BTP (Blockchain Transmission Protocol) is a standard that renders heterogeneous blockchains interoperable in ICON blockchain. Different consensus models and algorithms are accommodated. BTP facilitates value transfer, service invocation, and data exchange between blockchains using atomic shared ledger transactions in which crypto tokens are transferred based on the outcome of multi-signature smart contracts.
The goal of BTP is to achieve blockchain interoperability between different blockchains. Its ultimate objective is to enable consumers and developers from diverse ecosystems to interact seamlessly on a global scale.
ICON offers a chain-agnostic, scalable, secure interoperability protocol through the Blockchain Transmission Protocol (BTP). BTP integrates seamlessly with any smart contract-enabled blockchain due to its chain-agnostic design.
BTP uses a fully-decentralized model with fully-incentivized relays and on-chain message verification, unlike traditional bridging solutions that use handpicked validators to relay cross-chain messages. We will look at real-world applications for ICON’s BTP technology in this article.
Blockchain Transmission Protocol Use Cases
In order to set the tone, let’s briefly walk through three potential use cases for BTP before diving into how it works on a technical level.
Tokens transferred across chains
Transferring tokens from one blockchain to another is the most common example of interoperability. The process of crossing chains usually involves burning tokens from the source chain and minting equivalent tokens at the destination. Token transfers can be performed across any connected chain without requiring chain-specific bridges between paired chains with BTP.
Cross-Chain Arbitrage
The BTP will support cross-chain smart contract calls in future iterations, unlike most current bridging solutions, which only support cross-chain token swaps. ICON-based smart contracts will be able to interact with smart contracts on BNB Smart Chain, Moonbeam, and others.
Its ability to fetch market quotes and execute orders across multiple chains makes it an attractive solution for building a decentralized cross-chain arbitrage trading platform.
Also Read: ICON Bridge: What is it and How does it work?
“NFT-as-Identity” for Cross-Chain
“NFT-as-identity” will play a huge role in the metaverse space over the next few years, and the metaverse is the next big narrative in crypto. Projects such as Bored Ape Yacht Club (BAYC) have transcended the concept of “just art” and “just collectibles”.
In addition to being “just art”, NFT projects such as Bored Ape Yacht Club (BAYC) also serve as collections. As an example of how an NFT can be used to verify identity in the real world, a Bored Ape NFT also serves as a membership card to grant access to members-only benefits.
In the metaverse, NFT will be used as an identity as well. Metaverses may take on diverse flavors as the sector expands, some of which may utilize a variety of blockchains to power their economies. Through BTP, multichain metaverses can verify identities and even ownership of tokenized items.
The BAYC NFTs could, for example, be converted into 3D models and used by their owners in the metaverse as in-world characters. In a multiverse running on another blockchain, it would be difficult to use BAYC NFTs as identities since they are native to Ethereum. In the metaverse, BTP can fulfill a wide range of use cases beyond basic token exchanges. For example, it can be used to verify ownership of NFTs across chains.
How BTP Works
Let’s explore how BTP works on a technical level now that we’ve discussed a few examples of its uses. Messages are passed by external community-run relay nodes between chains powered by smart contracts deployed on all chains connected to BTP.
Contracts based on BTP
The three smart contracts listed below must be implemented by a blockchain in order to be integrated with BTP.
- BTP messages are tracked by the Message Broker.
- Verification of messages sent from external relays to the chain’s Message Broker is carried out by the Light Client.
- As soon as the Message Broker sends a message, the Service Handler executes application-specific logic.
What is a BTP Relayer?
It would be impossible to conduct online shopping without shipping companies such as UPS and FedEx. Messages are delivered across blockchains using relays in BTP.
BTP relays are like nodes in blockchain terms – they provide a necessary service for the blockchain in exchange for rewards paid in ICX. Messages between source and destination chains are relayed by relay nodes in BTP. Despite being technically a middleman, relay operators do not act as custodians, but rather, as intermediaries between chains.
When Ethereum funds are transferred to Avalanche using the Avalanche Bridge, custody of the bridged funds is secured through a multi-signature contract controlled by four “wardens”. In spite of the Avalanche Bridge’s success so far, it relies on trusted bridge operators to complete its design.
A BTP relay can be set up by anyone, unlike traditional bridges which rely on handpicked bridge operators. Additionally, BTP relays do not verify cross-chain transactions or custody fund transfers. Funds are secured on the source and destination chains, not on relays that pass messages between chains. In other words, BTP eliminates the need to trust relays since they only contribute to the reliability and liveness of the network – not to the security of assets.
BTP Token Transfer Example
In this example, we’ll see how BTP can assist with transferring tokens between Moonbeam and BNB Smart Chain – two chains within the BTP Ecosystem.
- Users’ tokens are locked on the Moonbeam blockchain by Moonbeam’s Service Handler.
- ICON’s Message Broker receives the token transfer data through a BTP relay from Moonbeam’s Message Broker.
- Messages are passed to ICON’s Light Client for verification via its Message Broker. It accomplishes this by reproducing Moonbeam’s consensus protocol and validating the message’s transaction signatures.
- BTP relays ICON’s message to BNB Smart Chain’s Message Broker once the message is validated.
- The Message Broker of BNB Smart Chain passes the message to the Light Client of BNB Smart Chain that reproduces ICON’s consensus mechanism locally in order to validate the message.
- The Message Broker of BNB Smart Chain passes the message to the Light Client of BNB Smart Chain that reproduces ICON’s consensus mechanism locally in order to validate the message.
- BNB Smart Chain’s Service Handler initiates a token mint based on the value of the locked tokens on Moonbeam once the message has been validated.
BTP’s Benefits
Scalability and Chain-agnosticism are the hallmarks of BTP
Unlike other blockchains, BTP supports smart contracts regardless of its chain. BTP has been integrated into various blockchain ecosystems, including BNB Smart Chain, NEAR, Harmony, Algorand, and Moonbeam as of this writing.
Easy integration of BTP
In comparison to many other cross-chain solutions, BTP’s chain-agnostic design makes it easy to integrate and scalable. Polkadot and Cosmos are both top-tier projects that challenge the status quo in interoperability. Blockchains built with Cosmos SDK are connected through the Inter-Blockchain Communication Protocol (IBC). Polkadot Relay Chain (blockchains inside the Polkadot ecosystem) also allows communication between parachains.
With ICON’s BTP, connected blockchains aren’t required to be built using a specific SDK or architecture, unlike Cosmos and Polkadot’s interoperability solutions. According to the analogy of the digital nation, inter-ecosystem interoperability (such as Cosmos and Polkadot) refers to connections between industries within a country, whereas chain-agnostic solutions like BTP refer to connections between countries across a region.
Considering both chain-specific and chain-agnostic bridging solutions at this point might seem confusing. Both models have advantages and disadvantages, as with many things in life. When builders opt to build within the Cosmos ecosystem, chain-specific interoperability, such as Cosmos IBC, enables cross-chain communication to be quickly added as a feature. In addition, some dApps may need to interact with other blockchain ecosystems.
BTP’s initial integrations include Moonbeam (Polkadot para chain) and Moonriver (Kusama para chain). As the blockchain industry expands, we expect inter-ecosystem and cross-ecosystem interoperability to flourish, and we are already seeing examples of how these two models can coexist.
In addition to being chain-agnostic, trustless, and decentralized, BTP is also general-purpose and agnostic to networks. Through our platform, we hope to connect beyond bridges specific to chains or ecosystems such as EVM or Tendermint. Incorporating BTP into blockchains with smart contracts will integrate it with the entire ecosystem.
– Working Group on BTP, 2infiniti
Scalable Bridging Between Blockchains
DeFi and other crypto products require bridging solutions between different ecosystems, which is common among early adopters. Avalanche-Ethereum and Terra-Ethereum bridges are examples. Would it make sense if a user wanted to make a direct transfer from Terra to Avalanche without transferring from Ethereum first? As part of a monolithic bridging protocol, these two bridges are unaware of each other at the moment, so that’s not possible.
In the BTP network, connected chains can perform cross-chain transfers and exchange communication without relying on a third party. Avalanche and Terra, for example, could be connected to BTP so users could transfer assets directly from Avalanche to Terra without using a third party.
Bridging across chains becomes much more scalable by removing the need for explicit connections. If 100 blockchains were to be connected together. BTP allows each chain to connect with the other 99 chains with a single integration with ICON! A key feature of BTP is its security and decentralization
Two of the main advantages of BTP are its security and decentralization. The key to cross-chain transfers is the locked, minting, and burning of tokens, which is done through handpicked operators on many bridges. We believe cross-chain interoperability can only thrive with fully trustless and decentralized bridges (not trust-minimized or trusted bridges), much like DeFi thrives with decentralized stablecoins.
Due to its unique architecture, BTP is both secure and decentralized. BTP is as safe as the chains involved since verification and application logic are located on the source chain, destination chain, and ICON. As part of BTP’s secure nature, funds are also safely deposited and withdrawn. BTP stores funds directly on its source and destination chains, unlike traditional bridge operators that use multi-signature contracts.
It is common for the party relaying messages between chains to also verify the messages in many traditional bridging solutions. Traditional bridge solutions are therefore unable to expand beyond a small number of handpicked bridge operators.
Due to BTP’s decentralized system, no relay is responsible for verifying messages, so security and decentralization are not in conflict. Anyone can operate BTP relays as long as they contribute to liveness. Relays also contribute to the ecosystem because they are rewarded by network issuance.
How to Join the BTP Ecosystem
In the future, billions of users worldwide will be able to send and receive messages seamlessly across chains. Our goal is to fulfill this vision by collaborating with BTP partners like BNB Smart Chain, NEAR Protocol, Harmony, Algorand, and many more. Get in touch with us on the official ICON Discord if you’re interested in joining the BTP ecosystem.
Summary
Interoperability across chains is now possible thanks to ICON‘s BTP. BTP uses on-chain smart contracts to facilitate cross-chain communication and uses community-run message relays to provide funds to bridge operators without any centralized control.
Having a vision of being prepared for anything is the goal of BTP. The use of interoperability was unknown 3 years ago, now there is a focus on DeFi. Where do we go from here? It’s not about finding the answer, but finding a flexible, secure, and decentralized approach to interoperability, and that’s exactly what BTP is. – ICON Foundation, Min Kim
There is no doubt that blockchain is going to be multi-chain in the coming years, which means cross-chain bridges will be of utmost importance. Having built a brighter and more interconnected future with the help of our ecosystem partners and community is what drives BTP to position itself as a leader in cross-chain communication.
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