Native tokens in distributed ledgers : A native token protocol and blockchain emulator

Sammanfattning

A majority of well-known blockchains supports Non-Fungible Tokens (NFTs) operations via smartcontracts. Smart contracts often allow users to store arbitrary logic and code for a small programon the blockchain, and run it on the validator nodes when a monetary transaction is made to thecontract’s account. The use of smart contracts creates extra complexity in the blockchain protocolwhen allowing concurrent smart contract execution between shards alongside monetary transactions.To reduce the complexity of the blockchain protocol, native tokens and operations could be supportedby the blockchain, albeit restricting developers to a predefined set of functions and operations. Nativetoken operations can serve as a secure complement to the versatility of Turing-complete smartcontracts, providing robust, predefined primitives that could reduce the surface area for smart contractvulnerabilities. This project introduces a native token model that is centered on unique, non-fungible tokens thatsupport three primary use cases: ownership, rights and authenticity. By requiring bilateral transferconsent, and supporting optional clawback and freeze mechanisms, for revocable rights and non-transferable tokens respectively, the model bridges the gap between blockchains and legal frameworks.Additionally, an indirect transaction cost mechanism is implemented to protect the blockchain networkagainst Denial-of-Service attack during non-monetary operations. The project is supported by an emulator implementing monetary and token operations, alongsidea implementation design of how the token protocol could be integrated within ScaleGraph. The emulator’s throughput displays a slightly degraded performance of token transfer operations of ~150TX/s on average, compared to monetary transfers in the current implementation. Despite this, theemulator maintains a high average throughput of ~1300 TX/s with load generators of both monetaryand token transfer operations, when tested on a VPS with 2 vCPUs and 4GB of ram.If the token operation properties and performance compared to monetary transaction are transferableto ScaleGraph, native tokens could be a preferred way of implementation of tokens independentlywether or not with implementation of smart contracts.