A Proof of Success and Reward Distribution Protocol for Multi-bridge Architecture in Cross-chain Communication

TL;DR

This paper introduces PSCRD, a protocol that enhances decentralization and fairness in cross-chain bridge systems by incentivizing honest participation and equitable reward distribution, validated through mathematical analysis and simulations.

Contribution

The paper presents a novel multi-bridge response coordination and reward distribution protocol that improves decentralization and fairness in cross-chain communication.

Findings

Improved fairness in reward distribution as more bridges join.

Enhanced decentralization demonstrated by increased Nakamoto coefficient.

Resilient cross-chain system without higher user costs.

Abstract

Single-bridge blockchain solutions enable cross-chain communication. However, they are associated with centralization and single-point-of-failure risks. This paper proposes Proof of Success and Reward Distribution (PSCRD), a novel multi-bridge response coordination and incentive distribution protocol designed to address the challenges. PSCRD introduces a fair reward distribution system that equitably distributes the transfer fee among participating bridges, incentivizing honest behavior and sustained commitment. The purpose is to encourage bridge participation for higher decentralization and lower single-point-of-failure risks. The mathematical analysis and simulation results validate the effectiveness of PSCRD using two key metrics: the Gini index, which demonstrates a progressive improvement in the fairness of the reward distribution as new bridge groups joined the network; and the Nakamoto coefficient, which shows a significant improvement in decentralization over time. These findings highlight that PSCRD provides a more resilient and secure cross-chain bridge system without substantially increasing user costs.