to the
   invocation of the asset transfer protocol between two gateway nodes:

   o  Application layer transfer request: The transfer request from an
      originator in the origin blockchain is assumed to have occurred
      prior to the execution of the asset transfer protocol.

   o  Identification of originator and beneficiary: The originator and
      beneficiary are assumed to have been identified and that consent
      has been obtained from both parties regarding the asset transfer.

   o  Identification of origin and destination blockchain: The origin
      and destination blockchain systems is assumed to have been
      identified.

   o  Selection of gateway nodes: The two gateway nodes at the origin
      and destination blockchain systems respectively is assumed to have
      been selected.

   o  Identification of gateway-node owners (VASP): The VASP operating
      the gateway nodes are assumed to have been identified and their
      legal status verified.

4.  Architecture

4.1.  Goal of Architecture

   The goal of the interoperability architecture is to permit two (2)
   gateway nodes belonging to distinct blockchain systems to conduct a
   virtual asset transfer between them, in a secure and non-repudiable
   manner while ensuring the asset does not exist simultaneously on both
   blockchains (double-spend problem).

   The virtual asset as understood by the two gateway nodes is a digital
   representation of value, expressed in an standard digital format in a
   way meaningful to the gateway nodes syntactically and semantically.

   The syntactic representation of the virtual asset between the two
   gateways need not bear any resemblance to the syntactic asset
   representation within their respective blockchain systems.




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   The architecture recognizes that there different blockchain systems
   currently in operation and evolving, and that in many cases the
   interior technical constructs in these blockchains maybe incompatible
   with one another.

   The architecture therefore assumes that certain types of nodes
   (gateway nodes) will be equipped with an asset transfer protocol and
   other relevant resources that permits greater interoperability across
   these incompatible blockchain systems.

   The resources within a blockchain system (e.g. ledgers, public-keys,
   consensus protocols, etc.) are assumed to be opaque to external
   entities in order to permit a resilient and scalable protocol design
   that is not dependent on the interior constructs of particular
   blockchain systems.  This ensures that the virtual asset transfer
   protocol between gateways is not conditioned or dependent on these
   local technical constructs.  The role of a gateway therefore is also
   to mask (hide) the complexity of the interior constructs of the
   blockchain system that it represents.  Overall this approach ensures
   that a given blockchain system operates as a true autonomous system.

   The current architecture focuses on unidirectional asset transfers,
   although the building blocks in this architecture can be used to
   support protocols for bidirectional transfers (conditional two
   unidirectional transfers).

   For simplicity the current architecture employs two (2) gateway nodes
   in the respective blockchains, but collective multi-node transfers
   (i.e. multiple nodes at each side) [HS2019] may be developed based on
   the building blocks and constructs identified in the current
   architecture.

4.2.  Overview of Asset Transfer

   An asset transfer between two blockchain systems is carried out by
   two (2) gateway nodes in a direct interaction (unmediated), where the
   gateway represents the two respective blockchain systems.

   A successful transfer results in the asset being extinguished
   (deleted) or marked on the origin ledger by the origin-gateway, and
   for the asset to be introduced by the destination-gateway into the
   destination ledger.

   The mechanism to extinguish or introduce an asset from/into a ledger
   is dependent on the specific blockchain system.  The task of the
   respective gateway is to implement the relevant mechanism to modify
   the ledger of their corresponding blockchain system in such a way
   that together the two blockchains maintain consistency from the asset



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   perspective, while observing the design principles of the
   architecture.

   An asset transfer protocol that can satisfy the properties of
   atomicity and consistency in the case of two private blockchain
   systems, should also do in the case when one or both are public
   blockchain systems.

4.3.  Desirable Properties of Asset Transfer

   The desirable features of asset transfers between two gateway nodes
   include, but not limited, to the following:

   o  Atomicity: Transfer must either commit or entirely fail (failure
      means no change to asset ownership).

   o  Consistency: Transfer (commit or fail) always leaves both
      blockchains in a consistent state (asset located in one blockchain
      only).

   o  Isolation: While transfer occurring, asset ownership cannot be
      modified (no double-spend).

   o  Durability: Once a transfer has been committed, must remain so
      regardless of gateway crashes.

   o  Verifiable by authorized third parties: With proper authorization
      to access relevant interior resources, third party entities must
      be able at any time to perform audit-validation of the two
      respective ledgers for asset transfers across the corresponding
      blockchain systems.

   o  Containment of side-effects: Any effects due to errors or
      security/integrity breaches in a blockchain system during an asset
      transfer must be contained within that blockchain.

   An implementation of the asset transfer protocol should satisfy these
   properties, independent of whether the implementation employs
   stateful messaging or stateless messaging between the two gateways.

4.4.  Event log-data, crash recovery and backup gateways

   Implementations of gateway nodes should maintain event logs and
   checkpoints for the purpose of gateway crash recovery.  The log-data
   generated by a gateway should be considered as an interior resource
   accessible to other authorized gateway nodes within the same
   blockchain system




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   Mechanisms used to select or elect a gateway node in a blockchain
   system for a given asset transfer could be extended to include the
   selection of a backup gateway node.  The primary gateway and the
   backup gateway may or may not belong to the same owner (VASP).

   Some blockchain systems may utilize the ledger itself as means to
   retain the log-data, allowing other nodes in the blockchain to have
   visibility and access to the gateway log-data.  In these cases, the
   gateway node may employ its transaction-signing key pair to issue a
   passive transaction (e.g. self-addressed, no asset) on the ledger,
   incorporating details of the transfer event.

   Other blockchain systems may employ off-chain storage that is
   accessible to all gateway nodes in the blockchain domain.  In such
   cases, to provide event-sequencing integrity the gateway may store a
   hash of the log-data on the ledger of the blockchain (passive
   transaction) prior to writing the log-data to the off-chain storage.

   The mechanism used to provide gateway crash-recovery is dependent on
   the blockchain system and the gateway implementation.  For
   interoperability purposes the information contained in the log and
   the format of the log-data should be standardized, permitting vendors
   of gateway products to reduce development costs over time.

   The resumption of an interrupted transfer (e.g. due to gateway crash,
   network failure, etc.) should take into consideration the aspects of
   secure channel establishment and the aspects of the transfer protocol
   resumption.  In some cases, a new secure channel (e.g.  TLS session)
   must be established with the backup gateway node, within which the
   asset transfer protocol could be continued from the last checkpoint
   prior to the interruption.  However, in other cases both the secure
   channel and the transfer protocol must be started completely afresh
   (no resumption).

   The log-data collected by a gateway node acts also as a checkpoint
   mechanism to assist the backup gateway node in continuing the
   transfer.  The point at which to re-start the transfer protocol flow
   is dependent on the implementation of the gateway.  Some owners
   (VASPs) of gateway nodes may choose to start afresh the transfer of
   the asset, and not to resume partially completed transfers.

4.5.  Overview of the Phases in Asset Transfer

   The interaction between two gateways in an asset transfer is
   summarized in Figure 1, where the origin blockchain is B1 and the
   destination blockchain is B2.  The gateways are denoted as G1 and G2
   respectively.




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         Originator
             |
      +-------------+
      |   Client    |
      |(Application)|
      +-------------+
             |
             |                   Phases
             V
      +-------------+       |<-----(1)----->|       +-------------+
      | Blockchain  |  +----+               +----+  | Blockchain  |
      | System B1   |  |Gate|               |Gate|  | System B2   |
      |             |--|way |<-----(2)----->|way |--|             |
      | +---------+ |  | G1 |               | G2 |  | +---------+ |
      | |Ledger L1| |  +----+               +----+  | |Ledger L2| |
      | +---------+ |       |<-----(3)----->|       | +---------+ |
      +-------------+                               +-------------+


                                 Figure 1

   The three phases are summarized as follows.

   o  Phase 1: Pre-transfer Verification of Asset and Identities.  In
      this phase the gateways G1 and G2 must mutually identify
      themselves and authenticate that both possess gateway-
      capabilities.  Gateway G1 must communicate to G2 the asset-profile
      of the asset to be transferred, and that consent have been
      obtained from the beneficiary regarding accepting the transfer.

   o  Phase 2: Evidence of asset locking or escrow.  In this phase,
      gateway G1 must provide gateway G2 with sufficient evidence that
      the asset on blockchain B1 is in a locked state (or escrowed)
      under the control of G1 on ledger L1, and safe from double-spend
      on the part of its current owner (the originator).

   o  Phase 3: Transfer commitment.  In this phase gateways G1 and G2
      commits to the transaction

   These phases will be further discussed below.

5.  Pre-transfer Verification of Asset and Identities (Phase 1)

   The primary purpose of the first phase is to verify the various
   information relating to the asset to be transferred, the identities
   of the originator and beneficiary, the identity and legal status of
   the entities (VASPs) who own and operate the gateways, and the
   device-identities of the gateways.



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   This phase starts with the assumption that in blockchain B1 the
   gateway to process the asset transfer to B2 has been selected (namely
   gateway G1).  It also assumes that the destination blockchain B2 has
   been identified where the beneficiary address is located, and that
   gateway G2 in blockchain B2 has been identified that will peer with
   G1 to perform the transfer.



      Orig   L1          G1                   G2           L2  Benef
      |     |            |                    |            |     |
      |---request------->|                    |            |     |
      |     |            |                    |            |     |
    ..|.....|............|....................|............|.....|..
      |     |            |       Phase 1      |            |     |
      |     |            |                    |            |     |
      |     |       (1.1)|<-----VASP id------>|            |     |
      |     |            |                    |            |     |
      |     |            |                    |            |     |
      |     |       (1.2)|<--Asset Profile--->|            |     |
      |     |            |                    |            |     |
      |     |            |                    |            |     |
      |     |       (1.3)|<--Orig/Benef id--->|            |     |
      |     |            |                    |            |     |
    ..|.....|............|....................|............|.....|..
      |     |            |                    |            |     |


                                 Figure 2

   There are several steps that may occur in Phase 1 (see Figure 2):

   o  Secure channel establishment between G1 and G2: This includes the
      mutual verification of the gateway device identities and the
      exchange of the relevant parameters for secure channel
      establishment.  In cases where device attestation [RATS] is
      required, the mutual attestation protocol must occur between G1
      and G2 prior to proceeding to the next phase.

   o  Validation of the gateway ownership: There must be a means for
      gateway G1 and G2 to verify their respective ownerships (i.e.
      VASP1 owning G1 and VASP2 owning G2 respectively).  Examples of
      ownership verification mechanism include the chaining of the
      gateway-device X.509 certificate up to the VASP entity
      certificate, directories of gateways and VASPs, and others.

   o  Validation of VASP status: In some jurisdictions limitations may
      be placed for regulated VASPs to transact only with other



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      similarly regulated VASPs.  Examples of mechanisms used to
      validate a VASP legal status include VASP directories, Extended
      Validation (EV) X.509 certificates for VASPs, and others.

   o  Delivery and validation of asset profile: Gateway G1 must deliver
      to G2 the asset-profile for the virtual asset to be transferred.
      Gateway G2 must validate the authenticity of the statements
      (claims) found in the asset profile.  The policies governing
      blockchain B2 with regards to permissible incoming assets must be
      enforced by G2.

   o  Exchange of Travel Rule information: In jurisdictions where the
      Travel Rule policies regarding originator and beneficiary
      information is enforced, the gateways G1 and G2 must exchange this
      information [FATF].

   o  o Negotiation of asset transfer protocol parameters: Gateway G1
      and G2 must agree on the parameters to be employed within the
      asset transfer protocol.  Examples include endpoints definitions
      for resources, type of commitment flows (e.g. 2PC or 3PC), lock-
      time durations, and others [ODAP].

6.  Evidence of asset locking or escrow (Phase 2)

   The asset transfer protocol can commence when both gateways G1 and G2
   have completed the verifications in Phase 1.

   The steps of Phase 2 is shown in Figure 3, and broadly consists of
   the following:

   o  Commencement (2.1): Gateway G1 indicates the start of the asset
      transfer protocol by sending a transfer-commence message to
      gateway G2.  Among others, the message must include a
      cryptographic hash of the information agreed-upon in Phase 1 (e.g.
      asset profile, gateway identities, originator/beneficiary public
      keys).

   o  Acknowledgement (2.2): The gateway G2 must send an explicit
      acknowledgement of the commence message, which should include a
      hash of commencement message and other relevant session
      parameters.

   o  G1 lock/escrow asset (2.3): Gateway G1 proceeds to lock or escrow
      the asset belonging to the originator on ledger L1.  The lock may
      take the form of passive transaction that signals to other nodes
      that the asset is temporarily inaccessible.  This signals to other
      nodes in the blockchain system to ignore other transactions




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      pertaining to the asset until such time the lock by G1 is
      finalized or released.

   o  G2 log incoming (2.4): Gateway G2 correspondingly writes a log
      (passive transaction) on ledger L2 indicating an imminent arrival
      of the asset to L2.  This may act as a notification for the
      beneficiary regarding the asset transfer.

   o  Lock Evidence (2.5): Gateway G1 sends a digitally signed evidence
      regarding the lock (escrow) performed by G1 on the asset on ledger
      L1.  The signature by G1 is performed using its entity public-key
      pair.

   o  Evidence receipt (2.6): If gateway G2 accepts the evidence, G2
      then responds with a digitally signed receipt message which
      includes a hash of the previous lock-evidence message.  Otherwise,
      if G2 declines the evidence then G2 can ignore the transfer and
      let it time-out (i.e. transfer failed).


      Orig  L1          G1                   G2           L2  Benef
      |     |            |      (Phase 1)     |            |     |
      |     |            |                    |            |     |
    ..|.....|............|....................|............|.....|..
      |     |            |       Phase 2      |            |     |
      |     |            |                    |            |     |
      |     |       (2.1)|-----Commence------>|            |     |
      |     |            |                    |            |     |
      |     |            |<-------ACK---------|(2.2)       |     |
      |     |            |                    |            |     |
      |     |            |                    |            |     |
      |     |<---Lock----|(2.3)               |            |     |
      |     |            |               (2.4)|----Log---->|     |
      |     |            |                    |            |     |
      |     |            |                    |            |     |
      |     |       (2.5)|---Lock Evidence--->|            |     |
      |     |            |                    |            |     |
      |     |            |<-----Receipt-------|(2.6)       |     |
      |     |            |                    |            |     |
    ..|.....|............|....................|............|.....|..
      |     |            |                    |            |     |


                                 Figure 3

   The precise form of the evidence in step 2.5 is dependent on the
   blockchain system in B1, and must be previously agreed upon between
   G1 and G2 in Phase 1.



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   The purpose of this evidence is for dispute resolution between G1 and
   G2 (i.e. entities who own and operate G1 and G2 respectively) in the
   case that double-spend is later detected.

   The gateway G2 must return a digitally signed receipt to G1 of this
   evidence in order to cover G1 (exculpatory proof) in the case of
   later denial by G2.

7.  Transfer Commitment (Phase 3)

   In Phase 3 the gateways G1 and G2 finalizes to the asset transfer by
   performing a commitment protocol (e.g. 2PC or 3PC) as a process (sub-
   protocol) embedded within the overall asset transfer protocol.

   Upon receiving the evidence-receipt message in the previous phase, G1
   begins the commitment (see Figure 4):

   o  Commit-prepare (3.1): Gateway G1 indicates to G2 to prepare for
      the commitment of the transfer.  This message must include a hash
      of the previous messages (message 2.5 and 2.6).

   o  Ack-prepare (3.2): Gateway G2 acknowledges the commit-prepare
      message.

   o  Lock-final (3.3): Gateway G1 issues a lock-finalization
      transaction (passive) on ledger L1 that signals the permanent
      extinguishment of the asset.  This transaction must include a hash
      reference to the lock transaction on L1 previously in step (2.3).
      This indicates that the asset is no longer associated with the
      public-key of its previous owner (originator) and that the asset
      instance is no longer recognized on the ledger L1.

   o  Commit-final (3.4): Gateway G1 indicates to G2 that G1 has
      performed a local lock-finalization on L1.  This message must be
      digitally signed by G1 and should include the block number and
      transaction number (of the confirmed block) on ledger L1.

   o  Asset-create (3.5): Gateway issues a transaction on ledger L2 to
      create the asset, associated with the public-key of the
      beneficiary.  This transaction must include a hash of the previous
      message (3.4) and hash reference to the log-incoming transaction
      on L2 previously in step (2.4).  These hash references connects
      the newly created asset with the overall transfer event
      originating from gateway G1.

   o  Ack-final (3.6): Gateway G2 indicates to G1 that G2 has performed
      an asset-creation transaction on L2.  This message must be




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      digitally signed by G2 and should include the block number and
      transaction number (of the confirmed block) on ledger L2.

   o  Location-record (3.7): Gateway G1 has the option to record the
      block number and transaction number (as reported by G2 in the
      previous step) to ledger L1, using a passive transaction.  This
      transaction should include a hash reference to the confirmed lock-
      finalization transaction on L1 from step 3.3.  This information
      may aid in future search, audit and accountability purposes from a
      legal perspective.

   o  Transfer complete (3.8): Gateway G1 must explicitly close the
      asset transfer session with gateway G2.  This allows both sides to
      close down the secure channel established in Phase 1.



      Orig  L1          G1                   G2           L2  Benef
      |     |            |      (Phase 2)     |            |     |
      |     |            |                    |            |     |
    ..|.....|............|....................|............|.....|..
      |     |            |       Phase 3      |            |     |
      |     |            |                    |            |     |
      |     |       (3.1)|--Commit Prepare--->|            |     |
      |     |            |                    |            |     |
      |     |            |<-----ACK-Prep------|(3.2)       |     |
      |     |            |                    |            |     |
      |     |            |                    |            |     |
      |     |<--Final----|(3.3)               |            |     |
      |     |            |                    |            |     |
      |     |       (3.4)|----Commit Final--->|            |     |
      |     |            |                    |            |     |
      |     |            |               (3.5)|---Create-->|     |
      |     |            |                    |            |     |
      |     |            |<-----ACK-Final-----|(3.6)       |     |
      |     |            |                    |            |     |
      |     |            |                    |            |     |
      |     |<--Record---|(3.7)               |            |     |
      |     |            |                    |            |     |
      |     |       (3.8)|---Complete/End---->|            |     |
      |     |            |                    |            |     |
    ..|.....|............|....................|............|.....|..
      |     |            |                    |            |     |



                                 Figure 4




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8.  Related Open Issues

   There are a number of open issues that are related to the asset
   transfer protocol between gateway nodes.  Some of the issues are due
   to the fact that blockchain technology is relatively new, and that
   technical constructs designed for interoperability have yet to be
   addressed.  Some of the issues are due to the nascency of the virtual
   asset industry and lack of conventions, and therefore require
   industry collaboration to determine these.

8.1.  Global identification of blockchain systems and public-keys

   There is currently no standard nomenclature to identify blockchain
   systems in a globally unique manner.  The analog to this is the AS-
   numbers associated with IP routing autonomous systems.

   Furthermore, an address (public-key) may not be unique to one
   blockchain system.  An entity (e.g. user) may in fact employ the same
   public-key at multiple distinct blockchain systems simultaneously.

   However, in order to perform an asset transfer from one blockchain
   system to another, there needs to be mechanism that resolves the
   beneficiary identifier (as known to the originator) to the correct
   public-key and blockchain system as intended by the originator.

8.2.  Selection of gateways nodes within a blockchain system

   A given blockchain system must possess the capability to select or
   designate gateway nodes that will perform an asset transfer across
   blockchain systems.

   A number of blockchain systems already employ consensus mechanisms
   that elect a node to perform the transaction processing (e.g. proof
   of stake in Ethereum).  The same consensus mechanisms may be used to
   elect the gateway node.

   However, there are some blockchain systems that do not elect a single
   node and which employ a race-to-process strategy (e.g. proof of work
   in Bitcoin).  Since the winner of the proof of work can be any node
   in the blockchain system, this implies that all the nodes in these
   types of blockchains must be gateway-capable.

8.3.  Commitment protocols and forms of commitment evidence

   Within Phase 2, the gateway nodes must implement one (or more)
   transactional commitment protocols that permit the coordination
   between two gateways, and the final commitment of the asset transfer.




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   The choice of the commitment protocol (type/version) and the
   corresponding commitment evidence must be negotiated between the
   gateways during Phase 1.

   For example, in Phase 2 and Phase 3 discussed above the gateways G1
   and G2 may implement the classic 2 Phase Commit (2PC) protocol
   [Gray81] as a means to ensure efficient and non-disputable
   commitments to the asset transfer.

   Historically, transactional commitment protocols employ locking
   mechanisms to prevent update conflicts on the data item in question.
   When used within the context of virtual asset transfers across
   blockchain systems, the fact that an asset has been locked by G1 (as
   the 2PC coordinator) must be communicated to G2 (as the 2PC
   participant) in an indisputable manner.

   The exact form of this evidence of asset-locking must be standardized
   (for the given transactional commitment protocol) to eliminate any
   ambiguity.

9.  Security Considerations

   Although the current interoperability architecture for blockchain
   gateways assumes the externalization of the value of assets, as a
   blockchain system holds an increasing number of virtual assets it
   becomes attractive to attackers seeking to obtain cryptographic keys
   of its nodes and its end-users.

   Gateway nodes are of particular interest to attackers because they
   enable the transferal of virtual assets to external blockchain
   systems, which may or may not be regulated.  As such, hardening
   technologies and tamper-resistant crypto-processors (e.g.  TPM, SGX)
   should be used for implementations of gateways [HS19].

10.  Policy Considerations

   Virtual asset transfers must be policy-driven in the sense that it
   must observe and enforce the policies defined for the blockchain
   domain.  Resources that make-up a blockchain systems are owned and
   operated by entities (e.g. legal persons or organizations), and these
   entities typically operate within regulatory jurisdictions [FATF].
   It is the responsibility of these entities to translate regulatory
   policies into functions on blockchain systems that comply to the
   relevant regulatory policies.

   At the application layer, asset transfers must take into
   consideration the legal status of assets and incorporate relevant
   asset-related policies into their business logic.  These policies



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   must permeate down to the nodes that implement the functions of asset
   transaction processing.

   The smart contract abstraction, based on replicated shared code/state
   on the ledger [Herl19], must additionally incorporate the notion of
   policy into the abstraction.

11.  References

11.1.  Normative References

   [FATF]     FATF, "International Standards on Combating Money
              Laundering and the Financing of Terrorism and
              Proliferation - FATF Revision of Recommendation 15",
              October 2018, <http://www.fatf-
              gafi.org/publications/fatfrecommendations/documents/fatf-
              recommendations.html>.

   [ISO]      ISO, "Blockchain and distributed ledger technologies-
              Vocabulary (ISO:22739:2020)", July 2020,
              <https://www.iso.org>.

   [NIST]     Yaga, D., Mell, P., Roby, N., and K. Scarfone, "NIST
              Blockchain Technology Overview (NISTR-8202)", October
              2018, <https://doi.org/10.6028/NIST.IR.8202>.

   [ODAP]     Hargreaves, M. and T. Hardjono, "Open Digital Asset
              Protocol, October 2020, IETF, draft-hargreaves-odap-00.",
              October 2020,
              <https://datatracker.ietf.org/doc/draft-hargreaves-odap/>.

   [RFC2119]  Bradner, S., "Key words for use in RFCs to Indicate
              Requirement Levels", BCP 14, RFC 2119,
              DOI 10.17487/RFC2119, March 1997,
              <https://www.rfc-editor.org/info/rfc2119>.

11.2.  Informative References

   [ABCH20]   Ankenbrand, T., Bieri, D., Cortivo, R., Hoehener, J., and
              T. Hardjono, "Proposal for a Comprehensive Crypto Asset
              Taxonomy", May 2020, <https://arxiv.org/abs/2007.11877>.

   [BVGC20]   Belchior, R., Vasconcelos, A., Guerreiro, S., and M.
              Correia, "A Survey on Blockchain Interoperability: Past,
              Present, and Future Trends", May 2020,
              <https://arxiv.org/abs/2005.14282v2>.





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   [Clar88]   Clark, D., "The Design Philosophy of the DARPA Internet
              Protocols, ACM Computer Communication Review, Proc SIGCOMM
              88, vol. 18, no. 4, pp. 106-114", August 1988.

   [Gray81]   Gray, J., "The Transaction Concept: Virtues and
              Limitations, in VLDB Proceedings of the 7th International
              Conference, Cannes, France, September 1981, pp. 144-154",
              September 1981.

   [Herl19]   Herlihy, M., "Blockchains From a Distributed Computing
              Perspective, Communications of the ACM, vol. 62, no. 2,
              pp. 78-85", February 2019,
              <https://doi.org/10.1145/3209623>.

   [HLP19]    Hardjono, T., Lipton, A., and A. Pentland, "Towards and
              Interoperability Architecture for Blockchain Autonomous
              Systems, IEEE Transactions on Engineering Management",
              June 2019, <https://doi:10.1109/TEM.2019.2920154>.

   [HS2019]   Hardjono, T. and N. Smith, "Decentralized Trusted
              Computing Base for Blockchain Infrastructure Security,
              Frontiers Journal, Special Issue on Blockchain Technology,
              Vol. 2, No. 24", December 2019,
              <https://doi.org/10.3389/fbloc.2019.00024>.

   [IDevID]   Richardson, M. and J. Yang, "A Taxonomy of operational
              security of manufacturer installed keys and anchors. IETF
              draft-richardson-t2trg-idevid-considerations-01", August
              2020, <https://tools.ietf.org/html/draft-richardson-t2trg-
              idevid-considerations-01>.

   [SRC84]    Saltzer, J., Reed, D., and D. Clark, "End-to-End Arguments
              in System Design, ACM Transactions on Computer Systems,
              vol. 2, no. 4, pp. 277-288", November 1984.

Authors' Addresses

   Thomas Hardjono
   MIT

   Email: hardjono@mit.edu


   Martin Hargreaves
   Quant Network

   Email: martin.hargreaves@quant.network




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   Ned Smith
   Intel

   Email: ned.smith@intel.com















































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