FedChain: Secure Proof-of-Stake-based Framework for Federated-blockchain Systems
This work addresses the challenge of interoperability and centralization in blockchain systems for stakeholders and chain operators, though it appears incremental as it builds upon existing federated and PoS concepts.
The authors tackled the problem of secure token transfers between different blockchain networks by proposing FedChain, a federated-blockchain framework with a cross-chain transfer protocol and a novel Proof-of-Stake consensus mechanism, achieving enhanced security and performance compared to existing methods.
In this paper, we propose FedChain, a novel framework for federated-blockchain systems, to enable effective transferring of tokens between different blockchain networks. Particularly, we first introduce a federated-blockchain system together with a cross-chain transfer protocol to facilitate the secure and decentralized transfer of tokens between chains. We then develop a novel PoS-based consensus mechanism for FedChain, which can satisfy strict security requirements, prevent various blockchain-specific attacks, and achieve a more desirable performance compared to those of other existing consensus mechanisms. Moreover, a Stackelberg game model is developed to examine and address the problem of centralization in the FedChain system. Furthermore, the game model can enhance the security and performance of FedChain. By analyzing interactions between the stakeholders and chain operators, we can prove the uniqueness of the Stackelberg equilibrium and find the exact formula for this equilibrium. These results are especially important for the stakeholders to determine their best investment strategies and for the chain operators to design the optimal policy to maximize their benefits and security protection for FedChain. Simulations results then clearly show that the FedChain framework can help stakeholders to maximize their profits and the chain operators to design appropriate parameters to enhance FedChain's security and performance.