Towards a Contract Service Provider Model for Virtual Assets and VASPs

TL;DR

This paper proposes a new contract service provider (CSP) model for virtual assets, inspired by Internet ISPs, aiming to create alternative blockchain fee models and improve cross-chain asset transfer interoperability.

Contribution

It introduces the CSP model as an alternative to gas fee models and discusses design principles and cross-chain transfer interoperability for virtual assets.

Findings

CSP model offers an alternative fee structure for blockchain services.

Design principles from Internet architecture guide CSP development.

Enhanced interoperability for cross-chain virtual asset transfers.

Abstract

We introduce the contract service provider (CSP) model as an analog of the successful Internet ISP model. Our exploration is motivated by the need to seek alternative blockchain service-fee models that departs from the token-for-operations (gas fee) model for smart contracts found on many popular blockchain platforms today. A given CSP community consisting of multiple CSP business entities (VASPs) form a contract domain which implement well-defined contract primitives, policies and contract-ledger. The nodes of the members of CSP community form the blockchain network. We discuss a number of design principles borrowed from the design principles of the Internet Architecture, and we discuss the interoperability of cross-domain (cross-chain) transfers of virtual assets in the context of contract domains.