Cross-border Exchange of CBDCs using Layer-2 Blockchain
Fuente:
arXiv
Saved in:
| Main Authors: | , , , , |
|---|---|
| Format: | Preprint |
| Published: |
2023
|
| Subjects: | |
| Online Access: | |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1866910311832879104 |
|---|---|
| author | Gogol, Krzysztof Messias, Johnnatan Schlosser, Malte Kraner, Benjamin Tessone, Claudio |
| author_facet | Gogol, Krzysztof Messias, Johnnatan Schlosser, Malte Kraner, Benjamin Tessone, Claudio |
| contents | This paper proposes a novel multi-layer blockchain architecture for the cross-border trading of CBDCs. The permissioned layer-2, by relying on the public consensus of the underlying network, assures the security and integrity of the transactions and ensures interoperability with domestic CBDCs implementations. Multiple Layer-3s operate various Automated Market Makers (AMMs) and compete with each other for the lowest costs. To provide insights into the practical implications of the system, simulations of trading costs are conducted based on historical FX rates, with Project Mariana as a benchmark. The study shows that, even with liquidity fragmentation, a multi-layer and multi-AMM setup is more cost-efficient than a single AMM. |
| format | Preprint |
| id |
arxiv_https___arxiv_org_abs_2312_16193 |
| institution | arXiv |
| publishDate | 2023 |
| record_format | arxiv |
| spellingShingle | Cross-border Exchange of CBDCs using Layer-2 Blockchain Gogol, Krzysztof Messias, Johnnatan Schlosser, Malte Kraner, Benjamin Tessone, Claudio Cryptography and Security Social and Information Networks This paper proposes a novel multi-layer blockchain architecture for the cross-border trading of CBDCs. The permissioned layer-2, by relying on the public consensus of the underlying network, assures the security and integrity of the transactions and ensures interoperability with domestic CBDCs implementations. Multiple Layer-3s operate various Automated Market Makers (AMMs) and compete with each other for the lowest costs. To provide insights into the practical implications of the system, simulations of trading costs are conducted based on historical FX rates, with Project Mariana as a benchmark. The study shows that, even with liquidity fragmentation, a multi-layer and multi-AMM setup is more cost-efficient than a single AMM. |
| title | Cross-border Exchange of CBDCs using Layer-2 Blockchain |
| topic | Cryptography and Security Social and Information Networks |
| url | https://arxiv.org/abs/2312.16193 |