Overview

In the rapidly evolving world of blockchain technology, the increasing number of platforms and applications has highlighted a critical challenge: interoperability. Especially within highly regulated industries such as financial services, the ability for different Distributed Ledger Technologies (DLT) networks to communicate and transact with one another has been a significant hurdle.

Recognizing this gap in the market, QualitaX, in collaboration with Wanchain, Adhara, Datachain, Consensys, and Clearmatics, developed a specification addressing the need for various DLT networks to interact and transact seamlessly, especially in complex and regulated sectors. The specification includes architectural guidelines, protocol stack, and interface definitions, which are crucial for asset and data exchange across different DLT networks, thereby enhancing their functionality and utility. It is designed to support enterprise blockchain networks using diverse underlying technologies (for example, EVM and non-EVM networks), facilitating complex multi-chain ecosystem deployments involving assets, payments, and securities transactions. The open standard prevents fragmentation across different vendor implementations. Use cases supported include but are not limited to Payment vers Payment (PvP), and Delivery versus Payment (DvP). The specification supports regulated enterprise use cases that require interoperability between multiple blockchains with secure guarantees.

The EEA DLT Interoperability Specification

💡 The specification will soon be open for public comments and feedback. In the meantime, you can access it here: https://entethalliance.github.io/crosschain-interoperability/draft_dlt-interop_techspec.html.

You can also watch a snippet from our webinar on 'Enabling Real-Time Corporate Treasury for Banks with Blockchain' with Marelize Kriel - Cryptographer and Blockchain Engineer at Adhara. She presented two use cases supported by the EEA DLT Interoperability specification:

1️⃣ Payment versus Payment: exchanging dollars for pounds between two Ethereum chains,

2️⃣ Delivery versus Payment: swapping securities for cash between Corda and Ethereum ledgers.

📊 What this snippet covers:

➡ The leader-follower approach for executing secure and reliable transactions.

➡The significance of interoperability between various blockchain networks like Ethereum and Corda.

➡Technical considerations for maintaining transaction determinism and legal compliance in crosschain interoperability.

Our Approach

Step 1: Understanding the DLT Interoperability in regulated settings landscape

QualitaX researched and developed QX Interoperability, an open-source resource providing understanding and analysis of:

1) the current DLT interoperability landscape in regulated settings,

2) the current state of interoperability between DLT/blockchain platforms and existing financial market infrastructures

3) the current state of interoperability in the digital assets space.

It covers Industry Initiatives, Use Cases, Solutions Providers, and Interoperability Requirements. The research is under the CC BY-NC 4.0 license.

The research was presented to stakeholders from the BIS Innovation Hub, SWIFT, Ripple, SODA, IBM, GFT, Fireblocks, BITT, Quant Network, EEA, MIT, Ant Group, Stellar Development Foundation, Polygon and others.

Learn more here: https://qualitax.gitbook.io/interop/

Step 2: Engaging with standard development organizations and interoperability groups

Engaging with standard development organizations (SDOs) and interoperability groups is pivotal for advancing blockchain interoperability standards. Recognizing the importance of collaboration and consensus among industry players, QualitaX, under the leadership of Anaïs Ofranc, initiated a series of strategic steps to foster such engagement. The focus was on building relationships with key SDOs and interoperability groups to align efforts, share knowledge, and co-develop interoperability standards.

QualitaX, in collaboration with the other Enterprise Ethereum Alliance (EEA) Crosschain Interoperability Working Group members, hosted discussions and presentations. These events brought together experts from various DLT platforms, and technology providers. The aim was to identify common challenges in DLT interoperability and to brainstorm potential solutions. Through these collaborative efforts, participants shared their experiences, best practices, and technical insights, creating a rich knowledge base for developing interoperability standards.

Building on the insights gained from the workshops, QualitaX joined the International Organization for Standardization (ISO) to contribute to the creation of global DLT interoperability standards. By participating in these efforts, QualitaX aimed to ensure that the developed standards are comprehensive, inclusive, and capable of addressing the needs of various stakeholders across different industries.

Conclusion

In conclusion, QualitaX's strategic engagement with standard development organizations and interoperability groups allows us to ensure that the Enterprise Ethereum Alliance (EEA) DLT Interoperability specification is fit for purpose and delivers on the requirements of market participants.

QualitaX, alongside Wanchain, Adhara, and other EEA members, has laid the groundwork for an efficient, and secure multi-chain ecosystem in regulated settings. This project underscores the importance of collaboration, innovation, and commitment to standards for the future of blockchain technology in the financial sector.