👽Chain Abstraction and Assets Teleport

Chain Abstraction

In traditional cross-chain technologies, operations typically rely on asset or block locking. Between the initiating chain and the target chain, numerous high-cost operations are required, such as transaction locking and data exchange. These operations are not only complex and time-consuming but also prone to security issues. A more common cross-chain approach often uses multi-signature (multi-sig) techniques, where users need to transfer assets to the corresponding address. However, this method has potential security risks, and several projects have experienced major incidents resulting in significant user losses.

Rainbow Protocol operates between Bitcoin and Rainbow VM (built on the Internet Computer) and addresses these issues through chain abstraction. Specifically, the implementation of chain abstraction in Rainbow Protocol involves the following:

• Asset Abstraction: Bitcoin accounts and asset definitions are highly abstracted within Rainbow VM. This means that asset definitions and operations are consistent and standardized, whether on the Bitcoin network or within Rainbow VM.

• Standardized Interfaces: By providing standardized interfaces, interactions between different networks are simplified. Developers and users can manage and operate assets under a unified interface without needing to worry about underlying network differences.

• Smart Contract Execution: Smart contracts run within the overlay protocol's network, eliminating the need for cross-chain transfers. This avoids the complex locking and unlocking operations of traditional cross-chain transfers, enhancing operational efficiency and security.

Through chain abstraction, Rainbow Protocol achieves seamless interoperability between Bitcoin and Rainbow VM, simplifying cross-chain operations, reducing costs, and enhancing system security. This allows users and developers to manage and operate assets more efficiently, enjoying a more secure and faster blockchain experience.

One of the key advantages of Rainbow Protocol's chain abstraction is that it allows users to interact with Rainbow VM smart contracts directly from the Bitcoin network without having to leave it. This seamless integration means users can leverage Bitcoin's security and stability while utilizing the advanced functionalities provided by smart contracts on Rainbow VM.

For example, a user can call a VM contract method using encoded payload and Bitcoin script, as illustrated by the following hypothetical contract:

{
  "t": "Contract", // payload type
  "n": "RBOPool", // should be contract id
  "f": "stake", // should be function hash 
  "p": [1000], // parameters
}

In this use case:

• Type (t): Specifies the type of transaction, in this case, a contract call.

• Name (n): Indicates the contract name, such as "RBOPool".

• Function (f): Represents the function to be called within the contract, in this case, "stake".

• Parameters (p): Lists the parameters to be passed to the function, here it is staking 1000 units.

This approach allows users to interact with complex DeFi protocols, staking mechanisms, and other decentralized applications without having to transfer their assets across different blockchains. The interaction is smooth, efficient, and secure, leveraging the strengths of both the Bitcoin network and Rainbow VM.

By providing such seamless interoperability, Rainbow Protocol enhances the user experience and opens up new possibilities for integrating advanced smart contract functionalities directly within the Bitcoin ecosystem. This makes it easier for users to access and utilize a wide range of decentralized services and applications while maintaining the security and reliability of the Bitcoin network.

Teleport

Teleport refers to the transfer of assets between Bitcoin (L1) and Rainbow VM (L2). Thanks to chain abstraction, there is no need to worry about losing Bitcoin during these operations. In Rainbow Protocol, as long as the protocol rules are met, you can transfer assets seamlessly. The best example of this is Teleport. Here, we use the network layering definitions from other protocols: L1 (Bitcoin) and L2 (Rainbow VM).

Features of Asset Teleport

• Transferring Assets from L1 to L2

  Users only need to send a Bitcoin transaction with the "Tele" operator in the OP_RETURN field, specifying the address to which the asset will be transferred (which can be their own address). After the block is confirmed, the corresponding RBO Tokens will be transferred to the L2 address.

• Transferring Assets within L2

  Within L2, assets can be transferred without consuming Bitcoin or even any Gas Fees. You only need to use the same Bitcoin address as in L1 to complete the transfer. Additionally, you can perform various complex operations that typically require smart contracts, such as DeFi interactions or gaming transactions.

• Transferring Assets from L2 to L1

  Transferring assets from L2 to L1 is simplified by chain abstraction. You only need to complete a transaction initiated in L2. This process does not require cross-chain operations and can be completed within seconds.

Through the Teleport feature, Rainbow Protocol enables efficient and secure cross-chain asset transfers, greatly simplifying user operations and enhancing the user experience. Whether transferring assets from L1 to L2, within L2, or from L2 back to L1, the process becomes more intuitive and efficient, providing users with a more convenient way to manage blockchain assets.