The Building Blocks of Secure Cross-Chain Options"

This section explores the foundational elements for secure DeFi trading: blockchain mechanics, smart contracts, DAPS to prevent double spending, and HTLCs for trustless transactions.

Table of Links

A. Codes

B. Proofs

2 PRELIMINARIES

Blockchain, Smart Contract, and Asset. A blockchain is a tamperproof distributed ledger that records asset balances for each address. An asset can be a cryptocurrency, a token, or any item transactable on-chain. A party can be an individual, organization, or any entity capable of interacting with the blockchain. A smart contract (simply as "contract") is an agreement written in code. Parties can create contracts, call functions, and check contract code and state. Δ represents the time period sufficient for parties to release, broadcast, and confirm transactions on the blockchain.

Cryptographic Primitives. A secret is known exclusively to its generator, and 𝐻(·) represents a collision-resistant hash function. In asymmetric ...