More secure cross-chain solutions

[IMPACT] Please describe your proposed solution.

Currently, a cross-chain bridge has become the necessary infrastructure for each chain to attract funds, and it has also become a necessarily demanding product for users to explore different chains & ecosystems. However, none of the existing cross-chain bridges can securely connect all chains, nor is there a solution that meets the three dimensions of security, capital efficiency, and scalability at the same time.

As the infrastructure, security is the first priority of the cross-chain bridge. At present, the cross-chain between EVM-compatible chains is very mature, but there are great challenges in the security of asset transfer between non-EVM compatible chains to EVM-compatible chains, and PoW to PoS.

We are committed to providing more secure cross-chain solutions with a sound safety system to secure cross-chain assets on our platform. With the secure bridge, more users and crypto assets will be brought into the Cardano ecosystem.

[IMPACT] Please describe how your proposed solution will address the Challenge that you have submitted it in.

MicroChains has strategically cooperated with top blockchain custodians including Huobi Trust & Cobo Custody, and originally created the cross-chain bridge solution of POT+VOMEN (Proof of Trust + Verification of Multiple & Enhanced Nodes). Two credible custodians are escrowing assets and participating in the verification of token minting and burning as third-party validators.

Multi-node Verification ( VoMEN )

l Mint Verification: MicroChains verifies minting through an internal multi-node risk control module, and performs strict posting verification of source-chain assets, thus ensuring the sufficient assets collateral.

l Custody of Lock-up Assets: Lock-up assets are kept by top third-party custodian service providers including Huobi Trust and Cobo Custody.

l Multiple Audits of Withdrawals: In addition to the multiple audits of the monitoring and warning mechanism, there are custodians that completed KYC acting as third-party enhanced validation nodes. For the extraction of any locked assets and minted assets, it can only be extracted after the verification of the sufficient asset collateral on the source chain by the MicroChains team and custodians.

Enhanced Node Verification and POT (Proof of Trust )

MicroChains introduces top third-party trust service providers (Huobi Trust & Cobo Custody) to prevent assets stolen, over-issuance, and asset abuse.

Prevention of Over-issuance

Mint Verification: Mint assets can only be released to the user address after verification.

l Withdrawal Verification: Each withdrawal from locked accounts must be approved by validators before assets are officially released.

Prevention of Theft

Third-party Node Verification: In addition to the multi-audits of the project’s internal monitoring mechanism, all transfers and withdrawals of cross-chain delegated assets from Trust accounts must be verified by the third-party witness.

Small-amount Withdrawal: Automatic verification through the system.

Large-amount withdrawal: Both custodians (Huobi Trust & Cobo Custody) require internal multi-node manual review for large amount withdrawal.

Prevention of Asset Abuse

Proof of Assets: Regularly publicize custody assets in Huobi Trust and Cobo Custody to show the adequacy of collateral assets.

Audit Report: Regular audits for the escrow assets by well-known auditors after the stable operation.

With the above security solutions, MicroChains will be able to access 30+ public chains every year and provide secure cross-chain services for more than 100+ cryptocurrencies. Meanwhile, the capital efficiency will exceed 99.9%. Besides, users will obtain positive benefits from the mint in combination with the minting and mining campaigns, which would fuel the ecological development of the new public chain.

MicroChains will also launch the KYC validator program in Q4 2022 and make a transition from multi-signature to the expansion of validators by using MPC technology. KYC-passed validators are eligible to earn token rewards, and the incentive scheme will also be launched in Q4.

[IMPACT] What are the main risks that could prevent you from delivering the project successfully and please explain how you will mitigate each risk?

We can be proud to say MicroChains has the highest-level security on cross-chain assets management. Since users need to cross-chain their native assets from the source chain and receive C-tokens on Cardano & Milkomeda chain, then they are able to explore the Cardano ecosystem with C-tokens. So the main potential risk is the utility & application of C-tokens.

We are actively collaborating with Cardano DEXs and Defi projects and it works not bad. Through the Cardano Project Catalyst, we hope our project can be seen by more experts and get recognition from the Cardano official community. That would be awesome for our bridge if we can work with the IOHK team.

[FEASIBILITY] Please provide a detailed plan, including timeline and key milestones for delivering your proposal.

So far, MicroChains has supported 4 chains including Bitcoin, Ethereum, Cardano, and Milkomeda, allowing users to migrate $BTC, $ETH, $USDT, $USDC, and $WBTC from the source chain to Cardano and Milkomeda networks, also move back mutually. More chains and cryptocurrencies will be integrated and brought to the Cardano ecosystem.

2022 Q2

• Support 4 EVM Compatible Chains, 2 Emerging non-EVM Compatible Chains, and 10+ Mainstream Asset Currencies
• Introduce 2 Top Ecological Partners
• TGE, Start Airdrops, Trading Mining, and Single Currency Pledge
• Token Listing

2022 Q3

• Support 15 Main Chains including Various Emerging Public Chains
• Support 30+ Crypto Currencies
• Start the study of Cross-chain Swap

2022 Q4

• Support 20 Main Chains including Various Emerging Public Chains
• Support 50+ Crypto Currencies
• KYC Validator Program Launch, realizing decentralized verification
• Cross-chain Swap V1 launch

[FEASIBILITY] Please provide a detailed budget breakdown.

+ Technology Development: $ 10,000

+ Marketing & Operation: $ 10,000

[FEASIBILITY] Please provide details of the people who will work on the project.

Romain Caillet (CMO) - https://www.linkedin.com/in/romain-caillet-305917113/

Participated in community management and operation of multiple blockchain projects, High visibility in Spanish and French blockchain communities.

Harold Sun (CTO) - https://www.linkedin.com/in/harold-sun-6bb0b299/

Core development member of Huobi Chain, HBTC, and HECO, with 4 years of blockchain development experience. 

Oscar Law (COO) - https://www.linkedin.com/in/oscar-law-25b04b224/

4 years of experience in top 3 blockchain exchanges about operation and marketing. Experienced in crypto-asset custody.

[FEASIBILITY] If you are funded, will you return to Catalyst in a later round for further funding? Please explain why / why not.

Happy to apply for further funds cuz we are building this project with a long-term aim. If we can receive more support from Project Catalyst, that's great!

[FEASIBILITY] Are you or any member of your team working on any other proposals in this Fund9?

[FEASIBILITY] Are you or your team working on any other proposals from previous Funds?

[AUDITABILITY] Please describe what you will measure to track your project's progress, and how will you measure these?

Build and build, follow our roadmap, step by step, and move forward until making it!

2022 Q2

• Support 4 EVM Compatible Chains, 2 Emerging non-EVM Compatible Chains, and 10+ Mainstream Asset Currencies
• Introduce 2 Top Ecological Partners
• TGE, Start Airdrops, Trading Mining, and Single Currency Pledge
• Token Listing

2022 Q3

• Support 15 Main Chains including Various Emerging Public Chains
• Support 30+ Crypto Currencies
• Start the study of Cross-chain Swap

2022 Q4

• Support 20 Main Chains including Various Emerging Public Chains
• Support 50+ Crypto Currencies
• KYC Validator Program Launch, realizing decentralized verification
• Cross-chain Swap V1 launch

[AUDITABILITY] What does success for this project look like?

Fulfill our mission that Providing Emerging Public Chains Friendly Cross-chain Solutions with Better Security and Smoother Experience. Ultimately, it will be a trustworthy, secure, and convenient cross-chain solution for projects and users.

C-tokens are widely adopted by the Cardano community. MicroChains bridge connects different blockchain ecosystems and benefits all.

[AUDITABILITY] Please provide information on whether this proposal is a continuation of a previously funded project in Catalyst or an entirely new one.

We submitted a proposal in Fund 8, but it seemed something wrong. The proposal just got archived. a little confused about that.