Atomic Appends: Selling Cars and Coordinating Armies with Multiple Distributed Ledgers

TL;DR

This paper introduces the AtomicAppends problem for interblockchain transactions, analyzes its solvability under various scenarios, and proposes a specialized blockchain intermediary called Smart DLO to ensure atomicity.

Contribution

It formalizes the AtomicAppends problem for multiple distributed ledgers and proposes a novel Smart DLO intermediary to solve it in asynchronous, crash-prone environments.

Findings

AtomicAppends require either an intermediary or specific conditions for solvability.

Smart DLO can ensure atomic appends even with crashing clients.

Interoperability solutions depend on client utility, timing, and failure models.

Abstract

The various applications using Distributed Ledger Technologies (DLT) or blockchains, have led to the introduction of a new `marketplace' where multiple types of digital assets may be exchanged. As each blockchain is designed to support specific types of assets and transactions, and no blockchain will prevail, the need to perform interblockchain transactions is already pressing. In this work we examine the fundamental problem of interoperable and interconnected blockchains. In particular, we begin by introducing the Multi-Distributed Ledger Objects (MDLO), which is the result of aggregating multiple Distributed Ledger Objects -- DLO (a DLO is a formalization of the blockchain) and that supports append and get operations of records (e.g., transactions) in them from multiple clients concurrently. Next, we define the AtomicAppends problem, which emerges when the exchange of digital assets between multiple clients may involve appending records in more than one DLO. Specifically, AtomicAppend requires that either all records will be appended on the involved DLOs or none. We examine the solvability of this problem assuming rational and risk-averse clients that may fail by crashing, and under different client utility and append models, timing models, and client failure scenarios. We show that for some cases the existence of an intermediary is necessary for the problem solution. We propose the implementation of such intermediary over a specialized blockchain, we term Smart DLO (SDLO), and we show how this can be used to solve the AtomicAppends problem even in an asynchronous, client competitive environment, where all the clients may crash.