ChainX X-BTC2.0 —Vault trusteeship scheme

X-BTC 2.0 is a trustless and highly efficient inter-chain asset system based on the XCLAIM framework through which two protocols are introduced to enable distributive, transparent, consistent, and anticensorship cross-region blockchain transactions. The most prominent difference from X-BTC 1.0 is the Vault (asset custodian) mechanism which allows more people to engage in assets’ chain crossing.

X-BTC 2.0 Vault advantages

XCLAIM overcomes the limitations of centralization in the following ways

Build a log to record all users’ behavior on Bitcoin and ChainX

Relay is used to prove to ChainX the correct behavior on Bitcoin

XCLAIM does not rely on last-minute fraud-proof (which renders the system passive) but requires proactive proof of correct behavior.

Untrusted Vaults, subjected to collateral (PCX), have to establish a mechanism to mitigate exchange rate fluctuations

X-BTC 2.0 Vault scheme process

1)Vault locks collateral on the ChainX chain;

2)Users transfer Bitcoins to Vault for locking;

3)Submit lock proof to ChainX;

4)ChainX smart contract locks the amount in Vault and issues XBTC to the user’s account.

1)Users burn X-BTC through ChainX smart contract;

2)Vault transfers Bitcoins to the user after witnessing the unlock event;

3)Vault submits the released proof to ChainX to unlock the collateral.

About ChainX

ChainX is the largest Layer-2 network of Bitcoin, based on Substrate, and will evolve into the Polkadot Secondary Relay Chain.